US insurer Lemonade now charges less for the miles a Hardware 3 Tesla drives on FSD (Supervised) v14 Lite. From 8 October 2026, owners in Arizona, Colorado and Tennessee save 30% on those miles. Hardware 4 cars running FSD v14.2 or newer keep their 50% reduction.
Until this week, HW3 cars could not join the programme. Lemonade's president, Shai Wininger, said support for "the new FSD Lite" starts "with three states today, and more coming soon."
How the pricing works
Lemonade Autonomous Car is a pay-per-mile policy. With the owner's permission, Lemonade reads vehicle data through Tesla's Fleet API. It separates FSD-engaged miles from human-driven ones and prices each at its own rate, so the more an owner uses FSD, the bigger the saving.
Lemonade announced the product on 21 January 2026. It said then that its models predict risk "based on the autonomous software version installed in the car, the precision of its sensors, and more". It began selling in Arizona on 26 January, with Oregon following a month later.
| Hardware 4 | Hardware 3 | |
|---|---|---|
| Qualifying software | FSD (Supervised) v14.2 or newer | FSD (Supervised) v14 Lite |
| Discount on FSD-engaged miles | 50% | 30% |
| FSD mile priced at, vs a manual mile | 50% | 70% |
| Eligible since | January 2026 | 8 October 2026 |
What the 30% says
Read literally, Lemonade prices an FSD mile on HW3 at 70% of that car's manual rate, and an FSD mile on HW4 at 50%. For two cars on the same base premium, the Lite mile costs 40% more. The distilled software earns three-fifths of the discount the full version does.
Lemonade has not explained how it set the figure, and it has published no crash data for v14 Lite. It has had little time to collect any: Tesla began pushing the first Lite build to HW3 cars on 29 June 2026. The newest, v14.3 Lite, reached early-access owners only this week.
Wininger was generous about the software all the same: "Tesla has done something remarkable with v14 Lite by taking the intelligence from its newest hardware and making it available to owners of older Teslas." In January he promised that "the safer FSD software becomes, the more our prices will drop." HW3 owners now have a published rate to hold that promise against.
Where other insurers stand
| Insurer | Market | FSD pricing |
|---|---|---|
| Lemonade | US states | 50% off FSD miles on HW4, 30% on HW3 Lite |
| Zurich (Insure My Tesla) | Australia | Discount of undisclosed size, announced 14 September 2026 |
| Tesla Insurance | Selected US states | Up to 10% off certain coverages for drivers using FSD on at least half their miles |
Zurich based its Australian discount on claims from Hardware 4 cars, the only ones there with FSD. Tesla's own insurer now shows the effect of FSD on its US order page.
What it means in Europe
Nothing directly yet. No Lite build has shipped in Europe, and the FSD (Supervised) software approved in eight European countries runs only on Hardware 4.
The number still travels. The roughly 7,900 European owners pressing Tesla over HW3 argue that the computer was sold as capable of full self-driving. FSD v15 is reported to be HW4-only, which would leave HW3 on distilled v14 builds. An insurer has now priced the gap: on Lemonade's numbers, FSD on HW3 is worth 30% off a mile, not 50%.