Using a first-of-its-kind integration to enable the most precise usage-based pricing for Tesla Full Self Driving (FSD)

Lemonade (NYSE:LMND), the digital insurance company powered by AI and social impact, today announced the launch of Lemonade Autonomous Car insurance, a first-of-its-kind product designed specifically for self-driving cars, starting with Tesla FSD.

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Lemonade Autonomous Car Insurance

The new offering cuts per-mile rates for FSD-engaged driving by approximately 50%, reflecting what the data shows to be significantly reduced risk during autonomous operation. Lemonade expects further reductions as Tesla releases FSD software updates, which are anticipated to make the cars even safer over time.

The launch is the result of a technical collaboration with Tesla, giving Lemonade access to vehicle data that was previously unavailable. Data captured then feeds into Lemonade's usage-based risk prediction models, already among the most advanced in the industry, to uniquely distinguish between autonomous and human driving, as well as predict risk based on the autonomous software version installed in the car, the precision of its sensors, and more.

"Traditional insurers treat a Tesla like any other car, and AI like any other driver," said Shai Wininger, co-founder and president at Lemonade. "But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can't be compared to a human."

"Our existing pay-per-mile product has given us something no traditional insurer has: a unique tech stack designed to collect massive amounts of real driving data for precise, dynamic pricing. Lemonade Autonomous Car was built on that foundation," Wininger said.

Lemonade supports intermittent use of FSD, as well as households with a mix of Teslas and standard non-FSD vehicles from other manufacturers, all under one policy. Customers can also unlock additional discounts for safe driving behavior, as well as savings for bundling with Lemonade's Homeowners, Renters, and Pet insurance.

Lemonade's approach reflects its broader strategy of using AI to gain operational efficiency and pricing accuracy, passing savings directly to customers. The company has stated its ambition to become the lowest-cost, best-experience insurance in the world, and Lemonade Autonomous Car insurance is another step toward that goal.

"Teslas driven with FSD are involved in far fewer accidents," Wininger added. "By connecting to the Tesla onboard computer, our models are able to ingest incredibly nuanced sensor data that lets us price our insurance with higher precision than ever before."

"Beyond the product announcement today, we're also announcing our commitment to the Tesla community - the safer FSD software becomes, the more our prices will drop," Wininger said.

The product will begin rolling out in Arizona on January 26 and in Oregon a month later.

Tesla owners will be able to get a quote for the new product in seconds, through the Lemonade app, or online at tesla.lemonade.com/fsd.

Lemonade continues to offer its existing Car insurance, which supports most popular cars as well as Teslas, in Arizona, California, Colorado, Illinois, Indiana, Ohio, Oregon, Tennessee, Texas, and Washington.

About Lemonade

Lemonade delivers AI-powered renters, pet, car, homeowners, and life insurance across the US and EU. We process claims instantly, keep costs low, and donate unused premiums to causes selected by our community, as part of the annual Giveback program.

Follow Lemonade on X and Instagram for updates.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release are forward-looking statements, including the date and time of the earnings call.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements expressed or implied to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to the following: our financial outlook for the fourth quarter and full year 2025, our financial outlook and results into 2026, our financial metrics, including our key performance indicators, our ability to acquire new business, including growth of products in new states and Europe, the expected benefits, accuracy and growth of our predictive and generative AI models, and their effects on handling loss ratios, LAE and other metrics, our anticipated growth, profitability, our industry, business strategy, plans, goals and expectations concerning our market position, future operations, reinsurance coverage, capital efficiency ratio, and other financial and operating information, our history of losses and that we may not achieve or maintain profitability in the future; our success and ability to retain and expand our customer base; the "Lemonade" brand may not become as widely known as incumbents' brands or the brand may become tarnished; the denial of claims or our failure to accurately and timely pay claims; our ability to attain greater value from each user; availability of reinsurance at current levels and prices; our exposure to counterparty risks; our limited operating history; our ability to manage our growth effectively; our proprietary artificial intelligence algorithms may not operate properly or as expected; the intense competition in the segments of the insurance industry in which we operate; our ability to maintain our risk-based capital at the required levels; our ability to expand our product offerings; the novelty of our business model and its unpredictable efficacy and susceptibility to unintended consequences; the possibility that we could be forced to modify or eliminate our Giveback; regulatory risks, related to the operation, development, and implementation of our proprietary artificial intelligence algorithms and telematics based pricing model; legislation or legal requirements that may affect how we communicate with customers; the cyclical nature of the insurance industry; our reliance on artificial intelligence, telematics, mobile technology, and our digital platforms to collect data that we utilize in our business; our ability to obtain additional capital to the extent required to grow our business, which may not be available on terms acceptable to us or at all; our actual or perceived failure to protect customer information and other data as a result of security incidents or real or perceived errors, failures or bugs in our systems, website or app, respect customers' privacy, or comply with data privacy and security laws and regulations; periodic examinations by state insurance regulators; underwriting risks accurately and charging competitive yet profitable rates to customers; our ability to underwrite risks accurately and charge competitive yet profitable rates to our customers; potentially significant expenses incurred in connection with any new products before generating revenue from such products; risks associated with any costs incurred and other risks as we expand our business in the U.S. and internationally; our ability to comply with extensive insurance industry regulations; our ability to comply with insurance regulators and additional reporting requirements on insurance holding companies; our ability to predict the impacts of severe weather events and catastrophes, including the effects of climate change and global pandemics, on our business and the global economy generally; increasing scrutiny, actions, and changing expectations on environmental, social, and governance matters; our agreement with General Catalyst as a synthetic agent may not function as expected; fluctuations of our results of operations on a quarterly and annual basis; our utilization of customer and third party data in underwriting our policies; limitations in the analytical models used to assess and predict our exposure to catastrophe losses; potential losses could be greater than our loss and loss adjustment expense reserves; the minimum capital and surplus requirements our insurance subsidiaries are required to have; assessments and other surcharges from state guaranty funds; our status and obligations as a public benefit corporation; our operations in Israel and the current political, economic, and military instability, including the evolving conflict in Israel and surrounding region.

These and other important factors described under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed on February 26, 2025, and in our other subsequent filings with the SEC, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's beliefs as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

NEWS & INFORMATION DISCLOSURE

Investors should note we may use our website (investor.lemonade.com), blog (lemonade.com/blog), X (@Lemonade_Inc), and LinkedIn as a means of disclosing information and for complying with our disclosure obligations under Regulation FD. The information we post through these channels may be deemed material. Investors should monitor these channels in addition to reviewing our press releases, SEC filings, and public conference calls.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260121169700/en/

Press contact:

Paul Staats

Press@lemonade.com

Lemonade Unveils Autonomous Car Insurance, Slashing Rates for Tesla FSD Miles by 50%