Lemonade, the digital insurance company, launched a new insurance product specifically designed for Tesla owners using the Full Self-Driving (Supervised) system, promising to cut per-mile rates by approximately 50%. The company announced Wednesday that this new "Autonomous Car insurance" leverages previously unavailable vehicle telemetry data through a technical collaboration with Tesla.

This marks one of the first insurance products to price premiums based on the utilization of advanced driver-assistance systems, signaling a potential shift in the insurance industry as partial and fully autonomous driving technologies become more prevalent. Lemonade plans to use the data to train its own usage-based risk prediction models, distinguishing between when a driver is actively using Full Self-Driving and when they are manually operating the vehicle. This distinction will then be used to determine insurance pricing. The company declined to offer further specifics on the technical collaboration with Tesla.

While Tesla's Full Self-Driving system requires drivers to remain attentive and ready to take control at any time, Lemonade's product reflects a forward-looking perspective on the future of autonomous driving. The launch can be seen as a bet on Tesla CEO Elon Musk's long-stated goal of achieving full autonomy.

The move by Lemonade could encourage other insurance companies to develop similar products that factor in the use of advanced driver-assistance systems. This could lead to more personalized and potentially lower insurance rates for drivers who actively utilize these technologies. The development also highlights the increasing importance of data sharing and collaboration between automakers and insurance providers.

Lemonade has not yet released details on the specific rollout timeline or geographic availability of the Autonomous Car insurance product.