Tesla has introduced a special discount on its in-house car insurance for drivers who frequently use its Supervised Full Self-Driving (FSD) feature.
This offer is currently available only in Texas and Arizona and comes as the company prepares to launch fully autonomous robotaxi services later this year.
How the Discount Works
Drivers in Texas and Arizona who use Supervised FSD at least 50% of the time can get up to 10% off their Tesla insurance premium.
- New Tesla insurance customers: Discount starts on February 1, 2025.
- Existing policyholders: Discount applies beginning March 8, 2025.
More details, including frequently asked questions, can be found on Tesla’s official website.
Tesla offers insurance discount for full self-driving users. What’s your opinion on this? pic.twitter.com/KdmSK2fVtu
— Tesla (@theteslanews) February 3, 2025
Why is Tesla Offering This?
Tesla believes that its self-driving technology is safer than human drivers, and this discount reflects the company’s confidence in FSD’s safety. The idea is simple: the more you let Tesla’s software drive for you, the less risky your driving behavior should be—leading to lower insurance costs.
Where is Tesla Insurance Available?
Although the discount is limited to Texas and Arizona, Tesla’s in-house insurance is available in the following states:
- Arizona
- California (with some privacy-related restrictions)
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
Tesla’s Future Plans: Fully Autonomous Rides in Austin
Tesla is also working toward launching fully driverless FSD rides in Austin, Texas, by June 2025. CEO Elon Musk confirmed during a recent earnings call that the company plans to introduce its Unsupervised Full Self-Driving (no driver needed) as a paid service in Austin later this year.
Musk stated that Tesla has already tested Unsupervised FSD at its Fremont factory in California and will soon expand testing to its Gigafactory in Texas.
With these advancements, Tesla is moving closer to making fully autonomous driving a reality—starting with discounted insurance for those who embrace the technology.