Tesla HW3 Owners Were Shut Out of Lemonade’s FSD Discount. Not Anymore

Lemonade’s HW3 graphic, posted as Teslas with Hardware 3 became eligible for its FSD insurance discount. Credit: Lemonade/Shai Wininger via X

Lemonade is now cutting insurance costs for Tesla Hardware 3 owners, taking 30% off every mile driven on FSD (Supervised) v14 Lite in Arizona, Colorado and Tennessee, co-founder Shai Wininger announced Thursday morning on X.

HW4 Teslas keep the bigger break, with Lemonade still taking 50% off every mile driven on full FSD v14. Lite miles on older HW3 cars now get the 30% rate, and manual miles are billed at Lemonade’s regular per-mile price.

“Teslas are insanely safe, but traditional insurance has no clue,” Wininger wrote, adding that “as of today, HW3 Teslas get 30% off with FSD v14 Lite!” He said the discount is live in Arizona, Colorado and Tennessee, with “more soon.”

Lemonade’s FSD insurance page now spells out who qualifies:

• HW4 Teslas on FSD v14 or later (firmware 2025.44.25.5 or higher): 50% off FSD miles
• 2019 and newer HW3 Teslas on FSD v14 Lite (firmware 2026.20.6.11 or higher): 30% off FSD Lite miles
• No minimum FSD usage, and existing Lemonade car customers get the discount automatically at renewal

HW3 owners had been left out since Lemonade announced its Autonomous Car insurance on January 21, launching it in Arizona on January 26 and adding Oregon in February. When a customer asked in February why HW3 cars were excluded, Lemonade replied on X that HW3 vehicles “do not meet the current hardware requirement” for the discount.

The opening came from Tesla’s side, after the company began pushing FSD v14 Lite, a pared-down build of its latest driving software made for HW3 computers, to owners in the U.S. and Canada in July. This week it started rolling out FSD v14.3 Lite alongside v14.3.11 for HW4 in software update 2026.33.5.

The policy itself works like Lemonade’s other pay-per-mile car insurance. Owners pay a low base rate while the car is parked and a few cents per mile when it moves. With the owner’s permission, Lemonade connects directly to the Tesla, and the car reports which miles were driven on FSD and which were driven by hand, so the discount applies without any extra hardware.

Lemonade has not explained why Lite miles get 30% off instead of 50%. Its January announcement said its pricing models weigh the FSD software version installed in the car and the precision of its sensors, and the company has promised that discounts will grow as FSD gets safer. It has not shared crash data for v14 Lite specifically, and it hasn’t said whether HW3 drivers could eventually reach the 50% rate.

Lemonade’s FSD insurance has expanded well beyond Arizona and Oregon since January, adding Indiana and Colorado in June, Tennessee in August and Missouri in September. Wininger named only Arizona, Colorado and Tennessee for the HW3 discount, and neither he nor Lemonade has said when Oregon, Indiana or Missouri drivers will get it. In Florida, Lemonade’s base car product went live in August, and Wininger said then that getting the FSD version approved there was next.

HW3 owners in Canada can run FSD v14 Lite but can’t get this discount, because Lemonade doesn’t sell car insurance in the country. Its availability page lists only U.S. states for car coverage, and none of the FSD launches so far have crossed the border.

For HW3 owners in the three launch states, the discount kicks in automatically once a linked car is running v14 Lite, though current Lemonade customers will see it at their next renewal. For everyone else, the more interesting number is the gap between 30% and 50%, and whether a future Lite build can close it.