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Tesla's own insurance division could discount premiums for owners of FSD-equipped models, but other providers may not follow suit.
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US electric pioneer Tesla said it expects its semi-autonomous Full Self Driving (Supervised) safety technology to reduce insurance costs, but not all Australian insurers agree.
According to Allianz, existing Tesla customers with FSD subscriptions are expected to be covered under their existing policies, though this could change if current laws are updated to include provisions for semi-autonomous driving technology.
“Allianz customers using Full Self Driving (FSD) technology will be covered under the terms of their existing policies, as long as the FSD technology complies with Australian legislation,” an Allianz spokesperson told Drive.
“Allianz reviews its pricing on a regular basis using recent claims data and future expectations of claims cost. The FSD technology introduced by Tesla may be one of the considerations for premium changes in the future.”
Drive understands it is too early to tell if Tesla’s FSD will affect insurance premiums – due to the relative lack of legislation and safety framework for automated vehicles in Australia – though it is a key consideration for insurers.
Though FSD owners are still legally in control of the car – despite its advanced self-driving capabilities – a spokesperson for the Insurance Council of Australia (ICA) – the peak industry body – said limited FSD information from the US has highlighted some key safety gaps when it comes to assessing the technology from an insurance perspective.
“The limited introduction of AVs [automated vehicles] in some US states has shown the need for basic safeguards to enhance accountability and safety including requiring automated driving system companies to be locally registered, restricting aftermarket modifications to approved changes and ensuring clear data-sharing obligations to assist insurance investigations,” an ICA spokesperson told Drive.
“The technical and regulatory complexities that would come with any introduction of AVs would require robust protections and clear regulatory guidelines,” they added.
Drive understands other insurance providers – including RACQ and NRMA – could follow the lead of the ICA.
However, there is one insurance company in Australia that could be willing to discount driver premiums who have opted into the FSD technology – the brand's own offering called InsureMyTesla.
In a company statement sent to Drive, the brand said “it is anticipated” Tesla owners with FSD subscriptions could see a reduction in premiums if they insure their cars with the brand-backed product, underwritten by Zurich Insurance.
“It is anticipated that further premium reductions [under Zurich Insurance could happen] with more Tesla owners opting for Full Self Driving (Supervised),” a company spokesperson said.
“InsureMyTesla (Zurich) has seen average premiums across Australia reduce to approximately $1644. As with all insurance products there will be a differential between states, however the average price for the Tesla Model 3 and Model Y has reduced during the 12 months,” the spokesperson added.
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Ethan Cardinal graduated with a Journalism degree in 2020 from La Trobe University and has been working in the fashion industry as a freelance writer prior to joining Drive in 2023. Ethan greatly enjoys investigating and reporting on the cross sections between automotive, lifestyle and culture. Ethan relishes the opportunity to explore how deep cars are intertwined within different industries and how they could affect both casual readers and car enthusiasts.
