[HN Gopher] Self Driving Car Insurance
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       Self Driving Car Insurance
        
       Author : KellyCriterion
       Score  : 67 points
       Date   : 2026-01-30 15:50 UTC (7 hours ago)
        
 (HTM) web link (www.lemonade.com)
 (TXT) w3m dump (www.lemonade.com)
        
       | FrankWilhoit wrote:
       | One's first thought is that they ought to be running away from
       | underwriting this as fast as they can go. But then one realizes
       | that it is all profit -- they need never pay a claim, because in
       | accidents involving autonomous vehicles, it will never be
       | possible to establish fault; and then one sees that the primary
       | purpose of most automations is to obscure responsibility.
        
         | nradov wrote:
         | You're not making any sense. In terms of civil liability, fault
         | is attached to the vehicle regardless of what autonomous
         | systems might have been in use at the time of a collision.
        
           | SoftTalker wrote:
           | Or even who was driving it, in the case of ordinary cars.
        
         | jgbuddy wrote:
         | > and then one sees that the primary purpose of most
         | automations is to obscure responsibility.
         | 
         | Are you saying that the investments in FSD by tesla have been
         | with the goal of letting drivers get a way with accidents? The
         | law is black and white
        
         | tehwebguy wrote:
         | One might imagine that lower courts won't determine fault, one
         | would be wrong.
        
         | deelayman wrote:
         | I think there's a narrow unregulated space where this could be
         | true. I'm exercising my creativity trying to imagine it - where
         | automations are built with the outcome of obscured
         | responsibility in mind. And I could understand profit as a
         | possible driving factor for that outcome.
         | 
         | As an extreme end of a spectrum example, there's been worry and
         | debate for decades over automating military capabilities to the
         | point where it becomes "push button to win war". There used to
         | be, and hopefully still is, lots of restraint towards heading
         | in that direction - in recognition of the need for ethics
         | validation in automated judgements. The topic comes up now and
         | then around Tesla's, and impossible decisions that FSD will
         | have to make.
         | 
         | So at a certain point, and it may be right around the point of
         | serious physical harm, the design decision to have or not have
         | human-in-the-middle accountability seems to run into ethical
         | constraints. In reality it's the ruthless bottom line focused
         | corps - that don't seem to be the norm, but may have an
         | outsized impact - that actually push up against ethical
         | constraints. But even then, I would be wary as an executive
         | documenting a decision to disregard potential harms at one of
         | them shops. That line is being tested, but it's still there.
         | 
         | In my actual experience with automations, they've always been
         | derived from laziness / reducing effort for everyone, or
         | "because we can", and sometimes a need to reduce human error.
        
       | sabareesh wrote:
       | Tesla have their own Insurance product which is already very
       | competitive compared to other providers. Not sure if lemonade can
       | beat them . Tesla's insurance product has similar objective in
       | place already where it rewards self driving over manual driving.
        
         | kjksf wrote:
         | Tesla is cooperating with Lemonade on this by providing them
         | necessary user driving data.
         | 
         | If Tesla didn't want Lemonade to provide this, they could block
         | them.
         | 
         | Strategically, Tesla doesn't want to be an insurer. They
         | started the insurance product years ago, before Lemonade also
         | offered this, to make FSD more attractive to buyers.
         | 
         | But the expansion stalled, maybe because the state bureaucracy
         | or maybe because Tesla shifted priority to other things.
         | 
         | In conclusion: Tesla is happy that Lemonade offers this. It
         | makes Tesla cars more attractive to buyers without Tesla doing
         | the work of starting an insurance company in every state.
        
           | mullingitover wrote:
           | > But the expansion stalled, maybe because the state
           | bureaucracy or maybe because Tesla shifted priority to other
           | things.
           | 
           | If the math was mathing, it would be _malpractice_ not to
           | expand it. I 'm betting that their scheme simply wasn't
           | workable, given the extremely high costs of claims (Tesla
           | repairs aren't cheap) relative to the low rates that they
           | were collecting on premiums. The cheap premiums are probably
           | a form of market dumping to get people to buy their FSD
           | product, the sales of which boosts their share price.
        
             | Veserv wrote:
             | It was not workable. They have a loss ratio of >100% [1],
             | as in they paid out more in claims than received in
             | premiums before even accounting for literally any other
             | costs. Industry average is ~60-80% to stay profitable when
             | including other costs.
             | 
             | They released the Tesla Insurance product because their
             | cars were excessively expensive to insure, increasing
             | ownership costs, which was impacting sales. By releasing
             | the unprofitable Tesla Insurance product, they could
             | subsidize ownership costs making the cars more attractive
             | to buy right now which pumped revenues immediately in
             | return for a "accidental" write-down in the future.
             | 
             | [1] https://peakd.com/tesla/@newageinv/teslas-push-into-
             | insuranc...
        
               | redanddead wrote:
               | Who was paying for this?
        
               | Onavo wrote:
               | You as the consumer when you buy a tesla car that's twice
               | the price of what you can get it for in Asia. Teslas are
               | very cheap to produce.
               | 
               | Remember with their own insurance they also have access
               | to the parts at cost.
        
               | Veserv wrote:
               | That is not true. Since Tesla was losing money on their
               | insurance to boost sales the customers were not paying
               | for it since they were receiving a service for below
               | cost.
               | 
               | The people paying were actually the retirement funds who
               | fronted Tesla's cash reserves when they purchased Tesla
               | stock and the US government paying for it in the form of
               | more tax credits on sales that would not have otherwise
               | materialized without this financial fraud. But do not
               | worry, retirement funds and the US government may have
               | lost, but it boosted Tesla sales and stock valuation so
               | that Elon Musk could reach his KPIs to get his multiple
               | tens of billions of dollars of payout.
        
               | redanddead wrote:
               | Wow this went deep ahaha
        
             | redanddead wrote:
             | The math should've mathed. Better data === lower losses
             | right? They probably weren't able to get it to work quite
             | right on the tech side and were eating fat losses during an
             | already bad time in the market.
             | 
             | It'll come back.
             | 
             | Lemonade or Tesla if you find this, let's pilot, i'm a
             | founder in sunnyvale, insurtech vertical at pnp
        
         | redanddead wrote:
         | You'd be very surprised. Distribution works wonders. You could
         | have a large carrier taking over Tesla's own vehicles in
         | markets they care about. The difference then would be loss
         | ratios on the data collection, like does LIDAR data really beat
         | Progressive Snapshot?
         | 
         | The two are measuring data for different sources of losses for
         | carriers.
        
       | jasoncartwright wrote:
       | If it autonomous or self-driving then why is the person in the
       | car paying for the insurance? Surely if it's Tesla making the
       | decisions, they need the insurance?
        
         | jgbuddy wrote:
         | Because the operator is liable? Tesla as a company isn't
         | driving the car, it's a ML model running on something like HW4
         | on bare metal in the car itself. Would that make the silicon
         | die legally liable?
        
           | throw20251220 wrote:
           | Who's the "operator" of an "autonomous" car? If I sit in it
           | and it drives me around, how am I an "operator"?
        
             | renewiltord wrote:
             | If you get on a horse and let go of the reins you are also
             | considered the operator of the horse. Such are the
             | definitions in our society.
        
               | kyleee wrote:
               | Great analogy, lol
        
           | jasoncartwright wrote:
           | Sounds like it's neither self-driving, nor autonomous, if I'm
           | on the hook if it goes wrong.
        
             | scottbez1 wrote:
             | Yeah, Tesla gets to blame the "driver", and has a history
             | of releasing partial and carefully curated subsets of data
             | from crashes to try to shift as much blame onto the driver
             | as possible.
             | 
             | And the system is designed to set up drivers for failure.
             | 
             | An HCI challenge with mostly autonomous systems is that
             | operators lose their awareness of the system, and when
             | things go wrong you can easily get _worse_ outcomes than if
             | the system was fully manual with an engaged operator.
             | 
             | This is a well known challenge in the nuclear energy sector
             | and airline industry (Air France 447) - how do you keep
             | operators fully engaged even though they almost never need
             | to intervene, because otherwise they're likely to be
             | missing critical context and make wrong decisions. These
             | days you could probably argue the same is true of software
             | engineers reviewing LLM code that's often - but not always
             | - correct.
        
               | redanddead wrote:
               | > has a history of releasing partial and carefully
               | curated subsets of data from crashes to try to shift as
               | much blame onto the driver as possible
               | 
               | Really? Thats crazy.
        
             | thelastgallon wrote:
             | Its neither self-driving, nor autonomous, eventually not
             | even a car! (as Tesla slowly exits the car business). It
             | will be 'insurance' on Speculation as a service, as Tesla
             | skyrockets to $20T market cap. Tesla will successfully
             | transition from a small revenue to pre-revenue company:
             | https://www.youtube.com/watch?v=SYJdKW-UnFQ
             | 
             | The last few years of Tesla 'growth' show how this
             | transition is unfolding. S and X production is shutdown,
             | just a few more models to shutdown.
        
               | rubyfan wrote:
               | I wonder if they will try to sell off the car business
               | once they can hype up something else. It seems odd to
               | just let the car business die.
        
               | redanddead wrote:
               | Wild prediction, would love to hear the rest of it
        
           | close04 wrote:
           | The point is if the liability is always exclusively with the
           | human driver then any system in that car is at best a "driver
           | assist". Claims that "it drives itself" or "it's autonomous"
           | are just varying degrees of lying. I call it a partial lie
           | rather than a partial truth because the result more often
           | than not is that the customer is tricked into thinking the
           | system is more capable than it is, and because that outcome
           | is more dangerous than the opposite.
           | 
           | Any car has varying degrees of autonomy, even the ones with
           | no assists (it will safely self-drive you all the way to the
           | accident site, as they say). But the car is either driven by
           | the human with the system's help, or is driven by the system
           | with or without the human's help.
           | 
           | A car can't have 2 drivers. The only real one is the one the
           | law holds responsible.
        
         | throw20251220 wrote:
         | It's because you bought it. Don't buy it if you don't want to
         | insure.
        
           | SoftTalker wrote:
           | Yep, you bought it, you own it, you choose to operate it on
           | the public roads. Therefore your liability.
        
             | 9rx wrote:
             | If you bought and owned it, you could sell it to another
             | auto manufacturer for some pretty serious amounts of money.
             | 
             | In reality, you acquired a license to use it. Your
             | liability should only go as far as you have agreed to
             | identify the licenser.
        
               | recursive wrote:
               | You can actually do that. Except that they could just buy
               | one themselves.
               | 
               | Companies exist that buy cars just to tear them down and
               | publish reports on what they find.
        
           | Rebelgecko wrote:
           | I don't think Tesla lets you buy FSD
        
             | scottyah wrote:
             | They do, until Feb 14th.
        
               | Rebelgecko wrote:
               | Even now I think it's a revocable license
        
         | davidhunter wrote:
         | Seems like the role of the human operator in the age of AI is
         | to be the entity they can throw in jail if the machine fails
         | (e.g. driver, pilot)
        
           | taneq wrote:
           | I've said for years that pragmatically, our definition of a
           | "person" is an entity that can accept liability and take
           | blame.
        
         | jimt1234 wrote:
         | Not an expert here, but I recall reading that certain European
         | countries (Spain???) allow liability to be put on the
         | autonomous driving system, not the person in the car. Does
         | anyone know more about this?
        
           | bluGill wrote:
           | That is the case everywhere. It is common when buying a
           | product for the contract to include who has liability for
           | various things. The price often changes by a lot depending on
           | who has liability.
           | 
           | Cars are traditionally sold as the customer has liability.
           | Nothing stops a car maker (or even an individual dealer) from
           | selling cars today taking all the insurance liability in any
           | country I know of - they don't for what I hope are obvious
           | reasons (bad drivers will be sure to buy those cars since it
           | is a better deal for them an in turn a worse deal for good
           | drivers), but they could.
           | 
           | Self driving is currently sold as customers has liability
           | because that is how it has always been done. I doubt it will
           | change, but it is only because I doubt there will ever be
           | enough advantage as to be worth it for someone else to take
           | on the liability - but I could be wrong.
        
         | kjksf wrote:
         | Because that's the law of the land currently.
         | 
         | The product you buy is called "FSD Supervised". It clearly
         | states you're liable and must supervise the system.
         | 
         | I don't think there's law that would allow Tesla (or anyone
         | else) to sell a passenger car with unsupervised system.
         | 
         | If you take Waymo or Tesla Robotaxi in Austin, you are not
         | liable for accidents, Google or Tesla is.
         | 
         | That's because they operate on limited state laws that allow
         | them to provide such service but the law doesn't allow selling
         | such cars to people.
         | 
         | That's changing. Quite likely this year we will have federal
         | law that will allow selling cars with fully unsupervised self-
         | driving, in which case the insurance/liability will obviously
         | land on the maker of the system, not person present in the car.
        
           | jasoncartwright wrote:
           | I see. So not Tesla's product they are using to sell
           | insurance around isn't "Full Self-Driving" or "Autonomous"
           | like the page says.
        
             | FeloniousHam wrote:
             | My current FSD usage is 90% over ~2000 miles (since v14.x).
             | Besides driving everywhere, everyday with FSD, I have
             | driven 4 hours garage to hotel valet without intervention.
             | It is absolutely "Full Self-Driving" and "Autonomous".
             | 
             | FSD isn't perfect, but it is everyday amazing and useful.
        
               | jasoncartwright wrote:
               | Yet still on relying you to cover it with your insurance.
               | Again, clearly not autonomous.
        
               | dzhiurgis wrote:
               | > Don't be snarky
               | 
               | > https://news.ycombinator.com/newsguidelines.html
               | 
               | You keep posting the same thing across the thread. Do
               | better.
        
               | zen928 wrote:
               | Disagree. I appreciate their viewpoint tethering
               | corporate claims to reality by illustrating Tesla is
               | obfuscating the classification of their machines to be
               | autonomous, when they actually aren't. Their comments in
               | other thread chains proved to be fruitful when lacking
               | agitators looking to dismiss critique by citing website
               | rules, like the post adding additional detail to how
               | Tesla muddles legal claims by cooking up cherry-picked
               | evidence that work against the driver despite being the
               | insurer.
        
               | AlotOfReading wrote:
               | Liability is a separate matter from autonomy. I assume
               | you'd consider yourself autonomous, yet it's your
               | employer's insurance that will be liable if you have an
               | accident while driving a company vehicle.
               | 
               | If the company required a representative to sit in the
               | car with you and participate in the driving (e.g. by
               | monitoring and taking over before an accident), then
               | there's a case to be made that you're not fully
               | autonomous.
        
               | buran77 wrote:
               | > it's your employer's insurance that will be liable if
               | you have an accident while driving a company vehicle
               | 
               | I think you're mixing some concepts.
               | 
               | There's car insurance paid by the owner of the car, for
               | the car. There's workplace accident insurance, paid by
               | the employer for the employee. The liability isn't
               | assigned by default, but by determining who's
               | responsible.
               | 
               | The driver is always legally responsible for accidents
               | caused by their negligence. If you play with your phone
               | behind the wheel and kill someone, even while working and
               | driving a company car, the company's insurance might pay
               | for the damage but you go to prison. The company will
               | recover the money from you. Their work accident insurance
               | will pay nothing.
               | 
               | The test you can run in your head: will you get arrested
               | if you fall asleep at the wheel and crash? If yes, then
               | it's not autonomous or self driving. It just has driver
               | assistance. It's not that the car can't drive itself at
               | all, just that it doesn't meet the bar for the entire
               | legal concept of "driver/driving".
               | 
               | "Almost" self driving is like jumping over a canyon and
               | almost making it to the other side. Good effort, bad
               | outcome.
        
               | wat10000 wrote:
               | If it was full self driving, wouldn't your usage be 100%?
        
           | rubyfan wrote:
           | Waymo is also a livery service which you normally aren't
           | liable for as a passenger of taxi or limousine unless you
           | have deep pockets. /IANAL
        
           | AlotOfReading wrote:
           | You can sell autonomous vehicles to consumers all day long.
           | There's no US federal law prohibiting that, as long as
           | they're compliant with FMVSS as all consumer vehicles are
           | required to be.
        
           | 2III7 wrote:
           | Without LIDAR and/or additional sensors, Tesla will never be
           | able to provide "real" FSD, no matter how wonderful their
           | software controlling the car is.
           | 
           | Also, self driving is a feature of a vehicle someone owns, I
           | don't understand how that should exempt anyone from insuring
           | their property.
           | 
           | Waymo and others are providing a taxi service where the
           | driver is not a human. You don't pay insurance when you ride
           | Uber or Bolt or any other regular taxi service.
        
             | Marsymars wrote:
             | > Also, self driving is a feature of a vehicle someone
             | owns, I don't understand how that should exempt anyone from
             | insuring their property.
             | 
             | Well practically speaking, there's nothing stopping anyone
             | from voluntarily assuming liability for arbitrary things.
             | If Tesla assumes the liability for my car, then even if I
             | still require my "own" insurance for legal purposes, the
             | marginal cost of covering the remaining risk is going to be
             | close to zero.
        
             | arijun wrote:
             | Never say never--it's not physically impossible. But yes,
             | as it stands, it seems that Tesla will not be self driving
             | any time soon (if ever).
        
               | kjksf wrote:
               | They literally just (in the last few days) started
               | unsupervised robotaxis in Austin.
               | 
               | They are as self-driving as a car can be.
               | 
               | This is different than the one where they had a human
               | supervisor in passenger seat (which they still do
               | elsewhere).
               | 
               | And different than the one where they didn't have human
               | supervisor but did have a follow car.
               | 
               | Now they have a few robotaxis that are self driving.
        
           | kolbe wrote:
           | > Quite likely this year we will have federal law that will
           | allow selling cars with fully unsupervised self-driving, in
           | which case the insurance/liability will obviously land on the
           | maker of the system, not person present in the car.
           | 
           | This is news to me. This context seems important to
           | understanding Tesla's decision to stop selling FSD. If
           | they're on the hook for insurance, then they will need to
           | dynamically adjust what they charge to reflect insurance
           | costs.
        
           | arijun wrote:
           | I imagine insurance would be split in two in that case.
           | Carmakers would not want to be liable for e.g. someone
           | striking you in a hit-and-run.
        
             | smallnix wrote:
             | If the car that did a hit-and-run was operated autonomously
             | the insurance of the maker of that car should pay.
             | Otherwise it's a human and the situation falls into the
             | bucket of what we already have today.
             | 
             | So yes, carmakers would pay in a hit-and-run.
        
         | gizmo686 wrote:
         | Generally speaking, liability for a thing falls on the
         | owner/operator. That person can sue the manufacturer to recover
         | the damages if they want. At some point, I expect it to become
         | somewhat routine for insurures to pay out, then sue the
         | manufacturer to recover.
        
           | amelius wrote:
           | Or at some point subscribing to a service may be easier than
           | owning the damn thing.
        
             | DaSHacka wrote:
             | All according to plan
        
               | koakuma-chan wrote:
               | It already doesn't make sense to own a car for me. It's
               | cheaper to just call an Uber.
        
         | loeg wrote:
         | It isn't fully autonomous yet. For any future system sold as
         | level 5 (or level 4?), I agree with your contention -- the
         | manufacturer of the level 5 autonomous system is the one who
         | bears primary liability and therefore should insure. "FSD"
         | isn't even level 3.
         | 
         | (Though, there is still an element of owner/operator
         | maintenance for level 4/5 vehicles -- e.g., if the owner fails
         | to replace tires below 4/32", continues to operate the vehicle,
         | and it causes an injury, that is partially the owner/operator's
         | fault.)
        
           | Night_Thastus wrote:
           | Wouldn't that requirement completely kill any chance of a L5
           | system being profitable? If company X is making tons of self-
           | driving cars, and now has to pay insurance for _every single
           | one_ , that's a mountain of cash. They'd go broke
           | immediately.
           | 
           | I realize it would suck to be blamed for something the car
           | did when you _weren 't_ driving it, but I'm not sure how else
           | it could be financially feasible.
        
             | AlotOfReading wrote:
             | The way it works in states like California currently is
             | that the permit holder has to post an insurance bond that
             | accidents and judgements are taken out against. It's a
             | fixed overhead.
        
             | loeg wrote:
             | No? Insurance costs would be passed through to consumers in
             | the form of up-front purchase price. And probably the cost
             | to insure L5 systems for liability will be very low. If it
             | isn't low, the autonomous system isn't very safe.
        
         | abtinf wrote:
         | You insure the property, not the person.
        
           | redanddead wrote:
           | well it's the risk, the combination ..
           | 
           | it's why young drivers pay more for insurance
        
         | ck2 wrote:
         | The coder and sensor manufacturers need the insurance for
         | wrongful death lawsuits
         | 
         | and Musk for removing lidar so it keeps jumping across high
         | speed traffic at shadows because the visual cameras can't see
         | true depth
         | 
         | 99% of the people on this website are coders and know how even
         | one small typo can cause random fails, yet you trust them to
         | make you an alpha/beta tester at high speed?
        
         | djoldman wrote:
         | That's probably the future; Mercedes currently does do this in
         | limited form:
         | 
         | https://www.roadandtrack.com/news/a39481699/what-happens-if-...
        
       | cebert wrote:
       | I own a Model Y with hardware version 4. FSD prevented my from
       | getting in an accident with a drunk driver. It reacted much
       | faster to the situation than I could have. Ever since, I'm sold
       | that in a lot of circumstances, machines can drive better than
       | humans.
        
         | throw20251220 wrote:
         | So does AEB in any modern car.
        
           | fred_is_fred wrote:
           | Tesla fans have not realized that every car made since
           | 2021ish can do this.
        
             | throw20251220 wrote:
             | Obviously.
        
             | mullingitover wrote:
             | My 2016 Honda Civic has automatic braking ( _and_ it has
             | lanekeep assist, so it 's technologically superior to a
             | 2026 Tesla).
        
             | 1970-01-01 wrote:
             | It does more than AEB. It also knows to swerve out of the
             | way during E: https://www.youtube.com/watch?v=c1MWml-81e0
        
               | throw20251220 wrote:
               | Generally known as AES, for example from BMW available
               | with Active Driving Assistant or Driving Assistant Plus
               | packages.
        
               | tevon wrote:
               | I have a late model Audi, and a Tesla Model 3. Audi has
               | all the bells and whistles.
               | 
               | Doesn't come close to the safety I feel in the Tesla. Not
               | even close. I know anecdotal
        
             | dzhiurgis wrote:
             | AEB has been around since ages. Even my 2010 Mazda had it.
             | It's nowhere near Tesla's capabilities tho. Not sure what
             | are you trying to achieve with such dunks?
        
       | 1970-01-01 wrote:
       | A 50% discount is pretty damning empirical evidence for FSD being
       | better at driving your Tesla than you are.
        
         | jerlam wrote:
         | We don't know if 50% makes it actually cheaper than other car
         | insurance companies, or the coverage is comparable, or if they
         | have comparable service. Or if they sell your location
         | information to marketers.
        
         | dangus wrote:
         | Or a price hike if the fleet API tattles on you for negative
         | driving behaviors.
         | 
         | It may not be on the marketing copy but it's almost certainly
         | present in the contract.
        
         | _diyar wrote:
         | Assuming this discount is offered broadly and indefinitely.
         | Otherwise these might just be marketing dollars.
        
         | Veserv wrote:
         | No it does not. A 50% discount and the insurance still having
         | industry average profit, or at least being profitable at all,
         | would tell you that. Selling at a loss does not indicate your
         | costs are actually lower. You need to wait until we learn if it
         | is actually at a loss.
        
           | 1970-01-01 wrote:
           | Sir, your bias is extreme.
           | 
           | https://news.ycombinator.com/submitted?id=Veserv
        
             | Veserv wrote:
             | Ah yes, posting well documented video evidence of reality
             | is bias. How silly of me. The only unbiased take is to
             | ignore my lying eyes and make logically unsound arguments
             | in favor of endangering the public. That is what unbiased
             | people do.
             | 
             | I also like how you completely avoided addressing my
             | argument in favor of a attempted ad hominem.
        
               | 1970-01-01 wrote:
               | > ignore my lying eyes and make logically unsound
               | arguments
               | 
               | Why haven't you acknowledged this video as fake?
               | https://www.youtube.com/watch?v=Tu2N8f3nEYc
        
               | Veserv wrote:
               | I am utterly baffled by what you are trying to argue with
               | this post except for distracting from the weakness of
               | your original argument with more attempted(?) ad
               | hominems. Must be my bias showing.
        
               | 1970-01-01 wrote:
               | Uh huh
        
         | recursive wrote:
         | I will sell you a loaf of bread for $10 and a tortilla for
         | $100.
         | 
         | Analysts saying tortilla industry in shambles.
        
         | crazygringo wrote:
         | Yeah I'm actually very curious about this, it's the first I've
         | heard.
         | 
         | I'd like to know what data this is based on, and if Tesla is
         | providing any kind of subsidy or guarantee.
         | 
         | There's also a big difference between the value of car damages
         | and, well, death. E.g. what if FSD is much less likely to get
         | into otherwise common fender benders that don't harm you, but
         | more likely to occasionally accidentally drive you straight
         | into a divider, killing you?
        
       | t1234s wrote:
       | What happens if you have FSD turned off and like to drive fast on
       | public roads. Will they see this telemetry and raise your rates?
        
         | jerlam wrote:
         | It seems the answer is yes. From their web site:
         | 
         | > Fair prices, based on how you drive [...] Get a discount, and
         | earn a lower premium as you drive better.
        
           | t1234s wrote:
           | Bummer.. its super fun to floor them off the line.
        
             | giobox wrote:
             | This (instant torque) is exciting for about the first week
             | of electric car ownership, it gets old very fast. I have
             | far more fun driving my much slower gas-engined cars.
        
               | dzhiurgis wrote:
               | It doesn't get old. What a ludicrous statement.
               | 
               | I did get lots of traction issues with FWD EV, any sort
               | of wet - you need to baby it.
        
               | giobox wrote:
               | There's much more to enjoying cars than speed in a
               | straight line, which I do not disagree at all most EVs
               | are exceptional at.
               | 
               | Booting the go pedal at every stop sign or light just
               | feels like being a bit of a childish jerk after a short
               | while on public roads once the novelty wears off.
        
               | darkwater wrote:
               | Speak for yourself. Over 3 years and 100k km and still
               | enjoying it.
        
               | t1234s wrote:
               | MT gas cars are very fun to drive!
        
             | t1234s wrote:
             | Someone with a Plaid will need to test this out to see how
             | high they can make their Lemonade premium.
        
       | xnx wrote:
       | Marketing stunt
        
       | rebelde wrote:
       | 99/month is more than I have been willing to pay for FSD, but if
       | it lowers my insurance by 200/month, I could be convinced.
        
         | vel0city wrote:
         | Lowering by $200? Full coverage on two recent model cars here
         | and that's nearly three quarters of my monthly insurance bill.
         | Insane what people are paying for insurance these days.
        
       | drnick1 wrote:
       | > automatically tracking FSD miles versus manual miles through
       | direct Tesla integration.
       | 
       | No thanks. I unplugged the cellular modem in my car precisely
       | because I can't stand the idea that the
       | manufacturer/dealer/insurance company or other unauthorized third
       | parties could have access to my location and driving habits.
       | 
       | I also generally avoid dealers like the plague and only trust the
       | kind of shops where the guy who answers the phone is the guy
       | doing the work.
        
       | hamdingers wrote:
       | The whole point of self-driving cars (to me) is I don't have to
       | own or insure it, someone else deals with that and I just make it
       | show up with my phone when I need it.
        
         | BarryMilo wrote:
         | Imagine this for a whole neighborhood! Maybe it'd be more
         | efficient for the transport to come at regular intervals
         | though. And while we're at it, let's pick up other people along
         | the way, you'll need a bigger vehicle though, perhaps bus-
         | sized...
         | 
         | Half-jokes aside, if you don't own it, you'll end up paying
         | more to the robotaxi company than you would have paid to own
         | the car. This is all but guaranteed based on all SaaS services
         | so far.
        
           | Sayrus wrote:
           | Focusing only on price, renting a beafy shared "cloud"
           | computer is cheaper than buying one and changing every 5
           | years. It's not always an issue for idle hardware.
           | 
           | Cars are mostly idle and _could_ be cheaper if shared. But
           | why make them significantly cheaper when you can match the
           | price and extract more profits?
        
             | theLiminator wrote:
             | > Cars are mostly idle and could be cheaper if shared. But
             | why make them significantly cheaper when you can match the
             | price and extract more profits?
             | 
             | Yeah, this would rely on robust competition.
        
             | bluGill wrote:
             | Cars and personal computers have advantages over shared
             | resources that often make them worth the cost. If you want
             | your transport/compute in busy times you may find
             | limitations. (ever got on the train and had to stand
             | because there are no seats? Every had to wait for your
             | compute job to start because they are all busy? Both of
             | these have happened to me).
        
               | cyberax wrote:
               | I ran the numbers, and for most non-braindead cities
               | something like a fleet of 6-seater minivans will easily
               | replace all of local transit.
               | 
               | And with just 6 people the overhead if an imperfect route
               | and additional stops will be measured in minutes.
               | 
               | And of course, it's pretty easy to imagine an option to
               | pay a bit more for a fully personal route.
        
               | dpkirchner wrote:
               | This exists in a way -- I'd wager every city has a
               | commercial service that will shuttle you to, say, the
               | airport. They're not cheap, however.
        
               | bluGill wrote:
               | you made too many false assumptions if you came up with
               | those routes. Experts have run real numbers including
               | looking at what happens in the real world.
               | https://humantransit.org/category/microtransit - (as I
               | write this you need to scroll to the second article to
               | find the useful rebuttal of your idea)
        
               | cyberax wrote:
               | Yeah, yeah: "Major US Public Transit Union Questions
               | "Microtransit"" Read it. Go on. It's pure bullshit.
               | 
               | The _only_ issue with the old "microtransit" is the
               | _driver_. Each van ends up needing on average MORE
               | drivers than it moves passengers. It does solve the
               | problem of throughput, though.
               | 
               | But once the driver is removed, this problem flips on its
               | head. Each regular bus needs around 4 drivers for decent
               | coverage. It's OK-ish only when the average bus load is
               | at least 15-20 people. It's still much more expensive and
               | polluting than cars, but not crazily so.
        
               | bluGill wrote:
               | Scroll down to the other articles as I said in the first
               | place.
               | 
               | self driving changes some things, but there are a lot of
               | other points in the many article linked from there that
               | don't change.
        
             | brookst wrote:
             | > But why make them significantly cheaper when you can
             | match the price and extract more profits?
             | 
             | Even better -- charge 10% less and corner the market! As
             | long as nobody charges 10% less than you...
        
             | nradov wrote:
             | Nah, I don't want to share my car with anyone. It's my own
             | personal space where I can keep some of my stuff and set it
             | up exactly the way I want.
        
               | recursive wrote:
               | That's how some people feel about airplanes. Presumably
               | you're not one of them. For some people, the
               | inconvenience of being responsible for a car would
               | outweigh the benefit of setting up their stuff inside of
               | one.
        
           | dfabulich wrote:
           | Self-driving municipal busses would be fantastic.
        
             | nine_k wrote:
             | Also, a real nightmare for the municipal trade unions. (Do
             | you know why every NYC subway train needs to have not one
             | but two operators, even though it could run automatically
             | just fine?)
        
               | koakuma-chan wrote:
               | Why?
        
             | cyberax wrote:
             | Why would you need buses?
        
               | onlyrealcuzzo wrote:
               | Believe it or not, in some cities that have near grid-
               | lock rush-hour traffic - there's between 50-100%+ as many
               | people traveling by bus as by car.
               | 
               | If all of those people switch to cars, you end up with it
               | taking an hour to travel 1 mile by car.
               | 
               | It's almost as if they have busses for a reason.
        
               | cyberax wrote:
               | First, these cities should be fixed by removing the
               | traffic magnets. It's far past the point where we used
               | the old obsolete ideology of trying to supply as much
               | traffic capacity as possible.
               | 
               | But anyway, your statement is actually not true anywhere
               | in the US except NYC. Even in Chicago, removing ALL the
               | local transit and switching to 6-seater minivans will
               | eliminate all the traffic issues.
        
           | nine_k wrote:
           | This only works in neighborhoods that are veritable city
           | blocks, with buildings several stories tall standing close
           | by. Not something like northern Houston, TX; it barely works
           | for places like Palo Alto, CA. You cannot run buses on every
           | lane, at a reasonable distance from every house.
           | 
           | The point of a car is takes you _door to door_. There 's no
           | expectation to walk three blocks from a stop; many US places
           | are not intended for waking anyway. Consider heavy bags from
           | grocery shopping, or similar.
           | 
           | Public transit works in proper cities, those that became
           | cities before the advent of the car, and were not kept in the
           | shape of large suburban sprawls by zoning. Most US cities
           | only qualify in their downtowns.
           | 
           | Elsewhere, rented / hailed self-driving cars would be best.
           | First of all, fewer of them would be needed.
        
           | boredatoms wrote:
           | > Maybe it'd be more efficient for the transport to come at
           | regular intervals though
           | 
           | Efficient for who, is the problem
        
           | hamdingers wrote:
           | > if you don't own it, you'll end up paying more to the
           | robotaxi company than you would have paid to own the car
           | 
           | Maybe for you, I already don't own it and have not found that
           | to be true. I pretty much order an uber whenever I don't feel
           | like riding my bike or the bus, and that costs <$300 most
           | months. Less than the average used car payment in the US
           | before you even consider insurance, fuel, storage,
           | maintenance, etc.
           | 
           | I also rent a car now and then for weekend trips, that also
           | is a few hundred bucks at most.
           | 
           | I would be surprised if robotaxis were more expensive long
           | term.
        
         | Larrikin wrote:
         | This is the nightmare scenario for me. A forever subscription
         | for the usage of a car.
         | 
         | Subscription for self driving will almost be a given with so
         | many bad actors in tech nowadays, but never even being allowed
         | to own the car is even worse.
        
           | bluGill wrote:
           | Subscription for changes to maps and the law makes sense. I'd
           | also pay for the latest safety improvements (but they better
           | be real improvements). However they are likely to add a
           | number of unrelated things and I object to those.
        
             | jtbayly wrote:
             | How do maps changes make sense to subscribe to when they
             | are on OSM?
             | 
             | And what do you even mean by subscription to changes to the
             | law?
        
               | bluGill wrote:
               | If OSM is up to date - many places it is very outdated.
               | (others it is very good).
               | 
               | Law - when a government changes the driving laws.
               | Government can be federal (I have driven to both Canada
               | and Mexico. Getting to Argentina is possible though I
               | don't think it has ever been safe. Likewise it is
               | possible to drive over the North Pole to Europe), state
               | (or whatever the country calls their equivalent). When a
               | city changes the law they put up signs, but if a state
               | passes a law I'm expected to know even if I have never
               | driven in that state before. Right turn on red laws are
               | the only ones I can think of where states are different -
               | but they are likely others.
               | 
               | Laws also cover new traffic control systems that may not
               | have been in the original program. If the self driving
               | system can't figure out the next one (think roundabout)
               | then it needs to be updated.
        
           | dddgghhbbfblk wrote:
           | I think this is purely psychological. The notion of paying
           | for usage of some resource that you don't own is really
           | rather mundane when you get down to it.
        
             | Larrikin wrote:
             | One mean tweet and your self driving subscription is taken
             | away is way better than one mean tweet and your car is
             | taken away.
        
         | bluGill wrote:
         | For the vast majority of people who own a car, continuing to
         | own the car will remain the better deal. Most people need their
         | car during "rush hour", so there isn't any savings from
         | sharing, and worse some people have "high standards" and so
         | will demand the rental be a clean car nicer than you would
         | accept - thus raising the costs (particularly if you drive used
         | cars) Any remaining argument for a shared car dies when you
         | realize that you can leave your things in the car, and you
         | never have to wait.
         | 
         | For the rest - many of them live in a place where not enough
         | others will follow the same system and so they will be forced
         | to own a car just like today. If you live in a not dense area
         | but still manage to walk/bike almost everywhere (as I do),
         | renting a car is on paper cheaper the few times when you need a
         | car - but in practice you don't know about that need several
         | weeks in advance and so they don't have one they can rent to
         | you. Even if you know you will need the car weeks in advance,
         | sometimes they don't have one when you arrive.
         | 
         | If you live in a very dense area such that you almost regularly
         | use transit (but sometimes walk, bike), but need a car for
         | something a few times per year, then not owning a car makes
         | sense. In this case the density means shared cars can be a
         | viable business model despite not being used very much.
         | 
         | In short what you say sound insightful, but reality of how cars
         | are used means it won't happen for most car owners.
        
           | jtbayly wrote:
           | > sometimes they don't have one when you arrive.
           | 
           | Or, if they are Hertz, they might have one but refuse to give
           | it to you. This happened to my wife. In spite of payment
           | already being made to Hertz corporate online, the local agent
           | wouldn't give up a car for a one-way rental. Hertz corporate
           | was less than useless, telling us their system said was a car
           | available, and suggesting we pay them hundreds of dollars
           | _again_ and go pick it up. When I asked the woman from
           | corporate whether she could actually guarantee we would be
           | given a car, she said she couldn 't. When I suggested she
           | call the local agent, she said she had no way to call the
           | local office. Unbelievable.
           | 
           | Since it was last minute, there were... as you said, no cars
           | available at any of the other rental companies. So we had to
           | drive 8 hours to pick her up. Then 8 hours back, which was
           | the drive she was going to make in the rental car in the
           | first place.
           | 
           | Hertz will hurts you.
        
             | bluGill wrote:
             | Hertz this time, but things like that have happened with
             | every rental company I know of.
        
             | Matheus28 wrote:
             | I personally would have changed it to a round-trip then
             | just returned the car to the other Hertz location and let
             | them figure it out.
        
         | starik36 wrote:
         | I think part of the issue in California at least is that you
         | must have insurance. You gonna get a giant fine if you don't.
        
         | crazygringo wrote:
         | That's the point of self-driving _fleets_. Or maybe a special
         | category of leased vehicles.
         | 
         | This is about a self-driving car _you own_.
        
       | FlyingBears wrote:
       | Lemonade purchased Metromile and significantly increased prices.
       | 2.5x if I recall correctly. This has forced me to move to Geico.
       | Now, since prices have increased and new self driving car
       | insurance is giving a discount, are you effectively paying same
       | old rate?
        
         | redanddead wrote:
         | Just curious about this, this was Lemonade's integrated
         | insurance to the Tesla right? How's Geico like for you?
         | Probably just fine right? Any differences?
        
       | aanet wrote:
       | It would be interesting to see if Lemonade requires a Driver
       | Monitoring System (DMS) to see if the driver/operator is actually
       | paying attention (or, like sleeping / watching Netflix /
       | whatever) while at the driver's seat.
       | 
       | Anybody know??
       | 
       | Tesla FSD is still a _supervised_ system (= ADAS), afaik.
        
       | sktb wrote:
       | Hmmm. The source for the "FSD is safer" claim might not be wholly
       | independent: "Tesla's data shows that Full Self-Driving miles are
       | twice as safe as manual driving"
        
         | gizmo686 wrote:
         | I would be surprised if that was what they were actually
         | looking at. They are an established insurance company with
         | their own data and the actuaries to analyze it. I can't imagine
         | them doing this without at least validating a substantial drop
         | in claims relating to FSD capable cars.
         | 
         | Now that they are offering this program, they should start
         | getting much better data by being able to correlate claims with
         | actual FSD usage. They might be viewing this program partially
         | as a data acquisition project to help them insure autonomous
         | vehicles more broadly in the future.
        
           | Veserv wrote:
           | They are a grossly unprofitable insurance company. Your
           | actuaries can undervalue risk to the point you are losing
           | money on every claim and still achieve that.
           | 
           | In fact, Tesla Insurance, the people who already have direct
           | access to the data already loses money on every claim [1].
           | 
           | [1] https://peakd.com/tesla/@newageinv/teslas-push-into-
           | insuranc...
        
           | redanddead wrote:
           | > They might be viewing this program partially as a data
           | acquisition project to help them insure autonomous vehicles
           | more broadly in the future
           | 
           | What do you mean?
        
         | ErroneousBosh wrote:
         | > "Tesla's data shows that Full Self-Driving miles are twice as
         | safe as manual driving"
         | 
         | Teslas only do FSD on motorways where you tend to have far
         | fewer accidents per mile.
         | 
         | Also, they switch to manual driving if they can't cope, and
         | because the driver isn't paying attention this usually results
         | in a crash. But hey, it's in manual driving, not FSD, so they
         | get to claim FSD is safer.
         | 
         | FSD is not and never will be safer than a human driver.
        
           | Onavo wrote:
           | > _Teslas only do FSD on motorways where you tend to have far
           | fewer accidents per mile._
           | 
           | They have been end to end street level for the past two
           | years.
        
             | ErroneousBosh wrote:
             | Not successfully.
        
               | qwerpy wrote:
               | Successful enough for me and many other people I know.
               | End to end from my house to grocery store, kids schools,
               | friends houses, etc. Multiple times per day for the past
               | year.
               | 
               | It's not perfect but I'd consider it a smashing success
               | for something I rely on for safely transporting my family
               | every day.
        
       | cs702 wrote:
       | TL;DR: 50% insurance discount for Tesla vehicles driven by Tesla
       | FSD.
       | 
       | On the surface, this looks like an endorsement of Tesla's claims
       | about FSD safety.
        
         | recursive wrote:
         | Assuming the non-discounted rates are market-competitive.
        
       | dmitrygr wrote:
       | Fleet API gives location data, no? I bet this discount will be
       | paid for by this location data
        
       | kittikitti wrote:
       | I have Lemonade for my home insurance. It's been reliable for
       | several years and the customer service is great. I don't have a
       | self-driving car but I wouldn't hesitate to sign up. Their rates
       | are very affordable.
        
         | ajcp wrote:
         | I've had their Home Insurance since they started up and grabbed
         | their car insurance a couple years ago. Competitive price,
         | excellent customer service, no notes.
        
       | thewillowcat wrote:
       | You're telling me this car insurance drives itself?
        
       | andy99 wrote:
       | With your permission, we track your driving automatically through
       | Tesla's Fleet API.
       | 
       | So it's a ruse to harvest personal information.
        
       | philip1209 wrote:
       | I was curious what the break-even is where the insurance discount
       | covers the $99/mo FSD subscription. I got a Lemonade quote around
       | $240/mo (12k mi/yr lease on a Model 3), so 50% off would save
       | ~$120/mo - i.e. it would cover FSD and still leave ~$21/mo net.
       | Or, "free FSD is you use it".
       | 
       | I believe, at the end of the day, insurance companies will be the
       | ones driving FSD adoption. The media will sensationalize the
       | outlier issues of FSD software, but insurance companies will set
       | the incentives for humans to stop driving.
        
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