Tesla filed a 7.1% overall rate decrease for its Texas auto insurance program while changing how Full Self-Driving (Supervised) usage affects premiums.
The filing removes Tesla’s standalone FSD discount and incorporates usage directly into its Safety Score calculation. The change ties the insurance benefit of FSD more closely to the same pricing framework used to evaluate driver behavior.
Under the revised approach, Tesla first calculates a score based on driving without FSD. It then blends that score with the share of miles driven using FSD, treating FSD miles as equivalent to a Safety Score of 100—the highest score available.
For example, a driver with a non-FSD score of 90 who uses FSD for 20% of miles would receive an adjusted score of 92. Tesla then applies the pricing factor associated with that score.
“The v3.0 model is intentionally fit on non-FSD driving so that the Safety Score measures the drivers own behavior,” the company explained in correspondence with Texas regulators.
The structure gives Tesla a way to distinguish between customers’ driving behavior and their use of its assisted-driving technology, while combining both in a single pricing factor. Greater FSD usage raises the adjusted score for drivers whose non-FSD score is below 100.
Tesla’s supporting explanation references a selected 42.5% collision-frequency reduction associated with FSD. That figure supports the relationship between specific safety factors; it does not represent a 42.5% discount on a customer’s total premium.
The filing lists 38,799 affected policyholders and approximately $60.6 million in written premium. Individual premium changes range from a 60.7% decrease to a 78.9% increase, showing substantial redistribution despite the overall reduction. Tesla’s actuarial indication supported a larger decrease of 19.2%.
Submitted April 13, the file-and-use filing listed requested effective dates of April 14 for new business and June 13 for renewals. Texas regulators closed their review on October 20 with no additional information required.
