Your Tesla could soon earn you a car insurance discount: here’s how
Key takeaways
- Zurich has become the first insurer in Australia to factor Tesla's Full Self-Driving (Supervised) technology into how it prices car insurance.
- The discount only offsets driver-error risk and independent researchers have raised doubts about how safe the technology really is.
- For the vast majority of drivers who don't own a Tesla, premiums have still risen around 50% since 2019, meaning comparing and reviewing your policy remains the most reliable way to save.
If you drive a Model 3 or Model Y Tesla, your car insurance premium could soon get cheaper.
Zurich has become the first insurer in Australia to build Tesla's Full Self-Driving (Supervised) (FSD) technology into how it prices cover.
The discount has been folded into Zurich's existing InsureMyTesla product from this week.
Aussies who drive the FSD-equipped Model 3 and Model Y vehicles will now be assessed as lower-risk policyholders, with the FSD factor sitting alongside the usual factors like age, location and claims history.
Zurich revealed the reasoning behind this decision was based on the insurer's data which revealed self-driving cars were having fewer collisions than human-driven ones.
"As vehicle technology and driver behaviour continues to evolve at an extraordinary pace, it is critical that we continue to innovate alongside this change", said Zurich's head of general insurance Alex Morgan.
"Humans make mistakes. They get tired. They can be distracted. It's not that the machine is perfect, but it does appear to be true that on average, across the population and over time, it makes fewer of the mistakes that humans do."
Is self-driving actually safer? Not everyone agrees
For many Aussies (myself included), there's an uneasiness that comes with leaving your commute in the hands of a machine.
Especially when you consider the fact the technology still has some clear blind spots.
Researchers at the University of Queensland who tested an FSD Model Y for more than 100 days logged upwards of 500 safety-critical interventions (situations where a driver had to take control of the wheel) with roundabouts, complex lane changes and school zones among the trouble spots.
How you can still give yourself a discount
As of November 2025, there are approximately 150,000 Teslas on our roads, meaning more than the majority of Aussies drivers won't qualify for this discount.
So for the millions of us driving something other than a Tesla, there are a couple of ways to secure a premium discount.
Comparing your cover at renewal or negotiating the cost of your premium with your current insurer are still the most reliable ways to keep costs in check.
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