‘Humans make mistakes’: Insurer offers discount to self-driving car owners

Zurich Insurance has offered discounted premiums to drivers of Tesla vehicles using Full Self-Driving (FSD) Supervised mode, citing reduced accident frequency. The underwriters reviewed data showing that drivers using FSD were less risky than those driving manually. Tesla’s FSD requires a human to supervise, and the technology is classified as a Level 2 Advanced Driver Assistance System in Australia. The system uses eight cameras and a neural network to process visual data, allowing the car to navigate without the driver touching the steering wheel. If a driver is distracted or not ready to take control, the car will pull over and deactivate the self-driving feature. Data from Tesla shows Australians have self-driven over 132 million kilometers, but this is still a small fraction of the total 264 billion kilometers driven by all vehicles in 2025. The inclusion of FSD as a risk factor is the first in Australia, and Zurich believes it is the second globally to offer such a discount. The offer comes at a time of rising vehicle insurance costs, with premiums jumping by 50% between 2019 and 2025. Alex Morgan of Zurich emphasized that while self-driving technology reduces human error, it does not eliminate all risks, such as a tree branch falling on a roof or a vehicle being stolen. Tesla’s director, Thom Drew, noted that FSD is making driving significantly safer and that insurers are beginning to recognize the safety benefits of automated driving.

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