As we previously reported, Tesla was exploring the option of adding discounts to Tesla Insurance for users who actively use FSD. Tesla Insurance is integrated directly right into the app and offers an easy-to-use and seamless experience for those who have access to it - and if you’re an active user of FSD - it's about to get even better.
Tesla already offered discounts based on safety score, which are Tesla’s internal factors determining how safe a driver you are. A higher score means you pay less for insurance, while a lower score increases your rate. Now, FSD use is also a factor in that equation.
FSD (Supervised) Discount
Tesla added a page to its Tesla Insurance support section outlining the new Full Self-Driving (Supervised) discount, so let’s look at exactly what it’s offering.
This discount is aimed at owners in the U.S. who have either purchased or subscribed to FSD. The more you use FSD, the larger the discount on your insurance.
Tesla will compare the total miles driven (overall) against the total miles driven with FSD enabled - giving you an overall percentage of time spent on FSD rather than manual driving. When you meet or exceed 50% of your miles driven with FSD engaged, you’ll receive up to a 10%discount on your insurance premiums.
Unfortunately, Tesla’s Safety Score and, thus, miles driven on FSD are only available to Tesla Insurance subscribers, which is limited to a variety of states in the U.S.
You can find your total miles driven with FSD by navigating to Safety Score and tapping the round info icon in the top right corner of the app. This displays the information for the current month, while your current discount is displayed under Safety Score > Premium.
The discount is shown as part of your calculated premium.
Not a Tesla App
How to Qualify
This discount is currently limited - it is only offered in Arizona and Texas at the moment. While it will take effect for new policyholders immediately, existing policyholders will have to wait until March 8th, 2025, to begin taking advantage of the FSD discount. While you can insure non-Tesla vehicles through Tesla Insurance, letting you keep a single policy for all of your vehicles, the FSD discount only applies to Tesla vehicles on your account.
Tesla also notes that the 10% discount doesn’t apply to all portions of the premium - but only to certain eligible coverages. Some ineligible coverages include comprehensive collision coverage, uninsured motorist, and uninsured pedestrian coverage - so your total discount rate may be lower than a full 10%.
If you recently received an FSD trial, the discount will also apply during the trial period. If your trial or subscription lapses, the discount will apply for the previous 30 days, regardless of your subscription status.
While this isn’t the massively cheaper insurance many were hoping for, it can still help offset the price of FSD, especially if you are already a heavy user. For the average insurance policyholder, this will cut between $20 - $40 from your insurance premium, which can cut the price of subscribing to FSD to $60-$80. It was just last year that subscribing to FSD cost $199/month.
Hopefully, Tesla will quickly roll this discount out to more eligible states and continue the expansion of Tesla Insurance into new territories. It’ll be interesting to see how this discount gets adjusted as newer, safer versions of FSD roll out.
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In a move that’s sure to excite those with larger families, Tesla has started teasing the return of the seven-seat configuration for the Model Y. In a new marketing email sent out to customers recently, Tesla explicitly highlights the vehicle’s spaciousness.
“Ready for anything with long range, seating for up to seven, and enough room for everyone’s gear.”
The seven-seat Model Y was initially offered in late 2021, but it hasn’t been available since Spring 2023. The return of the new variant will be an addition that many have been waiting for, as the next vehicle with that much passenger space in the line-up is the Model X, starting at almost double the price.
First-Gen Model Y Third Row
The original seven-seat Model Y was extremely popular in the Asia-Pacific and European markets, and it still sold fairly well in North America despite differences in preferred vehicle sizing and spaciousness. It offers additional seats for larger families with young children, but space in the third row is minimal.
The seven-seat variant makes the Model Y more competitive against other three-row SUVs on the market. The video below features the seven-seater, first-generation Model Y.
Power Reclining Third Row?
The refreshed Model Y was launched with power-reclining second-row seats, a huge plus for practicality and ease of use. The power-reclining second-row seats are extremely popular with families and are very helpful, as you can control them from the front screen rather than needing to open the rear doors.
Tesla is likely to integrate power-reclining seats into the third row and potentially keep them for the second row as well. With the second row sliding forward and backward for easy entry, as well as allowing the second and third rows to fold flat for additional cargo room when needed.
Launch Date and Price
Tesla’s tease of the seven-seat variant is likely just the start. With recent sightings of the Model Y Performance variant hitting the Nürburgring, it seems Tesla has a lot in store for this summer. If you’ve been waiting for the seven-seat variant, it seems like it’ll be just a few short months away at this rate.
While we haven’t seen any production samples or other details regarding dates yet, Tesla previously priced the seven-seat option at an additional $2,000 USD ($3,000 CAD). The seven-seat option will likely only be available on the Long Range AWD and Long Range RWD variants, not the Performance model, similar to the first-generation Model Y.
In Elon’s flurry of posts on X about FSD yesterday, he also revealed the date that another moment of peak science fiction would be occurring — June 28th. Tesla expects to conduct the first-ever self-delivery, where a brand-new Model Y will depart from the production line and arrive directly at its new owner’s home without any human intervention.
Imagine ordering a vehicle, and a few days later, rather than needing to pick it up, it simply arrives in your driveway and notifies you via an app that it has arrived. That’s no longer the talk of science fiction; it is quite literally something that is likely to happen this month.
Expect a Model Y Delivery in Austin
Considering everything Tesla has done so far, we’re fairly certain that the first self-delivered vehicle will be a Model Y in Austin, in the same geo-fenced area where Tesla’s Robotaxi will operate. FSD is highly optimized for the Model Y, and it’ll take some time for those optimizations to trickle down to the rest of the fleet. It’s not clear if FSD performs better on the Model Y because it’s the most popular vehicle and, therefore, Tesla has the most data for it or if Tesla explicitly chose to focus more on their most popular vehicle.
Tentatively, June 22.
We are being super paranoid about safety, so the date could shift.
First Tesla that drives itself from factory end of line all the way to a customer house is June 28.
While a car driving itself is something truly different from what other manufacturers offer, there are also numerous strategic advantages for Tesla to do so. This includes drastically reducing last-mile delivery costs by minimizing the need for car carriers, delivery drivers, and even delivery personnel at your local Tesla center. For customers, it could mean a faster, more flexible delivery method - and one absolutely unforgettable welcome to Tesla ownership.
We recently took a closer look at the advantages and disadvantages of vehicles delivering themselves to customers. While it’s all positive for Tesla, there are some potentially negative sides to it as well.
A Futuristic Glimpse
When you step back and look at it, Self-Delivery is a logical extension of Unsupervised FSD and the Robotaxi network in general. Self-deliveries are expected to run on the same software stack that powers the Model Ys currently roaming Austin’s streets autonomously, which means there is little for Tesla to do other than enable specific instructions for self-delivery during the final vehicle configuration steps.
Given Elon’s note that the dates could shift, this could easily be moved to early July; however, either way, it seems like we’re just weeks away from this monumental event, which will further reduce the cost of Tesla vehicles.
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