Zurich Insurance incorporates Tesla self-driving into Australian pricing

Zurich Australian Insurance Limited has become the first insurer in Australia to incorporate Tesla’s Full Self-Driving (FSD) (Supervised) technology as a rating factor for motor insurance pricing. This move, part of the company’s ‘InsureMyTesla’ offering, aims to reflect the lower risk profile associated with supervised autonomous driving.

Tesla data indicates that vehicles utilizing FSD (Supervised) experience seven times fewer major or minor collisions compared to standard electric vehicles. In Australia and New Zealand, users have already logged over 132 million kilometers using the feature since its launch in October 2025.

Alex Morgan, head of General Insurance at Zurich, noted that while machines are not perfect, they generally commit fewer errors than humans, who are prone to fatigue and distraction. Zurich is the second insurer globally to use FSD data for risk assessment. While the technology reduces driver-error risks, the insurer noted it does not protect against external factors such as weather damage, theft, or collisions from non-autonomous objects.