Self-driving tech has just crossed an interesting threshold in Australia – it’s now officially cheaper to insure. Zurich Insurance has announced that it will offer discounted premiums to drivers who insure a Tesla that uses Full Self-Driving (FSD) Supervised mode, after early data reviewed by its underwriters showed lower accident frequency on FSD-driven trips than on human-driven journeys, The Sydney Morning Herald reports.
It’s the first time self-driving capability has been used as a risk rating factor in Australia, and Zurich believes it is only the second insurer globally to do so – the first, most likely, being Tesla’s own insurance arm in the United States.
As for how much you’d actually save, Zurich has declined to put a public number on it, saying only that FSD users will be rated as lower-risk policyholders. The closest reference points: Tesla’s US insurance programme caps its FSD (Supervised) discount at 10% on certain coverages, earned when at least half of the miles driven over the past 30 days are on FSD, while Zurich’s InsureMyTesla product – the underwriter for Tesla’s official insurance offering in Australia – carries an average premium of around A$1,644 (RM4,600). A similar 10% saving there would work out to roughly A$164 (RM460) a year.
“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,” said Zurich head of general insurance Alex Morgan, while noting the tech’s limits: “It does not, however, do much to solve the problem of a tree branch falling on your roof in a storm, a shopping trolley being pushed into your passenger door, hail smashing your windscreen, or your vehicle being stolen.”
FSD Supervised went live in Australia about 12 months ago for newer Model 3 and Model Y variants, priced at A$149 (RM420) per month. The system uses the cars’ eight cameras feeding a neural network to steer, accelerate, brake and change lanes to a set destination, while a cabin camera watches the driver’s eyes – look away too often or occupy your hands, and the car issues warnings before pulling over and locking out FSD for the rest of the trip. Under Australian road rules it is classified as a Level 2 driver assistance system, so the human remains legally in control at all times.
Uptake has been brisk – Tesla says Australians have covered more than 132 million km on FSD to date, although that’s still a rounding error against the 264 billion km driven by all vehicles there in 2025. The system isn’t flawless either; early struggles included roundabouts and Melbourne’s hook turns, and in a recent SMH test drive the car tried to exit Sydney’s Harbour Bridge via a bus-only lane and failed to recognise a 40 km/h school zone.
“FSD (Supervised) is making driving significantly safer, and it’s encouraging to see… this (insurance) benefit and reflecting the reduced risk for Tesla owners,” said Tesla Australia country director Thom Drew. The discount lands at a welcome time for Australian motorists, whose premiums have climbed by around 50% between 2019 and 2025.
As for Malaysia, FSD remains a case of paid-for-but-not-yet-delivered – the feature has been sold here since the brand’s 2023 launch, but Tesla has said right-hand-drive markets like ours are further down the rollout queue, and the company ended one-time FSD purchases here in June in favour of subscriptions. Australia’s launch showed RHD is no longer the barrier it once was – and now, when FSD does eventually arrive here, Malaysian insurers will have a working precedent for pricing it.
