Zurich Insurance is cutting the price of coverage for Aussies who own a Tesla with self-driving technology after the manufacturer claimed its research shows the system can reduce collisions by as much as 85 per cent.

From September 14,  Zurich is offering a risk-based reduction on policies for Teslas with the Full Self-Driving (FSD) Supervised mode, which allows the cars to navigate by themselves on set routes with driver supervision. About 50 per cent of all Tesla owners in Australia have purchased the tech.

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Zurich made the decision to offer the discount “due to the reduced risk associated with supervised self-driving”, according to the company’s head of general insurance, Alex Morgan. Tesla says its data, collected over 132 million kilometres of local driving, shows FSD cars have one seventh the collisions of vehicles that don’t use the technology.

The insurer hasn’t revealed how much motorists would save, as the exact amount will also be determined by other factors such as their age, driving record and where they live. Tesla owners can access the savings under the existing InsureMyTesla deal, which also offers protection for things like damaged charging equipment.

The latest version of Tesla’s FSD software arrived down under in June last year for Model Y and Model 3 vehicles fitted with Hardware 4 (HW4) cameras. Australia and New Zealand are the first right-hand-drive markets to get the tech, which is available via subscription as well as an up-front purchase. 

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“Full Self Driving” can be a little misleading as the system is not fully autonomous, but rather a very advanced form of driver assistance. Motorists must be ready to take control of the vehicle at all times. 

Tesla says FSD is a Level 2 function under the Society of Automotive Engineers Levels of Driving Automation scale, which means it is compliant with Australian law. That would not be the case if FSD was classified at Level 3. The system can deal with traffic hazards, navigation, lane changing, junctions and various road conditions without the driver touching the wheel or pedals.  

The move by Zurich comes as Tesla makes headlines with the rollout of its driverless rideshare service in Texas, using its Cybercab vehicles.