Jon Quast

Teslas are collecting tons of driving data, and it just had a deal with an insurance company, Lemonade, to tap into that.

Lemonade does have a pay-per-mile product, as you point out.

And so, when full self-driving is activated in a Tesla, the idea is customers will pay 50% less insurance for those miles.

when it's activated, not overall, just when that is activated.

Lemonade is saying that Tesla is just the first company that we intend to do this with.

It makes a lot of sense if you're Lemonade.

Go ahead and tap into that huge Tesla audience.

Okay, Tesla has its own insurance, but they're not necessarily all in the same states.

There are regulatory reasons for that.

So, Lemonade is available in some places that Tesla isn't.

So, this makes sense.

Yeah, I think this is going to be a general trend.

Cars are getting smarter, and insurance needs to tap into that.

I don't personally like it.

I personally struggle with paying for satellite radio when I can get FM radio for free.

But one thing I was thinking about is, it's so interesting, $100 a month.

Are you going to save $100 on your car insurance with 50% off from Lemonade on those miles?

I don't know if there's enough there to do that.

And so that's just kind of an interesting pricing dynamic.

I think that Warren Buffett already admitted it was a mistake before he retired and was expressing that he did not like the direction that Kraft Heinz was going and splitting these companies back apart when he spent all that time and effort getting them together.