- Introduction to Lemonade Insurance
- What Kinds of Insurance Does Lemonade Insurance Offer?
- Does Lemonade Insurance Sell Homeowners Insurance?
- Does Lemonade Insurance Sell Liability Insurance?
- How Does Lemonade Insurance Work?
- Pros and Cons of Lemonade Insurance
- Real Reviews of Lemonade Insurance
- Get Customer Support Or File A Claim For Lemonade Insurance
- Frequently Asked Questions
Introduction to Lemonade Car Insurance
Lemonade Insurance is an insurance company that allows customers to buy policies online or through an app in various states. Founded in 2015 and headquartered in New York City, Lemonade initially started with renters insurance in a few states and has quickly expanded their products to include homeowners insurance, pet insurance, term life insurance, and even car insurance. Lemonade’s slogan is “Forget everything you know about insurance”, evidenced by their non-traditional insurance business model in which Lemonade takes a flat fee from all premiums, uses the remaining premium for claim payments and business costs, and then donates any remainder to charitable causes through a “Giveback” fund.
In 2021, Lemonade acquired Metromile, Inc a pay-per-mile auto insurance carrier and launched their first auto insurance product - Lemonade Car. Since then, Lemonade continues to operate Metromile in 8 states and they’ve expanded Lemonade Car to 7 states (AZ, IL, OH, OR, WA, TN, TX).
What Kinds of Insurance Does Lemonade Insurance Offer?
Lemonade Insurance's primary focus is renters insurance—they provide coverage in 28 states and the District of Columbia. However, they’ve expanded to include Homeowners insurance, Pet Health insurance, Term Life insurance and Car insurance as well. Lemonade’s central selling point for their insurance products is that customers can purchase insurance online easily and quickly. Going one step further than traditional insurance carriers like Progressive, Geico, or Liberty Mutual –who also sell directly to customers- Lemonade also utilizes AI in their claims process to lower their operating costs.
Does Lemonade Insurance Sell Car Insurance?
Yes, in AZ, IL, OH, OR, WA, TN, and TX, Lemonade sells car insurance. In Arizona, Oregon, and Washington Lemonade focuses on pay-per-mile car insurance, a type of specialized car insurance designed for low-mileage drivers. In Illinois, Ohio, Tennessee, and Texas, Lemonade Car insurance offers traditional car insurance policies designed for all drivers. In all states, Lemonade Car insurance offers liability coverage (which includes property damage and bodily injury liability), uninsured/underinsured motorist coverage, comprehensive coverage, and collision coverage. Lemonade Car insurance also offers additional coverages such as Personal Injury Protection (PIP), temporary transportation coverage, medical payments (MedPay), roadside assistance, windshield coverage, although their availability depending on your state.
How Does Lemonade Car Insurance Work?
Lemonade offers Car insurance policies through their website or app (available in Google Play or iOS). To purchase a Lemonade Car insurance policy you must live in AZ, IL, OH, OR, WA, TN, or TX. Depending on the state you live in, Lemonade Car insurance works in two different ways.
Lemonade Pay-Per-Mile Car Insurance (Arizona, Oregon, InsuranceWashington)
Pay-per-mile insurance is a special type of policy that includes all standard coverage options like liability coverage and comprehensive/collision coverage, but prices are based on how much you drive per month. Lemonade Car customers are charged a base price, and a per-mile-price (usually a few cents). Every month, customers receive a bill with their total miles multiplied by their per-mile price, plus their base price – which can mean radically different prices if driving habits change. To calculate monthly miles, Lemonade Car customers are required to use a plug-in OBD-II device which tracks miles as well as driving habits such as hard-braking, speeding, or swerving. For cars without a standard OBD port, Lemonade does offer an adapter cable that allows drivers of certain models of car (including some Teslas, BMWs, and cars manufactured before 1996) to qualify for Lemonade’s pay-per-mile program.
Lemonade Traditional Car Insurance (Illinois, Ohio, Tennessee, Texas)
In states where Lemonade doesn’t offer pay-per-mile insurance, Lemonade offers a traditional car insurance program where customers are offered a standard 6-month premium. Lemonade Car, however, still uses telematics or driver tracking either through a plug-in OBD-II device or the Lemonade app. Through telematics, Lemonade claims to offer lower premiums by rewarding certain driving habits such as having low mileage, driving under the speed limit, or driving outside of rush hour. Lemonade also requires you to track your driving if you want to utilize their roadside assistance, which covers drivers who can’t use their car during a mechanical breakdown or lockout, not just as a result of a crash.
How do Lemonade Car Insurance Claims Work?
Lemonade Car customers can submit claims through the Lemonade app, where they are handled by a combination of AI software and a human claims team. Once in the app, customers are asked to verify certain information about themselves and record a video detailing their claim. Lemonade instantly approves certain claims through AI, while all other claims are processed by a traditional insurance claims department. Additionally, because of Lemonade’s focus on telematics, they use their location-based technology to gather more details on accidents such as exact location, your speed, and more - which they claim allows for faster claim payout. Depending on the claim, Lemonade may still need to complete reviews and appraisals to complete your claim or contact you for more information.
Pros and Cons of Lemonade Car Insurance
Pros
- Low-mileage drivers in states with pay-per-mile insurance can get better pricing than with a traditional insurance company.
- Lemonade offers bundling discounts if you also purchase one of their home, renters, life or pet insurance policies.
- Lemonade car insurance offers eco-friendly policies such as discounts for electric vehicles, and a tree planting program designed to offset carbon emissions.
- Lemonade has earned a Financial Stability Rating of A-Exceptional from Demotech Inc., a company focused on independent, regional, and specialty companies in property and casualty insurance.
Cons
- Customers are required to download the Lemonade app to manage their policy, get customer service, and file claims.
- Only available in seven states, and designed for low-mileage drivers in three of those states.
- Requires telematics, which can raise privacy concerns, especially in states where pay-per-mile is required and location services must be on at all times.
- As a newer company, Lemonade lacks financial rating from AM Best and other traditional financial rating companies.
Real reviews for Lemonade Insurance
Lemonade Insurance has a 4.4 star rating on Trustpilot, a 4.4 star rating on the Google Play app store, and a 4.9 star rating on the Apple app store. While reviews of their renters, homeowners, and pet insurance products are plentiful, fewer reviews focus on their car insurance product. Car insurance customers with positive reviews, however, focus on the affordability of Lemonade car insurance, as well as the convenience of signing up for coverage and the ease of submitting claims on the Lemonade app. Customers with 1-star, 2-star, and 3-star ratings, however, point out difficulties with using the app. These customers dislike the constant notifications they receive on the app, technical issues, always-on location tracking, and having to update their app regularly to comply with their insurance contract.
I just wanted to pop on here and give a 5 star review because this morning I was taking my nephew to school and a car in front of me brake checked because a car pulled out in front of it so I also had to slam my brakes, and no more than 5 minutes later I got a call asking if I was okay from my local emergency services. This is the first time this has happened and I had no idea that this app could do that, but I was highly impressed.
I’m on a fixed income and had to find the cheapest insurance as possible with the best coverage. Lemonade was in my budget (well under it), and still gave me “full coverage.” I will 100% be switching most of my insurances over to Lemonade in the future because of their rates and customer service. I’m amazed!
I appreciate several facts about Lemonade. Integrity, follow up, responsive and respectful. All my claims and questions have been handled well, and updates provided. If there is an issue, I am emailed and told clearly what the issue is, and what I need to do or what they need to do. All changes to policies are clearly stated, and there's no hidden agenda. What a breath of fresh air!
The process for signing up for car and rental insurance have been very easy and efficient. I’ve always had great referrals to Lemonade Insurance from current policy holders.
After 2 years of using the car insurance Lemonade, here are the summaries of the issues, which this company has shown.Given the useless resolutions of the customer care which does not really resolve anything, we have also had to escalate them. 1) Constant harassing customer service and APP, with reminders to check their online services. The customer service has confirmed that: [name redacted] has serious technical issues, and the location services disconnect after:: Any App update, Anytime the phone goes in flight mode. (if you are flying, be ready to respond to them upon landing, by reactivating their tracking services, so they know where you are. Your other things (i.e.: get a Uber, get my luggage, get out of the airport, get to my meeting, getting to my hotel,) are irrelevant to them. Your job is to fix their broken App Randomly. No precise reasons.The customer is held responsible for those disconnections and gets harassed if they do not take action. The customers will eventually get a penalty for not complying to fix the Lemonade IT issues. After one week of harassment lemonade will charge the customer additional US$ on their premium 2) Lemonade refuses to share with the customers the details of their travels in the USA and abroad, by using the technique of: Ignore.3) The app is designed to track and charge every single movement of the people under the policy and charging miles accordingly.This includes: walking, riding a bike, driving a vehicle or a moped (covered by another insurance), being a passenger in a Taxi, Uber, friends car. It tracks and registers steps done in own home, across rooms, in the back and front yard, etc 4) Patronizing behavior shown by many contact center employees, and in an amplified way by managers, who use the threaten and blame the customer technique.
hate that I have to download an app on my phone for something I'll likely rarely need to access... price for policy was ideal though and the app itself has a clean, easy, user-friendly interface. Update 7/7/21: The constant updates don't do alot in the way of helping me feel like this is a secure and legit thing.... I mean its literally like 2 to 3 times a week... what gives
hate that I have to download an app on my phone for something I'll likely rarely need to access... price for policy was ideal though and the app itself has a clean, easy, user-friendly interface. Update 7/7/21: The constant updates don't do alot in the way of helping me feel like this is a secure and legit thing.... I mean its literally like 2 to 3 times a week... what gives
Get Customer Support For Or File A Claim With Lemonade Insurance
Lemonade recommends using their site or app to file claims, request roadside assistance, and get customer support.
For phone support, you can also reach Lemonade at (844) 733-8666.
To contact Lemonade via email regarding a car claim, you can reach them at carclaims @ lemonade.com
**Frequently Asked Questions **
Should I Buy Lemonade Car Insurance?
If you live in one of Lemonade’s seven supported states, don’t mind vehicle tracking, or downloading an app to manage your policy, then Lemonade might be a good fit for you. If you live in Arizona, Oregon, or Washington keep in mind that you’ll be charged both a base rate and a per-mile-price. If you use your car to commute, or commonly drive long distances, check your price estimates carefully as Lemonade might not offer your best price.
How is Lemonade Car Insurance So Cheap?
Lemonade insurance reduces their operating costs by using AI and other automated tools in underwriting, claim management, and policy sales. While Lemonade car insurance might be cheaper for some customers, it doesn’t always provide the best price. The best way to make sure you’re getting the best price is to compare Lemonade’s total estimated price to quotes from at least 2-3 additional auto insurance companies.
Is Lemonade Insurance a Real Car Insurance Company?
Yes, Lemonade Insurance is a real car insurance company. While they’re best known for renters insurance, Lemonade is fully licensed and regulated, meaning they sell real auto insurance policies. Customers in eligible states can buy policies that offer all required liability coverages, as well as comprehensive, collision, and other optional coverages.
How Does Lemonade Insurance Make Money?
To make money Lemonade Insurance collects premiums from its policyholders for coverage provided. Unlike a traditional insurance company, however, Lemonade takes a flat fee out of collected premium as profit, pays for operating expenses and claims, and then donates any remainder to charities through their Lemonade Giveback.
Is Using Lemonade Insurance Worth It?
Using Lemonade car insurance can be worth it if you’re getting a better price than with other insurance companies, and if you don’t mind having your driving tracked through telematics. If you want insurance that’s easy to buy online, and are comfortable using an app for claims and support, then Lemonade car insurance could be worth it for you.
