A relative newcomer to the insurance space, Lemonade has become a strong contender in the property/casualty insurance market due to its affordable rates and easy-to-use mobile app. Its unique approach to insurance through an all-digital platform can be a draw to those who don’t prefer the agency experience when purchasing their policy. Whether you are searching for home, renters, condo, pet, life or auto insurance, Lemonade offers coverage that you may be able to tailor to fit your unique needs.
|Easy-to-use mobile app for quick quotes and digital policy management||Some policy types are only available in certain states|
|Claims are filed through the app and, if approved, are paid immediately||A focus on all-digital format means no in-person customer service|
|Lemonade’s Giveback program donates unused premium to charities that customers choose||Some insurance offerings are not rated by J.D. Power or major rating bureaus like AM Best, S&P Global or Moody’s|
Lemonade aims to provide low-cost insurance coverage by using an artificial intelligence (AI)-driven rating approach. It stands out among other competitors due to its high-tech business model that uses a mobile app and AI to help you get a quote, service your policy, make payments and file claims. Unlike traditional insurance companies that can take months to pay a claim, Lemonade can pay “in as little as three seconds,” according to its website. The carrier offers coverage nationwide, although not all product lines are available in every state. Additionally, as a Certified B Corporation, Lemonade could be a great choice for new customers to consider when looking to save some cash while still being socially and environmentally responsible. Bankrate’s Lemonade Insurance review delves deeper into this insurtech carrier to help you decide if it’s the right fit for your needs.
Lemonade car insurance | Bankrate Score: Unrated
Lemonade car insurance is a new offering for the company and is only available in Illinois and Tennessee, but the company plans to expand coverage to more states. Lemonade stands out from other top car insurance companies due to its use of telematics and could be a good option for customers who appreciate a usage-based auto insurance rating model. By collecting data relating to drivers’ mileage and driving habits through its mobile app and vehicles, Lemonade strives for fair and personalized rates. However, remember that individual rates will vary depending on a variety of factors.
Additionally, Lemonade continues its mission to create a positive social impact. Through its Giveback program, Lemonade promises to plant trees to help offset its customers’ CO2 emissions.
Lemonade car insurance cost
The average cost of car insurance in the United States is $1,771 per year for full coverage. Lemonade’s average rates are not available as of publication, perhaps because the car insurance product is so new to the marketplace, but the national average premium determined by Bankrate’s analysis could help you understand what a competitive price looks like.
|National average annual full coverage premium|
|Clean driving history||$1,771|
|Speeding ticket conviction||$2,138|
|Adding a 16-year-old driver*||$3,852|
*16-year-old rates include a male or female 16-year-old and their married parents on one policy.
Lemonade car insurance discounts
Lemonade’s car insurance may already be competitively priced based on its use of real-time driving data. However, the company does offer some auto insurance discounts that could help you lower your premium even more:
- Hybrid/electric vehicle discount: Drivers who insure hybrid or electric cars might qualify for additional savings.
- Bundle discount: Buying your auto insurance as well as your home, condo, renters or life insurance from Lemonade might help you significantly save on both policies.
- Advance quote: If you plan ahead and get a quote before your current policy expires, you might receive a premium discount.
Discounts might vary by state and there could be additional eligibility requirements, so be sure to talk to a Lemonade representative about ways to save on your policy(ies).
Lemonade car services
Lemonade rewards drivers of hybrid or electric vehicles for choosing a ride that reduces carbon emissions. The company offers a few extra perks, including charger coverage, in case something happens to your vehicle charger, and emergency charging coverage, in case you are stranded and need a charge. The company also helps to offset all of its customers’ carbon emissions by planting trees.
Lemonade home insurance | Bankrate Score 4.2
Bankrate ranked Lemonade as one of the best home insurance companies in 2022. Lemonade home insurance could be a good fit for homeowners looking for a robust digital experience. Lemonade currently offers home insurance in 23 states and Washington, D.C.
Bankrate gave Lemonade a 4.2 out of 5.0 on our Bankrate Score scale. The score is relatively high, but may have been higher if the company had a home insurance rating from J.D. Power (currently just the renters insurance product is rated) and if average home insurance rates were available from Quadrant Information Services. As the provider grows and more data is available, it’s possible that our Bankrate Score assessment of Lemonade could change. The company has an A (Exceptional) financial stability rating from Demotech.
Lemonade home insurance cost
Just like its auto insurance, rates aren’t currently available for Lemonade’s home insurance. However, the national average cost of home insurance is $1,383 for a policy with $250,000 in dwelling coverage. Your rates will vary based on a number of factors, like your state, ZIP code, the amount of coverage on your policy, the endorsements and deductibles you choose and your property claims history.
|Dwelling coverage limit||National average annual premium|
Lemonade home insurance discounts
Lemonade doesn’t list many home insurance discounts on its website but does note that you can save on your policy when you bundle with another type of insurance product that the company offers.
Lemonade home services
In addition to home insurance, Lemonade also offers renters insurance in 28 states and Washington D.C., and condo insurance in 25 states and Washington, D.C.
Lemonade life insurance
Lemonade sells term life insurance without the need for a medical exam to qualify, which means it could be a good fit for policyholders looking for shorter-term coverage who like the digital-first focus of the company. Terms are available in lengths of 10, 15, 20, 25 and 30 years. Lemonade life insurance is sold in all states (except New York) and Washington, D.C. The company only offers term life insurance. Life insurance policies are underwritten by the North American Company for Life and Health Insurance.
However, although policies are offered without a medical exam, that doesn’t mean that everyone will qualify. Lemonade still uses a health questionnaire as part of its underwriting process, which could mean that those with health conditions will pay higher rates or will not be eligible at all. If you’re not sure how to choose the best life insurance company for your needs, you may want to work with a licensed agent for guidance.
Lemonade life insurance endorsements
Lemonade doesn’t list specific endorsements on its website, but does note that you can add family members to a life insurance policy, which could indicate a child rider.
Lemonade life services
Lemonade does not offer any other life services, such as financial planners or annuities, in addition to its term life insurance product.
Other Lemonade perks worth considering
In addition to auto, home and life insurance, Lemonade also offers the following products:
- Renters insurance
- Condo insurance
- Pet health insurance
Additionally, Lemonade has a helpful blog with articles on auto and home maintenance, insurance questions and even pet nutrition.
Lemonade social responsibility
Social responsibility is an area where Lemonade truly shines. Lemonade’s premium structure is different from most traditional insurance carriers. When you purchase a Lemonade policy, you’ll pay a flat fee for your coverage. Once every year, Lemonade reconciles its financials after paying all outstanding claims and donates excess funds to charities. In fact, in the application process, you will also be able to choose a charity so you can align your policy with your own unique philanthropic views. In 2021, Lemonade gave over $2.3 million to charity, up from $1.1 million donated in 2020.
Lemonade is also a Certified B-Corporation, which means it meets strict requirements for social and environmental responsibility. Buying your insurance from Lemonade could help give you peace of mind that you’re doing business with a company that has ‘doing good’ at its core.
Not sure if Lemonade is right for you? Consider these alternatives
If you’re shopping for a new home or car insurance company, Lemonade could be a great choice. It won’t be right for everyone though, so here are some similar options to consider:
- Kin: Although it only sells home insurance and is only available in California, Florida and Louisiana, Kin is another company that uses data and technology to power its systems. The company even has a software program that can predict and help pinpoint which homes are damaged after a storm.
- Clearcover: This carrier could be a good choice for tech enthusiasts. Clearcover boasts that its app can pay claims in an average of just seven minutes. While Clearcover only sells car insurance, it partners with Hippo to sell home insurance.
- Metromile: Metromile is a pay-per-mile car insurance provider, which means your rates are based, in part, upon your actual driving habits. If you don’t drive often, you could get a low rate with Metromile.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident.
- Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
- Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
- Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000
- Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers and homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car and home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers and homeowners, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry, as well as 40-year-old male and female homeowners with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which drivers and homeowners may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.