Lemonade insurance review 2023

Although the company is ineligible for a Bankrate Score for its auto insurance product due to limited availability and relative newness, Lemonade stands out from other top car insurance companies due to its use of telematics, which may be ideal 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.

Although Lemonade car insurance is only available in four states — Illinois, Ohio, Oregon, Tennessee and Texas — the company plans to expand nationwide. Lemonade car insurance offers all of the standard coverage types one would expect to find with a typical carrier, with a few standouts, including roadside assistance and emergency crash assistance at no additional charge. Also available is the company’s temporary transportation coverage, which will reimburse you for transportation expenses if your vehicle is being repaired due to a covered claim. What makes this coverage unique is that it can apply to ridesharing services as well as rental cars.

Lemonade aims to provide low-cost coverage by using an artificial intelligence (AI)-driven rating approach. It stands out among 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 often take months to pay a claim, Lemonade can pay “in as little as three seconds,” according to its website.

Lemonade could be among the best homeowners insurance companies for those looking for a robust digital experience and an easy, tech-managed claims process. Lemonade currently writes home insurance in 23 states and Washington, D.C. It also has an A (Exceptional) financial stability rating from Demotech.

Lemonade offers standard home insurance coverage as well as its Extra Coverage package, which can provide additional financial protection for jewelry, art, cameras, bicycles and musical instruments with no deductible. In addition, Lemonade offers a wide variety of coverage add-ons, including swimming pool coverage, water backup, equipment breakdown coverage, extended reconstruction cost and more. When comparing home insurance quotes with other providers, the extra protection from endorsements can make a significant coverage and premium difference.

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, which is underwritten by the North American Company for Life and Health Insurance.

Although policies are offered without a medical exam, that doesn’t guarantee that everyone will qualify. Lemonade still uses a health questionnaire as part of its underwriting process, which could mean that those with health conditions could pay higher rates or may 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 is a unique car insurance company that may not be for everyone. Maybe you're a tech-savvy policyholder, but Lemonade doesn't offer insurance in your area. If this Lemonade Insurance review leaves you wondering if this company is a good fit, you may want to consider comparing rates with some alternative companies, including:

Lemonade vs. Kin

Although it only sells home insurance and is only available in seven states: Alabama, Arizona, Florida, Louisiana, Mississippi, South Carolina and Virginia, 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.

Learn more: Kin Insurance review

Lemonade vs. 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.

Learn more: Clearcover Insurance review

Lemonade vs. Allstate

Unlike Lemonade, Allstate is a traditional, national carrier. However, unlike some other standard carriers, Allstate offers pay-per-mile insurance in some states through its Milewise program. Additionally, Allstate may appeal to those who want a variety of options for doing business with their insurance company, as it has local offices, contact centers and digital tools available to its policyholders.

Learn more: Allstate Insurance review

With licensed agents on staff, Bankrate knows that not all insurance company reviews are created equal. We set ourselves apart not only with our real-world industry experience, but also by the extensive data points we analyze to evaluate companies with our in-house Bankrate Scoring model.

With its easy-to-use mobile app and AI-enabled claims process, Lemonade could be an excellent insurance company to consider for tech-savvy policyholders living in the states where it does business. However, this company has no in-person agents, and while it does list a customer service phone number, Lemonade generally directs its customers toward its app. If you aren’t comfortable using a smartphone or prefer a personalized in-person insurance experience, this may not be the company for you.

Lemonade customer satisfaction

To evaluate customer satisfaction, Bankrate assesses third-party scores issued by J.D. Power. J.D. Power conducts annual insurance studies polling policyholders about their overall satisfaction, claims satisfaction and digital experience. The maximum score an insurance company can receive in a J.D. Power study is 1,000 points, where a higher score is typically representative of positive customer experiences compared to the industry average. J.D. Power currently does not score Lemonade home or auto insurance products, so no data is available.

Lemonade customer complaints

Bankrate also looks at the National Association of Insurance Commissioners (NAIC) complaint index to get a deeper sense of current customers’ satisfaction with their insurance company. The complaint index keeps track of the frequency of complaints it receives about a company’s various lines of insurance products. To understand this data, know that an average (or baseline) number of customer complaints equals an index score of 1.0. A company with a higher score than 1.0 receives more complaints on average for a company of its size, and a company with a lower score than 1.0 receives fewer complaints. Here’s how Lemonade fared on the NAIC complaint index for its home, auto and life insurance products.

Other Lemonade tools and benefits

In addition to tech-driven car, home and life insurance, Lemonade also provides:

• Pet insurance: Lemonade’s pet insurance can help pay for diagnostics, procedures and medication for your pet. This policy could also net you savings on routine care and prevention.
• Renters insurance: Lemonade renters insurance made Bankrate’s list of best renters insurance companies in part due to its high J.D. Power rating and A (Excellent) financial strength rating from AM Best. The company advertises renters policies that start as low as $5 per month.
• Mobile app: Lemonade does the bulk of its business via its highly-rated mobile app. You can use the app to make payments, make changes to your policy and report claims.

Frequently asked questions about Lemonade