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Lemonade insurance review 2023
At a glance
About Bankrate Score
Policyholders looking for a digital-only insurance experience with AI-driven claims processing might consider Lemonade for their company of choice.
Geared toward policyholders who prefer independence and efficiency, Lemonade offers auto, home, renters and life insurance, all available in its app. Claim filing is almost instantaneous, with many claim payments made within seconds.
Lemonade car insurance
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.
Pros and cons of Lemonade car insurance
Lemonade car insurance is a relatively new product, so you might wonder what this company has to offer as you obtain car insurance quotes. Some of its pros and cons include:
Usage-based premiums may be more tailored to your specific driving habits
Quick claim payouts on average
Demotech financial strength rating of A (Exceptional)
May not be ideal for drivers looking for an in-person insurance experience since business is conducted via online or mobile app
Currently only available in five states
No accident forgiveness or gap insurance available
Lemonade car insurance cost
Bankrate’s insurance editorial team launched a study to investigate the national average cost of car insurance in 2023. While average Lemonade car insurance rates are unavailable at this time, this information may help you compare your personal quote if you’re shopping for the cheapest car insurance company.
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:
Lemonade home insurance
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.
Why Lemonade won
Lemonade stands out as our 2023 pick for the best digital home insurance company, thanks in part to its easy-to-use mobile app, its A (Exceptional) financial strength rating issued by Demotech and its fully-digital capabilities. From requesting a quote, purchasing a policy or filing a claim, this insurtech’s unique all-digital approach grants customers complete access to policy management from the convenience of their smartphones.
Pros and cons of Lemonade homeowners insurance
If you’re considering Lemonade home insurance, you may want to think about the pros and cons below to know where this insurtech stands out and where its shortcomings may be.
Streamlined claims process via the Lemonade mobile app
Claims payout checks are direct deposited into your checking account
Ample endorsements available
Not available in every state
Can only purchase online and through the mobile app
Not rated by J.D. Power
Lemonade home insurance cost
If looking for the cheapest homeowners insurance company, rates may be at the top of your mind. However, average rates for Lemonade homeowners insurance are unavailable, so you will need to request a quote online or through the Lemonade mobile app.
Lemonade home insurance discounts
Lemonade doesn’t list many home insurance discounts on its website, but does note that you may save on your policy when you bundle with another type of insurance product that the company offers.
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, 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.
Pros and cons of Lemonade life insurance
Looking for cheap life insurance can seem intimidating, but making a list of pros and cons to determine where your priorities lay can help.
Fast underwriting decision after application
No medical exam required
Free look period allows for a full refund if policy is canceled within the first 30 days
Only term life is available
Endorsements may be limited
Not available in New York
Lemonade life insurance endorsements
Lemonade doesn’t list specific endorsements on its website. While a potential lack of endorsements could help keep your cost of life insurance low, some shoppers may be looking for a more robust policy.
Compare Lemonade with other insurers
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
Is Lemonade a good insurance company?
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.
Lemonade has received zero complaints regarding its private passenger line. This may indicate that Lemonade’s auto insurance customers are generally happy with its service. However, Lemonade also only writes car insurance in a few states, so the data set could be small. You may want to reach out to friends or family who have insured their vehicle with Lemonade to ask about their customer service experience.
Lemonade is currently just above the industry average regarding customer complaints for its homeowners insurance product, indicating that a slightly larger-than-average proportion of Lemonade’s home insurance customers are unhappy with its service. This is the first year in which the company’s complaint index for home insurance exceeded the industry average.
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.