Lemonade insurance review 2023

Lemonade car insurance

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, 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 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.

Bankrate Award winner for Best Digital Home Insurance Company

Each year, Bankrate’s insurance editorial team uses our decades of combined industry experience to analyze dozens of insurance companies on a variety of metrics. We then issue Bankrate Awards to those companies that excel in particular product lines and categories. Following our extensive 2023 study, we are proud to present Lemonade Insurance the Bankrate Award for the Best Digital Home Insurance Company.

Why Lemonade won

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:

Lemonade car insurance cost

Bankrate’s insurance editorial team (including three licensed agents with several decades worth of combined industry experience) 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 car tools and benefits

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

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.

Although Lemonade is currently Bankrate Score-ineligible due to its lack of average home insurance rates from Quadrant Information Services and third-party ratings, it’s possible that our Bankrate Score assessment of Lemonade could change as the provider grows and more data is available.

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.

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.

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 home tools and benefits

In addition to homeowners insurance, Lemonade also offers renters in 28 states plus Washington, D.C. and condo insurance in 25 states plus 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, 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.

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.

Lemonade life tools and benefits

Life insurance can be complex, but Lemonade’s Life Insurance 101 page might help you feel more confident when comparing life insurance quotes. Here, you’ll find informative articles about a wide range of life insurance topics, from policy basics, grieving and funeral planning, among others.

Lemonade customer satisfaction

To evaluate customer satisfaction, Bankrate assess 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.

In addition to J.D. Power studies, Bankrate looks at AM Best financial strength ratings and the National Association of Insurance Commissioners (NAIC) complaint index. 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.

Lemonade auto satisfaction

J.D. Power did not include Lemonade in any of its 2022 U.S. Auto Insurance studies. This may be due to Lemonade car insurance’s limited service area and because this product is newer to the market.

However, the NAIC shows that 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 three 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 homeowners satisfaction

J.D. Power did not rank Lemonade’s homeowners insurance in the 2022 U.S. Home Insurance Study, possibly due to lack of data, as this product line is relatively new to the company. However, J.D. Power did rank Lemonade for its renters insurance, where the company ranked number two in overall customer satisfaction with a score of 853. While this score doesn’t necessarily guarantee that Lemonade’s homeowners insurance customers are satisfied, it could be a good sign that the company provides adequate customer service regarding property insurance.

When it comes to the NAIC complaint index, Lemonade home insurance sits under the baseline, with an index score of 0.61. Fewer complaints than average may indicate Lemonade homeowners policyholders are, on average, happy with the company's service.

How to file a claim with Lemonade

Although reporting a claim is typically a straightforward process, you will need to gather some information first. For instance, you will need the basic driver and vehicle information for all involved when filing a car insurance claim. Additionally, the insurance company will likely ask you for your version of the event and to provide any supporting documentation, such as a police report.

Whether you’re filing an auto, homeowners or life insurance claim with Lemonade, you will need to do so via the mobile app.

Lemonade boasts a unique claims experience. After you report your claim on the app, Lemonade’s AI will run the details of your claim through its fraud detection algorithms. If the AI approves your claim, you could receive your claims check instantly. If the AI cannot approve your claim, it will hand it over to dedicated claims representatives to review the file in more detail.

Lemonade availability

Lemonade’s availability varies, depending on the type of policy. Lemonade car insurance is currently available in four states: Illinois, Ohio, Tennessee and Texas.

When comparing home insurance quotes, remember that Lemonade’s homeowners insurance is available in 23 states, plus Washington, D.C. These states include:

• Arizona
• California
• Colorado
• Connecticut
• Georgia
• Illinois
• Indiana
• Iowa
• Maryland
• Massachusetts
• Michigan
• Missouri
• Nevada
• New Jersey
• New York
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Tennessee
• Texas
• Virginia
• Washington, D.C.
• Wisconsin

Lemonade life insurance is available in every state except for New York. It’s also available in Washington, D.C.

Other Lemonade perks worth considering

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.

Lemonade corporate sustainability

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 2022 alone, Lemonade gave over $1.8 million to 59 different nonprofits.

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 ethical practices at its core.

Not sure if Lemonade is right for you?

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 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.

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.