Lemonade Auto Insurance Review (2024)

In this Lemonade auto insurance review we will first need to acknowledge that Lemonade doesn't sell auto insurance coverage at all. But Lemonade insurance does sell homeowners, renters, and pet coverage. Lemonade’s renters insurance rates are $25 per month, while pet insurance costs $10 per month.

UPDATED: Jan 8, 2024Fact Checked

Kristen Gryglik

Licensed Insurance Agent

Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...

Licensed Insurance Agent

Eric Stauffer

Licensed Insurance Agent

Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...

Licensed Insurance Agent

UPDATED: Jan 8, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

UPDATED: Jan 8, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

UPDATED: Jan 8, 2024Fact Checked
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Lemonade Insurance

Average monthly rate for good drivers:

$25

A.M. Best rating:

N/A

Complaint level:

Low

Pros

  • Lemonade is an online-only insurance company writing homeowner, renter, and pet insurance policies
  • Lemonade claims to charge 80% less for insurance than its competitors

Cons

  • Lemonade doesn’t write auto insurance

Final Verdict: Review of Lemonade Insurance

Lemonade does not have traditional agents. As a result, it has fewer employees than many other insurance companies of comparable size. This is another factor that helps keep Lemonade’s premiums low.

Like many other tech start-up users, Lemonade’s customers use artificial intelligence on the company’s mobile app and website in lieu of consulting with an agent.

Policyholders run claims through a chatbot named “A.I. Jim.” The chatbot is designed to review claims while simultaneously running fraud algorithms.

Unlike another major online insurance company, Geico, Lemonade doesn’t use agents in any capacity

When you hear the word "lemonade," you may not think of insurance. Lemonade, however, is the name of an up-and-coming insurance company. If you're hoping for a Lemonade auto insurance review, you should know that this provider does not offer auto insurance. With such an original name, you might ask yourself: is Lemonade a legit insurance company? For the past few years, Lemonade has been making a name for itself in the industry.  What coverage options are available through Lemonade? While Lemonade cannot offer you a cheap auto insurance policy, the company is known for its homeowners, renters, and pet insurance. First, we'll go over Lemonade's history, current structure, and how Lemonade insurance claims work. Then, we'll share the best way to get a quote for the policies they do offer. You can't buy a Lemonade auto insurance policy, but if you're ready to get an auto insurance quote right now, you can enter your five-digit ZIP code into our FREE quote tool above.  

What You Should Know About Lemonade Insurance Company

When you hear “lemonade,” you may not think of insurance. Lemonade, however, is the name of an up-and-coming insurance company. If you’re hoping for a Lemonade auto insurance review, you should know that this provider does not offer auto insurance.

With such an original name, you might ask yourself: is Lemonade a legit insurance company? For the past few years, Lemonade has made a name for itself in the industry. 

What coverage options are available through Lemonade? While Lemonade cannot offer you a cheap auto insurance policy, the company is known for its homeowners, renters, and pet insurance.

First, we’ll review Lemonade’s history, current structure, and how Lemonade insurance claims work. Then, we’ll share the best way to get a quote for the policies they do offer.

You can’t buy a Lemonade auto insurance policy, but if you’re ready to get an auto insurance quote right now, you can enter your five-digit ZIP code into our FREE quote tool above.

Does the Lemonade Insurance Company sell auto insurance?

If you own a car, you may wonder about the different types of auto insurance coverage options offered through Lemonade. Unfortunately, Lemonade does not sell auto insurance of any kind. However, the Lemonade Insurance Company does offer property coverage.

Lemonade’s property insurance covers several perils, including electrical and water damage. You can also get Lemonade fire insurance, and they insure personal property damage. That means you can even get Lemonade bike insurance.

Lemonade charges less than average by cutting internal costs as much as possible.

According to the company website, you’ll be placed with other customers. A base rate of 20% of your premiums will go directly towards paying for the company’s salaries, running, and technology costs. 

The other 80% of your premiums will pay for customer claims. If any money is left at the end of June, all remaining funds are donated to the charity chosen by your group. 

The Lemonade Insurance Company claims to charge 80% less than other insurers.

Because automobile accidents are so common, auto insurers must pay out many claims to their customers. This means that auto insurance has a lower profitability rate than other types of insurance. 

What an auto insurance specialist says about bundling rates is that for insurance companies to offer both home and auto insurance, it must raise home insurance premiums to offset any losses.

By not offering auto insurance, Lemonade can offer home insurance premiums that are lower than average.

Does Lemonade have agents?

Lemonade does not have traditional agents. As a result, it has fewer employees than many other insurance companies of comparable size. This is another factor that helps keep Lemonade’s premiums low.

Like many other tech start-up users, Lemonade’s customers use artificial intelligence on the company’s mobile app and website in lieu of consulting with an agent.

Policyholders run claims through a chatbot named “A.I. Jim.” The chatbot is designed to review claims while simultaneously running fraud algorithms.

Unlike another major online insurance company, Geico, Lemonade doesn’t use agents in any capacity.

What is the peer-to-peer insurance process?

Unlike many companies that rely on the traditional model, Lemonade uses the peer-to-peer model but goes above and beyond. The peer-to-peer model removes the middleman, which can lead to borrowers getting access to cheaper loans. 

Lemonade underwrites the policies themselves in addition to determining the pricing. Its customers will pay the base premium. An algorithm is used to then determine a client’s monthly fee.

Regarding the fee, Lemonade will take out a flat rate from your monthly premium to pay for client claims. According to the company website, the amount that is leftover in June will be donated to charities chosen by clients. This is one of the strategies employed to discourage fraudulent claims and increase retention. 

Lemonade also works with a second company that helps it pay for any potential losses. Called reinsurance, Lemonade shares an amount of the premium with the other company and overall, this process helps to avoid any unnecessary issues that could arise over the premium. 

Because of the length of the reinsurance, both Lemonade and its clients don’t have the same problem as other companies who fight with customers over money and claims every year. The system is built without the bureaucratic nightmares and pitfalls that other companies experience.

How do I file a claim with Lemonade?

The company is well known for making its claims process simple and pain-free.

The company’s objective is to compensate policyholders as quickly as possible. In 2016, Lemonade set a world record by reviewing, approving, and paying a claim in three seconds.

Here’s the easiest way to file a claim:

  1. Open the mobile app and click the “Claim” button.
  2. Complete a claim report. The claim report will ask you basic questions about the incident and prompt you to include relevant receipts. You may also be asked to submit a video explaining your incident and record any visible damages.
  3. After you complete your report, you will be prompted to submit your bank account information. This will allow the company to send you compensation once your claim has been approved.

The claim process through this company is very unique.

Every part of filing your claim will be done online or through the mobile app. That’s all there is to it.

This claims filing process is touted as being streamlined and easily accessible to consumers.

Where is Lemonade insurance available?

The company was founded in New York City but has since expanded across the United States.

Today, renters, condo, and homeowners insurance policies are available in 24 states.

View as image

This provider also offers renters and condo insurance in Rhode Island and renters insurance in Arkansas and New Mexico.

Its landlord insurance is available in New York, California, Texas, Illinois, Pennsylvania, Washington D.C., and New Jersey. However, policies have only recently been made available in these states.

In late 2019, Lemonade insurance programs were brought to Massachusetts and Missouri. The company has stated that it plans to roll out insurance coverage in additional states in the future.

Lemonade does not offer walk-in agencies or locations. Instead, Lemonade’s features are accessed through the company’s mobile app and website. 

That includes proof of insurance, which will be sent to your mortgage company directly.

What are the benefits of Lemonade?

It offers many appealing benefits for many folks looking for home, renter, and pet insurance.

While the low price is a major plus, the company also offers clients different add-ons and extras. Keep reading to learn more. 

Lemonade Insurance Company Insurance Coverage Options

Lemonade allows you to add extra coverage at any time. The current list includes musical instruments, bicycles, jewelry, and more.

You will not need to purchase extra coverage for basic things, like garments and clothing. 

Lemonade gives ample instructions on its website about what to do to add extra coverage and will provide you with your new premium that will need to be paid. 

Storage Options

Any personal items that clients of Lemonade maintain in a self-storage unit, separate from where they live, are covered up to $1,000. In fact, the company claims to cover your property anywhere in the world. 

For some states, the policy covers possessions in a self-storage locker for up to a certain percentage and a personal property limit. 

Family Coverage

While a roommate is not covered through renters insurance, Lemonade’s policy does cover residents living within the client’s household. Significant others are also covered. 

If you do not live with your significant other, the other individuals must be related to you, either adopted or by blood, to be protected by the Lemonade homeowners policy. 

On its website, Lemonade does claim that adding a significant other to your policy will come at an extra cost.

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Lemonade Insurance Company Insurance Rates Breakdown

If you own a car, you may wonder about the different types of auto insurance coverage options offered through Lemonade. Unfortunately, Lemonade does not sell auto insurance of any kind. However, the Lemonade Insurance Company does offer property coverage.

Lemonade’s property insurance covers a number of perils, including electrical and water damage. You can also get Lemonade fire insurance and they insure personal property damage. That means you can even get Lemonade bike insurance.

In the table below, look at the starting monthly rates for homeowners insurance, renters insurance, and pet insurance offered through Lemonade. 

Lemonade Monthly Starting Prices by Policy Type
Lemonade Insurance Policy TypeStarting Monthly Rates
Homeowners Insurance$5
Renters Insurance$25
Pet Insurance$10

The company also claims you’ll save money by switching to its services. In the table below, check out how much users, on average, have saved from going from a major national company to Lemonade. 

Lemonade Average Annual Percent Saved by Switching Providers by Company
CompaniesPercent of Average Savings by Switching to Lemonade
Progressive31%
Allstate19%
Liberty Mutual10%
State Farm16%
Travelers14%
Geico10%

Now that you’ve seen its prices, you’re probably wondering why Lemonade’s insurance is so cheap. One of Lemonade’s biggest benefits is that it is significantly cheaper than its competitors. This is because it is a peer-to-peer insurance company. 

Lemonade charges less than average by cutting internal costs as much as possible.

According to the company website, you’ll be placed with other customers. A base rate of 20% of your premiums will go directly towards paying for the company’s salaries, running, and technology costs. 

The other 80% of your premiums will pay for customer claims. If any money is left at the end of June, all remaining funds are donated to the charity chosen by your group. 

The Lemonade Insurance Company claims to charge 80% less than other insurers.

Because automobile accidents are so common, auto insurers must pay out many claims to their customers. This means that auto insurance has a lower profitability rate than other types of insurance. 

What an auto insurance specialist says about bundling rates is that for insurance companies to offer both home and auto insurance, they must raise home insurance premiums to offset any losses.

By not offering auto insurance, Lemonade can offer home insurance premiums that are lower than average.

Frequently Asked Questions

What is Lemonade auto insurance?

Lemonade auto insurance is an insurance product offered by Lemonade, a digital insurance company. It provides coverage for your vehicle against various risks, such as accidents, theft, vandalism, and damage.

How does Lemonade auto insurance work?

Lemonade auto insurance operates on a digital platform, allowing you to easily get a quote, purchase coverage, and file claims through their mobile app or website. Lemonade utilizes artificial intelligence and automation to streamline the insurance process and provide fast and efficient service.

What types of coverage does Lemonade Auto Insurance offer?

Lemonade auto insurance offers comprehensive coverage, including liability coverage, collision coverage, and comprehensive coverage. Liability coverage protects you if you cause damage to others, while collision and comprehensive coverage provide protection for your vehicle.

Is Lemonade auto insurance available in all states?

Lemonade auto insurance is currently available in select states within the United States. As of my knowledge cutoff date in September 2021, Lemonade Auto Insurance was available in Arizona, California, Connecticut, Georgia, Illinois, Indiana, Maryland, Michigan, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, Tennessee, Texas, and Virginia. It’s advisable to check with Lemonade directly or visit their website for the most up-to-date information on availability.

How are Lemonade auto insurance rates determined?

Lemonade Auto Insurance rates are calculated based on various factors, including your driving history, location, type of vehicle, coverage limits, and deductible choices. Lemonade utilizes algorithms and data analysis to assess the risk associated with each policyholder and determine an appropriate premium.

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Kristen Gryglik

Licensed Insurance Agent

Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...

Licensed Insurance Agent

Eric Stauffer

Licensed Insurance Agent

Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...

Licensed Insurance Agent

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Reviews
for Lemonade Insurance Company

4.84 (2,255 reviews)
1
September 7, 2023

xdu

stuck with Lemonade after asking 1 question

I called lemonade to ask a question about insurance policy coverage. the claim specialist told me to submit a claim to find out the answer to my question. I did and that tainted my insurance history: none of the other insurance providers are willing to provide me a quote because I have claim history and I'm stuck with Lemonade after just asking 1 question for a few years. Terrible practice
1
May 5, 2023

Soy79

AVOID this company

AVOID this company at all costs especially if you are a California resident. Company changes underwriting prerequisites every year and has been dropping California resident homeowner insurance policies . You may meet underwriting guidelines one year but will not the next. Lemonade has no loyalty to their clients
2
April 29, 2023

Not_Happy_

Not a fan

I first was happy with Lemonade because the price was fair and the policy was easy to manage. I'm now in the process of selling this home and I've been trying to get a CLUE report. Lemonade out sources this. I'm now on my 3rd attempt to get this report from Lexis Nexis. I will never again use an insurance company who can not provide me with this . This is definitely a benefit of bigger company. Progressive was able to provide one with in 14 days ...
I first was happy with Lemonade because the price was fair and the policy was easy to manage. I'm now in the process of selling this home and I've been trying to get a CLUE report. Lemonade out sources this. I'm now on my 3rd attempt to get this report from Lexis Nexis. I will never again use an insurance company who can not provide me with this . This is definitely a benefit of bigger company. Progressive was able to provide one with in 14 days for our previous property. So yes it was cheaper but in the end it is costing me time which I would rather pay more up front for then lose.
1
February 26, 2023

MILDRED0211

Ripoff company!

This company is the worst company there is out here! They are a ripoff! They do Veteran really wrong. Please be aware of this company! DO NOT USE THIS COMPANY! Beware!
2
August 4, 2022

DDAV

Sweet Name but Bitter Substance and Taste

I called Lemonade for my homeowners' insurance quote, and the rep. told me that their name, "Lemonade", was chosen to improve the people's negative opinion of insurance companies, but, after I got their quote, my opinion about them was the worst of any insurance company I have ever worked with or known. The quote was 2.5 times higher than my current reputable All State insurance premium. No wonder Lemonade tastes good, but there is usually way to...
I called Lemonade for my homeowners' insurance quote, and the rep. told me that their name, "Lemonade", was chosen to improve the people's negative opinion of insurance companies, but, after I got their quote, my opinion about them was the worst of any insurance company I have ever worked with or known. The quote was 2.5 times higher than my current reputable All State insurance premium. No wonder Lemonade tastes good, but there is usually way too much sugar, just like in "Lemonade's" fake promise.
1
June 29, 2022

AFox75

SCAM!

Had a house fire on May 13 2022. Claim was approved. Lemonade refusing to mail payment to me. Was told check lost in mail and then after that nobody will respond to my phone calls. Tried emailing and I was told to wait longer. I take care of the disabled in my home as a home health care aide and they are refusing to send the money for repairs. There are no managers that can be reached when you contact customer service I am told repeatedly that th...
Had a house fire on May 13 2022. Claim was approved. Lemonade refusing to mail payment to me. Was told check lost in mail and then after that nobody will respond to my phone calls. Tried emailing and I was told to wait longer. I take care of the disabled in my home as a home health care aide and they are refusing to send the money for repairs. There are no managers that can be reached when you contact customer service I am told repeatedly that they can't help me that I need to speak to my claims advocate. When connected to that number I get a message stating that they are unavailable. When calling right back I am told he is always at lunch no matter what time of day. They run you around with no help. I would recommend staying away from this company and they have a law suit on them right now as well for another issue.
1
November 11, 2021

_hake0u_

Lemonade Will Deny Your Claim, Using Creative Methods

The process to sign up for Lemonade was truly a breeze. The app made the whole process mostly hands-off. That is where the benefits stopped. Once you've a customer, you'll note that simple things such as changing your deductable does not work on the web app, you must log into the website. You'll also note that getting in touch with anyone is very limited through the app, they prefer you call for nearly everything. Then, there is the single incide...
The process to sign up for Lemonade was truly a breeze. The app made the whole process mostly hands-off. That is where the benefits stopped. Once you've a customer, you'll note that simple things such as changing your deductable does not work on the web app, you must log into the website. You'll also note that getting in touch with anyone is very limited through the app, they prefer you call for nearly everything. Then, there is the single incident when there was hail on my roof, they sent out a contracted adjustor to review the damage. My strong suspicion is that he is paid and commissioned for finding ANY method to deny the claim. He arrived a few weeks after the storm and got up on the roof with my roofer, then tried to claim that some of the damage must have been older in his opinion and that the account was "Red Flagged" which is another way to say that the claim, in itself, was "suspicious". I'd paid my premiums on time, had the policy in effect at the time of the damage, and they managed to find a loophole to get out of paying the claim and honoring their side of the policy - thus saving themselves around 6K. It wasn't but just 2020, when Lemonade closed a nice sweet deal, 319 million for their initial public offering - yet, a multi-million dollar company sends a schmuck to your house to weasel their way out of paying your claim and pocketing the money. I closed my account. I also terminated my life insurance with them, because if they are going to act unethically with a 6K claim, what would they do if I were to pass away? Claim that I'm actually still alive or shaft my loved ones? I wouldn't put it past them. No, I was taken advantage of by Lemonade once, will not allow them to do so again.
1
September 9, 2021

johnwayne

Unprofessional and unhelpful company - don't waste your time

Completely incompetent and total waste of time. The lady on the phone was asking for my DOB for a homeonwer's insurance quote. I politely asked her why my personal information (DOB) was necessary for a homeowner's quote as my age should have no impact or bearing on the cost of a home policy. She said she didn't know, but that she was required to ask for a quote. She then said she would transfer me to a licensed agent who would be able to prov...
Completely incompetent and total waste of time. The lady on the phone was asking for my DOB for a homeonwer's insurance quote. I politely asked her why my personal information (DOB) was necessary for a homeowner's quote as my age should have no impact or bearing on the cost of a home policy. She said she didn't know, but that she was required to ask for a quote. She then said she would transfer me to a licensed agent who would be able to provide further assistance. The call was dumped into a call queue and a guy answered who was a licensed LIFE insurance agent. I explained that I was looking for HOME insurance and also told him that the previous rep transferred the call. Instead of being willing to provide assistance he made no effort to get me to a property/casualty agent and just disconnected the call. Don't waste your time with this company. They are extremely unprofessional.
1
July 11, 2021

Chucke1

Only for people with mortgages

Zero stars. The system will not let me give anything but 5 stars. They only insure you if you have a mortgage. What scam. You don't find that out until after they have all of your information.
5
April 17, 2021

LG18

Super easy claim and super fast payment

I am so glad that I have home insurance from Lemonade. When the big winter storm hit Texas in February, despite precautions I took, two pipe leaked inside the house. I immediately filed a claim using my phone as instructed. Lemonade team was super quick. Within 2 weeks an adjuster came to the house for damage inspection. He told me that he would turn in his report by that evening. Just couple of days later, Lemonade called to confirm claimed amou...
I am so glad that I have home insurance from Lemonade. When the big winter storm hit Texas in February, despite precautions I took, two pipe leaked inside the house. I immediately filed a claim using my phone as instructed. Lemonade team was super quick. Within 2 weeks an adjuster came to the house for damage inspection. He told me that he would turn in his report by that evening. Just couple of days later, Lemonade called to confirm claimed amount. Two days later, payment was directly transferred into my bank. I have never dealt with such an efficient insurance company ever. I have both home and auto insurance with Lemonade. Highly recommended!
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States Where Lemonade Provides Homeowners & Renters Insurance