Lemonade is an insurance company with a focus on offering affordable products and giving back. Consumers can rely on Lemonade for homeowners insurance, renters insurance, car insurance, pet insurance, and term life insurance. In addition, the insurance company gives a percentage of premiums to various charities that support animal rights, the environment, LGBTQ+ rights, and more.
While all insurance products offered through Lemonade are trustworthy and reputable, the company's renters insurance has the best ratings across Lemonade products.
TIME’s Take
Lemonade promises affordable rates and transparency when it comes to its insurance products, although customers who choose this company give up some personalization when it come to their insurance experience they can get with other providers. Lemonade has its customers choose coverage, file claims, and deal with customer service issues over the phone or using the Lemonade app or website.
Who is Lemonade Insurance for?
Due to the mostly digital experience Lemonade offers, it's best for people who are comfortable using technology and don't necessarily need access to a dedicated insurance agent. Lemonade plans are also made for individuals and families who are interested in basic insurance without all the bells and whistles.
Individuals who like the idea of giving back or working with companies who have a heart may also be impressed with Lemonade's business model.
Lemonade renters insurance
Lemonade Renters Insurance
Lemonade Renters Insurance
Average Annual Cost
$168
Lemonade renters insurance earned the third spot in J.D. Power's 2023 U.S. Home Insurance Study for customer satisfaction with 854 out of 1,000 possible points. This means Lemonade earned better marks than every provider in this category other than Erie Insurance and American Family Insurance.
Individuals can get renters insurance through Lemonade in as little as 90 seconds according to the company, and it promises to pay out claims in record time. Premiums start at just $5 per month, and consumers can easily get a quote for coverage online or through the Lemonade mobile app.
Note that Lemonade renters insurance is offered in 28 states plus Washington, D.C., so it may or may not be available where you live. Coverages offered in these plans include protection for personal property, temporary living expenses, and personal liability and medical bills.
Pros and cons
Pros:
- Get covered online in minutes
- High ratings for customer satisfaction
- Rates start at $5 per month
- Replacement cost standard with these policies
Cons:
- Not available in all states
- No option to work with an agent
- Fewer discounts offered compared to other providers
Rates
Renters insurance starts at just $5 per month and goes up from there. Consumers can easily get a quote for their own coverage online or through the Lemonade mobile app.
How does Lemonade renters insurance compare?
| Lemonade | Amica | Erie Insurance | |
|---|---|---|---|
Average annual cost | $168 | $184 | $180 |
Discounts | Discount for bundling policies; Discount for protective devices | Discount for bundling policies; Loyalty discount; Claim-free discount; Discount for paperless billing; Auto-pay discount | Discount for bundling policies; Safety discounts; Advantage quote discount; Age of insured discount |
Coverage | Personal property, temporary living expenses, and personal liability and medical bills | Personal property, loss of use, and personal liability coverage; add-on coverages available | Personal property, loss of use, and liability protection |
Lemonade home insurance
Lemonade offers homeowners insurance policies online and through the company's mobile app. However, this coverage is only available in 23 states at present. Customers can pay their homeowners insurance premiums through an escrow account connected to their mortgage just as they can with other insurance companies, and Lemonade makes it easy to switch since they take care of the communication about your new plan on your behalf.
Lemonade homeowners insurance comes with the included coverages you would expect, such as dwelling coverage, protection for other structures, personal liability coverage, loss of use coverage, protection for your personal property, and coverage for medical bills.
Pros and cons
Pros:
- Easy to get coverage online or through the Lemonade mobile app
- Premiums start at $25 per month
- Can pay through an escrow account or directly
Cons:
- Not available in all states
- No "agent experience" with this company
- Fewer available discounts than some providers
Rates
Lemonade says its homeowners insurance policies start at $25 per month. However, rates for coverage will depend on where you live, the age and size of your home, the replacement cost of your home, and other factors.
How does Lemonade home insurance compare?
| Lemonade | Allstate | Hippo | |
|---|---|---|---|
Availability | Available in 23 states | Available nationwide | Available in 37 states |
Discounts | Discount for bundling policies; Discount for protective devices | Discount for bundling policies; Responsible payment discount; Claim-free discount; Loyalty discounts; Savings for automatic payments; Discount for protective devices; Early signing discounts | Discount for bundling policies; Smart home discount; Loss-free discount; Homebuyer discount; Discount for protective devices; Affinity discount; Hail-resistant–roof discount; HOA discount |
Coverage | Dwelling coverage, protection for other structures, personal liability coverage, loss of use coverage, protection for your personal property, and coverage for medical bills | Dwelling coverage, personal property protection, liability coverage, and guest medical coverage; optional add-on coverages available | Dwelling coverage, personal property, other structures, loss of use and liability, service line coverage |
Lemonade car insurance
Lemonade car insurance promises fair prices that are "based on how you drive." The company uses location-based technology to make your insurance better and more affordable, and customers get emergency crash assistance and roadside assistance options for their plans. Because of the way Lemonade prices its car insurance policies, low mileage drivers pay less. Individuals with EV and hybrid vehicles can also save on car insurance rates overall.
Interestingly, Lemonade uses its technology to assess the environmental impact of its drivers. From there, it plants trees to help mitigate impacts to the environment and clean up the air. Note that Lemonade car insurance is only currently available in Arizona, Illinois, Ohio, Oregon, Tennessee, Texas, and Washington.
Pros and cons
Pros:
- Pay less when you drive less
- Special discounts for EV and hybrid vehicles
- Includes free roadside assistance options
Cons:
- Only available in 7 states
- Cannot be used to drive for Uber or Lyft
- Location tracking cannot be disabled if you want to earn discounts
Rates
Lemonade says its car insurance rates start at $30 per month and vary based on your driving profile. You may also pay higher premiums than average based on the car you drive, where you live, and other factors.
How does Lemonade car insurance compare?
| Lemonade | Liberty Mutual | State Farm | |
|---|---|---|---|
Monthly cost | Starts at $30 per month | $90 | $107 |
Discounts | Hybrid/EV discounts; Discount for bundling policies; Early planning discount; Location-based technology discount | Homeowner discount; Military discount; Early shopper discount; Good student discount; Student-away-at-school discount; Claims-free discount; Payment discounts | Accident-free and good driving savings; Defensive driving course discount; Good driver discount; Passive restraint discount; Anti-theft discount; Discount for bundling policies |
Coverage | Collision and comprehensive insurance, bodily injury, property damage, temporary transportation coverage, and extended glass coverage | Collision and comprehensive coverage, medical payments coverage, uninsured motorist coverage, personal injury protection, and more | Collision insurance, rental vehicle coverage, emergency roadside assistance, comprehensive insurance, rideshare coverage, and more |
Lemonade pet insurance
Lemonade Pet Insurance
Lemonade Pet Insurance
Pet age restrictions
No upper age limit
Max annual coverage
$5,000, $10,000, or unlimited
Reimbursem*nt rates
70%, 80%, 90%, or 100%
Deductible choices
$100 to $1,500 per year (depending on pet’s age)
Money-back guarantee
30 days
Lemonade also offers pet insurance via its website or mobile app, coverage can include coverage for diagnostics, procedures, and medications your furry friend needs. These plans also come with optional coverage for routine care, which can help pay for wellness exams, heartworm tests, bloodwork, routine dental care, and more.
Pet insurance from Lemonade allows you to use any licensed veterinarian in the United States. However, this coverage is only available in 37 states, plus Washington D.C.
Pros and cons
Pros:
- Several discounts offered
- Available for dogs and cats up to age 14
- High maximum coverage amounts available
Cons:
- Not available in all states
- Rates based on past claims history
Rates
Lemonade Insurance promises affordable pet insurance rates with discounts available for bundling policies, having multiple pets and paying a year's worth of premiums upfront. You can get a free price quote online in a matter of minutes, and the company says policies for most cats or dogs start at $8 per month.
How does Lemonade pet insurance compare?
| Lemonade | Fetch Pet Insurance | Spot Pet Insurance | |
|---|---|---|---|
Pets and ages | Puppies and kittens up to age 14 | Puppies and kittens (starting at 6 weeks) and adult pets with no upper age limit | Puppies and kittens and adult pets with no upper age limit |
Discounts | Discounts for bundling policies; 5% multi-pet discount; Discount for paying annually | Multi-pet discount; Military discount | Multi-pet discount |
Coverage | $5,000 to $100,000 | $5,000, $10,000, or $15,000 | $2,500 to unlimited |
Lemonade life insurance
Lemonade also offers term life insurance only, with no requirement to have a medical exam. The entire process takes place digitally, and potential customers can get coverage by answering some basic medical questions.
Customers ages 18 to 60 can apply for term coverage from Lemonade. Policies last from 10 to 30 years, and the death benefit can be in amounts up to $1.5 million. Lemonade also says its policies start at just $9 per month.
Pros and cons
Pros:
- Term coverage with no medical exams
- Policies start at $8 per month
- Get quote estimate online in minutes
Cons:
- Term coverage only (no permanent policies available)
- Not available to everyone based on medical history
- Cannot purchase after the age of 60
Rates
Lemonade says its term life insurance policies start at just $9 per month. However, costs for coverage will vary based on the age of the insured, the length of the policy, and the chosen death benefit.
How does Lemonade life insurance compare?
| Lemonade | Ladder Life | Ethos Life | |
|---|---|---|---|
Monthly premiums | Starts at $8 per month | Starts at $5 per month | Starts at $8 per month |
Maximum coverage | $1.5 million | $8 million | $2 million |
Available terms | 10, 15, 20, 25, and 30 years | 10, 15, 20, 25, and 30 years | 10, 15, 20, and 30 years |
Company history
Originally founded in 2015, Lemonade claims to be the first "peer-to-peer insurance company" in the world. The firm bases this claim on its unique business model that charges users a flat fee for services and uses the rest of company funds to pay claims and run their business. Lemonade also forks over a percentage of customer premiums to various charitable organizations.
While Lemonade originally started as a homeowners insurance provider, the company has since launched additional insurance products including pet insurance and auto insurance. Lemonade has received a Financial Stability Rating® of A-Exceptional from Demotech Inc., and the company is reinsured by huge leading insurance brands such as Swiss Re, Munich Re, and Hannover Re.
Customer satisfaction
Lemonade has received accolades for its renters insurance and positive customer experience. In fact, renters insurance from Lemonade earned the third spot for customer satisfaction in J.D. Power's 2023 U.S. Home Insurance Study.
Customer complaints
Lemonade Insurance had 56 registered complaints within the NAIC's National Complaint Index Report in 2022. This led to the company having a complaint index score of 4.89, which means it had more complaints than average for its size.
The company's Better Business Bureau (BBB) profile also shows nearly 400 customer complaints closed within the last three years. Over the last 12 months, 180 customer complaints have been filed against Lemonade with the BBB.
Ratings & reviews
Lemonade receives a range of positive reviews for its products online. This includes an average star rating of 4.3 out of 5 stars across more than 1,500 customer reviews on Trustpilot.
Also note that the Lemonade app has an average star rating of 4.9 out of 5 stars in the App Store and 4.4 out of 5 stars on Google Play.
Policies offered
Lemonade may have started as a homeowners insurance company, but the brand now offers five types of insurance coverage:
- Homeowners insurance: Lemonade homeowners insurance is available in 23 states and includes essential protections such as dwelling coverage, protection for other structures, personal liability coverage, loss of use coverage, protection for your personal property, and coverage for medical bills.
- Renters insurance: Highly-rated renters insurance from Lemonade is offered in 28 states, plus Washington, D.C. Consumers can get all the coverages you would expect from these policies, including for personal property, temporary living expenses, personal liability, and medical bills. See more companies here.
- Car insurance: Auto insurance from Lemonade is available in only 7 states, and it can be tailored to suit your needs. Coverages offered in these plans include collision and comprehensive insurance, bodily injury protection, property damage protection, temporary transportation coverage, and extended glass coverage. See more companies here.
- Pet insurance: Pet insurance from Lemonade is for puppies and kittens, and for adult pets up to age 14. Plans can include maximum coverage amounts from $5,000 to $100,000. See more companies here.
- Life insurance: Lemonade also offers term life insurance with no medical exam required. Coverage can last from 10 to 40 years and a payout as high as $100 million is available. See more companies here.
Methodology
For this review, we pored over policy information at the Lemonade Insurance website and the websites of competing companies. Prices for premiums were collected directly from insurance companies, and ratings and reviews were gathered through third parties including the Better Business Bureau (BBB), the National Association of Insurance Commissioners (NAIC), and Trustpilot.
Bottom line
If you're looking for a new type of insurance that can be bought and managed entirely online, Lemonade should be on your list. This technology-based company offers home insurance, renters insurance, car insurance, pet insurance, and term life insurance, all of which can be priced out and purchased online or through the company's highly-rated mobile app.
Just remember that Lemonade policies aren't available in every state. Also make sure to compare coverage you receive along with premiums, deductibles, and other details to make sure you're getting the best deal for the protections you need.
Frequently asked questions (FAQs)
How to file a claim with Lemonade?
Customers can file a claim with Lemonade using the company's mobile app. The company says that, once you're on the app, you can start the process by clicking on the pink ‘File a Claim’ button in the top right-hand corner.
Is Lemonade a trustworthy insurance company?
Lemonade is a trustworthy insurance company that has received positive ratings from a range of third-party companies. The company is reinsured by huge leading insurance brands like Swiss Re, Munich Re, and Hannover Re.
Why is Lemonade insurance so cheap?
Lemonade insurance coverage can be more affordable since the company focuses on offering basic protections without all the bells and whistles you can get with other plans. Also note that Lemonade charges a flat fee for its services and uses the rest of the premiums paid in to cover claims and keep the company in operation.
What is the Lemonade insurance controversy?
In 2021, Lemonade faced a class action lawsuit based on claims that it collected and stored biometric data from its customers without their consent. In 2022, it settled the case for $4 million.
Does Lemonade pay claims?
Lemonade is known for its speedy claims process, which can be initiated on the company's mobile app.
Lemonade vs. Trupanion
Trupanion is another company that offers pet insurance specifically, and its policies feature unlimited payouts for life. Pet insurance from Trupanion is made to cover hereditary and congenital conditions, illnesses, injuries, and more. Coverage from Trupanion also pays your vet bills directly instead of having you request reimbursem*nt after the fact (unlike Lemonade), and it offers one simple plan that intends to cover all your pet's healthcare needs when they become hurt or sick.
One major difference between Trupanion and Lemonade is the fact that Trupanion made the decision not to cover routine wellness care. This means you cannot upgrade a Trupanion plan to get coverage for wellness checkups, flea and tick control, or regular exams. In contrast, Lemonade offers optional wellness and routine care packages that pay for regular vet care that keeps your pet in the best possible health.
Lemonade vs. Spot
Spot is another pet insurance company that offers coverage similar to what you get with Lemonade. Spot policies offer up to 90% back on veterinary bills, and customers can visit any licensed veterinarian in the U.S. or Canada. Customers can choose from accident and illness coverage or accident-only coverage, and preventative care plans are also available.
Other standout features that come with Spot include a 30-day money back guarantee on coverage and unlimited telehealth visits in every plan. Like Lemonade, however, Spot has customers pay their vet bills directly then apply for reimbursem*nt after care has been received.
Lemonade vs. State Farm
State Farm is an iconic insurance brand that offers most types of coverage consumers and businesses can buy. For example, individuals can turn to State Farm for homeowners insurance, renters insurance, auto insurance coverage, life insurance, boat insurance, RV insurance, small business insurance, and more. The company even offers pet insurance through a partnership with Trupanion.
State Farm also offers various financial products including home loans, checking and savings accounts, and personal loans. With these details in mind, it's easy to see how State Farm can be a better choice for customers who want to have all their insurance coverages with one company. However, prices for coverage from State Farm may not necessarily be as affordable as you'll find with Lemonade, so you'll still want to price shop policies and compare.
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