Lemonade Insurance Review
Lemonade Insurance Review
- Reviews by product:
Lemonade offers some of the cheapest insurance quotes we've found, but in exchange for those lower rates, you'll give up extra features like specialized coverages and in-person customer support.
However, Lemonade is an excellent choice for people looking for basic coverage at affordable rates.
Lemonade insurance: excellent rates for the basics
Renters insurance takeaway: If you're looking for the lowest renters insurance rates and only need basic coverage, Lemonade is a great choice.
Home insurance takeaway: Homeowners who need basic coverage should take advantage of Lemonade's excellent rates. However, coverage add-ons are very limited, so it may not be the best fit for everybody.
Car insurance takeaway: Lemonade only sells car insurance in Illinois, Ohio and Tennessee. Drivers looking for basic coverage can find very cheap rates from Lemonade. Its basic policy also includes roadside assistance, which other insurers charge extra. However, other add-ons are limited.
Pet insurance takeaway: Pet insurance from Lemonade is cheaper than average. In addition, it offers preventative care programs that can save you money on your annual vet bills.
Lemonade's strongest features are its low rates and easy-to-use online experience. Prospective policyholders can receive quotes and sign up for coverage in a few minutes. Generally, filing claims and making adjustments to your policy are done through the Lemonade app, which is user-friendly, too.
Coverage from Lemonade isn't available nationwide.
A major limiting factor for prospective Lemonade customers is its coverage area, which is different for each type of insurance.
Lemonade availability by product
- Car insurance: 3 states
- Home insurance: 23 states and Washington, D.C.
- Renters insurance: 28 states and Washington, D.C.
- Pet insurance: 36 states and Washington, D.C.
Lemonade renters insurance
Lemonade renters insurance quote comparison
Lemonade renters insurance costs $12 per month, or $140 per year, on average. That's 40% cheaper than average and amounts to a savings of $78 per year.
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Quotes from other major insurers are significantly higher than Lemonade. A policy from the second-cheapest company, Travelers, costs 49% more than the same coverage from Lemonade. That's $5 more per month, or $68 more per year.
Company | Average monthly cost | Average annual cost |
|---|---|---|
| Lemonade | $12 | $140 |
| Travelers | $17 | $208 |
| Amica | $18 | $214 |
| Nationwide | $19 | $227 |
| Allstate | $21 | $252 |
| Farmers | $23 | $272 |
Lemonade renters insurance discounts
While Lemonade might reduce your renters insurance quote based on factors like the age of your apartment or whether you've made a claim in the past, the company only offers one discount that renters can actively take advantage of.
Protection equipment: Lemonade provides a discount to customers who have safety equipment installed in their home, such as a sprinkler system or smoke alarm. Most other insurance companies have the same type of discount.
Other insurance companies, like Allstate, typically offer customers additional discounts, such as one for setting up automatic bill payment, bundling multiple policies and going a certain period of time without filing a claim.
However, it's unlikely that these additional discounts would lower the cost of your renters insurance enough to make it competitive with Lemonade's already-low rates.
Lemonade renters insurance coverage options
Most renters insurance companies provide similar coverages, including personal property, liability and loss of use. However, Lemonade offers a few useful add-ons to help you customize your policy:
Extra coverage
The extra coverage policy add-on allows renters to provide additional protection for items worth more than $1,500, such as bicycles, jewelry and art. A typical renter's policy usually excludes high-value items such as these, which are common targets of theft.
Any belongings insured with extra coverage are protected against accidental loss, which isn't included in a standard policy. For example, if your necklace falls off at the beach, Lemonade will replace it. In addition, you don't have to pay a deductible for "extra coverage" items, so you'll be able to replace your belongings without paying anything out of pocket.
Equipment breakdown coverage
Lemonade offers equipment breakdown coverage, which protects most of the electronics and appliances in your home from damage caused by electrical failure or equipment breakdown. This includes things like your television, refrigerator and computer. Breakdown coverage provides $100,000 of coverage for around $2 per month. If you do have to make a claim, you'll have to pay a $500 deductible.
Water backup
Water backup coverage protects your belongings if a pipe or sump pump backs up and floods your home. Lemonade offers coverage for $5,000 or $10,000 starting at $10 per year.
Earthquake coverage
Lemonade also offers earthquake coverage for renters in California and Arkansas. This protects your belongings from damage due to "earth movement," like shaking and soil liquefaction, which is not normally covered by renters insurance.
Lemonade home insurance
Lemonade home insurance quote comparison
Lemonade offers the most affordable home insurance quotes across the insurers we analyzed. On average, a policy costs $1,016 per year, or $85 per month, which is 19% cheaper than average.
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Quotes from State Farm and Farmers were significantly more expensive than Lemonade. A State Farm policy costs $451 more per year, while coverage from Farmers is $482 per year more expensive, on average.
Company | Average monthly cost | Average annual cost |
|---|---|---|
| Lemonade | $85 | $1,016 |
| Geico | $87 | $1,040 |
| State Farm | $122 | $1,467 |
| Farmers | $125 | $1,498 |
Lemonade home insurance discounts
Lemonade offers a few basic home insurance discounts, most of which are typical of home insurance companies.
- Material discount: Receive a discount if your home is made of fire-resistant materials, such as masonry.
- Protection equipment discount: Receive a home insurance discount if you have protective equipment, like a burglar alarm.
- Fire protection discount: Applies if you have equipment like a fire extinguisher or sprinkler system in your home.
- Gated community: Get a lower rate if you live in a gated community.
A notable discount many Lemonade policyholders cannot get is a bundling discount. That's because Lemonade only offers auto insurance in three states , meaning most customers can't take advantage of this common discount.
Customers can typically save around 15% on total insurance costs when purchasing homeowners and auto insurance from the same company.
Lemonade home insurance coverage options
Lemonade's home insurance offerings are somewhat typical. Besides the standard coverage offerings of dwelling, personal property, liability and loss of use, there are only a few noteworthy home coverage options.
Homeowners can take advantage of the same coverage add-ons available to renters through Lemonade: equipment breakdown, valuables coverage, water backup and earthquake coverage.
In addition, Lemonade offers homeowners protection against foundation water damage, service line damage and swimming pool liability.
Lemonade car insurance
Lemonade currently offers car insurance in only a few states: Illinois, Ohio and Tennessee.
However, it's an inexpensive option for drivers living in those locations.
In late 2021, Lemonade announced plans to acquire Metromile, a pay-per-mile car insurance company that operates in eight states. Neither company has shared a timeline for the merger, but this should result in Lemonade offering car insurance in more states.
Lemonade auto insurance quote comparison
Car insurance from Lemonade is significantly cheaper than its competitors. A minimum coverage policy from Lemonade costs $40 per month, 43% cheaper than average.
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Full coverage car insurance is also cheaper from Lemonade. On average, a policy costs $66 per month — 54% less expensive than its competitors.
Company | Minimum coverage | Full coverage |
|---|---|---|
| Lemonade | $474 | $792 |
| State Farm | $778 | $1,644 |
| Geico | $838 | $1,474 |
| Allstate | $1,222 | $3,022 |
Lemonade car insurance discounts
Lemonade doesn't offer as many car insurance discounts as other companies. However, its rates are so much lower than competitors that a long list of discounts isn't as important.
Drivers can take advantage of the following discounts from Lemonade:
- Bundle discount
- Driving with the Lemonade app
- Electric or hybrid car discount
- Payment discount
- Plan ahead savings
In addition, Lemonade also offers a usage-based discount and a low mileage discount.
Lemonade requires drivers to download its app, which is used to track the number of miles you drive. The app also monitors your driving behaviors, like speeding, erratic turns, hard braking and the time of day you drive. These factors are used to determine how much you save for good driving.
Lemonade car insurance coverage options
Above the basic coverages, Lemonade doesn't offer many coverage add-ons to help drivers customize their policy. A standard policy can include the typical car insurance coverage options, like bodily injury and property damage liability, medical payments, PIP, uninsured motorist and comprehensive and collision coverage.
Lemonade's base policy includes roadside assistance at no additional cost. That's an important perk that most other insurers charge extra for.
Its roadside assistance plan even includes an EV charge for electric vehicles.
In addition, policyholders also receive emergency crash assistance for free. This service uses the technology included in Lemonade's app to alert the company if you're in an accident so that they can send help.
Drivers can also purchase extended glass and windshield coverage and temporary transportation coverage, which covers the cost of a rental car, public transportation or rideshare service for up to a month while your car is being repaired after a covered incident.
However, Lemonade doesn't seem to offer gap insurance, which would pay off your loan or lease if your new car is totaled and it's worth less than what you owe.
Lemonade pet insurance review
Lemonade pet insurance quote comparison
Pet health insurance from Lemonade is cheaper than average. A policy for a 4-year-old dog costs $27 per month, or $324 per year, on average. That's 12% less expensive than the average we found, which is $30 per month.
Pet insurance quotes for cats are also more affordable from Lemonade. A policy costs $16 per month for a 4-year-old cat — $1 per month cheaper than average.
Company | Cat | Dog |
|---|---|---|
| Embrace | $13 | $30 |
| Lemonade | $16 | $27 |
| Figo | $18 | $33 |
| AKC/PetPartners | $19 | $32 |
Lemonade pet insurance discounts
In addition to below-average prices, Lemonade offers a few discounts to help pet parents save money on pet health insurance:
- Bundle discount: Save up to 10% when you purchase home, renters, auto or life insurance from Lemonade.
- Multipet discount: Save up to 5% when you insure multiple pets.
- Pay-in-full discount: Save 5% by paying your annual premium up front.
Lemonade pet insurance coverage options
Lemonade's standard pet insurance policy helps pay for your pet's medical bills if they have an accident or get sick. This includes diagnostics like blood tests and X-rays, procedures and medication.
In addition, Lemonade offers the following coverage options if you need additional protection:
Coverage | Description | Approx. monthly cost |
|---|---|---|
| Vet visit fees | Covers expenses for eligible accidents and illnesses | $2.75 |
| Physical therapy | Covers expenses for acupuncture, chiropractic care and more | $0.92 |
| End of life | Covers euthanasia, cremation and memorial items for up to $500 with no deductible | $2.50 |
Lemonade also offers no-deductible preventative care packages for pets, which help pay for annual vet expenses.
- For an additional $10 per month, pet owners receive one wellness exam, one parasite test, three vaccines, one heartworm or feline leukemia test and one blood test.
- For an additional $16 per month, pet owners receive the benefits listed above, plus routine dental cleaning and flea/tick or heartworm medication.
Lemonade insurance reviews and customer service
Lemonade receives mixed reviews when it comes to customer service.
The company receives nearly twice as many customer complaints as is typical for an insurer of its size, according to the National Association of Insurance Commissioners (NAIC). That means policyholders aren't always happy with the service they receive from Lemonade.
On the other hand, Lemonade received the second-best score for customer satisfaction on J.D. Power's annual renter's insurance survey.
While Lemonade Insurance doesn't have a financial stability rating A.M. Best, a popular insurance rating agency, it received a rating of "A" from Demotech, which evaluates the stability of regional and specialty insurers. This rating indicates that Lemonade has an "exceptional" ability to pay out claims.
It's not a perk that directly affects customers, but we like Lemonade's Giveback program, which launched in 2017. After operating costs and claim payouts, Lemonade donates excess premiums to charity each year. In 2021, Lemonade gave $2.3 million to over 100 charities.
In addition, Lemonade is planting trees to help reduce your carbon footprint. When you purchase car insurance from Lemonade, the company will use its app to determine how many trees to plant based on the number of miles you drive.
Frequently asked questions
Is Lemonade a good insurance company?
Overall, Lemonade is a good insurance company. It offers fairly standard insurance coverage at an excellent price. However, customer service reviews are mixed, so people who prioritize consistent service may want to consider a different insurer.
Does Lemonade have car insurance?
Yes, Lemonade offers car insurance. However, it is currently only available to drivers in Illinois, Ohio and Tennessee.
How much is Lemonade renters insurance?
Renters insurance from Lemonade costs 12 per month, or $140 per year, on average. That's the cheapest quote we found among major insurers.
Does Lemonade insurance have a phone number?
Yes, policyholders can contact Lemonade by phone at (844) 733-8666.
Who underwrites Lemonade insurance policies?
Lemonade underwrites its own policies, which are then reinsured by other companies — a common practice in the insurance industry. Lemonade is reinsured by multiple companies, including Swiss Re, Munich Re and Hannover Re.
Methodology
To compare renters insurance rates, we gathered quotes from some of the top insurers across every state in the United States. Rates are based on a 25-year-old single man living alone with no pets and no claims history. Quotes include the following coverage limits:
Coverage | Limit |
|---|---|
| Personal property | $30,000 |
| Personal liability | $100,000 |
| Medical payments | $1,000 |
| Loss of use | $9,000 |
| Deductible | $500 |
To compare home insurance rates, we gathered quotes for single-family homes in nine of the largest cities in California. Rates are based on a 30-year-old single man with no claims history. On average, the homes quoted were 1,340 square feet and built in 1962. Quotes include the following coverage limits:
Coverage | Limit |
|---|---|
| Dwelling | $330,556* |
| Personal liability | $100,000 |
| Medical payments | $5,000 |
| Deductible | $1,000 |
*Dwelling coverage is an average across all nine properties quoted.
To compare auto insurance rates, we gathered quotes from the five largest cities in Illinois. Our sample driver was a 30-year-old man driving a 2015 Honda Civic EX with a clean driving record. Rates are based on the following coverage limits:
Coverage | Minimum-coverage | Full-coverage |
|---|---|---|
| Bodily injury liability | $25,000/$50,000 | $50,000/$100,000 |
| Property damage liability | $20,000 | $25,000 |
| Uninsured motorist bodily Injury | $$25,000/$50,000 | $50,000/$100,000 |
| Comprehensive & collision deductible | waived | $500 |
To compare pet insurance rates, we gathered quotes from the five largest cities in California. Our sample dog was a 4-year-old male mixed-breed, and our sample cat was a 4-year-old female domestic shorthair. Rates are based on a $500 deductible, $5,000 annual maximum and 80% reimbursement level.
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