Lemonade Insurance Review: Low Rates & Basic Coverage
Lemonade Insurance Review: Low Rates & Basic Coverage
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Lemonade is an excellent choice for people looking for basic coverage at affordable rates. It 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 coverage and in-person customer support.
Lemonade insurance: Excellent rates for the basics
Where can I get Lemonade insurance?
- Car insurance: 5 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 is not currently selling home or renters insurance in California. It may resume business in California in the future.
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, the company doesn't offer a lot of coverage options, so it may not be the best fit for homeowners who need extra protection, like replacement cost coverage for personal belongings.
Car insurance takeaway: Lemonade only sells car insurance in Illinois, Ohio, Tennessee and Texas. Drivers looking for basic coverage can find very cheap rates from Lemonade. Its basic policy also includes roadside assistance, which other insurers charge extra for. However, other add-ons are limited.
Pet insurance takeaway: Pet insurance from Lemonade is cheaper than average. In addition, it offers preventive 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. Shopping for insurance from Lemonade is easy — you can get quotes and purchase a policy in a few minutes. Filing claims and making adjustments to your policy are usually done through the Lemonade app, which is easy to use, 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 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.
Compare cheap renters insurance options in your area
Quotes from other major insurers are significantly higher than quotes from 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.
Lemonade renters insurance rates vs. competitors
Company | Average monthly cost |
|---|---|
| Lemonade | $12 |
| Travelers | $17 |
| Amica | $18 |
| Nationwide | $19 |
| Allstate | $21 |
| Farmers | $23 |
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 three discounts that renters can actively take advantage of.
- Multipolicy discount
- Pay-in-full discount
- Protection equipment discount
Other insurance companies, like Allstate, typically offer customers additional discounts, such as one for setting up automatic bill payment 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
Most renters insurance companies provide similar coverages, including personal property, liability and loss of use. In addition, Lemonade offers a few useful add-ons to help you customize your policy:
Extra coverage
The extra coverage policy add-on provides extra protection for items worth more than $1,500, like bicycles, jewelry and art. A typical renters insurance 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.
The expanded protection that "extra coverage" provides can help give you peace of mind and assurance that your most important belongings are protected in almost any situation.
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 protection for around $2 per month — that's enough coverage to protect most of the appliances and electronics in an average home.
If you do have to make a claim, you'll only have to pay a $500 deductible, which is much less than the cost of replacing expensive equipment.
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.
Find Cheap Homeowners Insurance Quotes in Your Area
Quotes from State Farm and Farmers are significantly more expensive than the average quote from Lemonade. A State Farm policy costs $451 more per year, while coverage from Farmers is $482 per year more expensive, on average.
Lemonade home insurance rates vs. competitors
Company | Average annual cost |
|---|---|
| Lemonade | $1,016 |
| Geico | $1,040 |
| State Farm | $1,467 |
| Farmers | $1,498 |
Lemonade home insurance discounts
Lemonade offers a few basic home insurance discounts, most of which are typical of home insurance companies.
- Bundling discount
- Fire protection discount
- Gated community
- Material discount
- Pay in full discount
- Protection equipment discount
A notable discount many Lemonade policyholders may not be eligible for is the auto insurance bundling discount. That's because Lemonade only offers auto insurance in five 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:
- Extended reconstruction costs: Pays to rebuild your home, even if the construction costs more than your dwelling coverage limit.
- Swimming pool liability coverage: Pays medical bills and lawsuit expenses if someone gets hurt while using your pool.
Lemonade car insurance
Lemonade offers cheap car insurance, but it's currently only available in a few states: Illinois, Ohio, Oregon, Tennessee and Texas.
Lemonade recently acquired Metromile, a pay-per-mile car insurance company that operates in eight states. This should result in Lemonade offering car insurance in more states. However, the company hasn't shared a timeline for expansion.
Lemonade auto insurance quote comparison
Car insurance from Lemonade is significantly cheaper than coverage from its competitors. A minimum coverage policy from Lemonade costs $40 per month, 43% cheaper than average.
Find Cheap Auto Insurance Quotes in Your Area
Full coverage car insurance is also cheaper from Lemonade. On average, a policy from Lemonade costs $66 per month — 54% less expensive than average.
Lemonade auto insurance rates vs. 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' rates 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 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 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 coverage or personal injury protection (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.
Roadside assistance will send help and pay for towing or simple repairs if you're stuck on the side of the road with a flat tire, you're locked out of your car or you simply ran out of gas. Lemonade's 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 it can send help.
Drivers can also purchase:
- Extended glass and windshield coverage, which pays the cost to repair or replace your windshield with little or no deductible, depending on where you live.
- 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.
Lemonade pet insurance rates vs. competitors
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 preventive 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.
Most complaints are regarding delays in the claims process and claim denials. That means Lemonade customers may need to wait longer to make repairs or replace damaged belongings than people insured with other companies.
On the other hand, Lemonade received the second-best score for customer satisfaction on J.D. Power's annual renters insurance survey.
While Lemonade doesn't have a financial stability rating from AM 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 it may take longer to make repairs after filing a claim.
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 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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