Lemonade car insurance has an easy-to-use app and a smooth shopping and claims experience. It also offers premiums as low as $30 per month. However, the company uses telematics to track your driving and determine your rates. If you're hesitant about sharing data, it may make sense to look elsewhere.
Business Insider compared Lemonade car insurance to the best car insurance companies and found it to lag behind its competitors. It's only available in seven states and few discount opportunities.
Lemonade Auto Insurance Pros and Cons
Lemonade Auto Insurance Pros
- Low, affordable rates
- Fast claims payouts
- Easy-to-use mobile app
- Charitable giving model
Lemonade Auto Insurance Cons
- Not available nationwide (only available in seven states)
- Does not have as many traditional customer service options as some of its larger insurance competitors
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- Low rates
- Temporary transportation coverage applies to ridesharing and public transportation, not just rental cars
- Ideal option for low-mileage drivers, since they'll get cheaper rates
- Discount for having a hybrid or electric car
- Certified B corp with a Giveback program
- You're required to download the app and have location settings on
- Only available in five states currently
- Doesn't offer gap insurance or rideshare insurance
- Discounts for electric vehicles, low mileage, and bundling policies
- Offers emergency crash assistance, and roadside assistance
- Participates in One Tree Planted program and Giveback Program
Compare Lemonade Auto Insurance
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- Matched offers are limited to network of over 70 providers AgileRates works with, which may exclude the insurer you are looking for.
- More than 25,000 users a month get quotes through AgileRates.com (Based on data from January 2025)
- Buy auto or homeowners insurance online
- Compare quotes from more than 70 providers to find the policy that meets your specific budget and coverage needs
- Access to agents to answer questions about your unique situation
842
A+
- Coverage available in all 50 states
- Discounts for bundling insurance products with competitive rates
- Highly rated with JD Power and AM Best
- Rates may jump significantly after your first accident or for higher risk drivers
- Mixed reviews on claims and customer service on sites like Consumer Affairs and TrustPilot
A highly ranked and long-standing insurance company, Progressive offers auto, home, motorcycle, and other insurance across the United States.
Progressive Auto Insurance- Ranked #17 out of 18 in auto claims satisfaction
- Bundling, vehicle safety, and student driver discounts
- Low rates
- Name your price tool
862
A+
- Many discounts and options to bundle insurance policies
- high customer satisfaction according to JD Power's auto insurance study
- Long history in the insurance industry
- Not available in Hawaii
- May not provide the most competitive rates for higher risk drivers
- Ranks high in customer satisfaction
- Discount for students and vehicle safety
Lemonade Auto Insurance Overview
Lemonade is a tech-forward insurance provider that now offers car insurance coverage. In 2022, Lemonade acquired the pay-per-mile car insurance provider Metromile as part of this process. The company's main value proposition is that you can sign up for insurance in minutes and get paid quickly when you file a claim. Plus, Lemonade is a certified B corp, which is a public benefit company that uses your funds to take a flat fee, pay customers' claims fast, and give back (through its Giveback program that donates to nonprofits).
Lemonade car insurance uses telematics, also called usage-based insurance, to track drivers' behavior, and it requires you to download an app and have location settings on. Rates can start as low as $30 per month, according to the company website. Still, it's important to note that your driving record, location, and other factors will ultimately set your rate.
Currently, Lemonade car insurance is only available in seven states, including Arizona, Illinois, Ohio, Oregon, Tennessee, Texas, and Washington, though more states are expected to be added soon.
Lemonade is newer to the insurance landscape, so it doesn't have some of the data available as others. For instance, it doesn't have a financial stability rating from AM Best and hasn't ranked on J.D. Power's car insurance customer satisfaction survey. According to the National Association of Insurance Commissioners (NAIC), Lemonade has a high complaint index of 3.91. This indicates that the number of complaints is more than three times the number expected in the U.S. car insurance market.
Lemonade Auto Insurance Plans Available
Lemonade car insurance offers many of the same standard coverage options as other car insurance companies, including the following:
- Liability coverage. Your state will likely have minimum requirements for liability coverage. This coverage typically includes property damage and bodily injury liability, and each state has set amounts of coverage needed. This option covers you if you're found at fault, and it pays for costs for the other party involved. Liability coverage doesn't include any damages to your car or any injuries you sustain.
- Collision coverage. If you have an accident involving another driver or even hit an object like a fence or pole, collision coverage pays for damage to repair the vehicle.
- Comprehensive coverage. Comprehensive coverage protects you from anything beyond car damage that isn't due to a collision, like damage from weather events, an animal, or even theft or vandalism. So you can get the vehicle repaired if it's damaged even if you didn't get into an accident.
- Medical payments coverage (MedPay). If you want to protect yourself in the event of an injury, medical payments coverage can help. This can help cover certain medical expenses incurred due to an accident.
- Personal injury protection (PIP). Through this coverage type, you can also get some lost wages covered or support with childcare while recovering from an injury due to an accident.
Getting a mix of coverage types such as collision, comprehensive, and liability coverage is often called "full coverage." Consider your financial situation, risk, and what protections you're looking for when shopping for car insurance.
Additional Coverage Options (Riders)
Most car insurance companies offer the same suite of products, but they typically vary when it comes to additional coverage options. These can also be called riders. Lemonade offers the following additional coverage options.
- Uninsured motorist coverage. Through this option, you may be able to protect yourself in the event you're in an accident with an uninsured driver. Though minimum requirements exist, not everyone on the road plays it safe. In that case, this coverage type may help cover costs related to any damage to your car or if you deal with any injuries if the other party is uninsured.
- Underinsured motorist coverage. A driver may have some liability coverage that's still insufficient for the situation at hand. This type of coverage helps cover repairs or costs of dealing with injuries in an accident with an underinsured driver.
- Temporary transportation coverage. Lemonade stands out with this option as it's not a straight rental reimbursement if your vehicle is getting repaired. Instead, Lemonade covers various modes of transportation, including ridesharing, public transportation, and rentals. There will be a daily limit, and this offers up to 30 days of coverage.
- Extended glass coverage. Sometimes rocks, debris, or other objects can hit your windshield and cause cracks or damage. In that case, this coverage type can fix your glass without paying a huge deductible. According to the company website, if you have collision and comprehensive coverage, you can get extended glass coverage and face no deductible or a low deductible. This may not be available in all states where Lemonade offers car insurance.
- Roadside assistance. If you're dealing with a flat tire, run out of gas, get locked out, or get stuck, roadside assistance can come to the rescue. When you get a Lemonade car insurance policy and opt for comprehensive or collision coverage and use the Lemonade app, this is included as part of your coverage. Each driver under a Lemonade policy is eligible for three service requests in a 6-month period. Beyond that, you'll be financially responsible for roadside assistance.
Choosing from these additional coverages can round out your protections and help in various scenarios. Just be aware of potential limits, such as with roadside assistance. At this time, Lemonade doesn't offer gap insurance or rideshare insurance.
How Much Does Lemonade Auto Insurance Cost?
Car insurance rates don't just vary based on the insurance company, but also on the driver. A range of factors impact what rate you'll be approved for, but there are some benchmarks we can look at when it comes to cost.
Lemonade car insurance may start as low as $30 per month, according to the Lemonade website. Though that rate sounds attractive, average rates may be much higher. It's best to click on the "check our prices" button, which uses its AI assistant "Maya" to walk you through a few questions about names, addresses, and emails.
To get a lower premium, you can choose a higher deductible. Lemonade offers deductible options starting at $250 up to $2,000. A good driving record and safe driving habits can help, especially since Lemonade uses telematics to determine premiums based on how you drive.
If you have an environmentally friendly vehicle like an electric car or hybrid, you may be eligible for a discount. Getting more than one policy through Lemonade, like pet insurance, life insurance, or home/renters insurance, can offer additional savings.
Lemonade Auto Insurance Discounts
Lemonade car insurance offers discounts for a wide range of factors, including:
- Driving safely (as measured by the Lemonade mobile app)
- Driving fewer miles (as measured by the Lemonade mobile app)
- Driving a hybrid or electric vehicle
- Bundling your car insurance policy with another insurance policy (including pet insurance, life insurance, and homeowners insurance)
- Purchasing your Lemonade car insurance policy before the coverage start date
How to Purchase and Manage a Car Insurance Policy from Lemonade
As a digital-only insurance provider, Lemonade's entire quoting process is online. For a quote, go to the official Lemonade website and click "Check our prices." From there, you'll provide information about yourself and your vehicle before seeing your estimated price.
Once you've purchased a Lemonade car insurance policy, you'll have to download the company's mobile app to your smartphone. Lemonade uses location-based technology to track your driving habits. This tracking system will lower your monthly premium if you're a safe driver or don't drive many miles. You'll also use the Lemonade mobile app to manage your policy and file claims.
How to File a Claim with Lemonade Auto Insurance
To file a claim with Lemonade car insurance, you need to use its mobile app. According to the company website, filing a claim takes only a few minutes. You'll be asked several questions about the incident so it can get processed.
Reviews of the app on iOS don't mention claims experiences related to car insurance, but some other customers with other types of insurance noted delays with claims, whereas others thought the experience was great.
Lemonade Auto Insurance Customer Service & Support Experience
While Lemonade isn't as well known as some nationwide car insurance providers, it has a decent reputation. The company earns a B- grade from the Better Business Bureau and average review of 2.87 stars, and in reviews, policyholders spoke highly of the claims process. It has a much higher review on Trustpilot, averaging 4.4 stars out of five. Many also say that the customer service is fast and friendly, but there are some complaints about difficulties getting in touch with a live agent as the majority of customer service is handled by AI chatbots.
Lemonade's mobile app is highly rated, which is especially important given the app's importance in tracking your driving habits and determining your rates. It earns an average of 4.2 stars on Google Play and 4.9 stars on the Apple App Store, with policyholders praising it as "easy to use."
Lemonade Auto Insurance Alternatives
Lemonade vs. State Farm Auto Insurance
Lemonade is an ideal option for low-mileage or environmentally conscious drivers with a hybrid or electric car who can score a discount. The company is relatively new to the car insurance landscape, but offers mobile-friendly ways of shopping for insurance and filing claims.
State Farm Auto Insurance is an industry veteran and offers one thing that Lemonade does not: rideshare insurance. So, rideshare drivers may be better off with State Farm. It's also available in all 50 states.
Both Lemonade and State Farm don't offer gap insurance, which can pay off your car loan if it's totaled. However, State Farm does have a similar product called Payoff Protector. Both companies also have roadside assistance, though Lemonade includes it at no cost with certain plans, while you may need to pay a small fee with State Farm.
Read our State Farm auto insurance review.
Lemonade vs. Nationwide Auto Insurance
Lemonade car insurance uses the power of telematics to help drivers get approved for rates based on how they drive as well as how much they drive. Nationwide Auto Insurance is another insurance provider that offers traditional coverage, but also has its own pay-per-mile program called SmartMiles. Similar to Lemonade, this plan can reward drivers who don't accrue a ton of mileage on their car. Nationwide also has a usage-based app called SmartRide, which can lower your rate.
Lemonade and Nationwide offer similar coverage, but Nationwide offers gap insurance, and Lemonade doesn't. Nationwide also offers roadside assistance, but Lemonade may be the better option for that coverage as it's included. However, Nationwide is available in many states relative to Lemonade.
Read our Nationwide auto insurance review.
Lemonade vs. Progressive Auto Insurance
Both Lemonade and Progressive Auto Insurance may offer low premiums to those who qualify. Progressive has a Snapshot program, which is its version of usage-based insurance and can help you pay less for good driving habits. Unlike Lemonade, Progressive does offer gap insurance and rideshare insurance.
Progressive stands for offering optional coverage, including custom parts and equipment (CPE) coverage, and also has more discounts and ways to find affordable coverage with its Name Your Price Tool. Progressive is also available across the U.S.
Read our Progressive auto insurance review.
Why You Should Trust Us: How We Reviewed Lemonade Auto Insurance
Business Insider evaluates auto insurance companies based on a combination of important factors. For example, customer service ratings, accessibility, price, user-friendliness, and other factors all play a role in the overall performance of an auto insurance company. We also look at third-party ratings, like J.D. Power customer satisfaction surveys and financial stability ratings from AM Best.
Our rating is only one aspect of a review. We break down the pros and cons to help consumers make informed decisions. Whatever your needs, we recommend getting three auto insurance quotes to compare companies and find your most competitive option.
You can read more about how Business Insider rates auto insurance.
FAQs
Where does Lemonade offer car insurance?
Currently, Lemonade offers car insurance in seven states: Arizona, Illinois, Ohio, Oregon, Tennessee, Texas, and Washington. The company intends to expand availability to other states soon.
Does Lemonade car insurance offer rental car reimbursement?
Yes, Lemonade car insurance offers rental car reimbursement. It also offers reimbursement for other types of transportation, such as Uber or public transportation. Daily limits may apply.
Is Lemonade a legitimate car insurance company?
Lemonade is a legitimate car insurance company, although it's newer to the scene. Additionally, Lemonade is a publicly traded company and a certified B-corp.
What factors affect my Lemonade auto insurance rates?
Factors that affect your Lemonade auto insurance rates include your driving record, location, and your vehicle's safety features. You can improve your rates by driving safely or fewer miles, which the Lemonade mobile app will track for you.
