UPDATED: MARCH 15, 2023 | 3 MIN READ
Lemonade is a New York City-based provider of various types of insurance, including car, home, pet, renters, and life insurance. Found at Lemonade.com, the company’s history began in 2015. It uses a socially good business model called the Lemonade Giveback program, where the company donates a flat fee portion of its profits to a nonprofit its customers choose.
Daniel Schreiber is the CEO and founder of Lemonade. Lemonade is all about a digital experience and requires Lemonade customers to use its mobile app to file insurance claims and manage their insurance policies.
Lemonade offers policies for customers in both the United States and Europe. In 2022, the company acquired Metromile, a pay-per-mile technology car insurance company. The acquisition lets Lemonade begin its rollout of car insurance products to customers.
Today, Lemonade offers auto insurance for the states of Ohio, Illinois, Texas, and Tennessee with its program Lemonade Car.
Lemonade pros and cons
Highly rated by Demotech, an insurance rating agency
Several discount options
Discounts for electronic vehicles (EV) and hybrid cars
Quick claims processing and payout with their AI software
Emergency roadside service included free with policies
Usage-based car insurance rates
Car insurance is only available in Ohio, Texas, Illinois, and Tennessee
No accident forgiveness for drivers
Customer service is only available via the Lemonade app or online
You must download the Lemonade app for your car insurance rate and crash assistance
Doesn’t include motorcycle insurance
No SR-22 insurance
Lemonade car insurance review
Lemonade lacks Better Business Bureau (BBB) accreditation and has a 2.4/5 rating. The BBB currently has 294 closed complaints for Lemonade; however, most are for other products, such as Lemonade home insurance and pet insurance.
As Lemonade’s car insurance coverage is limited to only four states, reviews specifically for car insurance are also limited. Overall, Lemonade has 978 reviews and an “Excellent” rating on Trustpilot.
Car insurance policies offered through Lemonade
Lemonade’s car insurance offerings are limited compared to other insurance providers, but they offer all of the basic coverage drivers need, including:
- Liability: When you’re at fault for an accident, and someone suffers bodily injury or property damage, liability coverage helps with their bills. Truesier
- Collision: When you get into an accident with another person, collision coverage helps pay for your repair bills for your car.
- Comprehensive: Comprehensive coverage is for damage from non-collision events, such as weather, hitting an animal, and theft.
- Underinsured/Underinsured Motorist: Some drivers drive without car insurance or the state minimum insurance, and when they hit you, this coverage helps with the costs of the crash. If the other driver is at-fault, this insurance helps with your medical bills, repair bills, and additional costs.
- Personal Injury Protection (PIP): If a car accident ends in a death or injury, PIP covers bills for medical costs and a funeral for you and your passengers, even if you’re at fault.
Upgrades and addons
Lemonade offers free roadside and emergency assistance to collision and comprehensive insurance drivers using the location-based app. The company will ask you if you need help or medical attention after the crash. Roadside assistance includes tows, battery jumps, flat tires, and other services.
Other upgrades and add-on coverage includes:
- Temporary transportation: If your car’s in the shop for a covered claim, this coverage helps pay for your temporary transportation, including rideshare costs.
- Extended windshield and glass coverage: Covers repair costs for glass and windshield damage to your car.
Lemonade’s available discounts
Lemonade’s low mileage and usage-based discounts require the mobile app. Other insurance discounts include:
- Electric vehicle and hybrid discount: When you drive a car that’s not 100% gasoline-powered, Lemonade gives you a reduced car insurance rate plus coverage for your home chargers.
- Paid-in-full: Paying your car insurance premium in total offers a good discount.
- Bundle: Enjoy a bundle discount if you have Lemonade homeowners, renters, or pet insurance.
- Plan ahead: If you sign up a week before your policy begins, Lemonade gives you a discount.
- Accident-free: If you, or the drivers on your policy, go without a car accident for five years, you can enjoy a lower rate.
- Telematics: The location-based tracking on your Lemonade mobile app helps keep your rates lower if you turn it on.
What you need to apply for a Lemonade policy
You must live in one of the applicable states to apply for a Lemonade auto insurance policy. You need the following information:
- Name: Who are the driver or drivers listed on the insurance policy?
- Address: Lemonade has to know where you park your car, and where you will travel from when you sign up for car insurance.
- Car: What do you drive? Have the vehicle identification number (VIN) handy, so Lemonade can give you an insurance rate using the make and model of your car.
- Email: Any time you get quotes with Lemonade, it needs an email so you can retrieve your quote if you don’t finish it.
- Driver’s license numbers: Lemonade will need the driver’s license numbers of every driver on the policy.
After you sign up for a car insurance policy, you must download the Lemonade app for your car insurance rates and crash assistance.
Does Lemonade offer car insurance?
Yes. Lemonade offers car insurance. As of February 2023, its auto insurance policies only apply to Lemonade customers in Texas, Illinois, Tennessee, and Ohio. Lemonade plans to roll out car insurance to more states soon.
Does GEICO own lemonade car insurance?
No. Lemonade is a separate insurance company from GEICO. Lemonade offers similar coverage options to GEICO, but they’re different companies.
Is Lemonade auto insurance good for young drivers?
Yes. Because Lemonade offers usage-based car insurance rates, it is a good choice for young drivers. If you have a teen driver, it may be worth adding them to your car insurance from Lemonade.
Does Lemonade have a customer service department?
Unlike other insurance companies, Lemonade doesn’t have a customer service department. Policyholders must use the Lemonade website for questions and file claims through the mobile app.
Is Lemonade a real insurance company?
Yes. Lemonade is a real insurance company with renters, home, pet, and car insurance. The company stands out from others for its digital-focused insurance process. All Lemonade insurance quotes and signups are online or via the mobile app. They’re just like Allstate, Progressive, and other car insurance carriers.
Compare Lemonade auto insurance policies
While Lemonade customers can’t get car insurance unless they live in one of four states, it offers a quick and efficient way to sign up for affordable auto coverage. Before you sign up for another car insurance company, it’s worth comparing car insurance quotes between Lemonade car insurance and other carriers.
After you read our Lemonade insurance review, you can start with an online quote comparison right here and see how much you can save with Lemonade over another carrier. You just need to supply your zip code to get started. Request online quotes now.