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Updated Apr 01, 2024
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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict
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this post may contain references to products from our partners. Here’s an explanation of .
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.At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict
,
this post may contain references to products from our partners. Here’s an explanation of .
Our content is backed by
Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our
.
At a glance
BEST DIGITAL HOME INSURANCE COMPANY
4.1
Bankrate Score
Score breakdown
Auto
4.4
Cost & ratings
5.0
Coverage
3.5
Support
4.2
Home
3.8
Cost & ratings
3.5
Coverage
3.7
Support
4.5
Bankrate’s take
Policyholders looking for a digital-only insurance experience with AI-driven claims processing might consider Lemonade for their company of choice.
- Unique AI-powered quoting and claims tools
- Certified B Corporation and Public Benefit Corporation
- Usage-based car insurance in seven states
- Life insurance policies don’t require a medical exam
- Unclaimed funds donated annually to charities chosen by policyholders
- Not rated by J.D. Power for auto, home, or life insurance
New
What’s new with Lemonade?
In summer 2023, Lemonade launched its pay-per-mile car insurance product in Oregon, with plans to support reforestation in Santiam State Forest through the Lemonade Giveback program.
Lemonade car insurance review
Lemonade’s auto insurance product is relatively new to the market. Lemonade acquired the usage-based digital auto insurance company Metromile in 2022, launching its pay-per-mile car insurance the same year. As of 2024, Lemonade car insurance is only available in seven states — Arizona, Illinois, Ohio, Oregon, Tennessee, Texa and Washington — though the company plans to expand coverage nationwide in the future.
Based on its first few years of selling car insurance, Lemonade received a 2024 Bankrate Score of 4.4 out of 5.0 for auto insurance. Lemonade stands out from other top car insurance companies because it uses telematics to base pricing on drivers’ mileage and driving habits. The company also employs artificial intelligence (AI) in the quoting process and policy management.
In theory, this type of digital, AI-driving insurance can speed up insurance tasks and result in more fair, personalized rates than a traditional pricing model. However, it’s worth keeping in mind that individual rates will vary. Additionally, some customers may be uncomfortable with the data-sharing requirements of Lemonade’s pay-per-mile system, which requires location services to be turned on at all times in the Lemonade mobile app.
Pros and cons of Lemonade car insurance
Before you get car insurance quotes from Lemonade, you may want to consider the main advantages and disadvantages of purchasing auto insurance through this company. Some major pros and cons of Lemonade auto insurance include:
Pros
- Usage-based premiums may be more tailored to your specific driving habits
- Discounts for all electric and hybrid cars, plus emergency charging benefits
- Demotech financial strength rating of A (Exceptional)
- Lemonade plants trees based on mileage to shrink drivers’ carbon footprints
Cons
- Requires all customers to download the Lemonade app and keep location services on
- Currently only available in seven states
- No accident forgiveness or gap insurance available
- Limited discounts available
Lemonade car insurance cost
Bankrate’s insurance editorial team launched a study to investigate the national average cost of car insurance in 2024. Because Lemonade’s car insurance product is still fairly new, average rates aren’t available at this time. If you’re looking for the cheapest car insurance company for your profile, you can get an individual quote directly through Lemonade’s website by selecting “Check Our Prices.”
Lemonade customer satisfaction
Looking at third-party company ratings can help to illuminate how well an insurance company satisfies its customers’ needs. Unfortunately, Lemonade car insurance was not included in customer satisfaction studies by J.D. Power.
While Lemonade does not have a financial strength rating from credit agency AM Best, it received a financial stability rating of A (Exceptional) from financial analysis firm Demotech.
Because expert ratings for Lemonade’s car insurance product are still limited, customer complaint records and real user reviews may be the best indicator of customer satisfaction for Lemonade auto insurance.
Lemonade auto insurance customer complaints
The National Association of Insurance Commissioners (NAIC) tracks customer complaints for U.S. insurance companies and compares each company’s rate of complaints as well as its market share. The resulting score, known as an NAIC Complaint Index, indicates whether a company has a high or low rate of customer complaints relative to its size, with a baseline of 1.00. Scores above 1.00 suggest that a company’s customer satisfaction is low, while scores below 1.00 are a positive sign for customer satisfaction.
Lemonade’s 2023 NAIC Complaint Index for auto insurance customers is 3.90, well above the industry average.
Lemonade car insurance discounts
Lemonade has a fairly limited number of car insurance discounts, possibly because its use of telematics acts as a built-in discount to help customers save on auto insurance. In addition to usage-based pricing, Lemonade offers the following discounts for car insurance customers:
- App use discounts: In addition to low-mileage discounts through the Lemonade app, drivers can earn discounted rates simply by enabling certain permissions in the company’s mobile app.
- Bundling discounts: Policyholders who also purchase renters, home, life, or pet insurance through Lemonade are eligible for an automatic bundling discount.
- Early sign-up discount: If you purchase Lemonade car insurance in advance of your coverage state date, you could earn a discount on your policy, though the company doesn’t specify how far in advance the policy should be purchased in order to receive the discount.
- Hybrid and EV discount: All hybrid and electric vehicles are eligible for a discounted rate.
Lemonade home insurance review
Lemonade could be among the best home insurance companies for homeowners looking for digital policy management or a chance to give back to charitable causes through their insurance. The digital insurance platform received a Bankrate Score of 3.8 out of 5.0 for home insurance and received a 2024 Bankrate Award for Best Digital Home Insurance Company.
Lemonade offers standard home insurance policies along with add-ons like a Scheduled Property package that can provide additional financial protection for art, jewelry, musical instruments, cameras and bicycles. Swimming pool, water backup and buried utility coverage are also available for Lemonade home insurance policies, along with a variety of other homeowners coverage add-ons.
A key advantage Lemonade promises to homeowners is a digital policy management experience, which includes AI-powered claims filing and customer service directly in the mobile app. Lemonade also donates unclaimed funds to a range of charitable causes, from the American Red Cross to the Trevor Project, through the Lemonade Giveback. If you’re looking for an affordable home insurance company that invests in social change and charitable giving, it may be worth getting home insurance quotes from Lemonade.
BEST DIGITAL HOME INSURANCE COMPANY
Lemonade uses AI technology to approve homeowners insurance claims, promising that payments can be deposited directly into policyholders’ bank accounts in as little as one to two days. This unique digital approach offers advantages to customers who value quick claims processing or prefer an all-online insurance experience.
Pros and cons of Lemonade homeowners insurance
Before requesting quotes for home insurance through Lemonade, it may be worth considering the pros and cons of working with this insurtech company. Here are a few advantages and disadvantages of Lemonade homeowners insurance.
Pros
- Streamlined claims process via the Lemonade mobile app
- Claims payout checks are direct deposited into your checking account
- Ample endorsements available
Cons
- Not available in every state
- Can only purchase online and through the mobile app
- Not rated by J.D. Power
Lemonade home insurance cost
For some homeowners, Lemonade may be one of the cheapest home insurance companies, with Lemonade’s website claiming that homeowners policies can start as low as $25 per month. However, average rates for Lemonade home insurance aren’t currently available, so you will need to request an individual quote through the Lemonade website or mobile app in order to estimate your potential home insurance costs.
Lemonade customer satisfaction
Third-party ratings offer insight into customer service practices and real experiences for home insurance customers. In the case of Lemonade home insurance, these third-party ratings are limited. While the company ranked third for renters insurance in J.D. Power’s 2023 U.S. Home Insurance Study with a score of 854/1,000, Lemonade did not receive a customer satisfaction score from J.D. Power for home insurance.
While Lemonade’s high renters insurance customer satisfaction rating suggests that home insurance policyholders could have similarly positive experiences with this carrier, home and renters insurance are different products with different customer needs.
Lemonade home insurance customer complaints
Lemonade currently sits above the industry average for home insurance customer complaints, according to the NAIC. The company’s 2023 NAIC Complaint Index for home insurance was 3.52, which represents a small but steady increase from past years.
Lemonade home insurance discounts
The only homeowners insurance discount listed on Lemonade’s website is a bundling discount available to customers who also purchase auto insurance or pet insurance through Lemonade. However, the company notes that you may also qualify for discounts if you install protective devices like sprinklers and smoke detectors in your home, or if you use the mobile app’s discounts feature.
Lemonade life insurance review
In addition to home, renters, auto, and pet insurance, Lemonade sells term life insurance in lengths of 10, 15, 20, 25 and 30 years, with coverage of up to $1,500,000. Because Lemonade’s life insurance policies are sold online and don’t require a medical exam, they could be one of the best life insurance companies for anyone seeking term life insurance with a quick sign-up process.
However, waived exams don’t guarantee that all applicants will qualify. The North American Company of Life and Health Insurance, which underwrites life insurance for Lemonade, still uses a health questionnaire to determine eligibility through Lemonade’s health and lifestyle AI assistant. Some applicants may be denied coverage or pay a higher rate as a result of their medical history.
Lemonade’s life insurance is available in all U.S. states (except New York) and Washington, D.C. If you’re looking for the best life insurance company for your needs and want term life insurance without a medical exam, you may want to request life insurance quotes from Lemonade.
Pros and cons of Lemonade life insurance
Looking for cheap life insurance can seem intimidating, but making a list of pros and cons to determine where your priorities lay can help.
Pros
- Fast underwriting decision after application
- No medical exam required
- Free look period allows for a full refund if policy is canceled within the first 30 days
Cons
- Only term life is available
- Riders may be limited
- Not available in New York
Lemonade life insurance riders
Lemonade doesn’t list life insurance endorsements on its website. Because Lemonade life insurance policies are underwritten by a different company, the availability of policy riders may vary and could increase the cost of your life insurance.
Compare Lemonade with other insurers
Lemonade stands out in the insurance marketplace for its unique digital options, investment in social programs and charitable giving, and ethos of transparency and fairness. While Lemonade may be a good fit for some customers, it might not fit all of your needs. You may want to consider comparing rates with some companies that share key value props with Lemonade, including the following carriers.
Lemonade vs. Kin
Kin is another company that uses data and technology to power its systems. Although it only sells home insurance and is only available in eight states — Alabama, Arizona, Florida, Louisiana, Mississippi, South Carolina, Virginia and Texas — Kin could be an attractive alternative to Lemonade for some homeowners. The company even has a software program that can predict and help pinpoint which homes are damaged after a storm.
Learn more: Kin Insurance review
Lemonade vs. Clearcover
This carrier could be a good choice for tech enthusiasts. Clearcover boasts that its app can pay claims in an average of just seven minutes. While Clearcover only sells car insurance, it partners with Hippo to sell home insurance.
Learn more: Clearcover Insurance review
Lemonade vs. Allstate
Unlike Lemonade, Allstate is a traditional, national carrier. However, unlike some other standard carriers, Allstate offers pay-per-mile insurance in some states through its Milewise program. Additionally, Allstate may appeal to those who want a variety of options for doing business with their insurance company, as it has local offices, contact centers and digital tools available to its policyholders.
Learn more: Allstate Insurance review
Our insurance editorial team includes licensed agents with decades of combined experience, and we used our intimate knowledge of the industry to conduct this in-depth Lemonade insurance review.
46
years of industry expertise
Is Lemonade a good insurance company?
For customers seeking a 100 percent digital insurance experience, Lemonade may be a good fit. The company’s usage-based pricing model for auto insurance, along with its promises of speedy claims and charitable contributions, might appeal to tech savvy, socially conscious policyholders who live in states where it does business.
However, Lemonade’s short history in the auto insurance industry might be a red flag for some shoppers, and the lack of in-person agents could be a drawback if you prefer to do insurance business face-to-face. Moreover, while the AI-enabled claims process may work well for digital natives, it could be difficult for anyone who isn’t comfortable using a smartphone.
What are real-life customers saying about Lemonade?
In order to better understand the experience of Lemonade customers, we turned to online discussion boards and reviews sites for direct insights from real policyholders. Because Lemonade is a fairly new company that’s seen recent expansion in both geographic coverage and insurance products, real customer perspectives can help to fill in the gaps left by third-party ratings and data.
To get a better grasp on what real-life customers have to say about Lemonade, we looked at Reddit and Trustpilot for user takes.
Reddit’s discussion forums dedicated to insurance, homeownership, and personal finance revealed some sharp divides in customer opinions. While many users commented on Lemonade’s competitively low quotes, others took the position that “you get what you pay for,” citing problems with coverage and communication from the company.
Reddit User 1
Oct 18, 2022
Lemonade home insurance
“I have Lemonade and they are fantastic. Super easy to pay, filing a claim is simple and straightforward, and they donate a portion of your premium to a charity of your choice! Love those guys.”
Reddit User 2
Oct 9, 2022
Home insurance claims
“Horrible experience with Lemonade for homeowners insurance. You get what you pay for. There’s never a person you can talk to on the phone if it’s a complicated issue. They also have major bugs in their software that are related to very important things like effective dates! They sent the wrong effective date and address for my policy to my lender. I had to tell them to correct it but they didn’t and now I’m screwed.”
TrustPilot
The consumer review website TrustPilot shows mostly positive reviews for Lemonade, focusing mainly on the company’s pet insurance product. However, a close reading revealed some mixed perspectives from customers who purchased home insurance and other products from Lemonade, with some users citing poor communication regarding claims and even unexpected cancellation of policies.
TrustPilot User 1
Feb 8, 2020
“Been on board for more than a year now. Unbeatable low price and customizable options so you can cherry-pick exactly only the coverage you need. Super intuitive app and website and policy too! And the social charity donation is just the, shall we say, “lemon” on the cake. [Haven’t] needed to file a claim yet but they give me enough in them. They say it’s a millennial trap and I say they ain’t wrong, but that’s exactly what I like them for!”
TrustPilot User 2
Oct 23, 2023
“We have a policy for a year or more. A hurricane came to Palm Springs Ca and we had water damage. Our agent William had 2 adjusters who both said we had storm damage but Lemonade will not cover cause they do not believe we had a storm that caused the damage? Really? Very frustrated and bad communication with the agent and this company doesn’t care.”
What Bankrate staffers have to say about Lemonade
We reached out to Bankrate’s employees to see if any of them were Lemonade policyholders and could give first-hand insight into the experience of working with the company. Here’s what Natalie, one of Bankrate’s insurance writers, had to say about her experience as a Lemonade renters insurance policyholder since 2020.
“When I was looking for renters insurance, my roommate told me to ‘just get Lemonade,’ and that ended up being pretty good advice. Signing up was easy and the premium was really doable with my budget. I’ve had no issues adjusting my policy, whether I moved to a different apartment or to a different state. I love that I can manage everything from an app and how user-friendly it is. I’ve been fortunate enough to have never filed a claim, but if it’s anything like Lemonade’s other processes, I’d be confident doing so.”
Quick facts:
- Customer since 2020 (3.5 years)
- Only has renters insurance
- Has not filed a claim
Lemonade company details
- Customer service: 1-844-733-8666
- Website available at: lemonade.com
- Claims email address: carclaims@lemonade.com
State availability
Lemonade auto insurance is available in AZ, IL, OH, OR, TN, TX, and WA. Lemonade home insurance is available in AZ, CA, CO, CT, DC, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NY, OH, OK, OR, PA, TN, TX, VA, and WI. You can check Lemonade’s ever expanding coverage map here.
Lemonade tools and benefits
In addition to tech-driven car, home and life insurance, Lemonade also provides:
- Pet insurance: Lemonade’s pet insurance can help pay for diagnostics, procedures and medication for your pet. This policy could also net you savings on routine care and prevention.
- Renters insurance: Lemonade renters insurance made Bankrate’s list of best renters insurance companies in part due to its high J.D. Power rating and A (Excellent) financial strength rating from AM Best. The company advertises renters policies that start as low as $5 per month.
- Mobile app: Lemonade does not have physical locations and does the majority of its business through its mobile app. Lemonade Insurance reviews are mostly positive on iPhone and Android. You can use the app to make payments, modify your policy and report claims when they arise.
- Lemonade Giveback: Lemonade states that it wants to “transform insurance from a necessary evil to a social good” by donating unclaimed funds to charities chosen by policyholders each year.
Frequently asked questions about Lemonade
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Social responsibility is an area where Lemonade truly shines. Once every year, Lemonade reconciles its financials after paying all outstanding claims and donates excess funds to charities. In fact, in the application process, you will also be able to choose a charity so you can align your policy with your own unique philanthropic views. In 2023 alone, Lemonade gave over $2 million to nonprofits, for a total of $8,160,775 since the program’s inception.
Lemonade is a Public Benefit Corporation and a Certified B-Corporation, which means it meets strict requirements for social and environmental responsibility. Lemonade also uses its app to calculate how much CO2 their customer’s cars emit annually and plants trees to offset the carbon footprint. Buying your insurance from Lemonade could help give you peace of mind that you’re doing business with a company that has ethical practices at its core.
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Whether you’re filing an auto, homeowners or life insurance claim with Lemonade, you will need to do so via Lemonade’s mobile app. Although reporting a claim is typically a straightforward process, you will need to gather some information first. For instance, you will need the basic driver and vehicle information for all involved when filing a car insurance claim. Additionally, the insurance company will likely ask you for your version of the event and to provide any supporting documentation, such as a police report.
Lemonade boasts a unique claims experience. After you report your claim on the app, Lemonade’s AI will run the details of your claim through its fraud detection algorithms. If the AI approves your claim, you could receive your claims check instantly. If the AI cannot approve your claim, it will hand it over to dedicated claims representatives to review the file in more detail.
Methodology
Bankrate Scores (2024)
Auto Bankrate Score
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
Home Bankrate Score
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
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Cost & ratings
50% -
Coverage & savings
30% -
Support
20%
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.
