Lemonade insurance review: Easy-to-use digital insurance provider with low rates

Lemonade insurance review: Easy-to-use digital insurance provider with low rates

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Lemonade insurance review.

Bottom line: Lemonade Auto Insurance offers auto, homeowners, and life insurance. It’s been around since 2015 and is known for offering some of the lowest rates. However, Lemonade doesn’t rank on J.D. Power’s customer satisfaction surveys for life, auto, and homeowners insurance (though it does rank for renters insurance).

Lemonade insurance pros and cons

ProsCons

Easy online quoting and purchasing

Affordable rates

In states where coverage is available, Lemonade is ranked No. 1 in J.D Power’s renters insurance customer satisfaction survey

Life insurance is offered everywhere in the US plus the District of Columbia. It’s not offered in New York 

Public benefit corporation and certified B-Corp focused on giving back to charities chosen by customers

Doesn’t rank in J.D. Power’s homeowners, and life insurance customer satisfaction surveyDoes not rank in auto insurance claims satisfaction survey. Only available in several states 

Lemonade auto insurance review

Lemonade Auto Insurance was founded in 2015 by Daniel Schreibe and Shai Wininger. Lemonade Auto Insurance is known for its easy-to-use digital platform and efficient online claim services. Lemonade Auto Insurance is also a public benefit corporation and certified B-Corp. It’s partnered with One Tree Planted and started the Lemonade Giveback program. 

Lemonade Auto Insurance car insurance is the newest addition to Lemonade Auto Insurance’s insurance products. Rates start at $30 per month but will vary based on your driving profile. Lemonade Auto Insurance doesn’t rank in J.D Power’s auto claims satisfaction survey

Lemonade Auto Insurance offers low mileage, electric vehicle and hybrid discounts. Like most insurance companies, it also provides discounts for bundling your home and auto insurance.

Regions where auto insurance is available: 

Illinois

There are four types of insurance coverage: liability insurance (required by most states), comprehensivecollision, and full car coverage. If you lease or finance your car, your lender may require comprehensive and collision coverage.

The difference between the various coverage types is outlined in the table below:

DamageComprehensiveCollisionLiabilityFullTheftYesNoNoYesVandalismYesNoNoYesFireYesNoNoYesNatural disasterYesNoNoYesFalling objects (tree)YesNoNoYesAnimal damageYesNoNoYesCollision/accidentNoYesNoYesRolloverNoYesNoYesBodily injury/medical billsNoNoYesYesPhysical damageNoNoYesYesProperty damageNoNoYesYesUninsured motoristNoNoYesYes

Lemonade auto insurance features and discounts

Multi-policy discount — Get a discount for bundling multiple insurance products. Low mileage discount — Qualify for a discount by driving fewer miles. EV and hybrid drivers discount — Receive a discount and special coverage like emergency charging and charger coverage if you insure an electric vehicle or a hybrid. Emergency crash assistance — In an event of an accident, Lemonade will call emergency services to get you the help you need. Emergency service refers to law enforcement, an ambulance service, the fire department, or roadside assistance. Free roadside assistance — If your car breaks down, Lemonade will cover tows, jump starts, tire changes, key replacements, winching and more.One Tree Planted program — Lemonade will calculate the number of trees to plant to reduce your carbon footprint. Giveback Program — Donate unclaimed premiums to a nonprofit of your choice. 

Lemonade homeowners insurance review

Lemonade Homeowners Insurance didn’t make the list for J.D. Power’s homeowners insurance customer satisfaction survey. However, Lemonade Renters Insurance ranked #1 in J.D. Power’s renters insurance customer satisfaction survey. Homeowners insurance starts at $25 a month, and renters insurance starts at $5 a month.  

Lemonade Homeowners Insurance offers homeowners, condo, co-op, and pet insurance. Like most insurance companies, it provides discounts for bundling insurance products. Lemonade Homeowners Insurance also makes it easy to switch carriers by notifying your lender and managing escrow payments. 

Regions where homeowners insurance is available: 

ArizonaCalifornia ColoradoConnecticutDistrict of ColumbiaGeorgia IllinoisIndianaIowaMarylandMassachusettsMichigan Missouri NevadaNew JerseyNew YorkOhio OklahomaOregonPennsylvania TennesseeTexasVirginia Wisconsin 

Homeowners insurance protects your dwellingpersonal belongings, and offers personal liability coverage for injuries that happen on your property. Standard homeowners insurance looks like the table below, but coverage varies depending on your provider:

CoverageIncluded with homeowners insurance?Dwelling/structureYesPersonal liabilityYesPersonal belongingsYesLoss of Use (additional living expenses)YesHigh-end electronics/special jewelryLimited, requires add-on*Equipment breakdownYesElectrical outageYes*Service linesYes*Cyber liabilityYes*Water damageYesFloodNo**Wind or hailYes, but not high winds***EarthquakeNo*PetsYes*

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

***If you live in hurricane or tornado areas, additional windstorm rider may be required

Lemonade homeowners insurance discounts and features

Multi-policy discount — Get a discount for bundling insurance products. Easy to switch — Lemonade will cancel insurance with your previous provider and manage escrow payments. 

Lemonade life insurance review

Lemonade Life Insurance didn’t make the list for J.D. Power’s life insurance customer satisfaction survey

Lemonade Life Insurance offers term life policies starting at $9 a month. There’s no medical exam required. Its AI bot, Maya, will determine your rate and qualification by asking questions about your health and lifestyle.

Regions where life coverage is available: 

All 50 states plus the District of Columbia except New York. 

The two types of life insurance are permanent life and term life. Term life insurance will only cover a specific period of time. When your policy is up, you can reapply for coverage. However,  premiums will most likely increase as you age.

Permanent life insurance never expires, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. Some financial advisors recommend a combination of term and permanent life insurance.

Types of Term Life InsuranceTypes of Permanent Life InsuranceLevel premiumWhole lifeAnnual renewal (ART)Universal lifeReturn of PremiumGuaranteed UniversalConvertibleIndexed UniversalGroup life insuranceVariable lifeGuaranteed issueVariable universal lifeSimplified issue Final expense

 

Lemonade life insurance features

Simplified term — A no medical test policy that is available in 10, 15, 20, 25, and 30 year terms with up to $1,500,000 in coverage. 

Lemonade insurance vs. the competition

 

Availability Regional presenceRegional presenceRegional presenceTypes of insurance offeredAuto, homeowners, lifeAuto, homeowners, lifeAuto, homeowners, lifeClaims and customer satisfaction Ranked No. 1 in J.D. Power’s renters insurance satisfaction surveyRanked #7 in J.D. Power’s auto claims satisfaction surveyRanked #6 in homeowners insurance customer satisfaction surveyRanked #2 in J.D. Power’s auto claims satisfaction surveyRanked #21 in J.D. Power’s homeowners insurance customer satisfaction surveyRanked #1 in J.D. Power’s life insurance customer satisfaction survey

Is Lemonade trustworthy?

We checked the NAIC Complaint Index for complaints against Lemonade Insurance. Lemonade has significantly more complaints filed against it compared to other top insurers.

Lemonade isn’t rated by AM’s Best rating services, a popular credit rating agency for insurance. However, Lemonade received an A (Exceptional) by Demotech.  

While Lemonade is a legitimate insurance provider, it’s important to do your own research to ensure that Lemonade is the right insurance company for you. 

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