Lemonade Auto Insurance Review 2020 (Coverage + Expert Guide)

Lemonade car insurance isn't available at the moment, but Lemonade sells homeowners and renters insurance in 22 states. They claim to save customers 80 percent on insurance rates.

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Company Details

Address:

5 Crosby St. 3rd floor

City:
New York
State:
NY
ZIP Code:
10013
Phone Number:
844-733-8666
Year Founded
2016
AM Best Rating:
N/A
Company Rating 0 (0 reviews)

Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

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Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

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Reviewed byDaniel Walker
Licensed Insurance Agenthttps://res.cloudinary.com/quotellc/image/upload/insurance-site-images/aiorg-live/d98a9f52-daniel-walker.png

UPDATED: Jun 5, 2020

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Company Details

Lemonade Insurance doesn’t write auto insurance

They are an online-only insurance company writing homeowners and renters insurance policies

Lemonade is one of the fastest-growing property insurance companies in the nation

When you hear the word “lemonade,” you may not think of insurance. Lemonade, however, is the name of an up and coming insurance company. With such an original name, you might ask yourself: Is Lemonade a legit insurance company? For the past few years, Lemonade has been making a name for itself in the industry. Is Lemonade auto insurance available?

If you own a car, you may be wondering about the different types of auto insurance coverage options. Unfortunately, Lemonade does not sell auto insurance of any kind. However, Lemonade does offer property insurance.

This guide will walk you through everything you need to know about this burgeoning insurance company.

First, we’ll go over Lemonade’s history, current structure, and how Lemonade insurance claims works in an auto accident. Then, we’ll share the best way to get a quote for the policies they do offer. By the end of this guide, you’ll be a Lemonade expert.

You can’t buy Lemonade car insurance, but if you’re ready to get an auto insurance quote right now, you can enter your ZIP code into the quote box above.

Does Lemonade sell auto insurance?

So, the big question first: does Lemonade offer auto insurance? Lemonade does not sell auto insurance. Lemonade only sells property insurance for homeowners and renters. Lemonade’s property insurance covers a number of perils, including electrical and water damage. You can also get Lemonade fire insurance and they insure personal property damage. That means you can even get Lemonade bike insurance.

If you’ve seen its prices, you’ve probably wondered, “Why is Lemonade insurance so cheap?” One of Lemonade’s biggest benefits is that it is significantly cheaper than its competitors. Lemonade charges less by cutting internal costs as much as possible.

 Lemonade claims to charge 80 percent less than other insurers.

Because automobile accidents are so common, auto insurers have to pay out a lot of claims to their customers. This means that auto insurance has a lower profitability rate than other types of insurance. As a result, what an auto insurance specialist says about bundling rates is that for insurance companies to offer both home and auto insurance they must raise their home insurance premiums to offset their losses.

What makes Lemonade insurance different is by not offering auto insurance, they are able to offer home insurance premiums that are lower than average.

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Lemonade Insurance History

Lemonade was launched in 2016 by tech entrepreneurs Daniel Schreiber and Shai Wininger. Schreiber and Wininger, who previously led Powermat Industries and Fiverr, wanted to create a tech insurance company based on behavioral economics, transparency, and promoting social good. So, using seed funding from Sequoia Capital and Aleph, they set up Lemonade’s innovative business model.

Unlike traditional insurers, Lemonade relies heavily on artificial intelligence and web interfaces. Customers sign up for policies digitally and file claims using chatbots and mobile apps. This has made Lemonade very popular among younger insurance holders, who have taken to the internet to write Lemonade insurance reviews on Reddit. In 2018, 75 percent of Lemonade’s customers were under 30 years old and 90 percent were purchasing insurance for the first time.

AI is also who underwrites Lemonade’s insurance policies, or rather “what”. This helps Lemonade collect about 100 times more data points per customer than traditional insurers.

Lemonade keeps 25 percent of the revenue it makes from insurance premiums. The remaining 75 percent is used to pay Lemonade insurance claims, purchase reinsurance, and fund Lemonade’s Giveback program.

Lemonade’s Giveback program is its most unique feature. Every year, any company revenue that hasn’t been used to pay claims and purchase reinsurance is donated to causes that Lemonade’s policyholders care about.

Here’s a look at Lemonade’s market share in the home insurance industry compared to the top five home insurance companies as listed by the Insurance Information Institute.

CompanyMarket Share (Home Insurance)
State Farm18%
Allstate8.4%
USAA6.6%
Liberty Mutual6.5%
Farmers Insurance5.7%
Lemonade0.1%
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The company has been rated “A – Exceptional” by Demotech, Inc. and was one of the Wall Street Journal’s top 25 companies to watch in 2017. Lemonade Insurance reviews with the BBB are positive, with nearly 5 stars overall. The BBB gives them an A- rating.

While you might expect the Lemonade Insurance logo to be a lemon, it’s a simple scripted version of the company name.

Where is Lemonade located?

Lemonade was founded in New York City but has since expanded across the United States. Today, Lemonade’s renters, condo, and homeowners insurance policies are available in 24 states: Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, Washington D.C., and Wisconsin.

Lemonade also offers renters and condo insurance in Rhode Island and renters insurance in Arkansas and New Mexico. Its landlord insurance is available in New York, California, Texas, Illinois, Pennsylvania, Washington D.C., and New Jersey. Lemonade policies have only recently been made available in these states. In late 2019, Lemonade insurance was brought to Massachusetts and Missouri.

Lemonade has stated that it plans to roll out insurance coverage in additional states in the future.

Lemonade does not offer walk-in agencies or locations. Instead, all of Lemonade’s features are accessed through the company’s mobile app and website. That includes Lemonade proof of insurance, which will be sent to your mortgage company directly.

Does Lemonade have agents?

Lemonade does not have insurance agents. As a result, it has fewer employees than many other insurance companies of comparable size. This is another factor that helps keep Lemonade’s premiums low.

Like many other tech start-up users, Lemonade’s customers use artificial intelligence on the company’s mobile app and website in lieu of consulting with an agent. Policyholders run claims through a chatbot named “A.I. Jim.” The chatbot is designed to review claims while simultaneously running fraud algorithms.

Unlike another major online insurance company, Geico, lemonade insurance doesn’t use agents in any capacity.

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How do I file a claim with Lemonade?

Lemonade is well known for making its claims process simple and pain-free. The company’s objective is to compensate policyholders as quickly as possible. In 2016, Lemonade set a world record by reviewing, approving, and paying a claim in three seconds.

Here’s the easiest way to file a claim through Lemonade:

    1. Open Lemonade’s mobile app and click the “Claim” button.
    2. Complete a claim report. Lemonade’s claim report will ask you basic questions about the incident and prompt you to include relevant receipts. You may also be asked to submit a video explaining your incident and recording any visible damages.
    3. After you complete your report, you will be prompted to submit your bank account information. This will allows Lemonade to send you compensation once your claim has been approved.

If you’d like to know more about Lemonade’s mobile interface, check out this quick video:

That’s all there is to it — Lemonade’s claims filing process is streamlined and accessible.

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How do I get a quote from Lemonade?

If you’re interested in purchasing Lemonade insurance, you can easily obtain a quote through the company’s website.

Once you are on Lemonade’s landing page, click on “Check Our Prices.” This will guide you to a chatbot named Maya, who then walks you through the process of obtaining a quote.

Can you call Lemonade insurance? Sure. If you need help obtaining a quote, you can call the Lemonade Insurance phone number at 1-844-733-8666. You can also cancel Lemonade insurance over the phone or online.

If you’re interested in comparing auto insurance quotes from multiple companies, you can enter your ZIP code into the box below.


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