Lemonade car insurance review 2024
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BLUEPRINT
Updated 12:39 p.m. UTC Feb. 21, 2024
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Pros
- Good drivers or those who don’t drive often may find cheap rates with Lemonade.
- Many discounts available.
- Offers special discounts and benefits for hybrid and EV drivers.
- Roadside assistance included with comprehensive and collision coverage.
- You can file a car insurance claim in the Lemonade app.
Cons
- Only available in six states: Arizona, Illinois, Ohio, Oregon, Tennessee and Texas.
- Customer service experience is generally limited to the Lemonade app or website.
- No rideshare insurance available.
About Lemonade car insurance
Lemonade was founded in 2015, initially offering home and renters insurance. Lemonade Car was launched in 2021 and offers all the basic coverages consumers need, such as liability car insurance and collision and comprehensive coverage.
Car insurance with Lemonade leverages telematics through a required Lemonade app that tracks key factors, such as miles driven and driving habits. Lemonade uses this data to set car insurance rates, which it advertises can be as low as $30 per month, depending on your driving profile.
Lemonade sets itself apart from other insurers by operating in a different business model. For one, Lemonade is a public benefit corporation — a for-profit organization that adheres to standards that align with the interests of its customers, employers and community.
Lemonade was also granted the B Corp certification, which means it meets strict criteria for social and environmental accountability, performance and transparency. One way Lemonade does this is by giving a set amount from the premiums it earns and donating it to charities each year.
How Lemonade car insurance works
When you purchase a car insurance policy with Lemonade, underwriters will calculate your premiums based on factors such as your claims history, driving history, location and age. You can apply for and purchase a policy through the Lemonade website or mobile app.
You may also be eligible for a discount after you download Lemonade’s app and enable location services. Enabling this feature will allow your insurer to monitor your driving behavior, which it will take into account when your policy is up for renewal. If you’re considered a safe driver, in addition to other factors such as a good claims record, you may receive a discount on your premiums.
If you need to file a claim, you can do so through the app. Lemonade will ask for details about the incident, as well as other relevant documentation such as photos or videos detailing the accident. Any successful claims will be paid by depositing funds directly to your bank.
Types of car insurance offered by Lemonade
If Lemonade car insurance is available in your state, you can access the following types of coverage:
- Liability insurance.
- Uninsured and underinsured motorist coverage.
- Comprehensive coverage.
- Collision coverage.
- Medical payments coverage (MedPay).
- Personal injury protection (PIP).
- Roadside assistance.
Other insurance products from Lemonade
Lemonade also sells other types of insurance, including:
- Homeowners insurance.
- Renters insurance.
- Condo insurance.
- Co-op insurance.
- Term life insurance.
- Pet insurance.
Lemonade crash and roadside assistance services
If you purchase comprehensive and collision coverage with Lemonade, you’ll also get emergency crash assistance and roadside assistance. You’ll need to have location tracking enabled on the Lemonade app.
- Emergency crash assistance: The app will alert Lemonade if you’ve been in an accident. It will contact you to check if it needs to dispatch emergency services and see whether you’re injured.
- Roadside assistance: If your car breaks down, use the Lemonade app to request roadside assistance. Services include battery jump starts, towing, fuel delivery, flat tires and more. Those who qualify can request up to three free services for each listed vehicle throughout a six-month term.
Lemonade insurance for hybrids and electric vehicles
Policyholders are eligible for special coverage for their hybrid or electric vehicles.
- Wall charger coverage: Lemonade will pay to replace your wall charger if it’s damaged.
- Emergency charging services: Lemonade will help you charge your vehicle if you’re stuck on the road with a drained battery.
Lemonade car insurance reviews
According to the most recent National Association of Insurance Commissions data, Lemonade has a very low customer complaint score. This can indicate satisfaction among Lemonade customers, but it’s not the only metric to consider.
According to reviews on the Better Business Bureau website, Lemonade has a below-average customer rating. Though many customers noted how easy it was to purchase a policy or file a claim through Lemonade’s website or mobile app, some Lemonade car insurance reviews suggest displeasure with the company’s customer service interaction model.
Before you purchase a Lemonade car insurance policy, it’s a good idea to compare car insurance quotes from at least two other companies. It’s also helpful to read multiple online reviews of the best car insurance companies and speak with friends, family and colleagues about their car insurance company experiences.
More car insurance companies to review
See how other car insurance companies compare to one another.
| Car insurance company | Average annual rate for good drivers | Customer complaint level | Our rating |
|---|---|---|---|
$1,436
| Low
| 5.0 stars
| |
$1,521
| Low
| 5.0 stars
| |
$1,364
| Low
| 5.0 stars
| |
$1,642
| Low
| 4.5 stars
| |
$1,597
| Low
| 4.0 stars
| |
$1,826
| Low
| 4.0 stars
| |
$1,855
| Very Low
| 3.5 stars
| |
Westfield
| $1,984
| Very Low
| 3.5 stars
|
$2,025
| Low
| 3.0 stars
| |
$2,896
| Low
| 2.0 stars
| |
$3,093
| Low
| 2.0 stars
|
Lemonade car insurance review FAQs
You can purchase a Lemonade car insurance policy through the company website or on the Lemonade mobile app.
Yes, Lemonade is generally a trusted company. It is a regulated insurance company, a public benefit corporation and a certified B-Corp.
Lemonade is a B-Corp certified and a public benefit corporation. Aside from being transparent about its operations, the insurer annually donates a portion of the money it earns from premiums to various charities.
Yes, Lemonade underwrites its own policies. The company also handles and pays out its own claims.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
