Lemonade insurance review 2024

Lemonade’s auto insurance product is relatively new to the market having only been launched in 2021. 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, Texas and Washington — though the company plans to expand coverage nationwide in the future. 

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:

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.

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.

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 usually 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. Legal & General Group, 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 that may not require a medical exam, you may want to request life insurance quotes from Lemonade.

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 10 states — Alabama, Arizona, Florida, Georgia, Louisiana, Mississippi, South Carolina, Tennessee, Texas and Virginia — 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

Lemonade could be a good choice for you if you prefer to handle your insurance business online or via an app. The company's customer service function is built largely on a digital experience, with agents only coming into play when necessary. The company boasts of speedy claims payouts, which can also be appealing, and its focus on philanthropy through the Lemonade Giveback program may appeal to socially-conscious policyholders.

Having said that, Lemonade is still the new kid on the block in the insurance industry, and does not have the decades of service that other companies have built over the years. Because of that, it can be difficult to get an overall picture of how Lemonade will do in the long term — and that may be important to some policyholders. The company also has mixed reviews for customer service, which can be a drawback for those who wish to work with a dedicated customer service rep when filing claims or managing their policy.

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

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.

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.

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

Bankrate Scores

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 highlight where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 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.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.