Lemonade Car Insurance Review for 2024 [Trustworthy Evaluation]

This Lemonade car insurance review examines why this is the best insurance company for tech-savvy drivers with its AI-based claims processing. Lemonade auto insurance rates start as low as $80/month, but its brief history since launching may alarm drivers looking for more established insurance companies.

UPDATED: Nov 27, 2024Fact Checked

Rachel Bodine

Feature Writer

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

Feature Writer

Jeffrey Manola

Licensed Insurance Agent

Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...

Licensed Insurance Agent

UPDATED: Nov 27, 2024

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

UPDATED: Nov 27, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

UPDATED: Nov 27, 2024Fact Checked
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Lemonade, Inc.

Average Monthly Rate For Good Drivers

$80

A.M. Best Rating:

A

Complaint Level:

High

Pros

  • Excellent mobile app
  • Pay-per-mile and usage-based plans
  • Cheap car insurance rates

Cons

  • Mixed customer service reviews
  • Only available in seven states

This Lemonade car insurance review looks at a tech-savvy insurer that takes advantage of AI claims processing and offers rates that start as low as $80 per month.

Lemonade Car Insurance Review

With a fully digital platform, Lemonade modernizes the insurance experience by offering features like smartphone-based telematics that show how much mileage affects car insurance rates and pay-per-mile technology from its Metromile acquisition.

Lemonade Car Insurance Rating

Rating CriteriaLemonade: Lemonade Car Insurance Review
Overall Score3.9
Business Reviews4.0
Claim Processing4.0
Company Reputation4.0
Coverage Availability4.3
Coverage Value3.5
Customer Satisfaction4.8
Digital Experience4.5
Discounts Available5.0
Insurance Cost3.8
Plan Personalization4.0
Policy Options2.2
Savings Potential4.2

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Lemonade’s A. M. Best rating means it’s financially stable, but it has a below-average J.D. Power satisfaction score of 807/1000, meaning there’s room to improve.

Explore your car insurance options by entering your ZIP code and finding which companies have the lowest rates.

Here's What You Need to Know

  • Lemonade, Inc. has a 3.9 insurance rating
  • Lemonade insurance rates start at $80/month for minimum coverage
  • Lemonade’s AI-powered mobile app handles policy management and claims

Lemonade Car Insurance Cost Breakdown

 are broken down by age, gender, and coverage level, which can affect your rates.

Lemonade Car Insurance Monthly Rates by Coverage Level, Age, & Gender

Age & GenderMinimum CoverageFull Coverage
Age: 16 Female$176$339
Age: 16 Male$189$368
Age: 18 Female$161$310
Age: 18 Male$178$347
Age: 25 Female$106$193
Age: 25 Male$117$214
Age: 30 Female$92$178
Age: 30 Male$99$186
Age: 45 Female$80$152
Age: 45 Male$87$165
Age: 60 Female$74$139
Age: 60 Male$79$147
Age: 65 Female$71$132
Age: 65 Male$76$140

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Lemonade is expensive for teens and young drivers, but it’s one of the most affordable car insurance companies for drivers over 30. Now let’s compare Lemonade car insurance by driving record.

If you have multiple accidents or DUIs on your record, you could benefit from Lemonade’s usage-based or pay-per-mile options to help lower rates. Compare the best usage-based car insurance companies to see if this type of plan could work for you.

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Lemonade Car Insurance vs. Top Insurance Providers

To decide if Lemonade is right for you, it helps to know how Lemonade stacks up against the best car insurance companies. So, let’s see how Lemonade’s rates compare with the industry leaders by age, gender, and driving records.

Lemonade Car Insurance Monthly Rates vs. Top Competitors by Age & Gender

Insurance CompanyAge: 18 FemaleAge: 18 MaleAge: 30 FemaleAge: 30 MaleAge: 45 FemaleAge: 45 MaleAge: 65 FemaleAge: 65 Male
Allstate: Lemonade Car Insurance Review$448$519$168$176$162$160$158$157
Farmers: Lemonade Car Insurance Review$597$629$160$167$139$139$136$136
Geico: Lemonade Car Insurance Review$220$254$90$87$80$80$78$78
Lemonade: Lemonade Car Insurance Review$310$335$140$150$135$147$125$130
Liberty Mutual: Lemonade Car Insurance Review$522$626$174$200$171$174$167$170
Nationwide: Lemonade Car Insurance Review$303$387$124$136$113$115$111$112
Progressive: Lemonade Car Insurance Review$591$662$131$136$112$105$109$103
State Farm: Lemonade Car Insurance Review$229$284$94$103$86$86$84$84
Travelers: Lemonade Car Insurance Review$530$740$99$108$98$99$96$97

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Lemonade’s Metromile Acquisition

Lemonade has expanded its auto insurance footprint to the tune of $145 million in an all-stock deal by acquiring Metromile.

Lemonade Car Insurance Review

Together, Metromile’s decade of car insurance data and pioneering pay-per-mile technology and Lemonade’s AI-driven platform came together during the merger. Lemonade and Metromile use this technology, combined with its insurance expertise, to strengthen its position in the auto insurance market and expand its global reach.

Read More: Metromile Car Insurance Review

Lemonade Car Insurance Coverage Options

Lemonade provides all minimum car insurance requirements by state, including comprehensive liability protection for both bodily injury and property damage. Its core coverage includes:

Pet Injury Coverage Definition Card: Lemonade Car Insurance Review

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Drivers can even add extra peace of mind with roadside assistance, temporary coverage while you’re temporarily without a vehicle during repairs, and gap coverage if you drive a leased or financed vehicle.

What Industry Experts Say About Lemonade Insurance

After the Metromile acquisition, Lemonade, a newcomer to the auto insurance industry, has been diligently assessed by prominent rating agencies. Here’s a comprehensive look at how industry experts and consumers rate their services:

Lemonade Car Insurance Business Ratings & Consumer Reviews

AgencyLemonade: Lemonade Car Insurance Review
J.D. Power: Lemonade Car Insurance ReviewScore: 807 / 1,000
Below Avg. Satisfaction
BBB: Lemonade Car Insurance ReviewScore: B
Fair Business Practices
Consumer Reports: Lemonade Car Insurance ReviewScore: 70/100
Average Customer Satisfaction
NAIC: Lemonade Car Insurance ReviewScore: 2.50
More Complaints Than Avg.
A.M. Best: Lemonade Car Insurance ReviewScore: A
Excellent Financial Strength

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Lemonade has great financial strength with an A rating from A.M. Best, yet its customer satisfaction isn’t as good. The company still has much to learn about the auto insurance market — as shown by the below-average J.D. Power satisfaction score (807/1,000) and average Consumer Reports rating (70/100).

However, its B rating from BBB means it has fair business practices and a solid business foundation going forward. If you’re wondering how customer satisfaction ratings affect car insurance companies, this BBB rating shows that while Lemonade is growing, there’s still room for improvement in its customer service standards.

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Ways to Save with Lemonade Car Insurance Discounts

There are different ways to lower car insurance rates from Lemonade, all of which come from discounts and savings opportunities. See the table below:

Lemonade Car Insurance Discounts and Savings

Discount NameSavings PotentialHow to Qualify
Policy Bundling30%Bundle insurance policies
Safe Driver25%Clean record required
Multi-Vehicle20%Insure multiple vehicles
Anti-Theft Device15%Install anti-theft devices
Good Student15%Maintain "B" average
Defensive Driving Course10%Complete driving course
Eco-Friendly Vehicle10%Own hybrid/electric vehicle
Paperless Billing5%Choose paperless billing

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Save up to 30% when combining policies, while eco-conscious drivers can benefit from hybrid/EV discounts. It doesn’t currently offer an early pay discount, but Lemonade makes up for it with paperless billing (5%) and defensive driving course completion (10%) savings opportunities.

What Drivers Say About Lemonade Insurance

Here’s what actual users are saying about their experience with Lemonade car insurance on Reddit:

This user experience highlights two of Lemonade’s key strengths:

Lemonade Car Insurance Pros and Cons

If you are looking for Lemonade as your auto insurance provider, you need to take the pros and cons in mind before choosing. These are the best perks of Lemonade insurance:

  • Competitive Bundle Savings: It offers up to 30% discounts for customers who bundle multiple policies, and that sounds like a nice opportunity for current Lemonade customers.
  • Strong Digital Experience: Fully app-based platform with AI-powered claims processing and telematics for usage-based rates.
  • Quick Claims Processing: AI-powered claims system promises faster processing times than traditional insurers.

Lemonade car insurance is different than most companies in the industry thanks to its modern approach and unique benefits — it’s particularly appealing to tech-savvy drivers and folks with multiple policies. However, some negative aspects of the company include:

  • Limited Track Record: As a newer auto insurance provider, they have a less established history in handling auto claims.
  • Below Average Satisfaction: J.D. Power rating of 807/1,000 indicates room for improvement in customer service.

Some customers may find this attractive, given its digital-first model and appealing discounts. Still, customers should also consider its relative newness in the auto insurance space and its current customer satisfaction ratings.

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Making Your Lemonade Insurance Decision

Lemonade takes a digital-first approach to auto insurance. Artificial intelligence and mobile technology are used by the company to reduce the number of steps required to get quotes and file claims. Customers can manage their policies entirely through the Lemonade app, and its telematics program tracks driving behavior through smartphones, potentially offering discounts for safe driving habits.

One standout feature is its integration of Metromile’s pay-per-mile technology, offering monthly rates as low as $80 for older drivers who don’t drive frequently.

Tech-savvy drivers, especially those with electric vehicles or multiple policies to bundle, benefit most from Lemonade's modern features and stackable discounts.

Scott W. Johnson LICENSED INSURANCE AGENT

Our Lemonade car insurance review found that while it offers an innovative digital-first approach with AI-powered claims processing, its limited track record in auto insurance may concern some drivers seeking established providers that sell car insurance.

Ready to find affordable car insurance? Get started today by entering your ZIP code into our free comparison tool.

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Frequently Asked Questions

What are the downsides of Lemonade car insurance?

The main downsides include a below-average J.D. Power score (807/1,000), limited experience in auto insurance since 2021, and mixed customer service reviews, as shown by their average Consumer Reports rating (70/100).

Why is Lemonade car insurance so cheap?

Lemonade keeps costs low through AI automation and digital-first operations instead of traditional agent networks. Acquiring Metromile technology also enables usage-based pricing, offering better rates for low-mileage drivers.

Read More: Does driving less affect car insurance rates?

How good is Lemonade at paying claims?

Lemonade uses AI for faster claims processing and is backed by an A rating from A.M. Best for financial stability. However, its below-average J.D. Power score suggests mixed customer experiences with claims.

Is Lemonade a valid insurance company?

Yes, Lemonade, Inc. is legitimate and licensed in 49 states. They maintain an A rating from A.M. Best for financial strength and a B rating from BBB for fair business practices. Find cheap car insurance quotes by entering your ZIP code.

Why is Lemonade better than other insurance companies?

Lemonade excels with AI-powered claims, digital-first service, and 30% bundle discounts. They’re ideal for tech-savvy drivers and those seeking usage-based insurance options.

Is it easy to cancel Lemonade car insurance?

Yes, you can cancel your car insurance directly through the Lemonade mobile app without calling or visiting an office, following their digital-first approach.

Does Lemonade car insurance cover car theft?

Yes, theft protection is included under Lemonade’s comprehensive coverage, along with protection against vandalism and other non-collision damages.

Learn More: Collision vs. Comprehensive Coverage: What’s the difference?

How long does it take Lemonade insurance to pay out?

With AI-powered claims processing, simple claims can be handled quickly through their app, though complex claims may require additional review time.

Is Lemonade credible?

Yes, Lemonade is a credible insurer with an A rating from AM Best and B rating from BBB, offering licensed coverage in 49 states since their Metromile acquisition.

Who owns Lemonade car insurance?

Lemonade, Inc. is a publicly traded company (NYSE: LMND) that acquired Metromile for $145 million to expand its auto insurance operations.

Ready to shop around for the best car insurance company? Enter your ZIP code and see which one offers the coverage you need.

Rachel Bodine

Feature Writer

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

Feature Writer

Jeffrey Manola

Licensed Insurance Agent

Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...

Licensed Insurance Agent

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Reviews
for Lemonade Insurance Company

4.84 (2,258 reviews)
5
April 27, 2017

Misha221tg

Super duper great experience!

Lemonade Insurance Company covers so much and fixed my car after I crashed it with no trouble. Definitely do recommend!! 
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<h3>Lemonade Car Insurance Monthly Rates by Driving Record</h3>
<h3>Lemonade Car Insurance Monthly Rates by Driving Record</h3>