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

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Lemonade insurance pros and cons

Pros	Cons
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 survey Does 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), comprehensive, collision, 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:

Damage	Comprehensive	Collision	Liability	Full
Theft	Yes	No	No	Yes
Vandalism	Yes	No	No	Yes
Fire	Yes	No	No	Yes
Natural disaster	Yes	No	No	Yes
Falling objects (tree)	Yes	No	No	Yes
Animal damage	Yes	No	No	Yes
Collision/accident	No	Yes	No	Yes
Rollover	No	Yes	No	Yes
Bodily injury/medical bills	No	No	Yes	Yes
Physical damage	No	No	Yes	Yes
Property damage	No	No	Yes	Yes
Uninsured motorist	No	No	Yes	Yes

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: 

• Arizona
• California 
• Colorado
• Connecticut
• District of Columbia
• Georgia 
• Illinois
• Indiana
• Iowa
• Maryland
• Massachusetts
• Michigan 
• Missouri 
• Nevada
• New Jersey
• New York
• Ohio 
• Oklahoma
• Oregon
• Pennsylvania 
• Tennessee
• Texas
• Virginia 
• Wisconsin 

Homeowners insurance protects your dwelling, personal 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:

Coverage	Included with homeowners insurance?
Dwelling/structure	Yes
Personal liability	Yes
Personal belongings	Yes
Loss of Use (additional living expenses)	Yes
High-end electronics/special jewelry	Limited, requires add-on*
Equipment breakdown	Yes
Electrical outage	Yes*
Service lines	Yes*
Cyber liability	Yes*
Water damage	Yes
Flood	No**
Wind or hail	Yes, but not high winds***
Earthquake	No*
Pets	Yes*

*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 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 Insurance	Types of Permanent Life Insurance
Level premium	Whole life
Annual renewal (ART)	Universal life
Return of Premium	Guaranteed Universal
Convertible	Indexed Universal
Group life insurance	Variable life
Guaranteed issue	Variable universal life
Simplified issue
Final expense

 

Lemonade insurance vs. the competition

Availability	Regional presence	Regional presence	Regional presence
Types of insurance offered	Auto, homeowners, life	Auto, homeowners, life	Auto, homeowners, life
Claims and customer satisfaction	Ranked No. 1 in J.D. Power’s renters insurance satisfaction survey	Ranked #7 in J.D. Power’s auto claims satisfaction survey Ranked #6 in homeowners insurance customer satisfaction survey	Ranked #2 in J.D. Power’s auto claims satisfaction survey Ranked #21 in J.D. Power’s homeowners insurance customer satisfaction survey Ranked #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.