Purchasing insurance has become a lot easier over the last couple years. Online insurance companies have flooded the market to sell coverage that’s more affordable and accessible, especially for young people. One of the most well-known digital insurance companies is Lemonade, which sells a few different types of insurance.
I did some research and reviewed Lemonade to figure out if it lives up to the hype. Check out my experience with Lemonade, including the pros and cons of this provider, and who I think this insurance company is best for.
Pros and Cons
Pros
- Affordable policies — Lemonade advertises affordable insurance policies on its website, with life insurance starting at $9 per month and car insurance starting at $30 per month.
- Online quotes — It’s easy to get an insurance quote through Lemonade’s website. And if you’re happy with your quoted rate, you can apply and buy coverage instantly.
- Mobile app — Lemonade customers can get quotes and manage their insurance policies through the company’s highly rated (and free) mobile app.
Cons
- No permanent life insurance — Lemonade sells term life insurance, but doesn’t offer whole life or other permanent life policies.
- No live agents — Lemonade operates entirely online, so there are no in-person agents. Customers are encouraged to manage their own policies and file claims online or on the mobile app.
- Not available in all states — Not all Lemonade insurance policies are available nationwide.
What Is Lemonade Insurance?
Lemonade Insurance was founded in 2015 and is headquartered in New York City. The company sells a wide variety of insurance products, including car insurance, condo insurance, home insurance, renters insurance, life insurance, and pet insurance.
Lemonade has an A rating from Demotech for financial strength and it underwrites most of its insurance policies, except for life insurance. Its life insurance policies are issued by the North American Company for Life and Health Insurance®.
How Does Lemonade Insurance Work?
Based on my experience, Lemonade makes it extremely easy to purchase insurance online. Not only was the quote process short, but the user interface was excellent.
To start, I was asked to select which type of insurance I wanted a quote for. Lemonade offers online quotes for all the policies it sells, which is a big perk. For the purposes of my research, I decided to request a quote for renters insurance.
During the quote process, I was asked to provide some basic information about my rental unit, like whether there are smoke detectors, a security system, who I live with, and if I keep any valuables at home.
After answering a couple of questions, I was ready to input my contact information and see my personalized quote.
I liked how Lemonade’s quote generator made it easy to see how much I would pay monthly or annually, and what discounts I was getting based on my responses. After I clicked ‘purchase,’ I was prompted to enter my credit card information as the final step to lock in my coverage.
I played around with Lemonade’s quote tool for other types of insurance, too, and it seems like the quote and application process is pretty much the same for all the insurance lines. However, the life insurance application was more in depth, and I had to enter my social security number to get a quote.
Policies Offered
Renters Insurance
Lemonade’s renters insurance is affordable, but it’s very basic. Policies include personal property, personal liability, medical payments and loss of use coverage, as well as coverage for laptops, phones, tablets and other personal electronics (for named perils only).
Lemonade's affordable Renters Insurance includes personal property, personal liability, medical payments and loss of use coverage, as well as coverage for laptops, phones, tablets and other personal electronics (for named perils only). It’s easy to get a quote and apply to purchase coverage online in just a few minutes.
- Affordable policies
- Online quotes
- Discount and bundling options
- Not available everywhere
- Doesn’t offer many add-ons
One of the downsides of Lemonade renters insurance is that it doesn’t offer many add-ons. That said, it does offer Extra Coverage, which raises your coverage limits for items like jewelry, fine art, cameras, and bikes; as well as earthquake insurance in California and Arkansas.
My Lemonade renters insurance quote was $27 per month, but I could save a little bit of money by paying the premium in full. You can also get a discount for bundling your policies and having smoke alarms or a security system in your apartment.
Another downside of Lemonade renters insurance is that coverage isn’t available everywhere. Currently, Lemonade renters coverage is sold in Arizona, Arkansas, California, Colorado, Connecticut, the District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington, and Wisconsin.
Homeowners Insurance
Lemonade is a great option if you want affordable home insurance. When I got a sample quote, I was surprised to see that my rate was estimated at only $86 per month for a policy with $280,000 in dwelling coverage.
Lemonade’s home insurance is nothing fancy, which is one of the reasons why it’s so affordable. You can add Extra Coverage for personal belongings valued at more than $1,500 (like jewelry) or add earthquake insurance if you live in California or Arkansas. Those are the only endorsements available, so the customization is pretty limited.
The discounts for Lemonade home insurance are the same ones available for renters insurance. You can save money by bundling your policies, paying the annual premium in full, and having certain protective devices in your home. Compared to other insurers I’ve reviewed, Lemonade’s home insurance discounts are definitely lacking.
Before you apply for Lemonade home insurance, make sure coverage is available in your state. Here’s where this policy is sold: Arizona, California, Colorado, Connecticut, the District of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia and Wisconsin.
Car Insurance
I think car insurance is Lemonade’s best product. There are several endorsements available, plus a variety of discounts for policy savings.
Lemonade car insurance policies come with all the standard coverages, plus free emergency crash assistance and free roadside assistance. You can also customize your policy with extended glass and windshield coverage, rental car reimbursement, personal injury protection (PIP), physical damage coverage, and uninsured/underinsured motorist coverage.
When I received a sample quote for Lemonade car insurance, my estimated total was $97 per month. However, remember that car insurance quotes are based on many factors, like location, age, credit score, and claim history.
In terms of discounts, you can save money by paying in full, having a hybrid or electric vehicle, bundling your policies, and driving infrequently. Technology in the Lemonade mobile app uses telematics to track your driving behaviors and rewards you with a lower rate when you drive less and produce fewer carbon emissions.
The biggest downside of Lemonade car insurance is that it’s only sold in a few states. Currently, Lemonade car insurance is only available to drivers in Illinois, Ohio, and Tennessee.
Pet Insurance
Lemonade pet insurance covers cats and dogs. To get a policy, you must submit a recent medical record from a veterinarian (within 12 months of your policy’s start date). You can also purchase a policy and submit your pet’s medical record within two weeks.
Lemonade Pet Insurance offers comprehensive coverage, industry-leading tech, and strong customer service at a great value. Policies are super customizable, so you can build the right policy for your pet without paying for stuff you don’t need.
- Superb technology-led experience
- Offers some of the best value
- Instant claims payout
- Free access to Chewy’s Connect with a Vet service
- Not available everywhere
- Older pets may not qualify
- No exotic pet insurance
Once you have coverage, there’s a waiting period that of 14 days for illness* and 30 days for orthopedic conditions* before you can use the benefits. These waiting periods begin on the start date of the policy. There’s no accident waiting period* on new and renewal policies.
Lemonade offers a few pet insurance add-ons. You can get the Preventative or Preventative+ packages, which cover services like wellness visits, vaccines, and physical therapy. If you have a new dog or cat, you can add the Puppy/Kitten Preventative package, which is more tailored to the medical needs of pets under two years old.
The cost of Lemonade pet insurance depends mostly on the type of pet you have. However, you can save money by bundling your policies, insuring multiple pets, and paying your annual premium in full.
Here’s where you can get pet insurance from Lemonade: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin.
» Read our full Lemonade Pet Insurance review
Life Insurance
Lemonade Life is one of Lemonade’s newer policies. Overall, I think it’s worth checking out if you’re in the market for affordable coverage. However, the only type of life insurance you can get from Lemonade is term life insurance, so permanent coverage is not an option.
When I applied for life insurance through Lemonade, the application process was more in depth than the other insurance lines. It took about 10 minutes to get through the application and I had to share my social security number in order to see my quote. There’s no medical exam required and if you’re approved, you can get coverage instantly.
Lemonade’s term life insurance policies are available in term lengths of 10, 15, 20, 25 and 30 years, with up to $1.5 million in coverage. For a 30-year, $1 million policy, my quote came out to $35 per month (for a healthy 30-year-old female).
Currently, Lemonade doesn’t offer any riders or endorsements for more life insurance protection. You can purchase term life insurance in every state except New York.
» Read our full Lemonade Life review.
Lemonade Insurance Customer Service
Lemonade Insurance operates entirely online, so there are no in-person agents or local offices. You can purchase coverage, manage your policy, and file claims through the online customer portal or the free mobile app.
If you need assistance with your policy, you can contact Lemonade via email at help@lemonade.com or use the online chatbot to get connected to the right department. However, don’t expect to reach a customer service representative right away, especially on weekends or holidays.
Because Lemonade is 100% digital, I was surprised that there was no live chat option to connect with a customer service agent in real time. Despite that, customers generally seem satisfied with Lemonade’s customer service, and there are few complaints about being unable to contact the company.
Lemonade vs. Competitors
Liberty Mutual is an insurance company that has been around for over 100 years and has consistently marketed themselves as an insurer that really cares. In fact, one of their main slogans is: “we believe insurance should ease your concerns, not cause them.”
Liberty Mutual offers a big selection of policies, including home, renters, auto, life (term and whole life), flood, business, accident, and pet insurance.
- Lots and lots of discounts
- Make a claim in minutes
- Fast quotes
- Not the best customer service reviews
- Not all coverage is available in every state
Liberty Mutual is a well-known insurance company that sells coverage in every state. Compared to Lemonade, Liberty Mutual offers a bigger selection of policies, including home, renters, auto, life (term and whole life), flood, business, accident, and pet insurance.
In general, Liberty Mutual’s prices seem to be slightly more expensive than Lemonade’s. My car insurance quote from Liberty Mutual was more expensive than my quote from Lemonade. But while Liberty Mutual doesn’t advertise cheap insurance rates, it does offer a big selection of discounts. Therefore, the cost of insurance from Liberty Mutual may not ultimately be more expensive than coverage from Lemonade, after factoring discounts in.
Finally, like Lemonade it’s easy to get a quote online from Liberty Mutual. But unlike Lemonade, you can visit an agent in person if you need assistance.
Progressive
Progressive and Liberty Mutual are similar in many ways. Progressive is another reputable insurance company with a big selection of insurance products, and more endorsements and discounts than Lemonade. Progressive also offers unique online tools that can help you compare rates and find the cheapest premiums.
Another thing I like about Progressive is that it offers 24/7 customer service, 365 days per year. Lemonade, on the other hand, doesn’t offer 24/7 customer service with a live representative. You can manage your policy anytime on the mobile app, but you can’t always reach a live person if you need help.
Like Lemonade and Liberty Mutual, Progressive makes it easy to get quotes online. You can also file a claim online, through the free mobile app, or over the phone with an agent.
However, one of the things I didn’t like about Progressive is that the rates seem to be higher than Liberty Mutual and Lemonade. For example, my sample car insurance quote was $115 from Progressive, compared to $97 from Lemonade.
Lemonade FAQs
Who Owns Lemonade Insurance?
Lemonade is a self-owned insurance company. Unlike some other digital insurance companies, Lemonade does not have a parent company, and it’s not part of a larger family of insurance providers.
Who Underwrites Lemonade Insurance?
Most of Lemonade’s insurance policies are underwritten by Lemonade Insurance, which is a licensed insurance provider. However, Lemonade’s term life insurance policies are issued by the North American Company for Life and Health Insurance.
How to Cancel Lemonade Insurance?
The process of canceling Lemonade insurance depends on the type of policy you have. However, you should be able to cancel your policy by logging into your account online or through the mobile app. If you need assistance, you can call or email the company to get in touch with a representative.
Final Thoughts
Overall, I think Lemonade is a great insurance company if you’re looking for affordable coverage and want the flexibility to manage your policy anytime, anywhere. However, I wouldn’t recommend Lemonade to people who want to customize their insurance policies with endorsements. There are very few add-ons available, so it’s best if you just need basic coverage.