Lemonade Car Insurance Review 2024

Lemonade car insurance is principally sold online through its website or mobile app. Drivers are required to download the app to manage their policies, get help from Lemonade or file a claim. The app also uses location-based technology (also known as telematics or usage-based auto insurance) to price your policy based on how much you drive and your driving behavior.

Founded in 2015 by Daniel Schreiber and Shai Wininger, Lemonade is based in New York. It started by selling Lemonade home insurance and renters insurance and expanded to include car insurance in 2021.

Lemonade car insurance is available in the following states:

• Illinois
• Ohio
• Oregon
• Tennessee
• Texas

Like other auto insurance companies, Lemonade offers the following standard car insurance coverage types:

Liability Insurance

Bodily injury and property damage liability auto insurance pays for injuries and damage to others if you’re at fault for an auto accident. Liability insurance also pays for lawyer fees, court settlements and judgments related to auto accidents you caused.

Comprehensive Insurance

Comprehensive car insurance covers theft and damage to your car for problems such as vandalism, fire, floods, hail, falling objects or striking an animal.

Collision Insurance

Collision car insurance pays to repair or replace your car if it’s damaged in an auto accident, regardless of fault. It also pays if you hit an object, like a guardrail or fence.

Collision and comprehensive coverage pay out the actual cash value of your vehicle if it’s declared a total loss, minus your deductible. Both are optional, but if you have a lease or loan, your lender or leasing company will likely require you to have collision and comprehensive coverage.

Underinsured/Uninsured Motorist Coverage

Uninsured motorist coverage pays for medical expenses if you or your passengers are injured in an auto accident caused by a driver who is without insurance or doesn’t have enough coverage to pay for your bills. It’s required in 22 states and optional in others.

Personal Injury Protection (PIP)

Personal injury protection coverage pays for your medical expenses as well as lost wages and replacement services, such as child care, if you‘re unable to perform the task. PIP is required in 15 states, optional in other states and unavailable in some.

Medical Payments Coverage (MedPay)

Medical payments coverage (MedPay) pays for medical expenses for injuries to you and your passengers resulting from an auto accident, regardless of fault. It’s required in some states and optional in others.

More Lemonade Auto Insurance Options

A few optional coverages you can choose for a Lemonade car insurance policy include:

Temporary Transportation Coverage

If you have comprehensive and collision coverage and add this to your policy, it reimburses rental, public transportation or rideshare costs for up to 30 days if you can’t drive your vehicle due to a problem covered by your policy, such as an auto accident. (This coverage is often called rental car reimbursement coverage.)

Extended Glass and Windshield Coverage

If you have comprehensive insurance, it covers you if glass (such as your windows or windshield) is damaged or broken. If you have comprehensive and collision coverage, this “extended” coverage allows you to choose a lower deductible or no deductible for glass or windshield claims.

Lemonade Crash and Roadside Assistance Services

Lemonade provides these benefits for free, as long as you have location tracking enabled in the app:

• Crash detection and emergency assistance: Lemonade is alerted if you’re in an accident and can contact you to see if you’re injured or if they should dispatch emergency services to the accident scene. The accident location is pinpointed by the Lemonade app.
• Roadside assistance: If your car breaks down, you can use the Lemonade app to call for roadside assistance. This service helps with towing, battery jump starts, flat tires, fuel delivery and more.

You are eligible for up to three free services for each car listed on your policy during a six-month term. After that, you can still request help, but you have to pay for it.

Special Lemonade Auto Insurance for Electric Vehicles, Hybrids 

• Emergency charging: If your electric vehicle (EV) is stuck with a drained battery, Lemonade will send a charging truck to you.
• Charger coverage: If your wall or portable charger is harmed, this coverage will help replace it.

Lemonade offers usage-based car insurance and gap insurance, but the company does not offer SR-22 insurance or rideshare insurance.

Does Lemonade Car Insurance Offer Gap Insurance?

Yes, Lemonade car insurance provides gap insurance. Gap coverage pays the “gap” between what you owe on your car loan or lease and the depreciated value of your car if it is totaled due to a problem covered by your policy, such as a car accident.

Does Lemonade Car Insurance Offer SR-22s?

Lemonade does not offer SR-22 insurance, which is a court-order document that auto insurance companies file with states as evidence that you meet the minimum liability coverage requirements. A state may require drivers with DUI convictions or multiple driving offenses to file an SR-22.

Does Lemonade Car Insurance Offer Usage-Based Car Insurance?

Yes, Lemonade car insurance has usage-based insurance. You download the Lemonade app and provide permission for it to track your driving, which is used to determine rates at your first renewal and moving forward.

The telematics program monitors where and how you drive to build a driver safety score. Items taken into account for a score include:

• Total mileage.
• Time of day that you drive.
• Weather conditions.
• Roads.
• Braking.
• Smoothness in acceleration and braking.
• Cornering.
• Phone use while driving.

Does Lemonade Car Insurance Offer Rideshare Insurance?

No, Lemonade car insurance doesn’t offer rideshare insurance, which fills coverage gaps if you drive for a company like Lyft or Uber.

Lemonade may add this coverage in the future, according to the company’s website.

When drivers sign up with Lemonade, car insurance rates are calculated based on standard factors, such as your driving record, claims history, credit, location and driving experience. Once the app is downloaded and location services are enabled, drivers are eligible for an immediate participation discount.

The Lemonade app’s location-based technology allows it to monitor your specific driving habits. At renewal time, your driving score and other factors, such as your claims record, are used to price the policy. A good, safe-driving score should result in lower premiums.

Claims are filed through the Lemonade app. You may need to send a video describing the incident as part of the claims process. Once a claim is approved, payment is deposited directly into your bank account (minus any applicable deductible).

Lemonade offers a variety of discounts to help drivers save money on car insurance.

• Accident-free discount. If none of the drivers on your policy have had an accident or claim in the last five years, you can obtain a discount.
• Anti-theft discount. If your car has anti-theft features, either permanently installed original or aftermarket equipment, you can receive a discount.
• Bundling (multi-policy) discount. Save if you have a Lemonade car insurance policy and bundle it with any of its other products, including homeowners, renters, life or Lemonade pet insurance.
• Continuous insurance discount. You can save if you’ve been continually covered by car insurance with no gaps in coverage.
• EV/Hybrid discount. Drivers of environmentally friendly cars such as electric vehicles or hybrids receive a reduction in their rates.
• Low mileage discount. You’ll receive lower rates if you drive less.
• Multi-car discount. If you insure more than one car on your Lemonade auto insurance policy, you can receive a discount.
• Paid in full discount. If you choose Lemonade’s one-pay bill plan (pay the entire premium up front) a discount will be applied.
• Senior driver discount. Also known as a mature driver discount, you can save if you’re age 55 or older and have completed an approved defensive driving course within the last three years.
• Smart technology discount. You may earn this discount if your car is equipped with factory-installed automatic emergency braking or blind-spot warning safety features.
• Teen driver discount. If you have a licensed driver under age 19 and your policy also qualifies for the “continuous insurance” discount you can see savings.
• Telematics participation discount. A discount is applied if the Lemonade app is continually engaged for the telematics program.
• Three-year safe driving discount. You can earn a Lemonade auto insurance discount if you have no auto accidents and traffic violations for at least the past three years.

Lemonade also sells:

• Home insurance
• Renters insurance
• Condo insurance
• Co-op insurance
• Life insurance
• Pet insurance