Lemonade Insurance Review

Lemonade Insurance offers affordable coverage options for homeowners insurance, car insurance and other types of protection while using automation and artificial intelligence to speed up the claims process. While available in a limited number of states, Lemonade’s digital-first approach may be the right fit for your insurance needs.

Keep reading our Lemonade Insurance review to learn what to expect from its homeowners, auto and other coverage options.

Key Takeaways Lemonade car insurance takeaway: Lemonade car insurance starts at $30 a month and uses telematics to personalize your premium based on your auto usage, and it features optional coverages like collision, comprehensive and more. However, given its limited availability, this auto insurance may not be available in your state, and it may not be cost effective if you drive a lot. Lemonade home insurance takeaway: Lemonade’s homeowners insurance can be an affordable option compared to other insurers, with premiums starting at $25 per month. However, Lemonade received a significant number of NAIC complaints on homeowners policies, largely over claim denials or delays in claims processing.

About Lemonade Insurance

Founded in 2015, Lemonade takes a refreshing departure from traditional insurance companies with its digital and mobile app approach.^[1] As a digital insurance company, Lemonade policies are underwritten using a combination of human and artificial intelligence, which can help speed up the process of getting a policy compared to traditional insurers.^[2]

Additionally, claims with Lemonade are largely dealt with by AI, with 55% automated.^[3] This gives Lemonade an edge in rapid response times, with some claims processed in seconds.[4]

Lemonade is also known for its philanthropy, donating more than $2.3 million to 65 nonprofit organizations, such as CURE Childhood Cancer and American Forests.^[1] Additionally, by utilizing tracking data with Lemonade Car, the company offsets policyholders’ carbon emissions by planting trees in partnership with One Tree Planted.^[5]

Availability

Lemonade Insurance has limited availability across the U.S., meaning you may not have access to its auto or home insurance policies depending on what state you live in. For example, Lemonade home insurance is only available in 28 states and the District of Columbia. In addition, not all coverage types are offered in the same states.

Below, we list each state where Lemonade offers home and auto coverage.^[6]

States Where Lemonade Homeowners Insurance Is Available:

States Where Lemonade Auto Insurance Is Available:

Arizona	Colorado	Illinois	Ohio	Oregon
Tennessee	Texas	Washington

Consumer Experience

Lemonade has received a disproportionately high number of complaints, according to the National Association of Insurance Commissioners (NAIC). When accounting for the number of policies it holds, Lemonade received 12.74 times the expected number of complaints in the market as of 2024.^[7]

According to the NAIC, most of these complaints stem from renters and homeowners insurance policyholders, while its auto insurance coverage received significantly fewer. However, this may be due to the limited number of states where Lemonade auto insurance is available. The majority of complaints involved delays in claims processing, claim denials and other issues related to claims handling.^[8]

Customer Service

Lemonade customer service is primarily accessed through its website or app, where users typically interact with a chatbot. For emergencies when you can’t access the website or app, Lemonade can also be reached at (844) 733-8666.^[9]

Features

Lemonade Car includes several additional features, such as complimentary roadside assistance. It also offers emergency crash assistance, which alerts Lemonade if you’re in an accident so it can provide support.^[10]

Pricing

Pricing for Lemonade homeowners insurance starts at $25 per month.^[11] This positions Lemonade as a potentially affordable option, considering the average price of homeowners insurance is $176 per month.^[12]

Lemonade auto coverage starts at $30 per month.^[11] Keep in mind that Lemonade auto insurance premiums are based on your driving profile, including how often you use your car.^[10][14]

These are only starting premium amounts, and your individual rate will vary based on the underwriting process and policy details, including factors like your location and age.^[16]

Additional discounts may also lower your costs, which we’ll cover later.

Claims

Lemonade claims are filed almost exclusively through its website or mobile app. However, car insurance claim issues can also be sent via email to carclaims@lemonade.com.^[9]

Lemonade Pros and Cons

Pros

• Fast claims process: About 55% of claims are handled instantly, with some payments issued in seconds through the use of AI in the claims process.^[3][4]
• Philanthropic and environmentally conscious: Lemonade donates excess premiums to various charities and plants trees based on your mileage to help offset carbon emissions.
• Intuitive mobile app: Nearly everything about Lemonade Car is managed through the mobile app — from switching providers and adding a new vehicle to adjusting your deductible and filing a claim.

Cons

• Limited availability: Lemonade insurance policies are available in a limited number of states, with auto coverage currently offered in only eight. While Lemonade may expand, this limited availability makes it inaccessible to many.
• Telematics may feel invasive: While telematics supports user-based pricing, some may find the continuous tracking — like detecting your phone’s location on a seat or in a pocket — unsettling. The feature must also remain active 24/7.^[13]
• Higher than average customer complaints: Lemonade has received a significantly higher number of complaints than the average insurer, often due to issues with claims handling. While automation may speed up the process, it can also create friction when problems arise.

Lemonade Car Insurance

Below is a quick overview of the coverages included in a Lemonade Car policy, including optional add-ons like comprehensive and collision.

What's Covered?

Type of Coverage[17]	What It Does
Bodily injury liability	Covers the medical expenses of somebody you accidentally injure who is not a passenger in your car.
Property damage liability	Covers the cost to repair or replace another person’s car or personal property.
Comprehensive	Pays for repairs or replacements to your car for incidents outside of a car accident (e.g., fire, theft, vandalism, weather, animal collision).
Collision	Pays to repair or replace your car if it’s damaged after striking another vehicle or object, even if you are at fault for the collision.
Medical payments coverage (Medpay) or personal injury protection (PIP)	Covers medical expenses if you or a passenger in your car becomes injured in an accident. Covered expenses can include ambulance fees, X-rays, surgeries, nursing care and funeral services.
Uninsured motorist	Pays for medical bills, lost wages and costs of repairs due to an accident caused by an uninsured driver.
Underinsured motorist	Covers the remaining cost of medical bills, lost wages and repairs when the other party in an accident is financially liable but their coverage is insufficient.
Temporary transportation	Covers the cost of a rental car, rideshare service or public transportation up to a daily limit for a month while your car is undergoing repairs.
Extended glass	Pays to repair or replace your car’s damaged windshield.
Roadside assistance	Includes towing, lockout services, flat tire replacements, jumpstarts, fuel delivery and emergency charging for electric vehicles.

What Isn’t Covered?

Lemonade offers broad protection, but its auto insurance policy isn’t all-encompassing. As with many insurers, some exclusions under a Lemonade auto policy include:^[18]

• Natural wear and tear
• Accidents caused by a household member not listed on the policy
• Accidents while using your car for rideshare or business purposes
• Freezing or ice damage (e.g., dead battery from extreme cold)
• Intentional damage
• Damage to custom parts valued over $1,000
• Personal belongings inside your car (which may be covered by homeowners or renters insurance)
• Routine maintenance (e.g., oil changes, tire rotation)
• Classic, antique or exotic vehicles
• Gap coverage (though Lemonade may offer this in the future)

Lemonade Home Insurance

Lemonade home insurance offers similar coverages to most insurers, including dwelling protection and personal property coverage. Like other providers, it typically excludes intentional damage and losses caused by neglect. Below is a quick overview of the coverages included in a Lemonade homeowners insurance policy.

What’s Covered?

Here’s what you can expect to be covered by a Lemonade homeowners insurance policy:^[19]

• Dwelling coverage
• Other structures coverage
• Personal property protection
• Loss of use coverage
• Personal liability protection
• Medical payments coverage

Lemonade homeowners policies offer dwelling and other structures coverage on an open peril basis, meaning any cause of damage should be covered as long as it isn’t excluded in your policy. Personal property protection, however, is covered on a named peril basis — typically including the following perils, depending on your location:^[19]

Fire and lightning	Vandalism
Explosions	Falling objects
Freezing	Theft
Smoke	Volcanic eruption
Windstorm and hail	Damage by aircraft
Damage by vehicle	Riots and civil unrest
Sudden or accidental tearing or cracking	Damage by short-circuit
Sudden or accidental water overflow	Weight of ice, snow or sleet

What Isn’t Covered?

Below is a list of what typically isn’t covered by a Lemonade homeowners policy:^[20]

• Floods and earthquakes
• Home businesses (though the policy may cover up to $2,500 for business items and equipment inside the home, or $1,500 outside the home)
• Bed bugs
• Damage caused by neglect or wear and tear
• Short-term rentals
• High-value items (may require scheduling specific items under Lemonade’s Extra Coverage endorsement)
• Diving boards and trampolines
• Your vehicle
• Nuclear hazards
• Mold caused by long-term leakage or wear and tear
• Certain dog breeds

Additional Policies Lemonade Offers

In addition to homeowners and auto insurance, Lemonade also offers several other types of coverage:^{[6][9][21][22][23]}

Lemonade Insurance Discounts

Lemonade offers discounts for bundling multiple policies, such as homeowners and auto insurance, which can result in savings of up to 10% on all bundled products. However, while adding term life coverage to your bundle may trigger discounts on other policies, it won’t reduce the life insurance premium itself.^[24]

Below are some of the discounts Lemonade offers specifically for auto and homeowners insurance.

Auto Insurance Discounts

Some of the Lemonade’s discounts for car insurance policyholders include:^[26]

• Hybrid and electric vehicle (EV) discount
• Multi-car discount^[26]
• Early renewal discount for renewing before your coverage start date
• Telematics discount for using the mobile app while driving

Home Insurance Discounts

Lemonade offers homeowners insurance discounts for installing safety features, such as burglar alarms, fire extinguishers and sprinkler systems. Upgrading your home with fire-resistant materials may also make you eligible for a discount.^[27]