Lemonade Insurance Review 2025

Lemonade is a relatively new insurance company that launched in 2015. The company takes a modern approach to insurance: It’s a digital, direct-to-consumer company, meaning that the entire insurance purchasing process can be done online without interacting with a human agent. Instead of insurance agents, they rely on AI to provide quotes, chat with customers, and manage claims.

Lemonade offers home, auto, renters, pet, and life insurance. In 2022, they acquired pay-per-mile car insurance company Metromile, keeping Metromile’s usage-based approach, which allowed them to build out their auto insurance offerings. That business model means the company tracks driving habits and rewards those who drive less (and more safely) with lower rates.

Lemonade also prioritizes social impact and is a certified B Corp. Among other initiatives, they plant trees every year in proportion to how many miles are driven by their policyholders. They also donate unclaimed premiums at the end of each year to nonprofit organizations chosen by customers.

The company operates in the U.S. and Europe, but they currently only offer car insurance in seven states: Arizona, Illinois, Ohio, Oregon, Washington, Tennessee, and Texas.

I’m a senior editor and analyst at AutoInsurance.com, and while I’m currently a State Farm customer (here’s my full State Farm review), I’ve put together this comprehensive review of Lemonade using industry research, customer reviews, and my industry experience to give you a better idea of how Lemonade works and what they offer to help you decide whether it’s the right insurance company for you.

Jump to:

• • Who Lemonade is Best For
  • Lemonade Car Insurance Cost
  • Lemonade Discounts
  • Quote and Purchase Process
  • Coverage Options
  • Filing a Claim

Who Is Lemonade Auto Insurance Best For?

Lemonade may be a good choice for those who prefer to purchase and manage insurance policies online.

Lemonade Is Best for Those Who:

• Live in Arizona, Illinois, Ohio, Oregon, Washington, Tennessee, or Texas
• Prefer to get a quote, purchase a policy, and manage their insurance fully online
• Drive safely and/or less than average
• Drive electric or hybrid vehicles

Lemonade Is Not Best for Those Who:

• Drive more than average or are high-risk drivers
• Live in states other than the seven listed above
• Prefer to interact with a human agent
• Are uncomfortable with the data and location sharing required by Lemonade

How Much Does Lemonade Car Insurance Cost?

The cost of Lemonade car insurance can vary widely, as it depends on how often and how safely you drive. The company advertises rates as low as $30 per month, or $360 per year. The national average cost of full coverage car insurance is $2,399 for full coverage and $635 for minimum coverage; but if you’re a safe driver with Lemonade and drive less than average, you can expect your rates to be lower.

The table below shows the average rates of major national insurers so you can get an idea of how Lemonade’s rates compare:

How You Can Save on Your Policy With Lemonade

Since Lemonade’s car insurance is based on telematics, it already bakes in a discount for drivers who drive safely and infrequently. It offers fewer discounts than most major insurers, but there are some other ways to save on your premium.

Highlighted Discount: EVs and Hybrids

Part of Lemonade’s brand ethos is sustainability and giving back, and with that in mind, they offer a discount for EV and hybrid vehicle owners. Lemonade plants trees to make up for the carbon emissions of their policyholders, so one reason they provide this discount is the lower carbon emissions produced by these eco-friendly vehicles.

In addition to a discount, Lemonade also covers emergency charging and damage to walls and portable chargers for EV and hybrid drivers.

Other Discounts

In addition to the EV discount, Lemonade also offers:

• Bundling discounts: You can get a discount for bundling any combination of Lemonade products, meaning you can bundle your auto insurance with a home, renters, pet, or life insurance policy to qualify for savings.
• Planning ahead: Lemonade offers a discount if you sign up for a policy in advance of your coverage start date.

Lemonade Quote and Purchase Process

Lemonade offers a straightforward quote and purchase process that can be done exclusively online or through the app. You’ll be greeted by an AI agent that will guide you through the process, which starts by entering your name and your home address.

I wasn’t able to get a quote since Lemonade is not available in my state, but if they offer policies in your area, you’ll go on to provide more details about your driving record and other details. From there, getting a quote and purchasing a policy will be easy. At any time during this process, you can submit any questions you have to the Lemonade team, and someone will get back to you.

What Types of Auto Insurance Coverage Does Lemonade Offer?

Lemonade offers all the standard types of insurance coverage, including liability coverage, collision and comprehensive coverage (referred to as full coverage), personal injury protection, medical payments, and uninsured motorist coverage.

I opt for higher liability limits and full coverage for additional financial protection and peace of mind. I recommend getting more than the minimum coverage required by your state if you can afford it as minimum coverage is generally not enough.

Lemonade offers a few additional coverage options beyond the most basic coverages:

Filing a Claim With Lemonade

You can file a claim with Lemonade through the Lemonade mobile app. The company notes that their telematics data provides useful background information to help process claims faster, which may include things like your location and speed.

Claims can be filed quickly by following the steps in the app. Lemonade processes claims with the help of AI, which also helps speed up the process. Once you submit a claim, Lemonade AI runs dozens of anti-fraud algorithms and might instantly approve and pay out your claim. Lemonade advertises that around 40 percent of claims are handled instantly. In more complicated situations, your claim will be passed on to human members of Lemonade’s team, and processing times may vary.