Review
Updated
Fact Checked
Ashley Maready
This auto insurer is a good fit for: Drivers with good records who drive infrequently and want a no-frills claims process.
Best for: Pay-per-mile policiesLemonade
Rating image, 3.50 out of 5 stars.
3.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Lemonade auto insurance at a glance
Monthly premium costs:
- 35-year-old female with clean driving record: $60/mo + $0.15/mile
- 35-year-old male with clean driving record: $60/mo + $0.15/mile
- 35-year-old female with one accident: $64/mo + $0.17/mile
- 18-year-old-male with clean driving record: $116/mo + $.84/mile
Coverage options:
- Bodily injury
- Property damage
- Medical payments
- Uninsured/underinsured driver bodily injury
- Personal injury protection
- Comprehensive coverage
- Collision coverage
- Uninsured driver (property damage)
- Temporary transportation coverage
- Pet injury
- Roadside assistance
- Glass coverage
- Wall charger coverage
Note: These insurance quotes were created by inserting various personas into Lemonade's algorithm. But since Lemonade uses specific data -- like a car's VIN number and driving records -- to create quotes, drivers will get more accurate results by inserting their own information.
Lemonade car insurance pros and cons
Pros
- Cheap rates for infrequent drivers
- Simple and advanced app
- Super fast claims process
- Emergency crash and roadside assistance
Cons
- Not available in every state
- Doesn't offer insurance for ride-hailing or business vehicles
Top perks
Cheap rates for infrequent drivers
Lemonade operates off of a pay-per-mile model, which charges drivers a base rate plus a per-mile rate each month. For example, if a driver has a base rate of $25 and a per-mile rate of $0.08, then driving 200 miles monthly would result in a total premium of $41. This can make Lemonade extremely affordable for those who don't drive frequently, or who only occasionally drive long distances (Lemonade has a daily mileage cap for each state, usually a maximum charge of 250 miles per day).
Simple and advanced app
It doesn't get much simpler than the Lemonade app. Drivers can view their policy cards, report a crash, call for roadside assistance, and even monitor how many monthly miles they're accumulating. The app also provides emergency crash assistance, which can detect when drivers are in an accident and call for assistance if they need it.
Super fast claims process
Lemonade policyholders can file car insurance claims directly through the app. Depending on the accident, Lemonade may ask drivers to take a video of their car, in order to get the full scope of the damages. Claims are handled quickly and payments are sent directly to a policyholder's bank account.
What could be improved
Not available in every state
Lemonade's car insurance launched in 2021 and is currently only available in six states: Arizona, Illinois, Ohio, Oregon, Tennessee, Texas, and Washington. Although the company will likely expand to other markets in the future, it hasn't announced any plans to do so in the near term.
Doesn't offer insurance for ride-hailing or business vehicles
Unlike larger car insurance companies, Lemonade doesn't offer insurance for cars being used for business or commercial purposes, including ride-hailing services. So for drivers who use their cars for business, another car insurance company will need to be considered.
Alternatives to consider
2024 Award Winner
Best for coverage options and discountsProgressive
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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= Good
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= Fair
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= Poor
= Best
= Excellent
= Good
= Fair = Poor
Customized coverage with local agent supportFarmers
Rating image, 3.50 out of 5 stars.
3.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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= Good
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= Fair
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= Poor
= Best
= Excellent
= Good
= Fair = Poor
When looking for coverage in all 50 states: Check out Progressive. While Progressive's app isn't quite as simple as Lemonade's, it does offer affordable coverage for most drivers. It also offers insurance for cars being used for business purposes, including rideshare insurance.
When looking for more discounts: Take a peek at Farmers. Farmers offers over 20 ways to get a discount on premiums, including traditional ones (like bundling and safe driving) and some unique ones, like on-time payment and having safety equipment installed. Farmers even offers its own mileage-based coverage, called FairMile, which functions similar to Lemonade's pay-per-mile model.
Monthly premium costs
Lemonade's premiums depend heavily on a driver's mileage, driving history, and vehicle. Because Lemonade's algorithm analyzes a driver's past and their car's VIN, a more accurate quote can be generated on its website. That said, the following can give an idea of how much Lemonade charges in general.
| 35y, female, clean record | 35y, male, clean record | 35y, female, one accident | 18y, male, clean record |
|---|---|---|---|
| $60/mo + $0.15/mile | $60/mo + $0.15/mile | $64/mo + $0.15/mile | $116/mo + $0.84/mile |
Data source: The Ascent's analysis of standardized personas
Discounts available
Because of how much money drivers save upfront on their premiums, Lemonade doesn't offer many car insurance discounts. In fact, it only offers one: bundling. When drivers combine car insurance with another Lemonade policy (home, renters, life, or pet), they get a small discount.
Coverage options
Policy types
Lemonade only offers automobile insurance. It doesn't offer insurance for ATVs, boats, RVs, or UTVs. That said, it does offer some coverage for electric bikes under its renters and homeowners insurance policies.
Coverage types
- Bodily injury
- Property damage
- Medical payments
- Uninsured/underinsured driver bodily injury
- Personal injury protection
- Comprehensive coverage
- Collision coverage
- Uninsured driver (property damage)
- Temporary transportation coverage
- Pet injury
- Roadside assistance
- Glass coverage
- Wall charger coverage
Lemonade offers a full suite of car insurance coverage options. Not only does it offer standard types of coverage (like liability and comprehensive) but it also offers some unique extras, like wall charger and pet injury coverage.
Customer service and ratings
Lemonade has mixed reviews on third-party websites. For example, it currently boasts a 4.4 rating on Trustpilot (based on over 1,750 reviews), but it has a D- rating on the Better Business Bureau, with more than 186 complaints in the last 12 months. Keep in mind, though, that these reviews are for Lemonade as a whole, not just its car insurance segment.
For its part, the Lemonade Insurance app has excellent reviews. It currently boasts a 4.9 rating on the App Store (based on over 72,000 reviews) and a 4.4 rating on Google Play (based on more than 16,000 reviews).
Lemonade car insurance is best for:
Lemonade is best suited for drivers who:
- Drive infrequently and have good records
- Want affordable premiums
- Live in Arizona, Illinois, Ohio, Oregon, Tennessee, Texas, or Washington
- Prefer to handle claims via an app rather than on the phone
Other insurance companies to consider are Farmers for discount opportunities or Progressive for filing claims through an app.
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Review Sources
FAQs
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Yes, it's a legitimate company. It's organized as an insurance company under New York law and trades publicly on The New York Stock Exchange.
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Lemonade monitors driving habits to price a driver's policy. The company will track driving via its app and may adjust base or mile rates accordingly.
Our Insurance Experts
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
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