Lemonade Insurance Review

Lemonade car insurance

Lemonade currently offers car insurance in only a few states: Illinois, Ohio and Tennessee.

However, it's an inexpensive option for drivers living in those locations.

Lemonade recently acquired Metromile, a pay-per-mile car insurance company that operates in eight states. This should result in Lemonade offering car insurance in more states. However, the company hasn't shared a timeline for expansion.

Lemonade auto insurance quote comparison

Car insurance from Lemonade is significantly cheaper than coverage from its competitors. A

minimum coverage policy

from Lemonade costs $40 per month, 43% cheaper than average.

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Full coverage car insurance

is also cheaper from Lemonade. On average, a policy from Lemonade costs $66 per month — 54% less expensive than average.

Company

Minimum coverage

Full coverage

Lemonade$474$792State Farm$778$1,644Geico$838$1,474Allstate$1,222$3,022

Lemonade car insurance discounts

Lemonade doesn't offer as many car insurance discounts as other companies. However, its rates are so much lower than competitors' rates that a long list of discounts isn't as important.

Drivers can take advantage of the following discounts from Lemonade:

  • Bundle discount

  • Driving with the Lemonade app

  • Electric or hybrid car discount

  • Payment discount

  • Plan ahead savings

In addition, Lemonade offers a usage-based discount and a low mileage discount.

Lemonade requires drivers to download its app, which is used to track the number of miles you drive. The app also monitors your driving behaviors, like speeding, erratic turns, hard braking and the time of day you drive. These factors are used to determine how much you save for good driving.

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Lemonade car insurance coverage options

Above the basic coverages, Lemonade doesn't offer many add-ons to help drivers customize their policy. A standard policy can include the typical car insurance coverage options, like bodily injury and property damage liability, medical payments coverage or personal injury protection (PIP), uninsured motorist, and comprehensive and collision coverage.

Lemonade's base policy includes roadside assistance at no additional cost. That's an important perk that most other insurers charge extra for.

Roadside assistance will send help and pay for towing or simple repairs if you're stuck on the side of the road with a flat tire, you're locked out of your car or you simply ran out of gas. Lemonade's plan even includes an EV charge for electric vehicles.

In addition, policyholders also receive emergency crash assistance for free. This service uses the technology included in Lemonade's app to alert the company if you're in an accident so that it can send help.

Drivers can also purchase:

  • Extended glass and windshield coverage, which pays the cost to repair or replace your windshield with little or no deductible, depending on where you live.
  • Temporary transportation coverage, which covers the cost of a rental car, public transportation or rideshare service for up to a month while your car is being repaired after a

    covered incident.

However, Lemonade doesn't seem to offer gap insurance, which would pay off your loan or lease if your new car is totaled and it's worth less than what you owe.