Insurance is hardly an exciting topic, but Lemonade is trying to change that. The high-tech startup is seeking to shake up the insurance market, through the use of artificial intelligence (AI), slick apps, instant claims, and a customer-first business model.
Lemonade Insurance Company is an insurance company based in New York, with operations in most US states and in several European countries. Their tagline is “Insurance Built for the 21st Century”, and this sums up their business very well. While competitors have been around for centuries and have decidedly old-fashioned business models, Lemonade flips a lot of industry standards on its head. They aim to be an insurance company that people actually like. That’s a tough order, but they are definitely better-liked among their customers than most insurers could claim.
Pros
- Low insurance premiums
- Offers homeowner’s insurance, condo insurance, renter’s insurance, and term life plans (as well as pet insurance)
- Sign up in minutes
- Quick claims processing and payment in minutes
- Good customer service
- Quick quotes available through app and website
- Plans are monthly and can be canceled at any time
Cons
- Not available in all states
- Limited options to customize insurance plans
How it’s different
A few things make Lemonade stand out from the crowd when it comes to insurance products.
- Instant everything: With Lemonade, you can get instant quotes for new insurance coverages. You can even submit claims instantly through a smartphone app, and often a claim is as simple as just submitting a picture or video of the damaged property. In some cases, claim payouts are processed in a matter of minutes, instead of the weeks it can take for traditional insurance companies to issue payments.
- Artificial intelligence (AI): Lemonade uses AI to enable many aspects of its business. When you sign up for Lemonade, you’ll interact with Maya, an AI chatbot that will help you navigate the signup process. AI is also used in other backend processes to help improve efficiency and cut costs.
- Excellent rates: Lemonade offers very affordable insurance premiums on its services. Lemonade’s business model is built on efficiency, and it has much lower costs than most competitors. For example, while large insurers have physical locations and thousands of employees and agents, Lemonade keeps costs down by being a fully online business with minimal staff.
- Charitable giving: Lemonade has an interesting feature called “Giveback”. Lemonade collects your premiums and uses them to pay for claims and certain expenses. Any remaining funds are donated to charity, through the Lemonade Giveback program. In 2021, over $2.3 million was donated to charities through the program.
- Lemonade is also a continually evolving company. They are rapidly expanding into new markets (including new states and several countries in Europe), and also adding new types of insurance products.
Who it’s best for
Lemonade is a popular option and it’s growing fast. But who is the service best for?
- Budget shoppers: Lemonade offers very competitive rates, which can help save you money. It’s a good choice for those looking to save money on insurance.
- Younger customers: Lemonade is a modern company, with modern technology and slick apps. It’s easy to use, particularly for mobile-first customers who understand modern tech.
- Those who want to give back: Lemonade is designed for social impact. It is a certified B corporation and Public Benefit Corporation. And its Giveback program donates millions of dollars to charity each year.
Lemonade features
Lemonade offers all the features you’d expect from an insurance provider, but there are some unique aspects to the service, as well.
- Variety of insurance coverage: With Lemonade, you can insure your home, your apartment, your own life, or even your dog or cat! Lemonade does not yet offer car insurance, but that service is coming soon. Everything is handled in the same slick app, and coverages can be added or removed at any time.
- Lemonade Giveback: Lemonade’s “Giveback” feature distributes extra funds to charities of your choice. While most insurers simply pocket unpaid claims, Lemonade chooses to donate extra to worthy charities.
- Instant quotes and quick payouts: Many aspects of Lemonade’s services are instant, or close to it. You can sign up and get a quote in around 90 seconds. And even claims can be processed quickly, and payment issued within as little as 3 minutes.
- Lemonade app: The Lemonade app (for iOS and Android) is where you will manage your coverage, submit claims, receive payments, and contact support. The app is slick and very well rated, with an average 4.9/5 star rating on the iOS App Store. While most insurers have an app, Lemonade is a technology-first company, and it shows.
- Easy switching: Lemonade can help you switch over from any other insurance provider easily. Even for more complicated coverage like homeowner’s insurance, Lemonade can handle the necessary escrow payments and other steps that mortgage lenders require.
The specific features of Lemonade depend on the type of coverage you select, as well as where you live (as coverage and regulations vary from state to state).
Lemonade Insurance availability
Keep in mind that Lemonade is not available in every US state. It’s a new company, and it has been slowly rolling out to new locations.
Before you consider Lemonade, make sure that it’s available in your area. Also, note that just because Lemonade operates in a given state, doesn’t mean that they offer all their insurance products in that state. For instance, life insurance is available in all 50 states, but homeowner’s insurance is only available in around half of all states.
From Lemonade, renter’s insurance is available in 29 states, homeowner’s insurance in 24, condo insurance in 26, pet insurance in 36, and term life insurance in 50 states.
Here’s where Lemonade is currently available. Check here for the latest updates.
Lemonade Insurance pricing
Like all insurers, the pricing at Lemonade depends on a lot of factors. You will need to go through the quote process to receive an accurate estimate of your monthly premiums.
However, we can look at the starting prices for each of Lemonade’s insurance plans:
- Renter’s insurance: Starts at $5 per month
- Homeowner’s insurance: Starts at $25 per month
- Term life insurance: Starts at $9 per month
- Pet insurance: Starts at $10 per month
You can receive an instant quote by using Lemonade’s website or smartphone app. For an accurate quote, you will need to enter your personal information. However, quotes are available for anyone, and you don’t need to commit to buying anything (so you are free to shop around).
There are also some discounts available to help reduce your premiums even further. For instance, you may save money by paying for a year upfront, or by bundling homeowner’s insurance with pet insurance.
Lemonade Insurance customer support
Lemonade offers customer support through email, chat, and phone. Customer feedback indicates that Lemonade’s support is good and responds to issues quickly. Some basic issues can be handled within the app itself, while others may require help from a Lemonade representative.
