With no less than 20 insurance coverage insurance policies and a decade masking the business below my belt, I used to be tempted to assume I’ve seen all of it in relation to insurance coverage. However Lemonade, a digital insurance coverage firm, actually simplifies insurance coverage buying, shopping for, and claims for individuals who have higher issues to do. And don’t all of us?
Lemonade is reasonably priced, tech-savvy, and super-easy to make use of. It’s additionally critical about giving again, sending a major share of premiums to charities chosen by its policyholders. It’s not good, but it surely’s positively price a better look for those who’re out there for a brand new property, life, auto, or pet insurance coverage coverage.
What Is Lemonade?
Lemonade is a web based insurance coverage firm that provides a number of sorts of insurance coverage for customers. Its insurance coverage merchandise embrace:
That every one sounds fairly commonplace, however Lemonade isn’t your run-of-the-mill insurance coverage firm. They deal with the cash you give them as your cash. If on the finish of the yr, they’ve money left over, they take what quantities to a upkeep price and donate the remainder of it to the charity of your selection.
And Lemonade doesn’t simply do proper by its policyholders. As a licensed B-corp, a company that operates as a lot to learn society as generate income, Lemonade’s enterprise mannequin incorporates revenue, folks, and planet. Lemonade crops bushes to offset its automobile insurance coverage clients’ carbon emissions and donates a portion of its annual income to charity. And by some means, it’s nonetheless one of many extra reasonably priced insurance coverage corporations round.
How Lemonade Insurance coverage Stacks Up
Lemonade stacks up nicely in opposition to greater insurance coverage corporations regardless of its extra restricted vary of merchandise and shorter observe document.
However is Lemonade the only option for you? See the way it compares to Progressive, the USA’ largest auto insurer and third-biggest property casualty insurance coverage firm general.
|Forms of Insurance coverage||House, renters, auto, pet well being, life||All that and extra|
|Premiums||Beginning at $5 monthly for renters insurance coverage||Minimums undisclosed|
|A.M. Greatest Score||N/A||A+ (Superior)|
What Units Lemonade Aside?
There’s no scarcity of respected insurance coverage corporations wanting to seize your insurance coverage premiums. It’s all a bit overwhelming.
Thankfully, Lemonade stands out from the pack for a number of massive causes.
- Inexpensive Premiums. Lemonade may be very reasonably priced. Like, starving-student reasonably priced. Renters insurance coverage premiums begin at simply $5 monthly, life insurance coverage premiums at simply $9 monthly, and pet medical insurance premiums round $10 monthly. However the choices are additionally scalable, that means the remainder of us can probably discover the suitable protection too. We’ll simply pay extra for it.
- Social Accountability. Lemonade doesn’t simply pay lip service to social duty and environmental stewardship. It donates critical cash to charity and goes above and past to offset auto insurance coverage clients’ carbon emissions.
- Tremendous-Straightforward to Apply and File a Declare. Lemonade is probably the most tech-savvy insurance coverage firm I’ve come throughout thus far. It takes only a few minutes to use for and activate a brand new coverage, and the all-digital claims course of is a breeze too.
Lemonade Insurance coverage Merchandise & Pricing
Lemonade provides a restricted however helpful mixture of merchandise. You may bundle any mixture of Lemonade insurance coverage sorts to snag a bundle low cost. The precise quantity of the low cost varies relying on which insurance policies you mix and what number of you’ve gotten, however anticipate no less than 10% off the mixed premium.
Lemonade provides 5 sorts of insurance coverage merchandise.
Renters Insurance coverage
Lemonade’s renters insurance coverage insurance policies begin at simply $5 monthly. That’s considerably cheaper than many rivals, so take be aware for those who’re on a good price range.
One partial clarification for Lemonade’s affordability is that your coverage is absolutely customizable, and your premium is determined by your protection limits. You set your protection limits based mostly on the worth of the stuff you wish to insure, the private legal responsibility limits you assume you want, and your required non permanent residing expense allowance.
Lemonade renters insurance coverage consists of three core sorts of protection:
- Private Property Protection. Lemonade protects the contents of your house or dwelling — something not owned by the property proprietor or thought-about a part of the dwelling itself — in opposition to lined perils, akin to hearth, storm injury, inner water leaks, and theft. You might have to pay a bit further so as to add endorsements (aka riders, that are add-on insurance policies for particular circumstances) for useful gadgets like high-quality artwork and musical devices.
- Legal responsibility Protection. Lemonade will help cowl the price of lawsuits because of accidents that occur inside your rented dwelling. It additionally covers medical bills for folks injured in your house.
- Short-term Dwelling Bills (Loss-of-Use Protection). In case your rented dwelling turns into unlivable for a lined purpose, akin to a burst water pipe or hearth, Lemonade pays for different residing preparations, akin to a resort or house sublease.
Condominium or Householders Insurance coverage
Lemonade provides reasonably priced owners insurance coverage for individuals who personal indifferent, single-family properties and apartment insurance coverage for individuals who personal townhomes or apartment models in bigger buildings. Protection begins at $25 monthly — once more, decrease than many rivals.
That stated, owners insurance coverage premiums are extra risky than renters insurance coverage premiums as a result of properties fluctuate so broadly in worth. In case you dwell in a $1 million dwelling, you need to pay much more than $25 monthly. However you’re most likely used to that.
Your premiums rely upon the worth of your property’s contents, your legal responsibility limits, and your non permanent residing expense allowance. As with renters insurance coverage, Lemonade makes it simple to customise these variables. You may set a excessive deductible for those who’re prepared to pay extra out of pocket after a declare or preserve it low for those who’re prepared to pay the next premium to restrict your out-of-pocket publicity.
As with different insurance coverage corporations, owners and apartment insurance coverage premiums additionally fluctuate based mostly on elements like:
- The worth of your property
- The estimated value to rebuild it after a complete loss
- Its age
- Its location
- The age and sort of roof
- Its development kind and supplies
Like nearly all owners insurance coverage corporations, Lemonade has escrow preparations with all main dwelling lenders and mortgage servicing corporations. If you wish to embrace your owners insurance coverage cost in your month-to-month mortgage cost — generally known as “escrowing the cost” — it’s a snap to arrange.
Pet Well being Insurance coverage
Lemonade provides pet insurance coverage for pet homeowners who wish to offset the price of their furry pals’ medical care.
Premiums begin at $10 monthly however fluctuate based mostly on pet-specific elements like species, breed, age, and identified medical circumstances. Premiums additionally fluctuate based mostly in your protection limits and reimbursement proportion (coinsurance proportion).
You’ll get a 5% low cost if in case you have a number of pets in your coverage and one other 5% low cost while you pay your premium yearly as an alternative of month-to-month. So if in case you have two pets and sufficient within the financial institution to cowl a three-digit annual cost, Lemonade provides compelling worth.
Lemonade’s pet medical insurance insurance policies are complete too. They cowl:
- Diagnostics like urinalysis, X-rays, MRIs, heartworm assessments, and lab work
- One wellness examination per yr
- Routine dental cleansing
- As much as three vaccinations per yr
- Outpatient companies
- Specialty care
- Emergency companies, together with surgical procedure
- Scheduled surgical procedure
- Inpatient stays (hospitalization)
- Prescription drugs and in-office injections
- Limitless on-line chat with veterinary drugs consultants — which is decidedly not commonplace within the pet insurance coverage world
And you may customise your coverage’s annual protection restrict, deductible, and coinsurance proportion.
Automobile Insurance coverage
Lemonade’s auto insurance coverage insurance policies begin at $30 monthly. As with different sorts of insurance coverage, your premiums fluctuate based mostly on elements like:
- Your car make and mannequin
- Your car’s powertrain kind — Lemonade clients pay much less to insure electrical and hybrid automobiles than absolutely gas-powered automobiles
- Your driving habits and the way a lot you drive annually
- Your car’s age
- Your coverage deductible
- Your protection limits for every kind of protection on the coverage — legal responsibility protection and collision protection typically have totally different limits, for instance
- What sorts of protection your coverage consists of — non-obligatory coverages like collision and complete protection value extra
Lemonade’s auto insurance coverage insurance policies include further coverages and perks like roadside help, towing protection, and glass protection. In case you drive an electrical car or plug-in hybrid, Lemonade covers your charging tools and provides emergency roadside charging as nicely. These perks make Lemonade an acceptable selection if you would like peace of thoughts on the street however can’t see the worth in paying for a AAA membership.
There’s one potential deal-breaker for some drivers. Lemonade requires you to make use of an app to trace your driving based mostly in your location. It’s commonplace for automobile insurance coverage corporations to supply reductions for permitting them to trace your driving habits (a follow generally known as telematics). What’s uncommon is required monitoring and the truth that Lemonade makes use of an app you most likely carry while you’re not in your automobile to trace your driving slightly than a separate machine that plugs into your car.
That presents important privateness considerations as a result of an app that all the time is aware of the place you might be, nicely, all the time is aware of the place you might be. Irrespective of how carefully Lemonade guards it, there’s all the time an opportunity this info can fall into the incorrect palms. So for those who’re uncomfortable with required phone-based location monitoring, Lemonade automobile insurance coverage may not be best for you.
Life Insurance coverage
- How a lot protection you want (your loss of life profit) — protection ranges as much as $1.5 million, greater than many no-exam suppliers
- Your age while you apply — insurance policies can be found to candidates between the ages of 18 and 60, which is a bit older than another no-exam suppliers
- Your coverage’s time period — choices vary from 10 years to 30 years, with decrease premiums for shorter phrases
- Your private and household well being historical past
- Your private well being historical past, together with any identified medical circumstances
Premiums stay degree for the complete time period. Your coverage solely pays out for those who die whereas it’s in impact. In any other case, it expires nugatory when the time period ends otherwise you cease paying your premiums.
One downside of Lemonade life insurance coverage is that there aren’t any everlasting life insurance policies, akin to complete life. In case you’re searching for lifelong protection, Lemonade gained’t be just right for you.
All Lemonade time period life insurance coverage insurance policies are underwritten by the North American Firm for Life and Well being Insurance coverage, which has been in enterprise for 130 years and counting. So whereas Lemonade is comparatively new, you possibly can take solace in understanding that it’s backed by an organization older than any human on Earth has been alive.
Extra Options of Lemonade Insurance coverage
Selecting an insurance coverage firm isn’t all in regards to the plan sorts and price. You additionally wish to know what else you possibly can anticipate out of your expertise with the corporate.
Software Course of
Lemonade makes it simple to get protection with a fast, all-digital utility course of. The corporate says it takes simply 90 seconds to use. And whereas I can’t vouch for the precise period of time as a result of I didn’t time it, I can verify it’s fast. My quote for owners insurance coverage positively didn’t take lengthy. I simply answered a sequence of simple questions, and it gave me a quote.
Lemonade has an approachable utility course of led by Maya, its AI onboarding character. Whichever kind of insurance coverage you’re making use of for, Maya leads you thru the method with a sequence of easy-to-understand questions.
The entire thing takes just a few minutes, which is far quicker than conventional insurance coverage functions. In case you’ve been pushing aside making use of for insurance coverage as a result of you possibly can’t spare the time, Lemonade is ideal for you.
Not all Lemonade insurance coverage merchandise can be found all over the place.
Time period life insurance coverage is probably the most widespread. It’s extremely doubtless Lemonade sells it in your state. Different sorts are extra hit and miss. For instance, Lemonade owners insurance coverage is on the market in 23 states plus the District of Columbia as of August 2022. That’s an issue if you wish to bundle as many insurance policies as doable with Lemonade.
To be honest, Lemonade remains to be a younger firm, and it constantly provides new markets. However verify Lemonade’s The place We’re Reside web page to see if the product you want is on the market in your state. If it’s not accessible, you possibly can join a notification when it launches.
Claims Course of
If the worst occurs and you need to file a declare, it doesn’t take for much longer to file a type of than it does to enroll in insurance coverage — simply three minutes, in keeping with the corporate. I haven’t filed a declare, however for the reason that utility course of lived as much as the hype, I’ve no purpose to doubt the claims course of does too.
The whole lot flows by way of the app — declare reporting, documentation, communication with claims adjusters, claims selections, and even appeals if it involves that.
The Lemonade app is user-friendly and never as glitchy as some rivals’ apps, which really feel extra like afterthoughts. Lemonade was designed round an app, so it simply works.
Lemonade’s Giveback program places a portion of the premiums you pay for insurance coverage towards the charity of your selection. Right here’s the way it works:
- Every Lemonade policyholder chooses a charity they care about when making use of for a coverage
- Lemonade takes a flat price out of your premium to pay itself for administering the insurance coverage
- Lemonade pays out claims utilizing premiums paid by clients
- On the finish of the yr, Lemonade sends no matter’s left over to its clients’ charities
Lemonade crops bushes to assist offset the carbon its auto insurance coverage policyholders generate by driving. It doesn’t promise a 100% offset, but it surely does use your location info to calculate your automobile’s approximate annual carbon footprint. Lemonade then makes use of that info to find out what number of bushes to plant to no less than partially offset your emissions.
Is Lemonade Legit?
Sure, Lemonade is reputable.
Positive, the model has solely been round for just a few years and isn’t a family identify like Geico or New York Life. However its financials are robust and it’s a publicly traded identify (NYSE: LMND), which suggests any would-be policyholder can do their due diligence on the corporate earlier than shopping for a coverage.
And Lemonade’s life insurance coverage protection is underwritten by the North American Firm for Life and Well being Insurance coverage, a 130-year-old insurer that’s in glorious monetary form and has no plans to go anyplace.
Benefits of Lemonade Insurance coverage
Lemonade is an reasonably priced, user-friendly insurance coverage firm. It’s enjoyable to work with and appropriate for folks from all walks of life. And it has some clear benefits.
- Extensive Vary of Insurance coverage Merchandise Out there. Lemonade dwelling insurance coverage in your dwelling and its contents, Lemonade automobile insurance coverage in your car and legal responsibility on the street, Lemonade pet insurance coverage in your pet’s medical payments — it’s fairly the portfolio. And you may create a customized bundle to avoid wasting much more.
- Tremendous-Quick Software Course of. Lemonade’s AI-led utility course of is quick and simple. No paper functions or lengthy, boring telephone conversations with brokers wanting to upsell you.
- Very Low Premiums. Lemonade stands out for comparatively low insurance coverage prices regardless of impressively complete protection choices. For instance, renters protection begins at simply $5 monthly, and time period life protection begins at simply $9 monthly.
- Quick Claims Course of. Lemonade makes the insurance coverage claims course of simple, if not enjoyable. The whole lot goes by way of the user-friendly Lemonade cellular app with minimal human interplay. And it has some spectacular claims stats if it does say so itself.
Disadvantages of Lemonade Insurance coverage
Lemonade has just a few notable downsides for some would-be policyholders. They could not have an effect on some, however they might be deal-breakers for others.
- Comparatively Low Most Protection Quantity for Life Insurance coverage. Lemonade’s life insurance coverage protection tops out at $1.5 million. That’s sufficient for most individuals, however for those who’re a excessive earner or have important money owed and residing bills, you most likely need extra.
- Not Out there In every single place. Lemonade provides insurance coverage protection in most states, together with massive ones like California, New York, Florida, and Texas. However not all Lemonade merchandise can be found in all states, so that you may not have the ability to construct as complete a bundle as you’d like.
- Lemonade Auto Insurance coverage Requires Location Monitoring. Lemonade’s requirement that automobile insurance coverage clients share their location whereas driving is a reputable privateness concern. In case you’re uncomfortable with Lemonade understanding the place you might be always, Lemonade automobile insurance coverage isn’t for you.
Alternate options to Think about
Lemonade provides 5 various kinds of insurance coverage. It has numerous competitors for every. So for those who’re not constructive Lemonade is the only option in your insurance coverage wants, contemplate these alternate options.
|Insurance coverage Firm||Greatest For|
|State Farm||Entire life insurance coverage|
|Geico||Low-cost automobile insurance coverage|
|Amica||Low-cost renters insurance coverage and glorious bundle reductions|
|Embrace Pet Insurance coverage||Complete (although barely dearer) pet medical insurance|
Lemonade stands out due to low premiums, simple utility and claims processes, and strong bundle choices.
In case you’re out there for a brand new insurance coverage firm, Lemonade is price a better look. However first, guarantee it provides the kind of insurance coverage you need in your house state, and consider carefully about whether or not its advantages make up for its shortcomings. If not, verify the chart above to search out an alternate that higher fits your wants.