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Lemonade car insurance review

Digital support and AI-powered claims could drive down rates for safe drivers and electric car owners.

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States served Illinois
Roadside assistance No
Accident forgiveness No
New car protection No
Pay schedule 12 months, monthly
Claims methods app, Online
Rideshare coverage No
SR-22 support No


  • Low prices.
  • Nearly instant claims.
  • Stellar app and online experience.
  • Unused premiums go to charity.


  • No phone support, except for emergencies.
  • Many customer complaints.
Anti-theft device discount No
Bundling discount No
Defensive driving discount No
Good student discount No
Loyalty discount No
Homeowner discount Yes
Military discount No
Safety device discount No
Special employment discount No
Usage-based discount No
Other discounts Lemonade’s only discount offers up to 10% if you bundle its home, renters, pet or life insurance policies.

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Name Product Gap insurance Homeowner discount Telematics Has an app? Available states
All 50 states and DC
Depends on provider
All 50 states
Get your most compatible insurance options via a "smart matching" method aimed at finding you value.
Liberty Mutual
All 50 states & DC
Earn free accident forgiveness after five years claims-free and customize your policy anytime.
Quinstreet -
Quinstreet -
Depends on provider
Depends on provider
Depends on provider
All 50 states

How is Lemonade car insurance different from other policies?

Lemonade stands out for its low costs, lightning-quick claims powered by AI and its Giveback program on available policies.

Lemonade also spreads out its insurance risk differently than other companies. Rather than taking on some of the risk itself, Lemonade takes a flat 25% fee for profit and applies the other 75% toward buying reinsurance and paying claims. If there’s money left over that it didn’t use for claims, the company pays it forward to charities through its Giveback program.

However, Lemonade’s COO and co-founder Shai Wininger says that Lemonade car insurance will stand out in other ways too.

“Lemonade Car will use technology to handle emergencies and pay claims fast, will offer great prices to safe drivers, and will be especially attractive to drivers of EVs and environment-friendly cars,” Wininger said in a statement.

Currently, drivers of electric vehicles have been limited to traditional or luxury car insurance companies, which often charge EVs high rates. That’s because electrics have more technology and cost more to repair than gas-powered cars. Based on Lemonade’s statement, the company could sway the electric car insurance market in a different direction.

Pros and cons of Lemonade insurance

With its recent 2022 launch, Lemonade’s car insurance has its share of perks and drawbacks.


Based on how Lemonade works with its other policies, we expect low car insurance premiums and access to its unique donations feature, letting you contribute unused funds to a charity that you believe in.

  • Low prices. Lemonade’s policies typically stay well below the industry’s average, though we don’t know its starting prices yet.
  • Nearly instant claims. The company boasts that about a third of its claims are paid in minutes through the help of its intuitive AI.
  • Stellar app and online experience. Customers give the app features high marks for ease of use.
  • Unused premiums go to charity. Lemonade lets you choose the charity where you send any premiums that it doesn’t use for claims.


Like any other company, Lemonade car insurance comes with a few downsides.

  • Only available in Illinois. For now, Lemonade car insurance is only available in Illinois, though we expect expansion to other states.
  • No phone support, except for emergencies. Customer service is available in the app or through chat. You can call only during emergencies when you don’t have access to the app.
  • Many customer complaints. A number of customers complain about delayed or denied claims for Lemonade’s other policies.

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