Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
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 |
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. |
Based on Lemonade’s other available policies, you can expect Lemonade car insurance to undercut competitors’ rates. Typically, Lemonade’s insurance policies have slashed traditional premiums significantly, such as its home insurance policy that costs over 75% less than the average.
If Lemonade delivers on its promise of low rates for safe drivers, it should cost well under the average premium of $108 a month or $1,300 per year.
Lemonade offers free online quotes in minutes to Illinois drivers.
Lemonade’s only discount that we know about offers up to 10% off your premium if you bundle its home, renters, pet or life insurance policies.
Lemonade should offer the standard coverage you’d expect for your car insurance to get you on the road:
The annual Giveback program is one of Lemonade’s best features, letting customers choose a charity to give any unused premiums to at the end of the year.
Charities that Lemonade has given back to include:
Lemonade isn’t accredited by the Better Business Bureau as of 2022, although it’s been in business for over six years. The company earns a F rating from the BBB because it hasn’t responded or closed several customer complaints. Customers complain about Lemonade’s claims process, including delayed or denied claims, and some report frustration when the app doesn’t work correctly
However, Lemonade received only nine complaints in 2020 filed with the National Association of Insurance Commissioners, low compared to other brands that may see hundreds of complaints per year. To balance out these ratings, over 200 customers give Lemonade 4 out of 5 stars on the BBB website. Positive reviews focus on the company’s cheap premiums and quick claims process for home or renters insurance.
Find out how these policies compare to Lemonade’s cheap rates and perks, then select Get quotes to see customized rates.
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.
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.
Like any other company, Lemonade car insurance comes with a few downsides.