Lemonade Insurance Review

  • With 2.5/5 stars in 2024, Lemonade is a decent insurance company.
  • Read Lemonade reviews, complaints and prices before you buy.
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Kristine Lee

Insurance Analyst

  • Licensed Insurance Agent — Property and Casualty
  • 4+ years of Experience in the Insurance Industry

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

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Renata Balasco

Senior Content Strategist

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Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

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Ross Martin

Insurance Writer

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Ross joined The Zebra as a writer and researcher in 2019. He specializes in writing insurance content to help shoppers make informed decisions.

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Lemonade insurance: Ratings and reviews

2.5 100% filled Star icon 100% filled Star icon 50.0% filled Star icon 0% filled Star icon 0% filled Star icon

Rating from The Zebra Question mark icon

A relative newcomer to the insurance space, Lemonade touts low premiums for home and renters insurance and takes pride in its somewhat unusual business model. Lemonade does not employ insurance agents or agencies to sell policies; instead, the company relies on AI and other technologies not often employed by insurance providers. Policies are primarily sold through the Lemonade website and mobile app, and the company is known for its speedy claims process.

With an easy-to-use website, cheap rates and a message advocating for social good, Lemonade may be an appealing choice for those looking to save on home or renters insurance. Read on to explore coverage options, discounts and more.

100% filled Star icon 100% filled Star icon 50.0% filled Star icon 0% filled Star icon 0% filled Star icon
2.5 stars Rating from The Zebra
Ratings based on price, customer service, coverage, and financial strength.
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  • Affordable renters insurance rates

  • Bundling options, including pet and auto (in some states)

  • Technology-focused interactions are quick and easy

  • The "Giveback" program allows part of your premiums to go toward charities

  • Not for those who prefer speaking to live agents

  • Some customers have had complaints

Is Lemonade a good insurance company?

The majority of The Zebra's review incorporates how well Lemonade scores in terms of customer service. In order to determine that we looked at the following third-party ratings.

Trustpilot Reviews: 4.3/5

  • Lemonade earned 4.3/5 marks from customers on the Trustpilot platform[1]

BBB Customer Reviews: 2.41/5

  • The Better Business Bureau's users rated Lemonade as 2.41/5 in overall auto customer satisfaction[2]

Complaint Index: Below average

  • The National Association of Insurance Commissioners (NAIC) receives Below average customer complaints for Lemonade[3]

Financial Strength: A (Exceptional)

  • Lemonade received an A (Exceptional) financial strength rating from Demotech for its ability to pay out claims[4]

The Zebra Customer Satisfaction Survey

In addition to third-party ratings, we also incorporated the results from our own consumer survey where we ranked which car insurance companies are the best based on feedback from real customers. However, we did not receive enough responses about Lemonade to include in this review.

How much does Lemonade insurance cost?

Being a newer and more technology-focused insurance company, rates may be harder to find. However, renters insurance prices typically run from around $10 to $20 per month depending on various factors such as your location, claims history and coverage levels.

Lemonade discounts

Lemonade's prices for renters insurance tend to be quite reasonable. Still, the company claims that further savings can be had by bundling renters and auto coverage. Furthermore, Lemonade claims that extra savings can be found by increasing your deductible amounts, lowering your coverage levels and adding safety devices such as fire and burglar alarms.

Learn more about Lemonade's insurance bundling savings here.

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What types of coverage does Lemonade offer?

Another key component of Lemonade's review is the types of coverage options they offer.

The usual coverages for personal property, personal liability, loss of use (also known as additional living expenses) and medical payments to others are offered by Lemonade’s renters insurance. Coverage limits for each can be lowered or increased according to your needs, and customers can choose their own deductible, which ranges from $250 to $2,500. Lemonade also offers a few add-ons to supplement a renters insurance policy with some extra protection:

  • Scheduled personal property: Particularly valuable items come with their own sub-limits when it comes to personal property coverage. Items like electronics come with specific caps on how much you can be reimbursed. Endorsements for scheduled personal property extend these limits, and Lemonade offers the choice of adding extra coverage for jewelry, fine art, bicycles, cameras and musical instruments.
  • Water backup coverage: Insurance will only cover water damage under specific circumstances. With this optional add-on, Lemonade will cover damage caused by water expelled from drains or sewers. This is a common endorsement in property insurance.
  • Earthquake coverage: Currently available only in California and Arkansas, Lemonade's earthquake coverage offers extra protection for customers in these states. Damages caused by earthquakes are typically excluded from a renters policy, and not all insurance companies offer earthquake coverage, even as an extra endorsement. Lemonade partners with Palomar Specialty Insurance to offer earthquake coverage as an add-on.

Read more about Lemonade's coverages here.

Real-life customer experience

In an effort to provide even more insight into the Lemonade customer experience, we reached out to real customers to hear what they had to say. Below is what one of our writers, Ava, had to say.

Quick facts:

  • Customer for 3+ years
  • Only has a renters policy
  • Has never filed a claim

Q: How do you feel about the coverage level Lemonade provides, your monthly premiums and the overall level of customer service provided?

A: I think the testament of a good insurance company is if you never think about it, which is how I'd describe Lemonade. It's been pretty easy to use the app and I like that everything is done just through that. The UI is simple and clean and the app is fast. My premium is very affordable.

I initially got a quote from my auto provider (Progressive) and it was almost as much as my car insurance premium. Renters insurance should be <$20 for most standard 1-2bd policies and this one was closer to $60 for the same coverage. Bundling is not always the cheapest option!

Lemonade renters insurance review: Summary

If you’re tired of dealing with the red tape of more traditional, monolithic insurance companies, and don’t need a ton of extra bells and whistles to go along with your renters, auto or homeowners policy, Lemonade could be a refreshing option with very low rates. Lemonade’s investments in cutting-edge technology deliver a seamless quoting process, and many happy customers attest to quick claims payouts and overall positive experiences. Their charitable streak also doesn’t hurt, acting as a positive perk Lemonade customers can feel good about year after year.

However, it's worth noting that Lemonade is not yet rated by reputable organizations like J.D. Power and AM Best. It is ultimately up to you to decide if Lemonade has the coverage you’re looking for.

Methodology — how The Zebra reviews insurance companies

The team of insurance experts at The Zebra considers the company's standing in five main categories to come up with an overall rating. These metrics are weighted according to importance and are detailed below:

  • Price (20%): Using the base profile detailed below, we compared the company's average rate with the national average. If it surpassed this average, we gave a lower rating; if it fell below, we awarded a higher rating.
  • Coverage (20%): The highest-scoring companies offer a variety of coverage options, including bundling options, roadside assistance, telematics, beyond-basic coverage levels, and a variety of other coverage types.
  • Customer service (30%): We averaged ratings from JD Power, the NAIC complaint index to come up with a rating for the company's customer service. In instances when a company is not rated, we may use alternative rating agencies such as the Better Business Bureau and Trust Pilot.
  • Financial strength (10%): We use AM Best to determine a company's financial standing. In some cases when a company is not rated by AM Best, we may use an alternative measure such as Demotech.
  • The Zebra's Customer Satisfaction Survey (20%): The Zebra conducts an annual survey measuring customer satisfaction for many of the top insurance companies with the goal of ranking both the best auto insurance companies and best home insurance companies. Read more below.

For our auto insurance review, we analyzed more than 83 million insurance rates spanning every U.S. ZIP code using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:

  • $50,000 per person/$100,000 per incident for bodily injury liability
  • $50,000 per incident for property damage liability
  • $500 deductibles for collision and comprehensive coverage

For our home insurance review, rates are based on a sample user profile: a 45-year-old married homeowner living in a 2,500-square-foot single-story home built in 2011 with these coverage levels:

  • $200,000 for the dwelling
  • $20,000 for other structures
  • $100,000 for personal property
  • $100,000 for personal liability
  • $1,000 deductible

These sample premiums are dynamic and automatically refresh whenever the newest data is made available.

To generate pricing for particular rating factors, we adjusted this profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level and others.

For The Zebra's Customer Satisfaction Survey, findings are based on an online quantitative survey of 4,134 current U.S. auto and home insurance customers, with Census-balanced sampling by age, gender and region. Categories with n=<20 responses are considered insufficient sample size and are not reported. This survey was developed by The Zebra and executed by independent research firm Maru/Blue in 2023.

Lemonade insurance: Frequently asked questions

Lemonade is a good insurance company for those preferring a tech-driven, streamlined experience, affordable rates, and coverage and bundling options along with the added perk of contributing to charity through their premiums. However, it may not suit those who prefer traditional interactions with live agents. Lemonade has positive feedback on Trustpilot, a strong financial rating from Demotech and a below-average complaint index with the NAIC, but has mixed reviews on the Better Business Bureau.

Lemonade, Inc. is a legitimate insurance company based in New York City, offering a range of insurance products in the U.S. and parts of Europe.

Lemonade's competitive pricing is attributed to its tech-driven, peer-to-peer insurance model, which reduces traditional insurance overheads. Their use of AI for claims processing and underwriting also contributes to cost savings.

Lemonade renters insurance is available in AZ, AR, CA, CO, CT, DC, FL, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NM, NY, OH, OK, OR, PA, RI, TN, TX, VA, WA and WI.

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About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.