Lemonade vs. Allstate Insurance
Read on to see which company is best for you.
While Allstate has been a household name for many years, Lemonade — a relative newcomer to the property insurance industry — has quickly risen through the ranks as a popular choice for renters or home policies. The two companies are quite different in how they operate: Lemonade uses a peer-to-peer business model while Allstate relies on a more traditional structure, but customers may find strengths and weaknesses with both providers.
Let’s evaluate each company's offerings to see how they measure up against one another.
Insurance coverage comparison: Lemonade vs. Allstate
- Lemonade offers life, car insurance and pet insurance
- Allstate sells life, pet, auto, condo, motorhome, landlord, motorcycle, boat and umbrella insurance
Within the homeowners insurance product category, Lemonade and Allstate each offer dwelling insurance, personal property, personal liability and medical payments, as is standard for homeowners policies. Both companies offer add-ons such as scheduled personal property and water backup coverage, at additional cost. Lemonade customers may add as an endorsement earthquake coverage and extended reconstruction costs (these are not offered by Allstate).
Allstate offers a more extensive list of additional coverage options that policyholders may choose to add on to further customize their policies:
- Business property coverage
- Sports equipment
- Musical instruments
- Identity theft restoration
- Extended coverage for yard and garden
- Green improvement reimbursement
- Electronic data recovery
- NFIP flood insurance
- Allstate HostAdvantage
- Claim Rateguard
- Vanishing deductible
The below renters insurance coverages are available from Lemonade and Allstate:
|Loss of use
|Scheduled personal property
Allstate's list of renters insurance endorsements is more comprehensive than Lemonade's. For customers with unique insurance needs who require additional protection, Allstate may be a better fit.
If you're interested in basic renters insurance at an affordable cost, Lemonade could be a great option.
Where are Allstate and Lemonade policies available?
|AZ, AK, AR, AL, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH,OK, OR, PA, RI, SC, SD, TN, TX, VA, WI, WA, WV, WY
|AZ, AR, CA, CO, CT, DC, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NM, NY, OH, OK, OR, PA, RI, TN, TX, VA, WA, WI
|Lemonade (auto insurance)
|IL, OH, TN
Discount comparison: Lemonade vs. Allstate
While most insurance companies offer discount opportunities, Lemonade strays from the pack. Because Lemonade's property insurance products already come with exceedingly low premiums (renters insurance starts at $5 per month and homeowners at $25), the company only offers four discount options for homeowners insurance.
- Home materials: See some savings if your home is built with masonry — which is more fire-resistant than a wood frame, and therefore less risky.
- Fire and security systems: Get discounts for having fire extinguishers, smoke detectors, central station and fire department reporting alarms, sprinkler systems, and deadbolts in your home.
- Bundle discount: If you bundle any combination of homeowners, pet, term life and renters insurance, Lemonade will automatically apply a discount.
- Gated community: Living in a gated community could reduce risk. Get a discount if your residence is gated.
Allstate offers some common discounts for home insurance:
- Claim-free: Allstate claims up to a 20% discount if homeowners without recent claims switch to Allstate.
- Homebuyer: Earn a discount for becoming a homeowner or for purchasing a new construction home.
- Responsible payment discount: If you pay for your policy in full or have a good payment history, this discount can lead to some savings.
- Protective devices: If your home has theft or fire protection devices, Allstate provides a discount.
- Multi-policy/bundling: Bundling home and auto insurance with Allstate can lead to savings of up to 25%.
- Welcome and loyalty discount: Allstate advertises up to 10% off for being a new customer, and for every year you stick with the company.
- Easy pay plan: Set up automatic payments to get up to 5% off.
- Early signing: If you enroll in a home policy at least seven days before your current one expires, Allstate offers savings of up to 10%.
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Third-party organization and customer reviews
The Zebra consults J.D. Power, AM Best and the NAIC Complaint Index to gather customer satisfaction, financial standing and customer complaint information, respectively.
- J.D. Power: Allstate earned average marks for claims satisfaction and above-average ratings for customer satisfaction.
- AM Best: The credit rating agency gave Allstate an A+ for financial strength, indicating the company can reliably pay out claims.
- NAIC: According to the National Association of Insurance Commissioners complaint index, Allstate's homeowners insurance received fewer customer complaints than the national median.
- NAIC: Lemonade has been rated as Good by the NAIC, with its homeowners product receiving a slightly below average number of complaints from customers in 2020.
- Forbes: In a review by Forbes, Lemonade was given a positive assessment of 4 out of 5 stars for its affordable rates, coverage options and mobile app.
Lemonade vs. Allstate extras
A unique feature of Allstate’s homeowners product is its Digital Locker tool. The Digital Locker allows customers to easily create a home inventory. This comes in handy in the event of a loss: if you have already created a comprehensive list of your items, you can avoid needing to recall your belongings from memory. Allstate's Digital Locker serves as a starting point in recovering losses when filing a claim. It can be accessed via the company's mobile app or website, and anyone with an Allstate policy can access it (even those who use a different homeowners insurance company).
Lemonade is a public benefit corporation and employs a program called Giveback. While most major insurance companies keep leftover premiums as profit, Lemonade donates these extra funds to the charity of your choice. This is ideal for philanthropically minded policyholders and people who value corporations that prioritize social responsibility.
Mobile app comparison
The Lemonade mobile app is an essential tool to managing your policy. Their artificial intelligence bot is able to efficiently retrieve quotes, begin a policy and file claims. You can also view your policy, add endorsements, make payments, and select the charity of your choice for the Giveback program.
Allstate mobile app is probably most useful for customers who also subscribe to an Allstate auto insurance policy, but it offers many features that homeowners policy holders will find handy as well. You can make and manage payments, view policy documents, contact your agent, file claims and access the Digital Locker.
Which company is right for you?
Lemonade and Allstate’s differing approaches may appeal to different types of customers. Applicants who are looking for a basic homeowners or renters policy at a low price should consider Lemonade. The company's digital-first approach tends to attract tech-forward customers, and the Giveback program lets policyholders feel good about where their money is headed. Allstate’s wider breadth of services is better for applicants who require a more comprehensive coverage suite. Those looking to bundle with multiple lines of insurance, particularly auto, will have more luck with Allstate.
The Zebra has collected average rates for Allstate’s homeowners policies, but not Lemonade's. Based on what we know so far, Allstate’s rates lean toward the higher end of the scale. Lemonade’s main draw is its competitive pricing, with homeowners policies starting at just $25 per month and renters at $5 per month. The best choice for you depends on your coverage needs and financial priorities.
Decide which home insurance policy is right for you.
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.