Lemonade vs. State Farm Insurance Comparison
Read on to see which company is best for you.
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Lemonade and State Farm both offer homeowners, renters and life insurance, although the companies are different in a number of ways.
State Farm is an established provider with a wide breadth of services, operating in all 50 states and Washington D.C. Meanwhile, Lemonade focuses on ease-of-use through its online platform and offering affordable policies to applicants.
Let’s explore the companies’ coverages, discounts and extras.
Insurance coverage comparison: Lemonade vs. State Farm
Though each company offers other lines of insurance, in this review we compare each companies’ most common products: home, renters, and life insurance.
- Lemonade also offers pet insurance.
- State Farm also offers auto, condo, landlord, manufactured home, motorcycle, boat, offroad vehicle, RV and umbrella insurance.
Each company's home insurance policies offer the standard coverages of a basic home policy, including dwelling, other structures, loss of use, personal property, liability and medical payments.
These insurance companies also have optional coverages available at an additional cost.
Each company offers typical renters insurance coverage options. Personal property, personal liability, loss of use (also known as additional living expenses), and medical payments to others are included in State Farm's and Lemonade's basic renters policies.
Renters insurance endorsements available through each company:
|Coverage option||State Farm renters insurance||Lemonade renters insurance|
|Scheduled personal property||✔️|
|Additional business property||✔️|
|Incidental business liability||✔️|
Home and renters insurance discount comparison: Lemonade vs. State Farm
While most insurance companies offer discount opportunities to their customers, Lemonade strays from the pack. Because of its low up-front prices — renters insurance starts at $5 per month and homeowners at $25 — the company offers just four discount options for home insurance.
- Home materials: Earn savings if your home is built with masonry. The materials are more fire-resistant than wood-frame materials.
- 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.
- Gated community: Living in a gated community could reduce risk. Get a discount if your residence is gated.
- Bundle discount: If you bundle any combination of homeowners, pet, term life and renters insurance, Lemonade will automatically apply a discount.
The number of homeowners and renters insurance discounts available through State Farm is slim compared to some companies, and the deals may not be available in some states.
- Multi-policy/bundling: Combine home and auto insurance in a bundle to get this common discount.
- Safety features: If your home is equipped with smoke, fire or burglar alarms, you could be eligible to save.
- Roofing: Having an impact-resistant roof can result in a discount. State Farm requires that homeowners with qualifying roofs must file a certification form before this discount can be awarded. (homeowners insurance discount only)
- Higher deductibles: Technically, this isn't really a discount — it's a tip for lowering your rate since deductibles and premiums have an inverse relationship. Raise one to lower the other, and vice-versa.
Where State Farm and Lemonade insurance policies are available
|Insurance company||Available states|
|State Farm||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, CA, CO, CT, DC, GA, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NY, OH, OK, OR, PA, TN, TX, VA, WI
|Lemonade (renters)||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|
Life insurance coverage comparison: State Farm vs. Lemonade
State Farm and Lemonade each offer life insurance products. While Lemonade only sells term life insurance, State Farm offers a variety of life insurance options, spanning short-term and permanent policies.
State Farm allows customers to choose term, whole, family or universal life insurance. The company offers group life insurance policies to small businesses. With term, whole, and universal life insurance policies, there are three tiers of coverage under each type that you may select from in order to best fit your needs. State Farm life insurance also includes a selection of optional additions and riders to further customize policies.
Life insurance from Lemonade is 100% digital and does not require medical exams. The only type of coverage available is term life insurance, with duration options of 10, 15, 20, 25 and 30 years.
State Farm Life Insurance Options
Tiers of coverage include:
- Term life insurance
- Select term life
- Return of premium life insurance
- Instant answer term
- Whole life insurance
- Limited pay life
- Single premium
- Final expense
- Universal life insurance
- Universal life
- Survivorship universal life
- Joint universal life
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.
- Claims satisfaction (J.D. Power Rating) — Below average: J.D. Power's most recent study rated State Farm as just shy of the industry average for property claims satisfaction.
- Customer satisfaction (J.D. Power Rating) — Above average: State Farm earned an above-average rating for customer satisfaction in J.D. Power's Home Insurance Study.
- Financial strength — Excellent: A.M. Best noted State Farm's excellent financial viability, signaling its ability to pay for claims.
- NAIC Rating — Average: State Farm's home insurance received an average amount of complaints as logged by the National Association of Insurance Commissioners (NAIC).
- NAIC Rating — Good: Lemonade has only been rated by the NAIC, with its homeowners product receiving a below-average number of complaints from customers in 2020.
- Forbes — 4/5: In a review by Forbes, Lemonade was positively assessed for its affordable rates, coverage options and mobile app.
Lemonade vs. State Farm comparison: digital tools and extras
The Lemonade mobile app is an essential tool for policy management. The app allows customers to retrieve quotes, begin a policy and file claims. The platform also allows customers to view policy details, add endorsements, make payments, and select the charity of their choice for the Lemonade Giveback program.
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 its customers' choice. This is ideal for charitable policyholders and people who want to work with socially responsible companies.
The State Farm mobile app (available for Apple and Android) allows customers to access ID cards, file and manage claims, pay bills, get roadside assistance and connect with an agent.
State Farm was one of the 15 carriers included in The Zebra's Customer Satisfaction Survey*. In the overall home insurance category, State Farm ranked in fifth place overall with a star rating of 4.4. Customers called out some specific strengths of State Farm's coverage:
- The company's best rank was third in the ease-of-use category.
- State Farm received low marks from claims and online satisfaction.
- Male customers had better experiences filing claims with State Farm than did their female counterparts.
*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 2021
Filing claims with Lemonade and State Farm
Lemonade handles claims through its mobile app. The company relies on artificial intelligence and customer service professionals to determine whether to instantly approve a claim or to gather more information. Lemonade takes a flat fee from each premium, using the funds to pay claims and donate via its Giveback program.
State Farm also allows customers to file claims online and via its mobile app. You can always call to file a claim, but State Farm offers the convenience of filing and managing claims online. State Farm's app and online platforms help customers locate repair shops and find rental cars, if needed.
Which company is better: State Farm vs. Lemonade?
Each company has its own strengths and weaknesses, so it is up to customers to decide which features take priority for their insurance needs. If the decision comes down to price and you only require basic levels of coverage, Lemonade is a strong contender as their policy premiums are extremely competitive. While Lemonade and State Farm offer similar online and mobile capabilities, Lemonade’s site looks and feels more modern. If user-friendly technology is important to you, consider Lemonade.
State Farm has an extensive list of insurance products and homeowners insurance endorsements. For those with more complex needs or other insurable items, State Farm is the better choice if it fits your budget. Both insurers have been rated highly by The Zebra (both receiving 4 stars or more), so the right company depends on the unique needs of the applicant.
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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 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.