Lemonade Car Insurance Review for 2025 [See if They’re a Good Fit]

Our Lemonade car insurance review highlights it as a great option for lower-mileage, safe drivers, with rates starting at $41/mo. However, potential Lemonade customers should note customer complaints about pricing and claim processing, which may affect overall satisfaction with Lemonade's services.

UPDATED: Feb 4, 2025Fact Checked

Laura Kuhl

Managing Content Editor

Laura Kuhl holds a Master’s Degree in Professional Writing from the University of North Carolina at Wilmington. Her career began in healthcare and wellness, creating lifestyle content for doctors, dentists, and other healthcare and holistic professionals. In 2018, she started writing for the cannabis industry. She curated news articles and insider interviews with investors and small business ...

Managing Content Editor

Chris Abrams

Licensed Insurance Agent

Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...

Licensed Insurance Agent

UPDATED: Feb 4, 2025

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance related. We update our site regularly, and all content is reviewed by car insurance experts.

UPDATED: Feb 4, 2025

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

UPDATED: Feb 4, 2025Fact Checked
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Lemonade

Average Monthly Rate For Good Drivers

$41

A.M. Best Rating:

A

Complaint Level:

High

Pros

  • Discount for safe drivers
  • Add-on coverage options
  • Strong financial stability

Cons

  • Higher rates for poor driving records
  • Numerous customer complaints

This Lemonade car insurance review highlights its competitive rates starting at $41/month and a generous 15% discount for safe drivers with clean records.

Lemonade Car Insurance Review

Lemonade is advantageous for lower-mileage, good drivers seeking affordable car insurance coverage, although car insurance rates by state will vary. It’s essential to consider Lemonade’s drawbacks, such as customer complaints about pricing and claims processing.

Lemonade Car Insurance Rating

Rating CriteriaLemonade TablePress logo
Overall Score3.9
Business Reviews4
Claim Processing4
Company Reputation4
Coverage Availability4.3
Coverage Value3.5
Customer Satisfaction4.8
Digital Experience4.5
Discounts Available5
Insurance Cost3.8
Plan Personalization4
Policy Options2.2
Savings Potential4.2

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While Lemonade provides free roadside assistance and has strong financial stability, it is not the best fit for drivers with DUI histories.

Prospective Lemonade customers should carefully evaluate these factors. It would be best if you also compared multiple insurance quotes with our free tool to ensure you find the right company for your needs.

Just the Basics

  • Lemonade car insurance rates start at $41/mo for good drivers
  • The largest discount is a 15% reduction for safe drivers with no accidents
  • Lemonade has free roadside assistance for up to three incidents

Cost of Lemonade Car Insurance

Several factors will affect your Lemonade car insurance rates on a policy, beginning with your age and gender.

Lemonade Car Insurance Monthly Rates by Age, Gender, & Coverage Level

Age & GenderMinimum CoverageFull Coverage
Age: 16 Female$220$350
Age: 16 Male$250$375
Age: 18 Female$170$310
Age: 18 Male$190$335
Age: 25 Female$95$160
Age: 25 Male$110$180
Age: 30 Female$65$140
Age: 30 Male$70$150
Age: 45 Female$40$135
Age: 45 Male$41$147
Age: 60 Female$38$130
Age: 60 Male$40$135
Age: 65 Female$37$125
Age: 65 Male$39$130

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Because young drivers pay so much more for car insurance at companies, including Lemonade, young drivers should stay on a parent’s policy as long as possible (Perks of Staying on Your Parents’ Car Insurance Policy).

Another major factor affecting Lemonade auto insurance rates is driving record. See what Lemonade charges for different driving records below.

Lemonade is not the best affordable option for DUI drivers, as Lemonade’s DUI rates are quite expensive.

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Lemonade Car Insurance Rates vs. the Competition

Lemonade is an affordable option for most drivers with clean driving records, even when compared to other popular auto insurance companies.

Lemonade Car Insurance Monthly Rates vs. Top Competitors by Age & Gender

Insurance CompanyAge: 45 FemaleAge: 45 Male
Allstate: Lemonade Car Insurance Review$162$160
American Family: Lemonade Car Insurance Review$115$117
Farmers: Lemonade Car Insurance Review$139$139
Geico: Lemonade Car Insurance Review$80$80
Lemonade:  Lemonade Car Insurance Review$135$147
Liberty Mutual: Lemonade Car Insurance Review$171$174
Nationwide: Lemonade Car Insurance Review$113$115
Progressive: Lemonade Car Insurance Review$112$105
State Farm: Lemonade Car Insurance Review$86$86
Travelers: Lemonade Car Insurance Review$98$99
USAA: Lemonade Car Insurance Review$59$59

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Lemonade is less affordable among its competition when it comes to other factors that affect the price of car insurance, such as driving records.

Lemonade Car Insurance Monthly Rates by Provider & Driving Record

Insurance CompanyClean RecordOne TicketOne AccidentOne DUI
Allstate: Lemonade Car Insurance Review$160$188$225$270
American Family: Lemonade Car Insurance Review$117$136$176$194
Farmers: Lemonade Car Insurance Review$139$173$198$193
Geico: Lemonade Car Insurance Review$80$106$132$216
Lemonade:  Lemonade Car Insurance Review$147$175$207$267
Liberty Mutual: Lemonade Car Insurance Review$174$212$234$313
Nationwide: Lemonade Car Insurance Review$115$137$161$237
Progressive: Lemonade Car Insurance Review$105$140$186$140
State Farm: Lemonade Car Insurance Review$86$96$102$112
Travelers: Lemonade Car Insurance Review$99$134$139$206
USAA: Lemonade Car Insurance Review$59$67$78$108

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If you have a poor driving record, other car insurance companies may be a better choice than Lemonade.

Lemonade Car Insurance Coverage Choices

If you are looking for policies with the following different types of car insurance coverage, then Lemonade may be a good fit for you.

Lemonade Car Insurance Coverage Options

Coverage NameWhat it Covers
Collision CoverageRepairs to your car after a crash
Comprehensive CoverageTheft, vandalism, and non-collision events
Gap InsuranceDifference between car value and loan
Liability CoverageInjuries and damages to others
Medical PaymentsMedical bills for injuries in an accident
New Car ReplacementReplaces a totaled car with a new one
Personal Injury ProtectionMedical expenses for you and passengers
Rental Car ReimbursementRental costs during car repairs
Roadside AssistanceTowing and emergency services
Uninsured/Underinsured MotoristDamages from uninsured drivers

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Liability insurance is the minimum required in most states, although most drivers opt to carry a Lemonade full coverage policy with collision and comprehensive car insurance.

Lemonade Car Insurance Review: Collision vs. comprehensive def card

Lemonade provides free roadside assistance to all Lemonade customers, covering three incidents in six months. Other add-on coverages will cost more to add to your Lemonade policy.

Lemonade Car Insurance Discounts

Lemonade provides several Lemonade discount opportunities for customers to lower their auto insurance rates (Read More: How to Lower Your Car Insurance Cost).

Lemonade Car Insurance Discounts and Savings

Discount NameSavings PotentialHow to Qualify
Bundling10%Bundle car and home/renters insurance
Safe Driver15%No accidents or violations
Anti-Theft Device5%Install anti-theft devices
Multi-Car10%Insure multiple vehicles
Paperless Billing5%Opt for electronic billing
Pay-In-Full5%Pay annual premium upfront
Good Student10%Maintain a "B" average or higher
Defensive Driving10%Complete a driving course
Low Mileage10%Drive under set mileage limit
Continuous Coverage10%No coverage gaps

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The biggest discount Lemonade provides is a 15% discount for safe drivers. To qualify, drivers must have no accidents or violations on their driving record in the last few years.

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Lemonade Customer Reviews

Customer reviews of Lemonade give insight into customer satisfaction at a company. Lemonade has its fair share of customer complaints when you check customer reviews on sites like Reddit.

Recently switched to Lemonade Car insurance to save money
byu/Lower-Emergency-5311 inInsurance

Common Reddit complaints involve prices being higher than expected, as well as grievances when filing a car insurance claim after an accident.

Lemonade Business Ratings

Customer reviews are just one aspect to consider when evaluating Lemonade. Before buying car insurance, take a look at business reviews for insight into company operations, customer satisfaction, and more.

Lemonade Car Insurance Business Ratings & Consumer Reviews

AgencyLemonade TablePress logo
J.D. Power TablePress LogoScore: 807 / 1,000
Below Avg. Satisfaction
Score: B
Average Customer Satisfaction
Consumer Reports TablePress LogoScore: 70/100
Average Customer Satisfaction
Score: 2.50
More Complaints Than Avg.
A.M. BestScore: A
Excellent Financial Strength

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J.D. Power gave Lemonade a below-average rating for customer satisfaction, and NAIC recorded more complaints than average from customers. However, Lemonade has good ratings from BBB and Consumer Reports, as well as good financial stability.

Lemonade Pros and Cons

Drivers want to find a reliable and affordable car insurance company, and Lemonade may not be right for all drivers. The pros of choosing Lemonade include:

  • Add-On Coverages: Lemonade offers roadside assistance for free and has gap and rental reimbursement available for purchase (Learn More: The Perks and Pitfalls of Car Insurance Add-Ons).
  • Discount Opportunities: Lemonade car insurance discounts include good student discounts, bundling discounts, and more.
  • Financial Stability: Lemonade has an A rating for excellent financial strength from A.M. Best.

The issues that customers may face when choosing Lemonade vary, but the biggest potential problems are the following:

  • Customer Complaints: Lemonade has many customer complaints recorded, pointing to issues with customer service, claims, and more.
  • Limited Availability: Customers planning a move will likely have to switch providers, as Lemonade is sold in only a few states.

Although Lemonade has some attractive features, make sure to debate the cons before committing to a policy with Lemonade.

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Considering if Lemonade Car Insurance is Best for You

This review of Lemonade car insurance reveals that its pros are competitive rates and a standout 15% discount for safe drivers with clean records.

Lemonade car insurance review: Lemonade Homepage

However, while Lemonade may be one of the cheapest car insurance companies for some drivers, a notable con is the high number of customer complaints, particularly regarding claims processing.

Lower-mileage drivers are likely to benefit the most from Lemonade’s offerings, and may appreciate the ease of managing policies through the app.

Dani Best Licensed Insurance Producer

However, prospective policyholders must compare multiple car insurance companies online to ensure they find the best coverage and rates tailored to their needs. Enter your ZIP in our free quote tool to get started.

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Frequently Asked Questions

Is Lemonade insurance reliable?

Yes, Lemonade insurance Agency is considered reliable, as it has average ratings from several businesses.

What is the downside of Lemonade?

One of the downsides of Lemonade is that it isn’t widely available, as it’s only sold in a few select states. Lemonade is also best for low-mileage drivers with good driving skills. Poor drivers may want to shop elsewhere.

Why is Lemonade insurance so cheap?

Part of the reason Lemonade auto insurance can be affordable is because of how car insurance works at Lemonade. Because it bases rates on mileage and driving behavior, costs will be lower for low-mileage, good drivers.

Why is Lemonade better than other insurance companies?

Lemonade may be better for low-mileage drivers looking for rates based on their driving behaviors, but Lemonade may also not be the best fit for everyone.

Who owns Lemonade car insurance?

Lemonade, Inc. owns Lemonade auto insurance.

Does Lemonade actually pay out claims?

Yes, Lemonade pays out claims, although it has a lower-than-average claims satisfaction rating from J.D. Power, with customers not happy about their settlement negotiations with Lemonade (Read More: How to Negotiate a Settlement after a Car Accident).

Can I cancel Lemonade insurance anytime?

Yes, you can cancel your Lemonade insurance policy at any time. If you want a new car insurance provider, compare rates for free with our comparison tool.

Does Lemonade not do monthly payments?

Lemonade does do monthly auto insurance payments.

Does Lemonade have a deductible?

Yes, you choose an auto insurance deductible you want on your Lemonade auto insurance policy. Make sure it is a deductible you can pay when it comes time to use your deductible (Learn More: When to Use Your Deductible).

Does Lemonade cover stolen items from a car?

Lemonade renters or home insurance covers stolen car items, not Lemonade car insurance.

Laura Kuhl

Managing Content Editor

Laura Kuhl holds a Master’s Degree in Professional Writing from the University of North Carolina at Wilmington. Her career began in healthcare and wellness, creating lifestyle content for doctors, dentists, and other healthcare and holistic professionals. In 2018, she started writing for the cannabis industry. She curated news articles and insider interviews with investors and small business ...

Managing Content Editor

Chris Abrams

Licensed Insurance Agent

Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...

Licensed Insurance Agent

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance related. We update our site regularly, and all content is reviewed by car insurance experts.

Reviews
for Lemonade Insurance Company

4.83 (2,260 reviews)
5
April 27, 2017

Misha221tg

Super duper great experience!

Lemonade Insurance Company covers so much and fixed my car after I crashed it with no trouble. Definitely do recommend!! 
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<h3>Lemonade Car Insurance Monthly Rates by Driving Record</h3>
<h3>Lemonade Car Insurance Monthly Rates by Driving Record</h3>