Lemonade Car insurance coming this year, company says

Lemonade, an insurtech that started out in renter's and homeowner's insurance and has since expanded to term life and pet coverage, plans to dive into the equally crowded and deep auto insurance market this year.

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," says COO Shai Wininger in a statement announcing the pending launch.

While the product isn't yet live, the company is offering interested policyholders early registration, product updates, and a "behind-the-scenes" look at the finishing touches at lemonade.com/car.

"I wouldn’t count Lemonade out in car insurance," says Mark Breading, partner at Strategy Meets Action. "They have a customer base they can cross-sell to, and I can understand why they would want to continue to expand into new states and new lines."

Lemonade launched in April 2015 promising a behavior-based, "peer-to-peer" model for insurance that would soften the edges of the insured-insurer relationship with a heavy charitable component. It evolved that model over the years, but still is tied into charity: its "giveback" of unused premium in 2020 was more than $1 million. Also in 2020, the company offered its IPO at $29/share; its stock closed on April 19, 2021 at $84.07.

Lemonade through the years

By Diana Manos

February 23

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2. What's next for Lemonade stock after big IPO
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5. Lemonade CEO details carrier’s plans to ‘Uberize’ insurance