The Ultimate Lemonade Car FAQ

It’s raining, someone just tapped your bumper, and you’re not sure what to do next. With Lemonade Car, you open the app, send a tow to your exact spot, and start your claim before it arrives.

Still wondering about “full coverage,” who’s allowed to drive your car, or what happens if your laptop gets stolen? The questions we hear most are answered below.

First, a quick coverage refresher

Think of this as the vocab lesson before the main event. Here’s what the main car insurance coverages mean, minus the jargon. Your state may not require all of them, and you may not need every one. Knowing the basics helps you pick a policy that actually fits.

Already pretty familiar with car insurance coverages? Skip ahead to see the Lemonade difference.

Liability coverage

Liability pays for damage you cause to other people. That means their injuries (bodily injury liability) and their stuff (property damage liability). It doesn’t pay for your own car or your own injuries.

Nearly every state requires a minimum amount. If you cause an accident, it’s what keeps a lawsuit from going after your savings.

At Lemonade, bodily injury limits (including matching uninsured motorist coverage) run from $25,000 per person and $50,000 per accident, up to $250,000 and $500,000. Property damage limits run from $15,000 to $100,000.

Collision coverage

Collision pays to repair or replace your car when it hits something, or something hits it. Another car, a telephone pole, a guardrail, or a pothole deep enough to qualify as geography.

The state doesn’t require it, but if you’re financing or leasing, your lender almost certainly does.

Your deductible is what you pay first. We cover the rest. Collision deductible options are $100, $250, $500, $750, $1,000, $1,500, or $2,000.

Comprehensive coverage

Comprehensive covers the non-collision stuff: theft, vandalism, fire, falling trees, hail, floods, and the occasional very unlucky deer. If a storm cracks your windshield or someone drives off with your car, this is the one.

It doesn’t cover things inside your car. If someone steals the laptop from your back seat, that’s a renters or homeowners insurance situation.

Comprehensive deductible options are $250, $500, or $1,000.

Uninsured motorist coverage

This kicks in when someone with no insurance hits you. It covers your medical bills when the at-fault driver can’t pay.

Roughly one in eight U.S. drivers is uninsured, so this isn’t a hypothetical. It closes a real gap.

Underinsured motorist coverage

This is uninsured motorist coverage’s cousin. It steps in when the at-fault driver has insurance, but not enough to cover your injuries.

Say your medical bills hit $80,000 and their policy maxes out at $25,000. Underinsured motorist coverage pays the difference, up to your limits. In many states, the two are sold together.

Personal injury protection (PIP)

PIP covers medical bills (and sometimes lost wages) for you and your passengers after an accident, no matter who caused it. It’s required in “no-fault” states, where your own insurance pays for injuries first. It’s optional in others.

Think of it as a way to get medical bills paid quickly, without waiting for anyone to sort out fault.

Medical payments (MedPay)

MedPay is PIP’s simpler cousin. It pays medical bills for you and your passengers after an accident, no matter who was at fault. It’s handy if your health insurance has a high deductible.

Lemonade’s MedPay limits run from $5,000 to $25,000.

Rideshare and delivery endorsement

A standard car policy generally doesn’t cover you while you’re driving for Uber, Lyft, or DoorDash. An endorsement (an add-on to your policy) can fill that in.

Rideshare driving has three phases:

• Phase 1: the app is on and you’re waiting for a request.
• Phase 2: you’ve accepted a request and you’re heading to pickup.
• Phase 3: the passenger or delivery is in the car.

The rideshare company’s commercial policy generally covers Phase 3. Phases 1 and 2 are where the gaps show up, and our endorsement is built to fill them.

It’s currently available in Colorado and Tennessee, with more states on the way.

Gap coverage

If your car is totaled or stolen, gap coverage pays the difference between what you still owe on your loan or lease and what the car was worth right before the loss.

New cars lose value fast, so early in a loan you can easily owe more than the car is worth. Lemonade’s gap coverage is currently available in Indiana, with more states coming.

Extended glass coverage

This waives your deductible for windshield and other glass repairs or replacements. It’s currently available in Colorado, Indiana, Illinois, Ohio, and Tennessee.

Rental car coverage

If your car is in the shop after a covered loss, rental coverage pays for a rental so you’re not stuck. Lemonade’s rental reimbursement pays up to $80 per day, with a $2,400 maximum per claim.

Deductible

Your deductible is what you pay on a claim before we pay the rest. If your deductible is $500 and the repair bill is $2,500, you pay $500 and we pay $2,000.

Higher deductibles mean lower monthly premiums, and the reverse is true too. Deductibles apply to collision and comprehensive claims, but not to liability claims.

Comprehensive vs. collision: what’s the difference?

Here’s an easy way to remember it. Collision is about impact: your car hits something, or something hits your car. Comprehensive is about nearly everything else, like theft, weather, fire, animals, and falling objects.

Most drivers who carry one carry both. If your car is financed or leased, your lender usually requires both.

Liability vs. full coverage

“Liability only” is a policy with just the coverage your state requires. “Full coverage” isn’t an official coverage type. It’s shorthand for liability, collision, and comprehensive, plus any required extras like uninsured motorist coverage or PIP.

Full coverage protects your car and the other driver’s. Liability alone protects just the other driver.

Uninsured vs. underinsured motorist coverage

Uninsured motorist coverage applies when the other driver has no insurance. Underinsured motorist coverage applies when they have insurance, but not enough to cover your losses.

Both exist because you can be a careful, well-insured driver and still get hit by someone who isn’t.

The FAQ

What states is Lemonade Car available in?

Lemonade Car is currently live in Arizona, California, Colorado, Florida, Illinois, Indiana, Missouri, Ohio, Oregon, Pennsylvania, Tennessee, Texas, and Washington. We’re licensed in 49 states and expanding fast.

The quickest way to check your state is to start a quote in the Lemonade app. We’ll tell you right away if coverage is available in your area.

How do I get a Lemonade Car quote?

Go to Lemonade.com or open the app, then tap “Check Our Prices.” We’ll ask a few quick questions, pull your driving history, and show you a quote in minutes.

It’s all digital. No phone calls, no agents, no hold music. If you’d rather talk to a person, our support team is one tap away.

Already a Lemonade customer? Sign in and add a car policy from the home screen. Your info auto-fills where it can, and you’ll unlock a bundle discount on both products.

How do I switch from my current car insurance?

The safest way is to overlap, just briefly. Get your Lemonade Car policy set up and active first, then cancel your old one. That way you’re never without coverage, even for a day.

Most insurers refund the part of your payment you won’t use if you cancel mid-policy. If your car is financed or leased, make sure your lender has your new proof of insurance from Lemonade before you cancel the old policy.

How is Lemonade Car different from other insurers?

We handle everything ourselves, from quote to claim. That means no getting bounced between companies when you need help.

A few things that set us apart:

• Pricing based on how you drive, not stereotypes about who you are
• One app for quotes, policy changes, claims, roadside help, and support
• Bundle discounts that grow as you add car, renters, homeowners, condo, and pet
• Giveback: we’re a certified B Corp, and throughout the year your coverage coverage helps fund real impact
• Speedy claims: some are even instant, and we hold the Guinness World Record for the fastest claim ever paid, at 3 seconds

You can also change your coverages, limits, and deductibles right in the app. Your price updates in real time as you go.

How does Lemonade Car know how I drive?

To price you fairly, pay claims fast, and include perks like roadside assistance and crash detection, your car needs to be connected to Lemonade. The connection shows us how your car is driven. That’s all it’s for.

You can connect in a few ways:

• Directly with your car. This is currently available for Tesla and Toyota, with more automakers on the way.
• With a Lemonade Tag. It’s a small device we mail you. Set it in the car and forget it.
• With location services turned on in the Lemonade app.

Connect once and you’re done. The connection is what makes the good stuff work: fast claims, pricing discounts, free roadside assistance on select policies, free crash detection and emergency help, and free tree planting to offset your carbon footprint. If you turn it off, those pause too.

It’s your call, but we recommend keeping it on so you get the best price and the full experience.

What is pay-per-mile car insurance?

In select states, Lemonade offers pay-per-mile insurance, a format originally built by Metromile (now part of the Lemonade family). You pay a low monthly base rate plus a few cents for each mile you drive.

If you have a short commute, work from home, or just don’t drive much, you can save real money compared to a flat rate that assumes you drive like the average American.

A few quick details:

• Pay-per-mile uses the Lemonade Tag to count miles accurately.
• We cap billable miles at 250 per day. Anything over is on the house.
• You can see your current and estimated monthly cost in the app.

Drive a Tesla? Check out the next question for how Full Self-Driving miles are priced.

How does Lemonade’s Tesla Full Self-Driving (FSD) pricing work?

If you drive a Tesla in a state where we offer it, you pay less for the miles you drive with FSD (Supervised) turned on. Miles you drive yourself are priced the usual way.

Why? Miles with FSD engaged are safer than the ones you drive yourself, and we think that should be rewarded.

How much you save depends on your Tesla:

• Newer Teslas (HW4 with FSD v14.2 or newer): 50% off FSD miles
• Older Teslas (HW3 with FSD v14 Lite): 30% off FSD miles, in select states

HW3 and HW4 are the two generations of the computer inside Tesla’s self-driving system.

How it works

1. Connect your Tesla. With your permission, we connect to your car through Tesla’s Fleet API, which is how your Tesla shares driving data with us.
2. Drive like you normally do. We can tell which miles FSD drove and which miles you drove.
3. Pay less for FSD miles. Like pay-per-mile insurance, you pay a low base rate plus a few cents for each mile. Your FSD miles get the discount.

What discounts does Lemonade Car offer?

Quite a few. Availability varies by state, but these are the ones you’ll see most:

• Bundle discount for pairing car with Lemonade renters, homeowners, condo, or pet insurance
• Safe driving discount, based on how you actually drive
• Electric vehicle (EV) and hybrid discount
• Multi-car discount
• Paid-in-full discount for paying the policy upfront
• Continuous insurance history discount
• Three years of safe driving discount
• Five years without a claim discount
• Good student discount
• Anti-theft device discount

Tesla drivers in select states also save on every mile driven with Full Self-Driving (FSD) on. See how it works above, and you’ll see every discount you qualify for in the quote flow.

Does Lemonade offer bundle discounts?

Yes, and bundling is one of the biggest ways to save with us. Pair Lemonade Car with renters, homeowners, condo, or pet insurance and the discounts stack across every product.

Everything also lives in a single app, with one login for payments, policies, and claims. If you’re already a Lemonade customer, adding car insurance is often one of the easiest ways to lower your overall premium.

What free perks come with Lemonade Car?

When your car is connected to Lemonade, you get a few extras at no cost:

• Roadside assistance: a tow, a jump, a tire change, a lockout, fuel delivery, or EV charging dispatch. Whatever you need to get moving. It’s included for free on most policies, and available as an add-on for pay-per-mile policies.
• Crash detection and emergency help: if we detect an accident, we reach out by call or text. If there’s no response, a dispatcher sends emergency services your way.
• Tree planting: a typical car emits about 4.6 metric tons of carbon dioxide a year. We work out how many trees offset that and plant them for you. You can follow your forest in the app.
• For EV and hybrid drivers: free roadside EV charging, plus coverage for your home wall charger.

How do I file a car insurance claim with Lemonade?

Open the Lemonade app, tap “File a Claim,” and answer a few questions about what happened.

Our AI handles the first pass, and our claims team picks up anything that needs a human touch.

For urgent situations, our claims line is open 24/7 at 1-844-733-8666.

If your car is connected and we detect a hard impact, the app can check in to see if you’re okay and offer roadside or claim help, so you don’t have to start the process yourself.

Most customers go straight to the app when they need us. From there, we can also point you to the nearest vetted repair shop in our Direct Repair Program for a faster, smoother repair.

How does roadside assistance work?

Roadside assistance is included when your car is connected to Lemonade on most policies, and available as an add-on for pay-per-mile policies. You’ll find a roadside button right in the app. Services include towing, jumpstarts, flat tire changes, lockout help, fuel delivery, and EV charging dispatch.

Need a tow after an accident? We’ll send one to your exact location, so you don’t have to describe cross streets while standing on the shoulder.

How do I update my coverage?

Most changes take a minute in the Lemonade app or on the website. Open your car policy, go to the overview, and use the plus and minus buttons to adjust coverage amounts and deductibles. You’ll see your new premium before you confirm.

A few bigger changes need a quick review from our team. That includes swapping a car, removing a listed driver, or adding certain endorsements. You’ll start all of them in the app.

How do policy renewals work?

Lemonade Car policies run for six or twelve months, depending on your state. We reach out well before renewal if your premium is changing, so there are no surprises. In most cases, your policy renews automatically and you don’t need to do anything.

At renewal, we take another look at things like driving behavior (if your car is connected), claims history, mileage, and changes in your state’s insurance market. 

Why did my premium change at renewal?

There are a few possible reasons. Your premium can shift based on your driving, your mileage, claims during the term, changes to your car or address, and broader market trends like local accident rates, repair costs, and severe weather.

If your car wasn’t connected to Lemonade, or your trips weren’t being recorded, you may have lost a safe driving discount. Reconnecting in the app usually brings it back.

How can I cancel my car policy?

You can cancel in the Lemonade app or on Lemonade.com.

• In the app: open your car policy, tap the three-dot menu in the top right, and select cancel.
• On the web: go to “My Account,” select your car policy, and scroll to the cancel link near the bottom of the page.

There’s no cancellation fee. If you’ve prepaid, you’ll get a refund for the part of the term you didn’t use.

How do I get proof of insurance?

The moment your policy goes active, we email you your declarations page, or “dec page.” It lists your coverages, limits, deductibles, and policyholders. That’s your proof of insurance for your lender, your DMV, or anyone else who asks.

You can also download your dec page, ID cards, and full policy document anytime from your car policy’s menu in the app, or from “My Account” on Lemonade.com. Most states accept the ID card straight from your app screen if you get pulled over.

Who’s covered to drive my car?

Your policy generally follows the car. That means friends and family who borrow it once in a while (what’s called “permissive use”) are typically covered.

Anyone who drives your car regularly needs to be listed on the policy. “Regularly” means roughly five times a month or more, or 30 or more times over six months. Your spouse needs to be listed no matter how often they drive, and relatives living in your household should be listed too.

If someone in your household shouldn’t be covered to drive your car (say, a licensed teen with their own policy elsewhere), we can add them as a Named Driver Exclusion.

If an undisclosed regular driver has an accident in your car, it can cause coverage problems. When in doubt, add them.

Does Lemonade Car cover rideshare drivers?

In select states, yes. Our Rideshare and Delivery Endorsement is for Uber, Lyft, and DoorDash drivers. It’s currently available in Colorado and Tennessee, with more states on the way.

It extends your comp and collision coverage into Phases 1 and 2 (app on, request accepted, no passenger yet) and keeps your car covered through Phase 3. For liability in Phase 3, when a passenger or delivery is in the car, your rideshare company’s commercial policy generally takes over.

It also includes some nice extras: child restraint replacement after a covered loss, and limited rental reimbursement if your rideshare car is stolen. Both the driver and the car need to be listed for the endorsement.

Does Lemonade Car cover me if my car is stolen?

If you have comprehensive coverage, yes. Theft is one of the main things it’s built for. We’d cover the actual cash value of the car (what it was worth right before it was stolen), minus your deductible.

Comprehensive doesn’t cover what’s inside the car. If your laptop, bike, instruments, or that extremely expensive camera were in it when it was stolen, a Lemonade renters or homeowners policy would cover them instead. Those policies generally follow your stuff, even away from home.

What types of cars doesn’t Lemonade Car cover?

This isn’t a complete list, but we generally don’t cover:

• Motorcycles
• Cars more than 20 years old
• High value cars and high performance cars
• Cars with aftermarket performance modifications
• Commercial vehicles and vehicles used mainly for business
• Step vans, parcel delivery vans, cargo cutaway vans, or vehicles with a cab separate from the cargo area

Eligible vehicles are generally private passenger cars, pickups, or cargo vans built for public roads. They also need four to six wheels and a gross vehicle weight rating (the max weight of the car plus everything in it) of 12,000 pounds or less.

Does Lemonade Car cover me when I drive outside the U.S.?

Your coverage applies across the United States, including U.S. territories and possessions, and in Canada.

Heading to Mexico or somewhere farther? You’ll need separate coverage for that trip. Your Lemonade policy won’t follow you there.

How is my premium calculated?

Your premium comes from a mix of things: the car you drive, where you park it overnight, how much you drive, and how you drive (if your car is connected to Lemonade). Your driving record, your prior coverage, and the coverages, limits, and deductibles you pick count too. Local accident rates, repair costs, and weather patterns play a part as well.

Connecting your car helps your rate reflect your driving, not assumptions about people who look like you on paper.

What if I’m in an accident?

First, make sure everyone’s safe. Call 911 if anyone’s hurt or the damage is serious.

Then open the Lemonade app. You can request roadside help (a tow, a battery jump, and more) and start your claim in the same flow. Want to talk to a person? Our claims line is open 24/7 at 1-844-733-8666.

If you can, grab photos of the damage, the other driver’s info, and the police report number. It makes everything move faster.

Who is Lemonade Car especially great for?

Pretty much any safe driver. But a few groups tend to get overcharged elsewhere, and that’s where we can make the biggest difference.

Low mileage drivers

Traditional pricing lumps low mileage drivers in with high mileage ones, so they end up paying for miles they never drive. Work from home pros, short commuters, students who only drive on breaks, and seniors who barely drive are usually a strong fit.

Young, safe drivers

Many insurers treat “young” as “risky” and add a flat penalty for age. We look at how a specific driver actually drives, so a careful teen can be priced much lower. If you’re adding a teen to your policy, the price doesn’t have to spike.

EV and hybrid drivers

You get a dedicated discount, free roadside EV charging, and coverage for your home wall charger. Tesla drivers in select states also save on FSD miles. More EV perks are on the way.

Any safe driver

Traditional pricing leans on averages, which often means careful drivers help cover the cost of riskier ones. When your car is connected to Lemonade, we can see how you really drive and apply discounts, so you don’t pay more than you should.

Lemonade Car in action: common scenarios

Coverage descriptions only get you so far. Here’s how a Lemonade Car policy shows up in real situations. Names and details are made up, but the mechanics are real.

The new renter who bundles

Maya just signed her first lease in Austin. Her landlord requires renters insurance, so she grabs a Lemonade renters policy.

While she’s in the app, she sees we offer car insurance in Texas too. She adds a policy for her 2019 Civic, and the bundle discount applies to both products automatically. One app, one bill, one login, and one place to file a claim, whether it’s a stolen bike from her apartment or a fender bender in a parking lot.

The rideshare driver on weekends

Jason works a 9 to 5 in Denver and drives for Uber and DoorDash on weekends. His personal policy wouldn’t cover him for most of a rideshare shift, and he’s heard stories about drivers whose claims got denied because the app was on.

Colorado is one of the states where we offer the Rideshare and Delivery Endorsement, so he adds it. His comp and collision coverage now reaches into Phases 1 and 2 (app on, request accepted, no passenger yet) and stays active through Phase 3. When a passenger or delivery is in the car, Uber or DoorDash’s commercial policy generally handles liability.

No gap to guess about.

The cautious switcher

Priya has been with the same insurer since she got her license, and switching makes her nervous. She’s heard a lapse in coverage can hurt her rate and cause trouble with her auto lender.

So she overlaps. She gets a Lemonade Car quote and buys the new policy with a start date one day before her old policy ends. Once Lemonade is live, she cancels the old one.

She pays a small amount for the overlap day, keeps her continuous coverage history intact, and never goes uninsured. We send her new dec page to her lender so the proof of insurance is on file.

The commuter who rarely drives 

Devon lives in Chicago and takes the L to work. His 2016 Mazda sits in a garage most days and comes out for weekend trips, about 4,500 miles a year. A standard flat rate policy would price him like he drives the national average of roughly 13,500 miles.

With pricing that reflects how much he drives (and pay-per-mile in states where it’s offered), Devon pays a low base rate plus a few cents for each mile. The Lemonade Tag in his car counts miles even when his phone isn’t with him.

His premium ends up much lower than a flat rate quote. No trick, just pricing that matches how he lives.

The accident on a rainy night

Noor is driving home on a wet October night in Columbus when the car ahead of her brakes hard. She taps the bumper at low speed. Nobody’s hurt, but both cars have damage.

Because her car is connected to Lemonade, the app notices the impact and checks in with her. From the roadside screen, she sends a tow truck to her exact location in a couple of taps. No explaining cross streets in the rain.

She starts her claim on the same screen before the tow truck even arrives. A few questions and a few photos later, our AI gets things moving, and our claims team takes it from there.

The comprehensive coverage scenario

Patrick’s car is stolen from a parking lot in Indianapolis overnight. His laptop was in the back seat, and his road bike was on the roof rack.

He has comprehensive coverage, so Lemonade Car covers the actual cash value of the car, minus his deductible, after he reports the theft. The laptop and the bike are a different story, since comprehensive doesn’t cover belongings inside the car. His Lemonade renters policy does, whether his stuff is stolen from his apartment or from his car.

That’s one of the quiet perks of bundling renters and car. Between the two, there are very few gaps in your day to day life.

The new homeowner who adds car

Lena and Sam just closed on their first house in Phoenix and bought a Lemonade homeowners policy. A few weeks later, Sam’s old auto policy comes up for renewal with a steep price hike.

He checks the Lemonade app and sees car insurance is available in Arizona. His quote fills in a bunch of info from their homeowners policy, and the bundle discount applies to both the moment he buys. Both policies share one dashboard, one payment method, and one claim flow.

If a storm damages the roof and the car in the same night, they’ll file from the same screen.

Your price is a few taps away

Open the app or go to Lemonade.com, tap “Check Our Prices,” and answer a few quick questions. No phone calls, no agents, no hold music.

If we’re live in your state, you’ll see a quote in minutes. If you don’t love it, you’ve lost nothing but a few minutes.

Note: Coverage options, minimum required limits, and maximum limits vary by state, are subject to underwriting approval, and may not be available in all areas.

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A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of the policies issued, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states. Please note that statements about coverages, policy management, claims processes, Giveback, and customer support apply to policies underwritten by Lemonade Insurance Company or Metromile Insurance Company, a Lemonade company, sold by Lemonade Insurance Agency, LLC.  The statements do not apply to policies underwritten by other carriers.