Lemonade, the AI-powered online insurance company, announced this week that it will begin offering car insurance – Lemonade Car – in the US, initially available in Illinois to be subsequently followed by a nationwide rollout.
The product is designed to offer better prices for safe and low-mileage drivers, as well as environmentally-friendly EVs and hybrid cars. The Lemonade app uses telematics to measure how much and how safely people drive, as well as provide 24/7 on-location roadside assistance, real-time crash detection, and emergency services dispatch.
Lemonade will also offer significant discounts to existing customers or those who wish to take out a bundle of insurances with the company, including Home, Renters, Pet, or Life products and save up to hundreds of dollars a year.
Lemonade Car’s first-of-its-kind claims process allows users to file claims in minutes, and when needed, get tow services, emergency EV battery recharge, and the ability to track repairs, body shop work, and more. Using Blender, the company’s proprietary insurance operating system, Lemonade’s claim advocates are able to handle more claims in a shorter period of time and with greater efficiency than traditional insurance systems, through the use of an automated rather than manual system.
“We stood up entire teams to handle tows, repairs, body shop services, as well as support for the 24/7 roadside assistance and emergency services we now offer,” said Shai Wininger, Lemonade’s CEO and cofounder. “Providing a best-in-class car claims experience means being there for your customers 100 percent of the time, with surprisingly fast service and lots of empathy.”
Lemonade places a high priority on its commitment to not investing in fossil fuels and polluting industries, as well as incorporating incentives to cut CO2 emissions. It will reward drivers of electric or hybrid vehicles with lower insurance rates, as it will with low-mileage drivers. The company will fund reforestation to help clean up after customers’ carbon emissions over time.
“We wanted to introduce a product that will not only reinvent how people buy car insurance, manage their policy, and file claims but also do something good for the planet. Since we can’t stop using cars just yet, we will help compensate for the CO2 emitted from our customers’ cars by financing reforestation on an ongoing basis. Using the telematics technology in our app, we’re able to estimate how much carbon dioxide is emitted by each ride, and plant trees accordingly.” said Wininger.
Founded in 2015, by Wininger, also a co-founder of Fiverr, and Daniel Schreiber, Lemonade uses behavioral economics, artificial intelligence, and chatbots to quickly deliver for its customers. In 2019, Japan’s SoftBank led a $300 million Series D funding round, and earlier in 2021, the company was said to be valued at approximately $10 billion.