Lemonade (New York) has launched its auto insurance product Lemonade Car for purchase in Tennessee. The InsurTech announced its move into auto insurance in April 2021, inviting early registration from customers. The product launched for purchase in Nov. 2021 in Illinois. Auto insurance is the latest expansion from Lemonade’s initial renters product, following the addition of home, pet and life insurance policies, which the insurer offers to bundle with Lemonade Car.
The insurer describes Lemonade Car as the first environment-friendly car insurance, providing favorable prices for safe drivers, best-in-class service, and perks for environmentally-conscious customers. Among the advantages of Lemonade Car for Tennessee drivers are the following, according to a Lemonade source:
- Better rates and coverage for owners of electric vehicles or hybrid cars
- Using telematics to reward drivers with low mileage and safe driving behavior
- Funding for reforestation in an effort to clean up after customers’ carbon emissions, over time
Donald Light, a Director in Celent’s (Boston) North America Insurance Practice notes that in Lemonade’s Q4 2021 Shareholder Letter, the company stressed its two fold strategy: “win with technology and grow with our customers.”
“In other words, Lemonade wants to have the best data science-based products and pricing, combined with an emphasis on cross-selling multiple Lemonade products to each policyholder,” Light explains. “As a proof point, the same Letter says that in Illinois three-quarters of Lemonade Car policyholders bundled it with at least one other Lemonade product.”
Light adds that Lemonade’s acquisition of Metromile is scheduled to close in Q2 this year. He notes that a Lemonade blog, “Why Lemonade Is Acquiring Metromile,” begins: “Within minutes of meeting the Metromile team we knew we were among kindred spirits. Here were digital natives, insurance nerds, and data scientists, all committed to harnessing technology to deliver faster, fairer, and more affordable insurance to consumers.”
“All very good, but auto insurance is a tough business to grow in and to make money in,” Light observes. “Time will tell how sweet Lemonade Car turns out to be.”
Source: Insurance Innovation Reporter
