Lemonade car insurance is an app-based auto policy priced through required driving tracking (telematics), best suited to safe, low-mileage drivers and EV/hybrid or Tesla owners. The main catch: it's sold in a limited, still-expanding list of states, and — unlike many carriers' optional telematics programs — sharing your driving data isn't optional here.
Parent company founded
2015
Headquarters
New York, NY
Lemonade Car launched
November 3, 2021 (first in Illinois)
Metromile acquisition completed
July 28, 2022
Pricing basis
Required telematics (app or plug-in device)
Financial strength (Demotech)
A, Exceptional
Lemonade Car is the auto insurance product from Lemonade Inc., a technology-driven insurer founded in 2015 and headquartered in New York. Lemonade Car launched on November 3, 2021, first in Illinois, and was pitched from the start at safe, low-mileage drivers and EV/hybrid drivers, priced through telematics data collected in the Lemonade app. The launch also included roadside assistance and automatic crash detection.
On July 28, 2022, Lemonade completed its acquisition of Metromile, a pay-per-mile auto insurer, bringing a pay-per-mile car insurance business under the Lemonade umbrella. Unlike a traditional policy where telematics programs (like Progressive's Snapshot or Allstate's Drivewise) are an optional add-on layered onto a standard rate, Lemonade Car builds driving tracking into the policy itself: you enroll through the app or a plug-in OBD-II device, and your driving data is a required part of how the policy is priced, not a discount you can opt out of and still buy the product.
Like Lemonade's other lines, Lemonade Car is managed end to end through the mobile app — quoting, policy documents, payments, and claims — rather than through a network of local agents or a phone-first call center.
Lemonade Car started in Illinois in 2021 and has expanded state by state since. Lemonade launched car insurance in Florida on August 26, 2026, and says Lemonade Car is now available in states representing nearly 50% of the U.S. car insurance market. Third-party reviews have also listed availability in states including Arizona, Colorado, Ohio, Oregon, Tennessee, Texas, and Washington.
Because the list keeps growing, don't rely on any single published roundup (including this one) as the final word — check your state directly at lemonade.com before assuming Lemonade Car is or isn't sold where you live.
Pay-Per-Mile
Used in some states — third-party reviews cite Arizona, Oregon, and Washington. You pay a base monthly price plus a per-mile rate for miles actually driven, tracked through the app or a plug-in device.
Standard Premium
In other states, Lemonade Car is instead priced as a standard six-month premium, still informed by the driving data collected through required telematics.
Either way, driving tracking is mandatory for Lemonade Car policyholders — there's no version of the product without it. Worked example: someone who works from home and drives only a handful of miles a week is the classic pay-per-mile winner, since the per-mile portion of the bill shrinks with the mileage. A commuter driving 40+ miles a day in the same pay-per-mile state is a much weaker fit — the per-mile charges accumulate daily, and a standard six-month premium (where offered) or a competing carrier's mileage-agnostic policy may end up cheaper. Which model applies to you depends entirely on your state, so confirm which structure Lemonade quotes before comparing it to another carrier's rate.
Mandatory tracking is not the same as an optional discount program
Lemonade launched an "autonomous car" insurance option in Arizona on January 26, 2026, and later extended it to Oregon. Under this program, miles driven with Tesla Full Self-Driving (Supervised) engaged are charged at 50% of the normal per-mile rate under Lemonade's pay-per-mile structure. With the customer's permission, Lemonade uses Tesla's API to determine which miles were driven on FSD versus manually.
Worked example: if half of your monthly mileage is driven with FSD (Supervised) engaged and half is driven manually, only the FSD half is billed at the discounted per-mile rate — the manually driven half is billed at the standard per-mile rate. The more of your driving you do on FSD, the larger the share of your mileage bill that gets the discount. This program is specific to Tesla vehicles and to the states where Lemonade has activated it — confirm current availability with Lemonade before assuming it applies to your car or state.
Availability of each coverage varies by state.
Claims are filed through the Lemonade app. Lemonade handles claims with a mix of AI-assisted software and a human claims team, and the company says some simple claims are approved very quickly. Complex claims — multi-vehicle accidents, injury claims, disputed liability — are the kind most likely to need the human claims team, so don't expect every claim to settle at app speed.
Lemonade Insurance Company holds a Demotech Financial Stability Rating of "A, Exceptional." Demotech ratings assess an insurer's ability to meet its claims-paying obligations. We aren't citing an AM Best rating here because published figures for Lemonade's AM Best status conflict across sources — confirm current AM Best status, if any, directly with AM Best or Lemonade.
High-risk drivers and SR-22 filings
Progressive and GEICO are large, direct-to-consumer insurers sold nationwide, each with a long operating and claims-paying history; Progressive is widely used by high-risk drivers and those needing SR-22 filings. State Farm's advantage is its large agent network, which suits drivers who want in-person help during a claim. Lemonade Car's main differentiators are a fully app-based experience tied into Lemonade's other product lines (renters, home, pet, life), and — where live — the Tesla FSD mileage discount. Its main limitations next to those three are narrower state availability, mandatory (not optional) driving tracking, and a shorter track record as a car insurer specifically, since Lemonade Car only launched in 2021 versus decades of history at the legacy carriers.
See our full auto insurance company comparison for a side-by-side look at more carriers.
Already a Lemonade customer?
Lemonade Car can be a good fit for safe, low-mileage drivers and EV/hybrid owners who are comfortable buying and managing a policy entirely through an app and sharing driving data in exchange for a telematics-based rate. Lemonade Insurance Company holds a Demotech Financial Stability Rating of "A, Exceptional." The tradeoffs: Lemonade Car is sold in a limited (expanding) set of states, driving tracking is mandatory rather than optional, and the company has a shorter operating track record than legacy carriers like GEICO, Progressive, or State Farm. Whether it's "good" for you depends heavily on whether it's available where you live and whether you're comfortable with app-first, telematics-based pricing.
Lemonade Car launched first in Illinois in November 2021 and has been expanding state by state since. It added Florida on August 26, 2026, and Lemonade says Lemonade Car is now available in states representing nearly 50% of the U.S. car insurance market. Third-party reviews have listed additional states including Arizona, Colorado, Ohio, Oregon, Tennessee, Texas, and Washington. Because availability keeps expanding, confirm current coverage for your specific state directly at lemonade.com rather than relying on any published list.
Yes — driving tracking (telematics) is a required part of Lemonade Car, not an optional add-on. Depending on the state and program, tracking happens through the Lemonade app or a plug-in OBD-II device. This differs from many legacy insurers, where a telematics program like Snapshot or Drivewise is opt-in and layered on top of a standard policy; with Lemonade Car, the monitoring is built into how the policy is priced from the start.
We don't publish premium figures because they depend heavily on your state, driving record, vehicle, and how your telematics data scores. Lemonade Car is priced either through a pay-per-mile model (base rate plus a per-mile charge, used in some states) or a standard six-month premium in others, both adjusted by your tracked driving. Low-mileage and consistently safe drivers are the profiles most likely to see a competitive rate; get a personalized quote and compare it against at least one or two other carriers before deciding.
In some states — third-party reviews cite Arizona, Oregon, and Washington — Lemonade Car uses a pay-per-mile pricing structure: you pay a base monthly price plus a per-mile rate for the miles you actually drive, tracked through the app or a plug-in device. In other states, Lemonade Car instead uses a standard six-month premium. Either way, driving tracking is required. Pay-per-mile pricing tends to suit low-mileage drivers best, since the per-mile portion of the bill scales down with fewer miles driven.
Lemonade launched an "autonomous car" insurance option in Arizona on January 26, 2026, later extended to Oregon, that discounts miles driven with Tesla Full Self-Driving (Supervised) engaged. With the customer's permission, Lemonade uses Tesla's API to see which miles were driven on FSD, and those miles are charged at 50% of the normal per-mile rate under Lemonade's pay-per-mile structure. It's specific to Tesla vehicles using FSD (Supervised) in the states where the program is live — confirm current availability with Lemonade.
Yes. Lemonade's press materials and product lineup confirm car insurance can be bundled with Lemonade's renters, homeowners, pet, and term life products, and Lemonade markets a bundling discount alongside its EV/hybrid and safe-driving telematics discounts. If you're already a Lemonade renters or homeowners customer, adding Lemonade Car (where available in your state) is the most direct way to consolidate policies through the same app.
Sarah Mitchell
Editorial Lead, Property & Casualty
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed June 2026
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