Lemonade, the insurtech that launched with a promise to apply AI to disrupt renters insurance, has now entered a new line of business: auto insurance.
The product will operate on a usage-based model to measure driver behavior including how often people drive. The Lemonade app will monitor telematics and also includes 24/7 roadside assistance, crash detection and emergency services dispatch options.
“The Lemonade app, based on telematics, measures how much and how safe people drive, which we believe will give the customer the best experience and price, allowing us to price fairly, and assess the right risk for our book of business,” a Lemonade spokesperson told Digital Insurance in an email.
Additionally, Lemonade Car will allow customers to file claims using Blender, the company’s insurance operating system. Customers are also able to request such services as emergency EV battery recharging, tracking repairs and towing through the app.
“As part of our commitment to supporting drivers choosing environment-friendly vehicles, we wanted to ensure their needs were met in a variety of instances,” the spokesperson said.
Lemonade is a B-Corp and Lemonade Car plans to incentivize CO2 emission reductions by having better rates for electric vehicles and hybrid cars as well as low-mileage drivers.
Shai Wininger, Lemonade’s CEO and co-founder, said in a statement: “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.”
Lemonade initially released information about its
Lemonade also launched a
In July 2020,
