Our Review of Lemonade Pet Insurance
Lemonade Pet Insurance is a subsidiary company of Lemonade, a social enterprise that differentiates itself in the market by paying claims quickly and giving unclaimed monies back to every policyholder as part of a quarterly “giveback”. When filling a claim online, if approved, customers receive their money back instantly, rather than waiting for a check or deposit to appear over the course of days or weeks. Lemonade Pet insurance is a new service line that opened in 2020.
The Lemonade website is a little more complicated to navigate compared to other pet insurance sites, as it serves as a single access point for Lemonade’s other insurance offerings (condominiums, rent, etc.). The pet insurance element has its own link in the menu and is still relatively new.
Quotes are easy to obtain and navigate, and the blog section, though not exclusively related to pet matters, is on par with those of other major providers. Still, as a social enterprise operating under different regulations than private, for-profit insurance companies, Lemonade has some limitations as a pet insurance provider.
Breadth of Coverage
A wide, fairly comprehensive set of products and offerings are available through Lemonade Pet Insurance. As with some other providers in its class, Lemonade Insurance covers only cats and dogs, with no provisions for exotic animals or other types of pets. There is no upper age limit for coverage evident on the website or their policy. Accident-only coverage is not an option that becomes available during the quote/application process. Instead, accidents and illnesses are included in the coverage alike with the option for an extended accident and illness plan.
The coverage offerings are on par with other major providers, with one notable exception: Lemonade Pet Insurance is not yet available across the entirety of the U.S. Currently, only residents of the following states are eligible: Alabama, Arizona, Arkansas, California, Connecticut, District of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, and Wisconsin.While obtaining a quote, users can opt to enroll in the Accident-Only coverage option, which covers exam fees and costs of diagnostics and treatment of accidents such as broken bones, bite wounds, cuts, abscesses, toxic ingestions, and lodged foreign objects.
Additional states are slated to be added in the near future, but as of this writing, Lemonade Pet Insurance cannot yet be considered a nationwide service.
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Accessibility of Products
Lemonade Pet Insurance is highly customizable. During the quote process, users can set coverage amounts of 70% to 90%, maximums of $5,000 up to $100,000, and annual deductible options of $100, $250, and $500. By choosing among these options, low entry price points of $40 per month or less are possible, making Lemonade Pet Insurance accessible to most lower-income users.
Application payments are made through credit card only via the online process. There do not appear to be other options listed on the website.
There does not appear to be any information listed on either the website and its sections or the sample policy dealing with switching plans, though users are invited to contact Lemonade representatives via phone or email if they have any questions about their plans.
There do not appear to be any group discounts or employee benefits listed on the site for any of Lemonade’s insurance plans, but customers who have other policies with Lemonade receive a 10% discount.
Unlike many of the other major providers, Lemonade Pet Insurance requires a few more questions when applying for a quote, such as “are there other animals in the house?” and “does your pet already have an insurance plan?”, adding a few seconds to their “short” application process.
Pricing options are provided as users customize their options, but do not appear elsewhere in the website: visitors must go through the quoting process to get an idea of price range.
Ease of Use
Lemonade’s website loads very quickly and easily on both desktop and mobile platforms. The speed to quote is slightly slower than that of other similar pet insurance websites as Lemonade asks a few additional questions of applicants than what is normally requested.
The setup of the Lemonade page as a single point of access for all of their other insurance offerings requires more work on the part of the applicant to search for pet insurance-specific details. Information is mostly readily available, but finding the details around only pet insurance can be difficult as the website FAQ is not pet insurance-specific, requiring visitors to sift through the other details to find what they are looking for. A sample policy is available during the quote process, but not on the main page.
Lemonade’s market differentiator is the speed at which they process claims using their mobile app. Users can receive a reimbursement immediately upon approval. Further, users are invited to make video claims, simply explaining their claim via the app on their smartphones over one minute, and then submitting to Lemonade. This is explained as being much faster than filling out a claim form and helping to humanize the customer.
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Like the rest of the website, the Lemonade Insurance blog is not pet-exclusive, instead featuring articles on all of its different policies. The pet blogs that do appear are professionally written in the same upbeat tone as the rest of the website copy, but deal primarily with pet lifestyle matters rather than health or wellbeing.
There is no affiliated charity noted on the website, though this could be the result of the relative novelty of the pet insurance tier of Lemonade’s service.
Overall, the pet insurance aspects of the Lemonade website suggest that they do care somewhat about animals, but as one category among many. There is a definite opportunity for expansion and improvement in this regard.
Lemonade Pet Insurance is a tier of Lemonade Insurance, which is not only a brand new company founded in 2020, but also a relatively new type of social enterprise called a “public benefit company” under Delaware law. As such, information on financial backing is not readily available, so it is difficult to calculate market share at present.
Financial backing and underwriting comes from New York-based Lemonade Insurance Company LLC, though, again, information on financial strength is not available via the website.