Lemonade, the insurance company powered by artificial intelligence and behavioral economics, announced it is readying ‘Lemonade Car’ for launch within the year.
Today’s news marks the company’s third expansion into a major new insurance category in less than 12 months. The company started with homeowners products, adding pet insurance in the second half of 2020, and term life insurance in the first half of 2021. The launch of Lemonade Car will allow both existing and new customers to bundle their home, pet, and life policies with their car insurance.
The US car insurance industry is estimated to be about $300 billion—70 times the size of both the renters and the pet insurance markets. A large majority of Lemonade’s existing customers are car owners, and they already spend about $1 billion on car insurance each year.
“We’re seeing an overwhelming demand for a Lemonade car insurance product from our customers. And so, since last year, a large part of our team has been working on what we believe will become one of the best car insurance products on the market,” said Shai Wininger, Lemonade COO and co-founder. “Lemonade Car will use technology to handle emergencies and pay claims fast, will offer great prices to safe drivers, and will be especially attractive to drivers of EVs and environment-friendly cars”.