Lemonade gears up for entry into car insurance market
The new program launching later this year promises 'great prices' to safe drivers while leveraging technology to pay claims quickly.
The startup insurance company Lemonade is churning up the recipe for its latest market expansion — car insurance.
On April 20, the company announced its plans to launch Lemonade Car within the year. Interested customers can register online now for updates as the company rolls out the coverage at a later date.
“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 Lemonade COO and co-founder Shai Wininger in a statement.
Lemonade Car will leverage technology to pay claims quickly and respond to emergencies while offering safe drivers competitive prices, Wininger noted, adding that owners of electric and environment-friendly cars will find the program especially attractive.
According to Lemonade’s press release, its current policyholders spend about $1 billion on car insurance annually, and Lemonade Car will allow existing and new customers to bundle their home, pet, and life policies with their car insurance.
This latest news comes less than 12 months after Lemonade added pet insurance to its portfolio in July 2020. The company also released a term life insurance product earlier this year. The company first made a name for itself in the homeowners insurance market and has positioned itself as a disruptor challenging consumers to “Forget everything you know about insurance.”
The company’s model of using artificial intelligence and behavioral economics to underwrite policies and pay claims has garnered a lot of interest. When Lemonade went public last summer, it recorded the best IPO debut to date in 2020, with shares more than doubling on their first day of trading, MarketWatch reported.
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