November 17, 2020

Lemonade Pet Insurance Review

By haziqbinarif


Insurance carrier Lemonade has made waves since it appeared on the scene in 2015 with AI-powered auto and home insurance policies. But the company recently became the latest to enter the pet insurance scene, offering tech-driven policies through its renowned smartphone app. The result: extensive coverage, low prices, and ultra-fast claims processing. We dug into Lemonade’s new pet insurance product to see whether pet parents should consider signing up.


Pros Explained

  • Customizable coverage: Lemonade lets you choose your own policy terms and add optional riders.
  • Incredibly affordable premiums: Quoted monthly premiums are astonishingly low compared to competitors.
  • Convenient user interface: Lemonade sells and manages policies exclusively through its website and smartphone app.
  • Easy-to-read policy documents: Pet insurance policy documents are usually laden with jargon-filled fine print, but Lemonade lays out all the terms in plain English.
  • Opportunity to bundle: Save 10% when you combine pet insurance with a Lemonade homeowners insurance policy.

Cons Explained

Available Plans

Lemonade’s pet plans are based around a core accident and illness policy. Coverage includes the diagnostics, procedures, and medications needed to treat injuries or illnesses your pet sustains. One item not covered is exam fees; these can be added with the Extended Accident and Illness package, an optional policy extension that also pays for alternative treatments like acupuncture and chiropractor visits.

Lemonade also offers a Preventive and Wellness package that covers an annual checkup, three vaccines per year, and screening for common illnesses. The package includes access to a chat-based help line where you can ask questions and get expert advice about your pet’s health.

If you already have a Lemonade homeowners insurance plan, you’ll save 10% on your pet policy. This is one of the rare bundling opportunities we’ve found among pet insurance carriers.

Covered Treatment Accident and Illness Extended Accident and Illness Package Preventive and Wellness Package
Exam fees    
Procedures    
Lab tests    
Medication    
Continued treatment    
Genetic conditions    
Preventive care    
Microchipping      
Spay/neuter surgery      
Vaccinations    
Dental treatment      
Behavioral treatment      
Specialists    
Alternative/holistic care    
Medical boarding    
Cremation/burial      

Plan Pricing

Overall, we’re impressed with Lemonade’s low prices, particularly for higher coverage plans. For a dog between one and three years old, accident and illness coverage with a limit over $10,000 rarely costs less than $30 per month. Lemonade goes above and beyond by offering annual limits up to $100,000 in this price range. Coverage that would typically cost well over $100 per month with competitors is just pennies on the dollar with Lemonade.

There is a minimum $10 monthly premium on all policies, which means some pets (particularly younger cats) may be quoted the same rate for different levels of coverage. If Lemonade’s online quote tool brings back a rate of $10, try raising the annual limit or lowering the deductible to see if you could get better coverage without paying more.

  Accident and illness Extended accident and illness add-on Preventive and wellness package
Dog: 1 year $11.42 to $28.92 $3.16 to $8.00 $15.00 to $18.00
Dog: 3 year $11.42 to $28.92 $3.16 to $8.00 $15.00 to $18.00
Dog: 6 year $18.50 to $47.00 $5.17 to $13.08 $15.00 to $18.00
Dog: 12 year N/A N/A N/A
Cat: 1 year $10.00 to $18.83 $0.00 to $5.25 $9.00 to $11.00
Cat: 3 year $10.00 to $18.83 $0.00 to $5.25 $9.00 to $11.00
Cat: 6 year $11.42 to $24.83 $2.50 to $6.92 $9.00 to $11.00
Cat: 12 year $25.33 to $64.42 $7.09 to $17.91 $9.00 to $11.00

Waiting Periods

Lemonade uses standard waiting periods of two days for injuries and 14 days for illnesses. Cruciate ligament injuries carry a separate waiting period of six months, which is also fairly typical with pet insurance. Any vet bills dated before the end of the applicable waiting period won’t be covered.


Pre-Existing Conditions

Like all pet insurers, Lemonade won’t cover any pre-existing conditions that appear before you purchase coverage or during a waiting period. A common misconception is that conditions are only considered pre-existing if a vet officially diagnoses them before the policy start date, but this isn’t the case. Conditions can be labeled pre-existing even if your pet simply showed symptoms before coverage was effective.


Coverage Limits

Lemonade offers flexible annual limits with its policies starting at $5,000 and going up to $100,000. There’s no unlimited option, but the limits on the higher end of the scale far exceed what the vast majority of pets can possibly accumulate in veterinary bills. (Most providers that don’t offer unlimited benefits cap limits in the $20,000 to $30,000 range.) There is no lifetime limit.

Wellness coverage works on a scheduled basis, which means each treatment carries its own annual limit. For example, annual checkups are covered up to $55 and you can spend up to $75 on preventive blood work.


Plan Exclusions

One downside of Lemonade pet insurance is that the list of exclusions is longer than most competitors. Coverage isn’t available for behavioral treatment, dental care, or end-of-life expenses such as cremation or burial. Lemonade also excludes services that are commonly included in wellness packages like microchipping and spay or neuter surgery.


Claims

Lemonade’s claim to fame in the insurance world is its app, which uses AI to process and assess claims. In fact, around a third of claims are approved and paid in a matter of seconds. This efficiency is how Lemonade manages to keep premiums so low compared to competitors.

To file a claim, all you need to do is download and open the Lemonade app on your smartphone. You’ll be asked to fill out a form and submit copies of your vet’s invoice and paid receipt.

While Lemonade lets customers purchase policies through its website, you can only file claims via smartphone app. Make sure you have a device that can run the app before signing up.


Customer Service

Since Lemonade handles claims digitally, you won’t find the traditional customer service options available through old-school providers. While a phone number is provided, it’s only to be used in emergencies, for example, if your pet needs immediate surgery for a life-threatening issue. You should mainly expect to receive service through the Lemonade app and by email.


Third-Party Ratings

Although we take them with a grain of salt, we sometimes use third-party ratings to help assess pet insurance providers. Lemonade only has a B+ rating with the Better Business Bureau, although it’s worth noting that the provider has a 4.5-star average review (most competitors receive just one or two stars). AM Best gives Lemonade an A rating for financial stability.


Competition: Lemonade vs. 24PetWatch

To see how Lemonade stacks up against competitors, we compared equivalent policies with 24PetWatch, a highly rated pet insurer with two decades in the industry. For a fairer assessment, we priced Lemonade’s base policy with its Extended Accident and Illness package as these services are included with 24PetWatch coverage. Even with the add-on, Lemonade’s policy was less than half the price of 24PetWatch.

  Lemonade 24PetWatch
Animals Covered Dogs and cats Dogs and cats
Example Cost $33.00 to insure a two-year-old dog with 80% coverage, a $20,000 annual limit, and a $100 deductible $73.35 to insure a two-year-old dog with 80% coverage, a $20,000 annual limit, and a $100 deductible
Coverage Type Accident and illness Accident and illness
Waiting Period Injuries: Two days;
Illnesses: 14 days
Injuries: One day;
Illnesses: 14 days
Network Size Unlimited Unlimited


Verdict

Lemonade’s recent entry into the pet insurance market should make competitors nervous. The company’s revolutionary technology not only lowers premiums but helps pet parents get reimbursed faster and more efficiently; customers overwhelmingly rave about their positive experiences. We’re looking forward to seeing if Lemonade expands its pet insurance offerings in the future with options for accident-only coverage and additional types of treatment.



How We Review Pet Insurance Carriers

We evaluate pet insurers with a standardized scoring system that uses quantitative data to rate carriers in specific categories. Our reviews look at coverage options, policy terms, and limitations, comparing these against pricing to see which companies offer the most value. We also grade each provider on customer service by looking at claims processing and third-party reviews.

Learn more: Read our Pet Insurance Review Methodology here.






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