INSURANCE

Lemonade Insurtech Enters the ‘Green’ Auto Insurance Market

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Lemonade, a home, renters, and pet insurer, is launching Lemonade Car, a new product that combines artificial intelligence, behavioral economics, and social good.

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Lemonade Car aims to provide lower auto insurance rates for safe and low-mileage drivers, as well as environmentally friendly electric and hybrid automobiles. The Lemonade app employs telematics to track how often and how safely users drive, as well as provide 24/7 on-site roadside help, real-time crash detection, and emergency response dispatch.

As part of a planned nationwide launch, Lemonade Car is now accessible in Illinois, with Tennessee set to be the next state.

Earlier this year, the company revealed its ambition to enter the auto insurance market. The company began with home insurance, then expanded to include pet insurance in the second half of 2020 and term life insurance in the first half of 2021.

Customers who bundle other Lemonade products, such as house, renters, pet, or life insurance, will automatically receive discounts.

READ ALSO: Car Insurance Companies with the Lowest Premiums (October 2021)

Lemonade, the first significant insurtech IPO, raised more than $300 million in July.

Lemonade Car’s claims process allows users to submit claims in minutes and receive towing, emergency EV battery charging, and the option to track repairs, body shop work, and more as needed.

Lemonade said it will maintain its commitment as a public benefit corporation and a B-Corp to never engage in fossil fuels or polluting industries, as well as to incorporate CO2 emission reduction incentives.

“We intended to launch a solution that would not only revolutionize how individuals buy vehicle insurance, manage their policies, and file claims, but would also benefit the environment.” We won’t be able to cease using automobiles for the time being, so we’ll assist compensate for the CO2 created by our customers’ cars by funding continuing reforestation. We can assess how much carbon dioxide is released by each ride using the telematics technology in our app and plant trees accordingly,” said Shai Wininger, CEO and co-founder.

Lemonade has defended the use of artificial intelligence in insurance against charges that it is unfairly prejudiced against women, minorities, and people of color.

Lemonade claims that a “vast majority” of its current clients are car owners who already pay $1 billion a year on car insurance.

Lemonade is now a carrier in the United States, Germany, the Netherlands, and France.

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