The US-based insurtech opened the waitlist for Lemonade Car ahead of its launch later this year, per its press release. Lemonade has yet to release much detail on the new offering, but it says it will use technology to pay claims quickly and reward safe drivers with better prices and that policies will be especially attractive to drivers of electric and environmentally friendly cars.
The announcement continues Lemonade’s product diversification over the past year, with car insurance further bolstering cross-selling and customer acquisition.
Despite Lemonade entering the crowded auto insurtech sector, its wide offering on one platform and use of tech should help it stand out. US consumers have access to a wide range of tech-powered car coverage, like IoT-based Root and Metromile or AI-driven Clearcover. In addition, electric car firms like Tesla and Rivian are launching their own insurance programs. But Lemonade can leverage its vast customer base to secure sales: The insurtech finished 2020 with more than 1 million customers, per its financial results, and many of them will likely be enticed by the convenience of bundling their car coverage with their other Lemonade policies. In addition, Lemonade stating it will offer great prices to safe drivers suggests it may unveil telematics capabilities in addition to already processing claims with AI, creating a comparable tech offering to its competitors but with the added bonus of wider policy options.