Lemonade Pet Insurance

Overview

Lemonade, the InsurTech darling who made its name selling renters and homeowners insurance, is entering the pet insurance market. What separates Lemonade from most traditional property and casualty insurance companies is their use of behavioral economics and technology. This provides for better pricing for some and a far better user-experience for all of their policyholders.

Lemonade reports that 70% of their current policyholders have a pet, so that’s quite a captive audience of pet parents to market to. And applying their learnings and philosophy in renters and homeowners insurance bode well for their pet insurance plan.

Coverage Options

Lemonade offers standard accident and illness coverage as well as a preventative care plan to ensure fluffy stays healthy year round.

Accident and Illness Coverage

Lemonade offers standard accident and illness coverage with an optional extended package that includes exam visits and physical therapy treatments like acupuncture, chiropractic care, and more.

Preventative Care Plans

Lemonade’s preventative care plan covers annual wellness visits and tests to keep your furry family member healthy throughout the year. The preventative care plan is $16/month for dogs and $10/month for cats regardless of your pet’s age or breed and covers 90% of your wellness bills up to the specified annual limits.

Annual Limits for Preventative Care

Wellness Exam – $55/year
Heartworm test – $45/year
Internal parasite or fecal test – $40/year
Bloodwork – $75/year
3 vaccines – $80/year

Waiting Periods

Accidents: 0 days*
Illnesses: 14 days
Orthopedic: 30 days

*Exact waiting periods vary by state.

Enrollment Requirements

Lemonade requires a full medical exam from the past 12 months for pets older than one.

Policy Exclusions

Lemonade, like most pet insurers, doesn’t cover pre-existing conditions, elective cosmetic procedures, or behavioral treatments.

Price

Based on a simple analysis, it’s clear that Lemonade is one of the most affordable pet health insurance plans in the market. Plans for dogs start at $23/month and $17/month for cats.*

The average pet insurance policy in the U.S. is about $44/month. Every pet insurance company is unique in how they price plans based on breed, age and zip code.

*Based on zip code 43221, dog aged two years, cat aged three, mixed breed, $20,000 annual limit, 90% reimbursement and $250 deductible. Includes extended accident and illness package

Summary

As arguably the most successful new property and casualty startup this decade, Lemonade is poised to make waves in the ever-growing, American pet insurance market. It remains to be seen how competitive or differentiated their pet insurance product will be, but if past success is any indication it will be a big hit for pet parents across the country.

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