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Understanding Car Insurance

Car insurance should be easy to understand and accessible to everyone. Here’s what you need to know, in plain English ✌️

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The Ultimate Guide to Car Insurance

It's not that hard to become a car insurance pro. Let's roll!
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Who's Covered to Drive Your Car?

Lending out your car? Here's what you need to know before you hand over those keys
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A Different Kind of Car Insurance

Let's explore the unique perks and benefits of Lemonade Car, a whole new way of doing car insurance.
Types of Car Insurance
Definition

Types of Car Insurance

Your car insurance policy is a collection of different coverages—some legally mandated, and others optional.
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What You Need To Know About Lemonade Car

Don't go to pieces. Car insurance doesn't have to be a headache
Act of God Insurance
Definition

Act of God Insurance

The insurance industry uses the term “Acts of God” to refer to damage caused by something that’s outside of human control.
Annual Mileage
Definition

Annual Mileage

Annual mileage is important for determining a car’s value and insurance costs, among other things.
Car Insurance Exclusions
Definition

Car Insurance Exclusions

Car insurance exclusions are a way for insurance companies to more narrowly define what’s covered, and what’s not, in a car insurance policy.
Car Insurance Deductible
Definition

Car Insurance Deductible

Get the 411 on how your car insurance deductibles work, and learn how your deductible amount impacts your auto insurance premium.
Proof of Insurance
Definition

Proof of Insurance

Proof of insurance is a document issued by your insurance company that provides proof you have at least the state-mandated minimum insurance coverage.
Vehicle Identification Number
Definition

Vehicle Identification Number

A vehicle identification number (also called a VIN number) is used to identify the specific vehicle and vehicle type
Subrogation
Definition

Subrogation

Subrogation is a legal right that allows your insurer to pay for your damages before pursuing the responsible party to collect the debt it's owed.
Salvage Title
Definition

Salvage Title

A salvage title is a branded title that warns buyers of the extent of damages from an accident, theft, or other situation like a natural disaster. 
Rated Resident
Definition

Rated Resident

A rated resident refers to a member of your household who drives an insured car, and whose driving record is used to determine your insurance premiums. 
Lienholder
Definition

Lienholder

A lienholder is the bank or lender that hooks you up with a loan to help you buy your car.
Total Loss
Definition

Total Loss

An insurance company usually declares a car to be a total loss when the cost of repair is greater than the cost to replace.
Waiver of Subrogation
Definition

Waiver of Subrogation

Before you agree to sign one of these, take a look at what it entails. We explain everything in plain English.
Betterment
Definition

Betterment

A betterment clause states that an insurer will not pay for any repairs or replacement parts that improve the car’s condition and increase its value.
Actual Cash Value
Definition

Actual Cash Value

Actual cash value (ACV) is the amount an insurance company decides your car is worth at the time of an accident.
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What Does Car Insurance Cover?

Get the coverage you need, and hit the road with confidence
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What Car Insurance Doesn’t Cover

Custom parts? Rideshare driving? We spell out everything your car insurance policy might not cover.
Comprehensive Coverage
Definition

Comprehensive Coverage

Comprehensive insurance protects you against a lot of things that don’t involve crashing into another vehicle—stuff like theft, vandalism, and storm damage.
Collision Coverage
Definition

Collision Coverage

Collision insurance is coverage that helps pay to repair or replace your own car if it’s damaged in an accident with another vehicle or object.
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Lemonade Car Roadside Assistance

With Lemonade Car's roadside assistance services, we're with you every step of the way. We'll break down—no pun intended—how it all works
Rental Car Insurance
Definition

Rental Car Insurance

Rental car insurance protects you if you rent a car and are later liable for hitting another vehicle, as well as if the car is damaged or stolen.
Temporary Transportation Coverage
Definition

Temporary Transportation Coverage

Temporary transportation coverage refers to a car insurance add-on that covers expenses like Lyft, public transportation, bike sharing, or a rental.
Bodily Injury Liability
Definition

Bodily Injury Liability

Bodily injury liability pays for someone else’s medical expenses and injury-related lost wages if they’re injured in a car accident where you are at fault.
Gap Insurance
Definition

Gap Insurance

If your vehicle is totaled or stolen, gap coverage helps pay off your existing auto loan.
Medical Payments Coverage
Definition

Medical Payments Coverage

Medical payments coverage helps pay the medical bills if you, your passenger, or family member got injured in a car accident.
Pet Injury Coverage for Car Insurance
Definition

Pet Injury Coverage for Car Insurance

Pet injury coverage helps pay the veterinary bills or costs of memorial in the event that your pet is hurt or killed while riding with you in a car accident.
Roadside Assistance
Definition

Roadside Assistance

Learn about Lemonade Car's roadside assistance. Get to know what's included in your policy, and how you can use it.
Windshield Crack Repair
Definition

Windshield Crack Repair

Windshield crack repair describes the process of fixing a cracked windshield before it gets worse and needs complete replacement.
Full Coverage Car Insurance
Definition

Full Coverage Car Insurance

Get the ins and outs about full coverage car insurance, which protects your vehicle in many different scenarios.
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Illinois Car Insurance Coverage

Make every mile magnificent with Lemonade Car
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5 'Car Movies' You Have to See

From the surreal to the hilarious, these films celebrate the potentials of the automobile... Buckle up!
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6 Types of Driver You Never Want To Be

An exhaustive list, backed by "science" and opinion
Emergency Services
Definition

Emergency Services

Emergency services refers to professional help you might call in the event of a car crash or other unsafe road conditions.
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How to Insure a Brand New Car

What comes first: The policy, or the car?
Catalytic Converter Theft
Definition

Catalytic Converter Theft

Catalytic converter theft is on the rise. Learn more about preventative measures you can take for your vehicle.
Fender Bender
Definition

Fender Bender

A fender bender is a minor accident between more than one car.
Courtesy Car
Definition

Courtesy Car

When would you be given a courtesy car, and how does the process work with your insurance?
Classic Car Insurance
Definition

Classic Car Insurance

Classic car insurance is a specialty coverage for certain types of older, collectible cars.
Car Key Replacement
Definition

Car Key Replacement

Car key replacement can get tricky depending on the type of car you drive. We explain the basics.
Accident Forgiveness
Definition

Accident Forgiveness

Accident forgiveness is when an insurance company agrees not to factor a car accident into calculating your premiums.
Hit and Run
Definition

Hit and Run

Got in a hit and run accident? Oof. Here's everything you need to do if you find yourself in this unpleasant situation.
Mechanical Breakdown Insurance
Definition

Mechanical Breakdown Insurance

Mechanical breakdown insurance (or MBI coverage, for those in the know) is a type of insurance that covers your car’s mechanical failures.
Motor Vehicle Report
Definition

Motor Vehicle Report

Learn what a motor vehicle report is, how it can be obtained, and who has access to it.
Collector Car Insurance
Definition

Collector Car Insurance

Collector car insurance (also known as classic car insurance) is a specialty auto insurance policy.
No Fault Insurance
Definition

No Fault Insurance

No-fault insurance, also called personal injury protection or PIP, covers the medical expenses of you and your passengers in an auto accident.
Non-Owner Car Insurance
Definition

Non-Owner Car Insurance

Non-owner auto insurance is liability coverage for people who don’t have their own car, but still need to drive once in a while.
Rideshare Insurance
Definition

Rideshare Insurance

Rideshare insurance is designed to prevent coverage gaps for any full or part-time gig workers employed by companies like Uber or Lyft.
Totaled Car
Definition

Totaled Car

If your car has been "totaled" after an accident, it means the cost of repairing it is greater than the cost to replace it.
SR22 Insurance
Definition

SR22 Insurance

An SR-22 is not an actual "type" of insurance, but rather a form that proves your car insurance policy meets certain state requirements.
Accident Report
Definition

Accident Report

An accident report details the events of a car accident, with all the details about what happened, who was involved, any property damage, etc.
Car Repair Insurance
Definition

Car Repair Insurance

Car repair insurance is a type of insurance that covers mechanical failures.
Please Note: These definitions don’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade. They are intended for educational purposes only - they’re not meant to be used in lieu of professional legal or financial advice. We’ll do our best to keep them updated, but they may not always reflect current industry developments. Feel free to use the terms with attribution (friends don’t let friends plagiarize!)
Insurance provided by Lemonade Insurance Company, 5 Crosby St. 3rd floor, New York, NY 10013 Lemonade Insurance Agency (LIA) is acting as the agent of Lemonade Insurance Company in selling this insurance policy, except that Lemonade Life Insurance Agency (LLIA) is acting as the agent of one or more unaffiliated companies that provide life insurance. Both LIA and LLIA receive compensation based on the premiums for the insurance policies each sells. Further information is available upon request.