Car insurance 101

Got car insurance questions? We’ve got answers! Get the scoop on your car insurance policy—from coverage, costs, and more.

The Ultimate Guide to Car Insurance

It's not that hard to become a car insurance pro. Let's roll!

Who's Covered to Drive Your Car?

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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

Your car insurance policy is a collection of different coverages—some legally mandated, and others optional.

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

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

Annual Mileage

Your car's annual mileage is one part of a bigger picture.

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

Your car insurance deductible is the amount of money you’d contribute when your insurance company pays for a covered claim.

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

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


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

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

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. 

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

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


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

Actual cash value (ACV) is the amount an insurance company decides your car is worth at the time of an accident.

Trailer Insurance

What to know about auto insurance and your non-motorized trailer.

How Does Lemonade Car Price Policies?

And what the heck is a Safety Score?

What is a Multi-car Insurance Policy?

And can it save me money on my car insurance premium?

What’s the Best Car Insurance for Low-Mileage Drivers?

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!)

Property and casualty insurance provided by Lemonade Insurance Company, 5 Crosby St., 3rd floor, New York, NY 10013. Life Insurance provided by North American Company for Life and Health Insurance®, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193.

Lemonade Insurance Agency, LLC (LIA) is acting as the agent of Lemonade Insurance Company and Lemonade Life Insurance Agency, LLC (LLIA) is acting as the agent of North American Company for Life and Health Insurance®. Both LIA and LLIA receive compensation based on the premiums for the insurance policies each sells. Further information is available upon request.

LLIA is a sub-producer of Bestow Agency, LLC. Life insurance quotes are provided by Bestow Agency, LLC dba Bestow Insurance Services in CA, who is the licensed agent. Term Life insurance policies are issued on North American Company for Life and Health Insurance® policy form LS181 and LS182, or state version including all applicable endorsements and riders. Products or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply. Not available in New York. Our application asks about your lifestyle and health; your answers allow us to save you time and avoid offline medical exams.