At Lemonade, we believe in rewarding safe driving with even more opportunities for discounts. That’s why we’ve developed a way to adjust your car insurance pricing based on your actual driving behavior. But how exactly does that work? Let’s break it down.
1. Your initial rate: Self-assessment discount
When you first sign up for Lemonade Car, we ask a few questions about your driving habits. This self-assessment gives you more control over your Car insurance rate. It helps us calculate your initial rate with some built-in discounts. We trust you’ll answer honestly so we can give you the best possible rate from day one.
But here’s the thing: Those answers are just the beginning! Your rate isn’t set in stone. Instead, it’s a starting point while we get to know your real driving behavior.
2. Using technology to unlock your driving savings
Here’s why it’s SO important to enable the right permissions in the Lemonade app: After you set up your policy, our app starts collecting driving data in the background, including information like:
- Phone usage
- Following distance
- Driving speed
- Night driving
You don’t need to do anything special—just drive like you normally would, and the app will handle the rest, but if you’re hoping to improve your driving to lower your price, here are some helpful hints.
Phone usage
Our app monitors whether you’re using your phone while driving. Hands-free usage, like CarPlay, won’t affect your score, but holding your phone while driving can increase the risk of accidents. On the flip side, staying off your phone entirely helps you stay focused and safe on the road.
Following distance
Keeping a safe distance from the car in front of you reduces the chances of collisions, especially in sudden braking situations. Our app measures driving behaviors that help us understand how consistently you maintain a safe following distance, and rewards you for giving yourself more time to react.
Driving speed
Driving at or below the speed limit isn’t just about avoiding tickets—it’s about ensuring your safety and the safety of others. Our app monitors your speed across different kinds of roads, so staying at safe, legal speeds can help you score better and earn discounts.
Night driving
Driving at night can be riskier because of reduced visibility and increased fatigue. Our app tracks the times you’re on the road and rewards drivers who avoid late-night trips, especially during high-risk hours.
3. A few weeks in: Rate adjustments
Once we’ve collected a few weeks’ worth of data, we’ll revisit your rate to see if it aligns with your actual driving habits. If you’re driving safely, you could see more discounts applied. On the flip side, if your driving differs from what you initially reported, we’ll adjust your rate to reflect that. But don’t worry—we’ll always give you a heads-up before making any changes.
Here’s what you need to know:
- One-time adjustment: Your rate will only change once after the first 30 days. After that, it’s locked in until your next renewal, unless you make other changes to your coverage.
- No surprises: We’ll notify you before any changes take effect, so you’ll always know what to expect.
4. What happens at renewal?
Your updated rate will stay the same until your policy renews. At that point, we’ll look at your driving data again to ensure you’re still getting the most accurate rate. The safer you drive, the better your renewal discount!
5. What if I don’t enable permissions in the app?
To unlock the best discounts, it’s important to keep permissions enabled in the Lemonade app. Without the driving data collected through telematics, we won’t have enough information about your habits to apply any of the safety discounts. So if permissions are turned off, you won’t be eligible for those extra savings after your first month on the road.
6. What if a specific trip wasn’t perfect?
We get it—sometimes you might have a less-than-perfect trip. But don’t worry, we don’t adjust your rate based on individual drives. Instead, we look at your overall driving habits over a period of time to get a fair and accurate picture of your behavior. This means a single trip won’t make or break your rate. So, even if you had a rough drive one day, it won’t drastically impact your rate.
By the way, the Lemonade App uses motion sensors to tell if you’re driving, a passenger, or even on public transport. Just keep location services on, and let our tech do the rest!
7. Maximizing your discounts: A few tips
- Drive safely: Stick to speed limits, avoid hard braking, and drive at safer times.
- Go hands-free on your phone: Use CarPlay or other hands-free setups to reduce phone distractions.
- Keep it steady: Consistent, smooth driving helps maximize your score.
With Lemonade Car, your driving habits have the power to unlock discounts to help you save. So hit the road, drive safe, and let us reward you for being an awesome driver!
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
