How Much Does Car Insurance Cost?

Besides being legally required, car insurance is vital to keep you protected from the financial burden of bad things that can happen in, around, and to your car. 

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In nearly every state, at least some amount of car insurance is required by law to get behind the wheel. Besides being legally required, car insurance is vital to keep you protected from the financial burden of a range of bad things that can happen in, around, and to your car. 

Luckily, Lemonade Car is designed with drivers (and their wallets) in mind. We’ll break down how we price Lemonade Car policies, so you can get the facts and apply for the  coverage you need with confidence. 

The most straightforward way to get a sense of how we price Lemonade car insurance is by applying for coverage. It’s fast, easy, and simple to compare.

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Making sense of your car insurance price

When you build a quote with Lemonade Car, we divide your premium into two different parts: Your base price (a flat monthly fee) and your per-mile price (which we then multiply by the number of miles you drive each month). If you have more than one car on your policy, each vehicle will have its own distinct base and per-mile price.

car insurance price

This also means that the cost of your car insurance will fluctuate from month to month—learn more about that here.  

There are several factors that impact each car’s base price and per-mile price, including: 

Your driving record: If you have gotten in many accidents recently, it’s likely you’ll pay more for car insurance than someone with a clean driving record. If you only recently got your license, you’ll also probably pay more than an experienced driver who has been on the road for many years. 

Your car: The age, make, model and mileage of your car also influence your insurance costs. A car that’s newer is worth more, so the insurer’s potential liability could be higher. Any time an insurer thinks they might have to pay out more on an insurance claim, they’ll price the new policy higher.  

The drivers you include: Adding additional drivers to your policy may affect your premium, depending on their driving history and other factors. Check out who you should cover on your policy here.

Your coverages: Nearly all states require that drivers have at least some form of car insurance. Many drivers choose to add additional coverage types to their policy to keep them more protected on the road. The more coverage types you add to your policy, the higher your monthly premiums—but keep in mind, if one of these coverages comes in handy, you’ll probably end up paying way less out of pocket if you end up filing a claim. 

Your coverage limits: A limit is the maximum amount an insurer would pay out in a covered claim; you can set different limits for your different coverages. If you pick higher limits, the insurer takes on a greater risk—they might end up paying out a lot more in the event of an accident and subsequent claim. Therefore, your monthly premium will be higher if you have a high limit on your policy. 

Your deductible: A deductible is the amount you pay out-of-pocket before insurance coverage kicks in. With a Lemonade policy, it could be anything between $250 and $1,000. Choosing a higher deductible will generally result in lower premiums, since it means you’d be responsible for more of the initial costs in the event of an accident.

What the cost of Lemonade Car covers 

If you want to take a deep dive into all of the coverage types offered by Lemonade Car, we break it down here.

If you’re short on time, we’ll give you the TL;DR version of the core Lemonade Car coverage types below:

Liability coverage

If you have renters or homeowners insurance, you might already be familiar with this type of coverage. In car insurance, liability coverage is broken down into two parts: bodily injury liability and property damage liability. 

Bodily injury liability coverage. If you accidentally injure someone else who is not a passenger in your car, this will cover their medical bills

Property damage liability coverage. If you damage someone’s car or personal property, this will cover the cost to repair or replace what was damaged

Comprehensive coverage 

Also known as “act of god” coverage, comprehensive insurance coverage helps pay to fix damage to your car, or possibly replace it, following an incident that wasn’t a car accident.

What does that mean? Well, if your car is stolen, vandalized, or has an unexpected run-in with an animal, for example, comprehensive coverage kicks in.

Collision coverage 

Collision coverage helps pay to repair or replace your own car if it’s damaged in an accident with another vehicle or object, especially if you’re the one who’s responsible. If you’re technically at fault for the damages to your car, your collision coverage will kick-in to cover repairs, and get you back on the road.

Before we go…

The story of Goldilocks and the Three Bears taught us that we shouldn’t settle for anything that doesn’t feel “just right.” None of those bears drove cars, but we still feel like they’d agree with us here: The right car insurance policy is about finding the perfect balance of affordable and excellent coverage.

If you’re interested in learning more about a policy with Lemonade Car, the easiest way to explore your coverage options—and what you’d pay—is by applying for a quote. It’s fast, easy, and even a little fun.

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Please note: Lemonade articles and other editorial content are meant for educational purposes only, and should not be relied upon instead of professional legal, insurance or financial advice. The content of these educational articles does not alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. While we regularly review previously published content to ensure it is accurate and up-to-date, there may be instances in which legal conditions or policy details have changed since publication. Any hypothetical examples used in Lemonade editorial content are purely expositional. Hypothetical examples do not alter or bind Lemonade to any application of your insurance policy to the particular facts and circumstances of any actual claim.