How to Lower the Cost of Car Insurance

Get covered without breaking the bank with Lemonade.

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Car insurance is a legal and practical necessity to keep yourself, your loved ones, and those around you protected on the road.

But, of course, protection comes with a price. Luckily, Lemonade Car is designed with drivers like you in mind. Totally customizable coverage, along with a plethora of incentives and discounts, puts you on the road to savings.

Every day you drive with Lemonade is quite literally an opportunity to save on your car insurance rates, and lower your car insurance premiums. Seriously.

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Let’s break it down, shall we? 


Start your Lemonade Car journey with a healthy dose of ‘discount serotonin.’ The following car insurance discounts can be applied as soon as the same day you purchase a Lemonade Car policy.

lower car insurance costs
Cover what you care about, save some cash

Bundle discount: Lemonade will automatically apply a bundle discount on any combination of our insurance products: renters, homeowners, and pet health insurance. 

Savings for planning ahead: You’ll get savings if you go ahead and sign up for Lemonade Car before your coverage start date. Planning ahead pays with Lemonade. 

Savings for covering multiple cars: At Lemonade Car, you’ll be eligible for savings on each car when you cover more than one car on the same policy. Just make sure that each car on your multi-car policy is registered and garaged in the same state, and registered under your or your spouse’s name.

The less you drive, the more you save

At Lemonade Car, the way you drive matters. Each month you determine how much you save based on how many miles you actually drive. So you’ll pay a different price for car insurance month-to-month, based on a simple formula.

When you sign up for Lemonade Car, we send you a device to plug into your car that lets us track your mileage with precision. Learn more about how the device works here.

TIP: If you have a long commute and you’re hoping to lower your premiums, look into biking to work, or taking public transit. Lowering your mileage will reduce your premiums while shrinking your carbon footprint: Win-win. 

Pay based on how well you drive

The same device that lets us track your mileage with precision also helps us to price your policy fairly based on your real-life driving habits. This includes behaviors like your speed, braking, the time of day you drive, and how smoothly you make turns. 

As you drive with Lemonade Car, your safe driving habits can positively impact your premiums at renewals.

Customize your coverage

Lemonade Car is different—it offers customizable insurance at your fingertips, allowing you to see how different coverages impact the amount of money you’ll spend on premiums, so you can find the right balance between coverage that gives you confidence on the road while also being budget-friendly.

Most drivers—specifically if you own or lease a car—are legally required to carry a minimum of liability coverage (although there are lots of other coverages, like collision coverage and comprehensive coverage, that you should definitely consider). Customizing your limits and deductibles on your coverages is one way to help you save money on your premiums. 

Here’s how: 

Your coverage limits: A limit is the maximum amount an insurer would pay out in a covered claim, and 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 car insurance 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.

Keep in mind: Even though lowering your limits or raising your deductible might save you some money on your premiums, it could mean paying more if you’re in an accident and need to file a claim.

List licensed drivers on your policy 

All licensed drivers and all cars that are registered in your or your spouse’s name are required to be listed on your car insurance policy. Those are the rules. The more drivers and cars listed on your policy, the higher your premiums are likely to be. (But don’t forget that the savings from a multi-car policy can help take some of the load off). 

Even if you and your partner drive different cars, for example, you’ll still have to list them and their car on your policy. This makes sure everyone is covered, even when your boyfriend grabs your keys for a quick milk run to the 7-Eleven. 

But let’s say your roommate has a bad driving record, and you don’t want to get hit with a higher premium because of them. Depending on your state, you might have the option to list them on your policy as an “excluded driver”—this lets the car insurance company know about licensed drivers on your policy that you’d like to exclude for coverage (just make sure they don’t borrow your car). 

Also, if someone (like a nanny) drives your car on a regular basis, you should list them on your policy—even if they have their own car insurance. 

Be honest when getting your car insurance quotes. Failing to list a driver who you should have disclosed could void your coverage if they’re in an accident while driving your car. That’s not worth it. Learn more about who’s covered on your car insurance policy here

Before we go… 

Lemonade Car is here to help you save on your auto insurance rates today, tomorrow, and as long as you drive with us in the passenger’s seat (and we promise never to ask you to change the radio station). 

Want to learn more about Lemonade Car? One great way to get a feel for Lemonade Car insurance costs, coverages, and more is by getting a quote. It’s fast, easy, and pretty fun (if we do say so ourselves). 

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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.represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states.


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.