What Does Car Insurance Cover?
Get the coverage you need, and hit the road with confidence.
- How does car insurance work?
- What are the different types of car insurance coverage?
- Liability coverage
- Collision coverage
- Comprehensive coverage
- Medical payments coverage (MedPay)/Personal injury protection (PIP)
- Uninsured motorist coverage
- Underinsured motorist coverage
- Temporary transportation coverage
- Extended glass coverage
- Roadside assistance
- What the heck is ‘full coverage’, and does it mean what I think it does?
- What will my Lemonade car insurance policy not cover?
- Does car insurance cover routine maintenance?
- How does Lemonade Car price policies?
- Which states currently offer Lemonade Car insurance?
- FAQs about car insurance
Car insurance can cover all kinds of damage to your car, plus offer financial protection if you get into an accident that injures another person or damages their property. However, what all you’re protected for will depend on the specific coverages included in your policy.
In this guide we’ll break down the different coverage options offered by Lemonade Car insurance, in plain English.
Then we’ll take a spin through some real scenarios to see what is included in different types of car insurance coverage.
How does car insurance work?
Car insurance is a collection of coverages designed to protect you and your car when you’re on the road, parked, or in your driveway-like helping with the costs to repair the damage from Sasquatch leaving a footprint on your car’s roof while you’re camping in Eagle Cap wilderness area.
A Lemonade Car policy can cover you for damage to your car caused by accidents, vandalism, extreme weather, fire, and falling objects, and a whole lot more-but keep in mind that your specific protection will depend on how you build your policy.
The good news is that Lemonade Car coverage is super customizable-both when you build your quote, and at any time during your policy term-all on the Lemonade app. You’ll have the power to see and make changes to your coverage, limits, deductibles, start date, and more literally in the palm of your hand.
Just a refresher: A “limit” in regard to your auto insurance policy refers to the maximum amount your insurer would pay out on a certain type of claim.
For example, Texas drivers are required to have a minimum of $30,000/$60,000 of bodily injury liability coverage. That means that for a certain type of claim your car insurance company could pay out a maximum of $30,000 of bodily injury coverage per person, and $60,000 of bodily injury coverage in total (for all of the people injured in an accident.)
What are the different types of car insurance coverage?
Let’s break down some of the required coverages you’ll need to include-and the optional coverages you might want to add-to your car insurance policy.
Here are the coverages we’ll be tackling:
Medical payments coverage (MedPay)
Personal injury protection (PIP)
Underinsured motorist coverage
Temporary transportation coverage
One important thing to note is that the car insurance policy you customize is actually a collection of different coverages, each with their own focus, and each with their own limits and deductibles.
When you’re pondering your ideal car insurance policy, you might just ask yourself, “what can keep me, my car, and my wallet safe from the unpredictable world around me?”
To answer that question (and to start building your policy) you might want to include more than the legal minimum requirement. It’s true: Adding more coverage to your policy usually means higher insurance costs, but it could also save you a lot of time, money, and aggravation in the long run.
So, what do the different coverages all mean? (Keep in mind: Depending on where you live, some of them might not be available.)
Liability coverage
If you’re a law-abiding driver (and we know you are), you’re required in almost every state to have at least some liability insurance coverage to be on the road.
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
Example: You run a red light and T-bone a car at an intersection. The other car has significant damage, and the driver suffers a mild concussion. Your property damage liability coverage will cover the costs of the other car’s repairs, and your bodily injury liability coverage will cover the medical bills for the other driver.
Collision coverage
Collision insurance 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.
Let’s say you aren’t paying attention, and you hit a road partition in the middle of the highway. No other vehicles are involved, but your car is pretty messed up. The repairs would be covered by your collision coverage after the deductible has been met.
Comprehensive coverage
Also known as “act of god” coverage, comprehensive insurance coverage helps pay to fix damage to your car or possibly replace it from an incident that wasn’t a car accident.
That means if your car is stolen, vandalized, or has an unexpected rendezvous with an animal, for example, comprehensive coverage kicks in to repair or replace your car.
Picture this: You park your car on the street, and gale force winds uproot a tree, which then falls and totals your car. Replacing your car would be covered by your comprehensive coverage, minus your deductible.
Medical payments coverage (MedPay)/Personal injury protection (PIP)
It’s not pleasant to think about, but if you or other passengers in your car get hurt in a car accident, this coverage comes into play, regardless of who was at fault.
Depending on where you live, you will have the option to add either personal injury protection (PIP) or medical payments (MedPay) coverage to your car insurance policy.
MedPay is usually optional, whereas some states require that a car insurance policy includes PIP-like Oregon.
MedPay covers some medical expenses, including, but not limited to:
- Ambulance fees after an auto accident
- X-rays, surgeries, or a prostheses
- Health insurance co-pays
- Doctors and hospital visits
- Nursing services
- Funeral services
PIP is basically the same as MedPay, but it also includes:
- A percentage of your lost wages as a result of your injuries
- Childcare or house cleaning expenses
Also, PIP is sometimes referred to as no-fault insurance because it covers medical expenses from an at-fault accident, no matter who is at fault.
Imagine this: You drive off the side of the road and hit a tree. You end up breaking your wrist, and require an X-ray and a cast. Your medical costs will be covered by PIP or MedPay coverage.
Uninsured motorist coverage
As we said earlier, in order to be a law-abiding driver, you need to have some sort of liability coverage. But unfortunately, not everyone follows the rules. If you are injured or your car is damaged by an uninsured driver, you could be left paying a hefty bill at the body shop or at the hospital.
Uninsured motorist coverage is broken down in two ways:
- Uninsured motorist bodily injury coverage (UMBI). This coverage will cover medical bills and lost wages related to injuries caused by an uninsured driver.
- Uninsured motorist property damage coverage (UMPD). If you get into a car accident with an uninsured driver, this coverage will cover the costs of repairing your vehicle.
Example: An uninsured driver makes an illegal right turn, causing a car accident, which damages your side door. Your uninsured motorist property damage would cover the costs.
Underinsured motorist coverage
Sometimes, even if an at-fault driver does have liability coverage, the coverage isn’t enough to cover major expenses after an accident. In order to avoid paying the difference in repair and medical costs, you would need to purchase underinsured motorist coverage.
This coverage is also broken down in two ways, the same as uninsured motorist coverage.
- Underinsured motorist injury coverage (UIMBI). This coverage will cover remaining medical bills and lost wages related to injuries caused by an underinsured driver up to your UIMBI policy limits.
- Underinsured motorist property damage coverage (UIMPD). If you get into a car accident with an underinsured driver, this coverage will cover the remaining costs of repairing your vehicle up to your UIMPD policy limits.
Example: An underinsured driver makes an illegal right turn and ends up wracking up $20,000 in damages to your car. They only have $10,000 in property damage liability coverage, so your underinsured motorist property damage coverage would kick in to cover the remaining $10,000.
Temporary transportation coverage
Lemonade Car goes beyond the typical rental reimbursement if you need alternative transportation while your car is being repaired from a covered incident.
We help cover almost any type of transportation for up to a month while you’re waiting for your car in the shop. This includes taking rideshares-like Uber and Lyft-rental car expenses, or even public transportation like buses or trains, up to your daily limit.
If you have both collision and comprehensive coverage on your car, you’ll get the option of selecting temporary transportation coverage for your car as well.
Example: You get into an accident and your car needs to be in the shop for repairs. In the meantime, you decide to Lyft to and from work. Your Lyft fees would be covered by your Lemonade temporary transportation coverage up to the limit on the policy.
Extended glass coverage
Glass insurance helps pay the cost to repair or replace your car’s damaged windshield.
If you have both collision and comprehensive coverage on your Lemonade policy, you have the option to choose an extended glass coverage that allows you to replace your windshield with little or no deductible, depending on where you live.
Example: You’re cruising on the highway and a rock cracks your windshield. Since you have extended glass coverage, you get your windshield fixed with little or no deductible.
Roadside assistance
Roadside assistance provides towing and other emergency roadside services like lockout services, flat tire replacement, jumpstarts for dead batteries, fuel delivery, winching and battery service if your car breaks down.
Lemonade Car includes roadside assistance as part of a car insurance policy when users drive with the Lemonade app (and when the policy includes comprehensive and collision coverages). It’s included for each car listed and covered by a Lemonade insurance policy as long as the user’s account is set up correctly in the Lemonade app.
For our Oregon drivers, roadside assistance is an optional coverage you can include on your policy.
Example: Your car’s battery dies in the middle of the road. You request roadside assistance on your Lemonade app, and one of Lemonade’s roadside partners is dispatched to help you. When they arrive, they give you a jump and you can continue on your way, free of charge.
What the heck is ‘full coverage’, and does it mean what I think it does?
Full coverage car insurance is a combination of insurance coverages designed to ‘fully’ cover you in the event of an accident. This would include coverages that aren’t legally required, but that would give you extra peace of mind in many different scenarios.
It’s important to understand that it doesn’t mean you’re covered for everything, nor does it guarantee your insurance claim will be approved. Full coverage car insurance combines various coverage options and endorsements to fully cover you up to any applicable limits you selected. It’s a single policy you build with your insurance company to provide the best combination of coverage for you.
If you want to feel fully covered by your Lemonade Car policy, your coverage could include a combination of collision and comprehensive insurance, in addition to bodily injury, property damage, temporary transportation coverage, and extended glass coverage.
However, it’s important to note that deductibles will apply for most of these coverages, and you’ll only be covered up to the coverage limits you set.
Some real-world examples of how Lemonade Car works
We understand that car insurance can be confusing, so we’ve broken down several common, but perhaps less cut-and-dry scenarios where various coverages would come in handy.
I’m driving and I hit a deer. The road is empty-no other cars involved-but my car is really messed up.
Is it covered? Yes!
Which part of my policy? Comprehensive coverage
Anything else I need to know? Nope, just go ahead and file a claim on the Lemonade app to start the repair process, and call for roadside assistance if needed. If the deer has been injured, call the authorities so they can dispatch someone to assist.
I’m driving and I hit a deer, which immediately causes me to crash into another car.
Is it covered? Yes
Which part of my policy? Collision coverage to repair your car, and liability coverage to repair the other person’s car
Anything else I need to know? Nope, just file a claim on the Lemonade app.
My car is broken into and the vehicle is stolen.
Is it covered? Yup!
What part of my policy? Comprehensive coverage will help replace your car
Anything else I need to know? Check your state’s requirements about how long you need to wait after filing a police report for a stolen vehicle before you can file a claim. The sooner you tell the authorities your car has been stolen, the more likely they are to find it.
I’m not paying attention and I run into a highway divider, seriously messing up my car…
Is it covered? Yes
What part of my policy? Collision coverage (for your car’s damage) and property damage liability (for the poor highway divider).
Anything else I need to know? Nope, just file a claim on the Lemonade app.
I rear-end someone else’s car, damaging my car and their car, and hurting the other driver.
Is it covered? Yes
What part of my policy? Your collision coverage will pay for repairs to your car, your property damage liability coverage will pay for repairs to the other car, and your bodily injury liability coverage will pay for the other driver’s medical expenses.
Anything else I need to know? Nope, just file a claim on the Lemonade app.
A thief smashes my window and steals my car radio and a suitcase full of clothes. What happens-can I get compensated for my window, my radio, and my stuff?
Is it covered? Yes and no (and yes!).
What part of my policy? Your comprehensive coverage will cover the costs to repair your windows and replace your car radio. Car insurance won’t cover your clothing, but your renters or homeowners insurance could.
Anything else I need to know? Nope, just file a claim (or two, if you have renters or homeowners insurance as well) on the Lemonade app.
What will my Lemonade car insurance policy not cover?
All insurance policies vary, so it’s good to have a basic grasp of what yours does (and doesn’t) cover.
Some of the reasons a Lemonade Car policy can’t cover damage include:
- Using your car as a way to make additional income-like through ridesharing platforms-or if it’s affiliated with your company or business
- Intentionally damaging your car
- Damaging custom parts on your car-like custom color changing LED headlights
Get the full scoop on what car insurance doesn’t cover here.
Does car insurance cover routine maintenance?
Nope. You’re responsible for giving your ride the TLC it deserves-like regular oil changes and rotating your tires. If you file an insurance claim and the adjuster determines that the damage to your vehicle is from normal wear and tear, you’ll have to pay for those repairs yourself.
The same applies to cosmetic issues that may happen over time-for instance, if your nice leather seats become sun-damaged. That would be considered wear and tear that’s not covered by your insurance policy.
How does Lemonade Car price policies?
There are lots of variables that factor into the cost of car insurance, including:
- Your insurer
- The state you live in
- Your driving history and driving habits
- Your car’s make and model year
- The additional drivers you include
- The specific coverages, limits, and deductible you include on your policy
At Lemonade Car, the way you drive matters. From mileage to behind-the-wheel behavior to driving history, we crunch a ton of numbers to help us determine the fairest price for your car policy.
Want to learn more about what influences the price you pay for car insurance? Read on here.
But the most straightforward way to get a sense of how we price car insurance premiums is by applying for coverage. It’s fast, easy, and simple to compare.
Which states currently offer Lemonade Car insurance?
We’re live in the following states: Arizona, Colorado Illinois, Indiana, Ohio, Oregon, Tennessee, Texas, and Washington.
FAQs about car insurance
What is the difference between collision and comprehensive coverage?
How are insurance rates determined for different car models?
Insurance rates for different car models can factor in things like the model’s safety rating and the cost to repair it if it’s damaged.
How can I lower my car insurance costs?
With Lemonade, the easiest ways to lower your rate are to drive safely, drive less, and bundle your policies. Safe habits like smooth braking, low phone use, and avoiding late-night drives can earn you discounts at renewal. Plus, bundling car with renters, homeowners, pet, or life insurance can save even more.
Some other ways to save include choosing a higher deductible or driving an EV or hybrid.
Does Lemonade Car offer lower rates for safe drivers?
Yes, Lemonade Car uses telematics t0 track your driving through the app (no plug-in needed), and safe habits like smooth braking, low phone use, and keeping a safe following distance can earn you discounts at renewal.
FAQs about Coverage Basics & “Full Coverage”
What is the difference between "full coverage" and the legal minimum required by my state?
The legal minimum is exactly what it sounds like: the least amount of coverage your state requires for you to drive legally. That usually means liability coverage, which pays for the other person’s injuries and property damage if you cause an accident. It does nothing for your own car.
“Full coverage” is a step up. It combines liability with collision (covers damage to your car in an accident) and comprehensive (covers damage from theft, weather, vandalism, and more). There’s no single legal definition of full coverage, it’s really a shorthand for a more complete protection package.
If your car is newer, financed, or leased, full coverage is almost always required and worth it. If you’re driving an older car with low market value, the math might look different.
Does "full coverage" guarantee that every single insurance claim I file will be approved?
Nope. “Full coverage” doesn’t mean unlimited or unconditional coverage.
Every policy has limits and deductibles, and if your claim falls below your deductible, or exceeds your coverage limit, the gap is on you. Coverage also depends on what actually happened: routine wear and tear, intentional damage, or incidents that fall outside your policy’s terms won’t be covered, no matter what plan you’re on.
Full coverage means you’re covered across more scenarios than the minimum, not that every possible situation is accounted for. When you’re building your Lemonade policy, pay attention to what each coverage type actually includes so there are no surprises later.
What is a "coverage limit," and how does it affect the maximum payout for an accident?
Your coverage limit is the most your insurer will pay out for a covered claim. Think of it as a ceiling: once you hit it, any remaining costs are yours to cover.
Here’s a simple example: if your bodily injury liability limit is $30,000 per person and the other driver’s medical bills come to $45,000, you’re on the hook for the remaining $15,000 out of pocket.
That’s why experts generally recommend going beyond the state minimums. The difference between minimum limits and more robust coverage (like 100/300/100) is often surprisingly affordable, and can save you from a very expensive gap if things go wrong.
How do I choose the right deductible (between $250 and $2,000) for my Lemonade policy?
Your deductible is what you pay out of pocket before Lemonade covers the rest of a claim. The basic trade-off: higher deductible = lower monthly premium. Lower deductible = higher premium, but less financial shock when you file a claim.
A good rule of thumb: choose the highest deductible you could realistically pay out of pocket tomorrow without stress. If a $1,000 deductible would leave you scrambling, go lower. If you have a solid emergency fund, a higher deductible could save you real money month over month.
You can adjust your deductible right in the Lemonade app and watch your rate change in real time.
Does Lemonade car insurance cover routine maintenance like oil changes or tire rotations?
No. Car insurance isn’t a maintenance plan. It covers unexpected events, not scheduled upkeep. Oil changes, tire rotations, brake pad replacements, and other routine services are your responsibility as a car owner.
FAQs about Specific Scenarios & Protections
If a tree falls on my car during a storm, which coverage helps me pay for the repairs?
Comprehensive coverage. A falling tree is exactly the kind of non-collision, out-of-nowhere event that comprehensive is built for.
Am I covered if I hit a deer on an empty road with no other cars involved?
Yes, and this one surprises people. Hitting a deer is covered under comprehensive, not collision. Since the deer isn’t another car, it falls into the “unexpected, non-collision event” bucket.
So as long as you have comprehensive coverage on your Lemonade policy, you can file a claim for the damage.
Does my car insurance cover my personal belongings, like a suitcase or laptop, if they are stolen from my car?
Not through your car insurance. Personal property (like a laptop, luggage, or clothes) isn’t covered under your car policy, even if it was stolen from inside your car.
That’s what renters or homeowners insurance is for. If you have a Lemonade renters or homeowners policy, your personal belongings are typically covered for theft, whether they were stolen from your car, your home, or somewhere else entirely.
Does Lemonade cover damage to "custom parts," such as specialized LED headlights or custom paint?
If you put more than $1,000 of custom parts into your car and they’re damaged in an accident, car insurance coverage won’t extend to them. This includes bells and whistles like spoilers, or those mufflers that make your car sound faster and scarier than it actually is.
FAQs About Medical & Uninsured Driver Coverage
What is the main difference between Personal Injury Protection (PIP) and Medical Payments (MedPay)?
Both PIP and MedPay cover medical bills for you and your passengers after an accident, regardless of who caused it. But they’re not identical.
MedPay is narrower: it covers medical and funeral expenses — things like hospital visits, X-rays, and ambulance fees.
PIP goes further: it covers all of that, plus lost wages if your injuries keep you out of work, and sometimes other costs like childcare.
Which one you can get depends on your state. Some require PIP, a few require MedPay, and in others one or both are available as optional add-ons.
Why is PIP sometimes called "no-fault insurance"?
Because it pays out regardless of who caused the accident. Your own insurer covers your medical bills and lost wages without waiting for fault to be determined. It’s called “no-fault” because fault doesn’t gate your payout, not because fault disappears entirely (it still matters for property damage and potential lawsuits). Think of it as your coverage doing its job right away, no finger-pointing required.
How does Uninsured Motorist Property Damage (UMPD) protect me if a hit-and-run driver damages my car?
If an uninsured driver, or a hit-and-run driver, damages your car, UMPD can cover your repair costs so you’re not left paying out of pocket. How it works depends on your state: some states require physical contact with the other vehicle, some require a police report, and a some don’t offer UMPD at all.
What happens if the at-fault driver has insurance, but their limits aren't high enough to cover my medical bills?
That’s what underinsured motorist bodily injury coverage (UIMBI) is for. If the at-fault driver’s liability limits aren’t enough to cover your medical bills, your UIMBI coverage can step in and cover the gap, up to your own policy limits. How much you can collect and availability varies by state.
FAQs about Additional Perks & App Features
What exactly is "Temporary Transportation" coverage, and can I use it for Uber or Lyft rides?
Temporary Transportation covers your getting-around costs while your car is in the shop for a covered repair, for up to a month. And yes, at Lemonade you can use it for Uber or Lyft, not just traditional rental cars.
How does "Extended Glass" coverage work if a rock cracks my windshield on the highway?
Extended Glass coverage lets you repair or replace your windshield with a low, or sometimes zero, deductible, depending on your state. Without it, a cracked windshield falls under your comprehensive coverage and you’d owe your full deductible before your insurer pays the rest.
Is Roadside Assistance included for free, or do I have to pay extra for it in my state?
Depending on your state, roadside assistance is included at no extra cost at Lemonade, as long as you have the app installed with location services turned on, and your policy includes both collision and comprehensive coverage.
It covers the basics you’d want in a sticky situation: towing (up to 15 miles), battery jump-starts, flat tire changes, lockout assistance, fuel delivery, and EV charging help.
If you have a pay-per-mile policy, roadside assistance is available to purchase as an additional coverage.
Can I change my coverage levels or deductibles instantly through the Lemonade app?
Yes. Making changes to your policy is one of the things the Lemonade app does really well. You can adjust your coverage types, raise or lower your limits, and change your deductibles right from your phone, whenever you need to.
When you make a change, you’ll see your updated rate on the spot. No calls, no waiting for a rep to get back to you. Just open the app, make your edits, and you’re done.
FAQs about Pricing & Availability
Which states currently offer Lemonade Car insurance as of 2026?
Lemonade Car is currently available in these states:
Arizona, California, Colorado, Illinois, Indiana, Ohio, Oregon, Tennessee, Texas, and Washington.
Not in one of those states yet? You can sign up for updates on Lemonade’s website, and they’ll let you know when your state is next.
Can I use my car for a ridesharing business (like Uber or DoorDash) under a standard Lemonade policy?
Not by default. A standard Lemonade policy excludes coverage when you’re logged into a rideshare app (like Uber, Lyft, or DoorDash), even if you haven’t accepted a ride yet.
If you drive for a rideshare platform, Lemonade offers a Rideshare Endorsement, which closes that gap and keeps you covered. Right now, the endorsement is available in Colorado and Tennessee.
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 may not be available in all states.
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