Despite entering the crowded auto insurance sector, Lemonade’s comprehensive offerings on one platform and use of technology should help it stand out. US consumers have access to a wide range of technology-based auto coverages, such as the IoT-based Root and Metromile, or the AI-based Clearcover.
In addition, electric car companies such as Tesla and Rivian are launching their own insurance program. But Lemonade can leverage its huge customer base to secure sales: The Insurech ended 2020 with more than 1 million customers, according to its financial results, and many of them will likely be attracted by the convenience of bundling their auto coverage with their other Lemonade policies.
Moreover, Lemonade’s statement that it will offer premium pricing to safe drivers suggests that it will unveil telematics capabilities on top of claims already handled by AI, creating a similar technology offering to its competitors but with the added bonus of broader policy options.