Lemonade vs. Allstate: Which is Best for You?

nensuria / iStock.com

There are plenty of options when it comes to insurance.

In business since 1931, Allstate is one of the traditional insurance industry’s oldest brands.

On the other side of the spectrum is Lemonade, a digital insurance provider founded in 2015 to reimagine the industry. Lemonade is built on an entirely digital substrate, which means that Lemonade can sell policies and handle claims with speed. What’s more, as a certified B corporation, Lemonade pairs insurance coverage with philanthropic good, donating leftover funds to charities customers choose as part of its Giveback initiative.

Deciding between the two is literally like comparing apples to lemons. Allstate provides a traditional experience with agents and offices nationwide while Lemonade offers a digital experience in which you can purchase and manage your policy online or through the company’s mobile app, combined with a commitment to social impact. This Lemonade vs. Allstate comparison will help you determine which company may be best for you.

Lemonade vs. Allstate Fast Facts

Here are some key details on both insurance providers.

Lemonade vs. Allstate: Types of Coverage

Both Lemonade and Allstate offer several types of insurance coverage although Allstate’s offerings are wider. Here are the types of insurance available.

Car Insurance

Most states require drivers to carry some form of car insurance, namely liability. Here is more on the types of coverage available by each carrier. It’s important to note that Lemonade car insurance is currently only available in Illinois, Tennessee, and Ohio at the time of publication — though they are planning to expand to cover more states.

Home and Renters Insurance

Both carriers offer homeowners and rental coverage. Here’s more on what’s available.

Allstate Optional Coverages and Riders

• Identity theft restoration
• Water backup
• Scheduled personal property
• Business property
• Sports equipment
• Green improvement reimbursement
• Yard and garden
• Electronic data recovery
• Musical instruments

Lemonade Optional Coverages and Riders

• Scheduled personal property
• Water Backup
• Equipment Breakdown
• Buried Utilities
• Extended Replacement Cost

Lemonade vs. Allstate Life Insurance

The easiest type of life insurance to understand is term life insurance. You can choose a length of coverage, or “term,” and a limit, such as $1 million, which would serve as the death benefit or payout to your beneficiaries after you pass.

Term life is typically cheaper than permanent life insurance, which has other components besides the death benefit. Lemonade only offers term life insurance. Allstate provides term, whole, variable and universal life insurance.

Lemonade vs. Allstate Insurance Discounts

Insurance can add up, especially if you have to purchase several coverages for vehicles, homes and more. Carriers typically offer discounts to help bring some financial relief to new and existing policyholders.

Both Lemonade and Allstate offer a vehicle tracking program to help you save money. You’ll need to enable Drivewise or Lemonade Car and download the app that tracks your driving habits, mileage and more. Each carrier will discount your premiums based on how much — and how safely — you drive.

Allstate vs. Lemonade: Quotes

Quotes are easy to obtain from both Allstate or Lemonade although the latter boasts more advanced technology to help you find the best rate. All you need to do when signing up for a Lemonade quote is answer a series of basic questions about your home. You’ll receive a quote from either just seconds after submitting the quote request.

For more complex requests or if you have any questions, you can call either carrier’s customer support line or in the case of Allstate, visit a local agent.

Allstate vs. Lemonade: Mobile Apps

Allstate and Lemonade both have robust mobile apps. Lemonade’s app is more user-friendly due to its simplicity but doesn’t have as many options and features as Allstate’s.

Both allow you to contact support, see your insurance ID cards, pay bills and file a claim. Here’s more on each app.

Allstate Mobile App

Allstate’s mobile app lets you see all your insurance policies in one place and includes Drivewise. You can take photos during the claims-filing process, as well as look for approved auto-body shops.

• Google Play: 4/5 stars, 91K reviews
• Apple Store: 4.8/5 stars, 776K reviews

Lemonade Mobile App

The Lemonade insurance app offers simple features to view and manage your coverage with Lemonade.

• Google Play: 4.6/5 stars, 12K reviews
• Apple Store: 4.9/5 stars, 57K reviews

Allstate vs. Lemonade: Filing a Claim

The claim handling processes from Lemonade and Allstate are very different.

When filing an Allstate claim, an insurance adjuster will review the matter to make a payout determination. The process typically takes several days.

With Lemonade, the claims process is considerably faster. The company’s AI makes it possible to make some claims payments virtually instantly, and other cases are typically resolved within hours or days-not weeks or months-because AI enables Lemonade’s claims experts to focus only on the most complex cases.

Takeaway

Deciding between Lemonade and Allstate for insurance coverage can be challenging due to how differently each carrier operates. Individuals who want to go with a more traditional insurance provider may prefer Allstate, which offers more coverages to a wider area nationwide than Lemonade.

But customers looking for a seamless digital experience for everything from purchasing a policy to filing a claim should strongly consider Lemonade, especially if they’re looking for an insurer with a business model committed to social good.

More From GOBankingRates

• 9 Bills You Should Never Put on Autopay
• 10 Ways To Build Wealth Fast
• 22 Side Gigs That Can Make You Richer Than a Full-Time Job
• 6 Top Tips for How To Turn $1,000 Into $10,000

Share This Article: