Lemonade Pet Insurance: A Detailed Review
Lemonade, an insurtech company founded in 2015, offers pet insurance with a streamlined claims process and a user-friendly mobile app. It’s one of CNBC Select’s top picks for pet insurance. This review examines the company’s coverage options, pricing, and how it compares to other providers in the market.
Policy Highlights
- Coverage: Accident and illness and wellness policies.
- Availability: Available in 38 states.
- Age limits: Pets must be at least 8 weeks old. Breed-specific age limits apply, with a maximum age of 10 to 14 years, depending on the breed.
- Coverage limits: $5,000, $10,000, $20,000, $50,000, or $100,000 annually.
- Annual deductible: $500 to $750.
- Reimbursement rate: 70%, 80%, or 90%.
- Waiting period: 2 days for accidents, 14 days for illnesses, and 6 months for cruciate ligament injuries.
- Discounts: 5% multi-pet discount, 5% for paying the annual premium in full, and 10% for bundling pet insurance with other Lemonade policies.
- Direct vet pay: No
Pros and Cons
Lemonade offers several advantages, but also has some drawbacks.
Pros:
- 10% bundling discount available.
- 2-day waiting period for injury coverage.
Cons:
- Only available in 38 states.
- 5% multi-pet discount is lower than competitors.
- Strict age limits may make it difficult to enroll older pets.
Coverage Options
Lemonade provides accident and illness coverage and wellness plans. They don’t offer accident-only policies. Coverage includes:
Accident and Illness:
This policy covers injuries like cuts and broken bones, as well as illnesses like diabetes, cancer, and urinary tract infections. It encompasses:
- Diagnostics (blood tests, ultrasounds, and X-rays).
- Prescription medications.
- Hospitalization and surgery.
Optional add-ons include:
- Vet exam fees
- Dental care (up to $1,000 per year).
- Behavioral conditions (up to $1,000 per year).
- Physical therapy (acupuncture and hydrotherapy).
- Euthanasia and cremation (up to $500).
Wellness Plans:
Lemonade offers three wellness plans. The basic Preventative plan (up to $265 per year) covers:
- One annual wellness exam.
- Three vaccines.
- Annual parasite, heartworm, and blood tests.
The Preventative Plus package adds:
- Flea and tick or heartworm medication.
- Teeth cleaning.
The Puppy/Kitten Preventative plan (for pets under 2) has a total benefit of $490 and includes:
- Two annual wellness exams.
- Six vaccines.
- Two parasite tests.
- One bloodwork and one heartworm or FeLV/FIV test.
- Two fecal/internal parasite screenings.
- Flea/tick or heartworm medication.
- Spay/neutering.
- Microchipping.
Coverage Limitations
Lemonade pet insurance isn’t available in every state. Currently, it’s not offered in Alaska, Delaware, Hawaii, Idaho, Kansas, Kentucky, Louisiana, Maine, South Dakota, Vermont, West Virginia, or Wyoming.
Coverage limits are offered at $50,000 or $100,000 per year.
Age Restrictions
Pets must be at least eight weeks old to be eligible. There are breed-specific age limits, ranging from 10 to 14 years old, depending on the animal type and geographic location.
Reimbursement, Deductibles, and Waiting Periods
Lemonade offers reimbursement rates of 70%, 80%, or 90%. Deductibles vary from $500 to $750. The waiting periods are typically:
- Accidents: 2 days
- Illnesses: 14 days
- Orthopedic conditions: 30 days
- Cruciate ligament: 6 months
- Wellness coverage: Effective from the policy’s start date
Rates
CNBC Select looked at sample Lemonade accident and illness quotes for a one-year-old domestic shorthair cat and a one-year-old, 55-pound mixed-breed male dog, both living in New York City. The quotes were based on a $500 deductible, an 80% reimbursement rate, and a $50,000 annual coverage limit.
The monthly premium quoted was $54.40 for the dog and $40.68 for the cat. Compared to the national average, the dog’s quote was close to average, while the cat premium was somewhat higher than the average.
Discounts
Lemonade provides discounts:
- 5% for insuring two or more pets.
- 10% for bundling with Lemonade home, condo, renters or car insurance.
- 5% for paying your annual premium upfront.
There is a $1 to $2 processing fee for monthly payments, which varies by state.
Direct Payment
Lemonade currently doesn’t offer a direct vet payment option. This means you’ll need to pay your vet bill upfront and then submit a claim for reimbursement.
Lemonade vs. Competitors
Here’s how Lemonade compares to Pets Best and Nationwide:
Is Lemonade Right for You?
Lemonade’s streamlined claims process is a significant advantage, making it a good choice if you want quick reimbursement, with potential approvals and reimbursements within 48 hours.
The customization options, including add-ons and wellness plans, are also beneficial. The company also allows bundling discounts.
Be aware that Lemonade is unavailable in some states. Older pets might also face breed-specific age restrictions.
Frequently Asked Questions
- How fast does Lemonade reimburse pet insurance claims? Lemonade advertises processing claims in minutes and reimbursing customers in as little as 48 hours.
- What states is Lemonade pet insurance available in? Lemonade offers pet insurance in 38 states.
- Does Lemonade pet insurance cover neutering? Spaying or neutering is not covered by Lemonade’s accident and illness pet insurance policy, but is included in the wellness plan for puppies and kittens.
- Is Lemonade pet insurance good? It depends on your needs, but Lemonade offers competitive rates, ample customization and high coverage limits. It might not suit everyone though, depending on state of residence or your pet’s age and breed.
