Lemonade Pet Insurance Review | AP Byline Personal Finance

In a nutshell:

Lemonade Pet Insurance offers basic accident and illness plans at competitive prices, with the option to add extra cover if needed.

• Lemonade offers no frills, affordable accident and illness insurance.
• This insurance does not cover the extensive treatments that other pet insurance policies cover.
• Waiting periods and claims processing times are short, with approximately 40% of claims approved instantly.

AP Byline Director

Lemonade is one of the most affordable pet insurance companies, but it doesn’t cover all conditions and treatments that other pet insurance policies cover. If you’re comfortable doing everything online or through a mobile app and don’t need additional coverage for physical therapy, behavioral issues, doctor’s appointments, or dental conditions, Lemonade may be the best option for your budget.

Who is Lemonade Pet Insurance for?

Lemonade Pet Insurance is perfect for cat and dog owners looking for affordable, no-frills accident and illness insurance. We offer a quick and easy claims process for tech-savvy pet owners who don’t want to worry about how a claim will affect their future premiums.

Lemonade Pet Health Insurance: Just the Facts

Wondering if Lemonade pet insurance is right for your cat or dog? Here are some key facts and features to help you decide.

Lemonade Pet Insurance Plans and Coverage

Lemonade offers comprehensive accident and illness insurance for cats and dogs. If your beloved dog is unexpectedly injured or falls ill, Lemonade will cover veterinary costs, including:

• Diagnostic testing.
• Emergency treatment.
• Surgery.
• hospitalization.
• Prescription drugs.

You can customise your basic policy with optional add-ons, which, for an extra fee, cover vet visits, behavioural disorders, physical therapy, dental conditions, end of life expenses and more.

While pet insurance companies don’t cover routine care, Lemonade offers optional preventative care packages that cover health exams, blood tests, parasite and heartworm tests, and vaccinations. Their Preventative+ package also includes regular dental cleanings, and flea, tick, and heartworm medications.

If you have a puppy or kitten, Lemonade has a preventive care add-on that covers an initial vet checkup, vaccinations, microchipping, and spay/neuter. Each plan has an annual dollar limit on what Lemonade will cover.

Waiting Periods and Restrictions

Lemonade waiting periods vary by state and state, but the following waiting periods generally apply:

• The accident waiting period is two days.
• 14-day sickness waiting period.
• The waiting period for orthopedic conditions is 30 days.
• The waiting period for cruciate ligaments is six months.

Preventive care coverage has no waiting period, so you can schedule regular veterinary appointments for your pet the same day you purchase the policy.

Lemonade doesn’t insure pets under two months of age and has limited age limits (the maximum age for insuring your pet is determined by the pet’s breed). Pet insurance is only available in 37 states and Washington, DC.

Lemonade claims process

Lemonade Pet will reimburse you for covered vet expenses you prepaid. After your vet visit, just take a photo of the statement and payment receipt, open the Lemonade app, answer a few questions, and submit a claim under your pet insurance.

AI Jim, an artificial intelligence bot, will ask you a few questions, after which you will have to record a short video explaining what happened and why your pet was examined, and once you submit the video, you will upload your vet paperwork.

Approximately 50% of claims are processed immediately and funds are sent to your bank account via direct deposit. If a claim is not processed immediately, our claims team will review the claim and complete the process.

Benefits of Lemonade Pet Insurance

Here’s what makes Lemonade stand out from the competition:

Complaints are not a reason to renew

Some pet insurance companies use past claims payments as a factor in policy renewals. If your loss ratio (the ratio of the amount paid out in claims to the amount paid out by the insurance company) is high, some pet insurance companies may offer renewals with higher premiums or reduced coverage.

However, Lemonade doesn’t take claims history into account when renewing your policy. Instead, it only considers your pet’s age and the increase in veterinary costs in your zip code area when renewing your Lemonade Pet policy.

Excess premiums are donated to charity

One of the most notable ways Lemonade Insurance stands out is its Giveback program. While most traditional insurance companies return profits to shareholders, Lemonade takes a flat fee to run the company and uses the rest to pay out claims. Any money left over is donated to a charity you select when you sign up.

Since 2017, Lemonade has donated more than $8 million to over 100 causes.

Easy to understand

The insurance industry is full of jargon and acronyms that aren’t always easy to decipher and understand. Lemonade not only offers an extensive library on pet insurance, pet health, breeds, behavior, and costs, but also breaks down that terminology into plain English so you can easily read and understand what you’re paying for.

What Lemonade Pet Insurance Doesn’t Cover

Here are a few areas where Lemonade Pet falls short:

What Lemonade Doesn’t Cover

All pet insurance companies have exclusions, and Lemonade is no exception. However, limitations vary by state and policy. Here’s what Lemonade pet insurance plans don’t cover:

• A pre-existing medical condition that occurs before the waiting period ends.
• Bilateral conditions that may affect both sides of the body, such as hip dysplasia or cataracts, occur before the applicable waiting period.
• Preventable or intentional acts that injure or sicken pets, such as abuse, fighting or competition.
• Alternative therapies such as aromatherapy and CBD products.
• Experimental treatments.
• Boarding, obedience training, selective treatment, grooming.
• Prescription diet

Some other pet insurance policies (such as Fetch or ASPCA policies) also cover alternative therapies and behavioral training, so if you’re looking for a more comprehensive pet insurance plan, Lemonade may not be the right choice.

With any type of insurance, it’s important to read the policy carefully, especially what it doesn’t cover. You’d be in trouble if you took your pet to the vet thinking your insurance covered you, only to find out your insurance doesn’t cover the vet bills.

Recent veterinary examination required for coverage

When you take out Lemonade pet insurance you will need to provide recent medical records from your pet’s vet, if your pet hasn’t been seen in the last 12 months they must be seen by a vet within 2 weeks of taking out the policy or else the policy won’t cover you.

Veterinary care outside the U.S. is not covered

Many pet insurance companies will reimburse for covered veterinary care performed by veterinarians licensed in the U.S. and Canada, but Lemonade will only pay for veterinarians licensed in the U.S. If you’re traveling outside the U.S. with your pet, it’s worth considering other options.

Lemonade Pet Insurance Alternatives

Frequently Asked Questions (FAQ)

Is Lemonade a reputable pet insurance company?

Yes, Lemonade is not rated by the Better Business Bureau (BBB), but it does have an A financial rating from insurance rating company Demotech, and it also has an excellent rating on Trustpilot, earning a 4.4 out of 5 star rating from nearly 2,000 consumer reviews.

Is Lemonade a trustworthy insurance company?

Yes. Lemonade Insurance Company has received a superior financial stability rating from insurance rating company Demotech. An insurance company’s financial stability rating indicates how well it has complied with past financial obligations, including paying claims.

Why is Lemonade Insurance so cheap?

Lemonade is using artificial intelligence and other technologies to streamline its application and claims process and reduce overhead costs. Fewer employees are needed to run the company, and with lower overall costs, Lemonade is able to pass the savings on to consumers in the form of cheaper insurance policies.

How long does Lemonade’s pet claim take?

Some Lemonade pet insurance claims are automatically approved and paid within minutes. Other claims require a human to complete the process and can take several days. According to the Lemonade website, about 50% of claims are processed instantly.