A look at Lemonade Car in Tennessee

In July, we wrote about Lemonade’s car insurance product in Illinois, and how in about 8 months the company had attracted 2,823 car insurance policyholders. It’s time to do the same for Tennessee following Lemonade’s recent rate increase request.

Lemonade’s auto insurance coverage became available in Tennessee on March 23, 2022. In the rate revision filing, which was submitted on August 25th, Lemonade states that it has 814 policyholders. Counting the days between March 23rd and August 25th, Lemonade added ~5 auto policyholders a day.

Lemonade has mentioned on several occasions the cross-selling opportunity for its car insurance product. As we previously highlighted, Tennessee is not a top state in terms of direct premiums written for the company, and based on 2021 data, Lemonade generated ~$4.7 million in premiums in the state, which puts it in the 17th spot.

Premiums aside, Lemonade counted 17,729 policyholders between its HO3, HO4, and HO6 coverages, and 4,605 pet insurance policyholders in Tennessee based on filings from August and June. This means that at best, under 4% of Lemonade’s policyholders in the state have opted for the car coverage –  for comparison, Progressive’s market share for Robinsons (bundled auto and home) is < 3%.