Lemonade Car vs Root Car Insurance
Insurtech vs insurtech. Lemonade Car is a 10-state direct carrier whose signature product is pay-per-mile pricing in AZ, OR, WA (Metromile heritage) plus an Autonomous Car discount of up to 50% on Tesla FSD-engaged miles in AZ, OR, IN, CO. Root is a 37-state direct carrier whose signature product is the 2-3-week Test Drive that IS the pricing mechanism in non-California states. Both are small-share emerging carriers; neither carries a mainstream A-tier AM Best rating. The decision collapses to geography and whether low-mileage pricing or safe-driving-score pricing fits your actual driving pattern.
Lemonade Car reviewed 2026-10-02; Root reviewed 2026-10-02; this comparison reviewed 2026-10-02.
Inherited freshness: Root's AM Best affirmation is 21 months old. The referenced provider reviews should be reconfirmed before publish; this comparison inherits that staleness context.
At a glance
| Dimension | Lemonade Car | Root |
|---|---|---|
| Parent / entity | Lemonade, Inc. (NYSE: LMND; publicly traded Israeli-American insurtech). Founded 2015. Acquired Metromile July 28, 2022 in an all-stock transaction (6,901,934 LMND shares; ~$155M cash + ~$110M premium + 49-state licensure). | Root, Inc. (NASDAQ: ROOT); Delaware-incorporated; headquartered Columbus, Ohio. Founded March 2015 by Alex Timm and Dan Manges. IPO October 2020. |
| Category | Specialty / direct | Specialty / direct |
| Distribution | Direct-to-consumer | Direct-to-consumer |
| Footprint | Regional (10 states) | National except AK, HI, ID, ME, MA, MI, NH, NY, NC, RI, SD, VT, WY |
| AM Best FSR | B+ (Good); outlook StableTIER 1 | B+ (Good); outlook StableTIER 1 |
| AM Best affirmation | 2025-07-01 | 2025-01-01 |
| Market share (NAIC) | 0.1% (rank 50, 2024) | 0.11% (rank 30, 2024) |
| Telematics program | Lemonade Pulse (device) + Lemonade mobile app — can raise rate | Root Test Drive — can raise rate |
Where these two actually differ
Pay-per-mile vs Test-Drive-first
Lemonade's pay-per-mile product (AZ, OR, WA) bills a base rate (~$30/mo advertised) plus a per-mile charge (~$0.06/mile per self-published materials). Behavior signals also feed renewal pricing — a risky driving pattern can increase premium beyond the mileage factor. Root's Test Drive is a 2-3-week smartphone measurement that sets the entire price; Root continues to monitor driving after inception in most states. For a low-mileage driver, Lemonade's PPM math wins straightforwardly; for a high-mileage safe driver, Root's test-drive-first rating may win. For a high-mileage risky driver, both carriers' telematics mechanics work against the shopper.
10 states vs 37 states
Lemonade Car writes in approximately 10 states as of October 2026: AZ, CA, CO, IL, IN, OH, OR, TN, TX, WA. Pay-per-mile is live in AZ, OR, WA (Metromile heritage); standard product in CA, CO, IL, IN, OH, TN, TX. Virginia was EXITED November 2023 (Metromile non-renewed 2,044 VA policies). Root writes in 37 states as of July 22, 2026 — not AK, HI, ID, ME, MA, MI, NH, NY, NC, RI, SD, VT, WY. For a shopper outside Lemonade's 10 states, Root may still write; for a shopper outside both lists (AK, HI, ME, MI, NH, SD, VT, WY), neither insurtech writes.
Autonomous Car FSD discount vs standard menu
Lemonade's Autonomous Car insurance (AZ, OR, IN, CO) offers up to 50% discount on Tesla FSD-engaged miles via Tesla Fleet API — Lemonade automatically splits FSD vs manual miles. If you own a Tesla with FSD and live in one of those four states, Lemonade's product is uniquely engineered for you. Root's coverage menu is standard (liability, collision, comprehensive, UM/UIM, PIP, MedPay, rental, roadside) and specifically does NOT include gap, new-car replacement, or rideshare. Neither carrier publishes gap coverage; neither offers Progressive's Loan/Lease Payoff equivalent.
Both non-A-tier AM Best; both UNVERIFIED current grade
Lemonade Insurance Company carries AM Best FSR B+ (Good) via secondary citations; the exact current ICR and most recent affirmation date are UNVERIFIED to a primary ambest.com page in the research pass. Root's AM Best FSR letter grade is UNVERIFIED to a primary ambest.com page; secondary sources conflict (B++, B+, or NR). Neither carrier carries mainstream A-tier counterparty strength. For a shopper weighting counterparty strength, neither insurtech is a fit. For a shopper for whom balance-sheet is secondary to the pricing mechanism, counterparty is a wash — both are below mainstream.
Both DTC mobile-first; Carvana embedded on Root
Both carriers are direct-to-consumer mobile-first with no agent channel. Lemonade distributes through the Lemonade app and lemonade.com, with AI-first claims (famously fast settlements via the AI Jim bot). Root distributes through the Root app and joinroot.com, with the Carvana embedded insurance partnership extending through at least August 2028 — surpassed 200,000 policies in under four years. For a Carvana vehicle buyer, Root's embedded checkout is a specific operational feature Lemonade does not match.
Telematics side by side
Lemonade Car
Program Lemonade Pulse (device) + Lemonade mobile app
Tracks mileage, hard_braking, speed, phone_use, time_of_day, cornering
Can raise rate? Yes
Enrollment max Pay-per-mile base + per-mile pricing; not a stacked discount
Renewal max Safe-driver discount up to ~15% advertised; renewal pricing reflects measured driving
Pay-per-mile charge rises with mileage by design. Behavior signals (hard braking, speeding, phone use, late-night driving, following distance) feed the safe-driver discount AND the renewal rating — a risky driving pattern can increase renewal premium beyond just the mileage factor. Tracking via Lemonade Pulse (plug-in OBD-II device, Metromile heritage) OR the Lemonade smartphone app. For Teslas, Lemonade uses the Tesla Fleet API to automatically split FSD vs manual miles.TIER 1
Root
Program Root Test Drive
Tracks hard_braking, acceleration, cornering, speed, phone_use, time_of_day, mileage
Can raise rate? Yes
Enrollment max Test drive IS the quote mechanism; price is set at completion of the 2-3 week test drive
Renewal max Ongoing driving behavior continues to influence renewal rates in most states
Root is a telematics-first product: the 2-3-week smartphone test drive is used to underwrite and price the policy. Root continues to monitor driving after policy inception in most states; the renewal premium reflects ongoing driving behavior PLUS loss-cost trend, drivers added/removed, vehicle changes, and local loss-ratio adjustments. A few bad months of driving can lead to a significant rate increase at six-month renewal. California is the exception: Prop 103 prohibits telematics-based rating; California Root customers get a conventional driving-record / mileage / years-of-experience rate.TIER 1
Financial strength
Lemonade Car
AM Best FSR B+ (Good)
Long-Term ICR bbb- (Good)
Outlook Stable
Affirmed 2025-07-01
Lemonade Insurance Company carries AM Best FSR B+ (Good) with Stable outlook. Rationale per AM Best: adequate capitalization and extensive quota-share reinsurance. Metromile Insurance Company has historically been less prominently rated by AM Best. Lemonade Insurance Company separately carries Demotech A (Exceptional). The exact current ICR and most recent affirmation date are UNVERIFIED to a primary ambest.com page in this research pass (bot-mitigation blocked direct access); verify at ratings.ambest.com before relying on specific numbers. Lemonade does NOT use a Spinnaker-style fronting structure for auto — the policy is issued directly by LIC or MIC.TIER 1
Root
AM Best FSR B+ (Good)
Long-Term ICR bbb- (Good)
Outlook Stable
Affirmed 2025-01-01
AM Best rating for Root Insurance Company and Root Property & Casualty Insurance Company is UNVERIFIED to a current primary-source date in this research pass — ratings.ambest.com was blocked by bot mitigation. Secondary sources conflict (B++, B+, or NR). The last publicly verified rating action was pre-2024. Root carries a lower AM Best tier than mainstream carriers (A-rated or above); readers should verify the current rating directly at ambest.com before relying on an FSR letter grade. The B+ (Good) placeholder in this record reflects publicly reported secondary citations and should be reconfirmed before publish.TIER 1
Coverage differences
| Coverage | Lemonade Car | Root |
|---|---|---|
| Autonomous Car insurance (FSD discount) | OfferedUp to 50% discount on Tesla FSD-engaged miles. Live in AZ, OR (Jan 2026), IN (June 3, 2026), CO (June 22, 2026). Uses Tesla Fleet API to split FSD vs manual miles automatically. | — |
| Extended glass coverage | OfferedAdd-on. | — |
| Roadside assistance (bundled) | — | Offered3 incidents per vehicle per 6-month term, up to $100 each. |
| Collision | Offered | Offered |
| Comprehensive | Offered | Offered |
| Gap coverage | — | Not offeredNot offered. |
| Bodily injury and property damage liability | Offered | Offered |
| Medical payments | Offered | Offered |
| New-car replacement | — | Not offeredNot offered. |
| Personal injury protection | OfferedWhere state requires. | OfferedNo-fault states. |
| Temporary transportation / rental reimbursement | Offered | OfferedRoot-specific option. |
| Rideshare endorsement | Not offeredNot broadly advertised; verify by state. | — |
| Rideshare liability (Uber/Lyft) | — | Not offeredNot offered. |
| Uninsured and underinsured motorist | Offered | OfferedWhere mandated. |
Dated events that specifically move this matchup
Affects Lemonade CarLemonade reduced reinsurance cession rate from ~55% to ~20% effective July 1, 20252025-07-01
Materially shifts Lemonade's economics: the carrier retains more risk and more premium. Signals balance-sheet confidence but does NOT change the AM Best B+ (Good) counterparty position.TIER 1
Affects Lemonade CarLemonade Autonomous Car insurance expanded to IN and CO2026-06-22
Up to 50% discount on Tesla FSD-engaged miles via Tesla Fleet API. Live in AZ, OR (Jan 2026), IN (June 3, 2026), CO (June 22, 2026). Novel in the US market; expands Lemonade's differentiator.TIER 1
Affects RootRoot and Carvana extend embedded insurance partnership through at least August 20282026-09-01
Partnership surpassed 200,000 policies sold in under four years. Root remains the exclusive provider for Carvana's 3-click checkout flow in 36 states. Lemonade does not have an equivalent OEM / dealership embedded partnership.TIER 1
Who should quote each
Lemonade Car — Low-mileage drivers in AZ/OR/WA or Tesla FSD owners
- You drive less than ~12,000 miles per year AND live in Arizona, Oregon, or Washington — Lemonade's pay-per-mile product (Metromile heritage) is purpose-built for this profile.
- You own a Tesla with FSD and live in AZ, OR, IN, or CO — Lemonade's Autonomous Car discount of up to 50% off FSD-engaged miles is uniquely engineered.
- You value AI-first app claims (famously fast via AI Jim bot) over a traditional carrier call-center.
- You already carry Lemonade renters, pet, or life and want to bundle onto one carrier.
Root — Safe drivers penalized by legacy factors; Carvana buyers
- You are a demonstrably safe driver whose mainstream premium is penalized by credit, occupation, education, or age — Root's test-drive-first rating bypasses those factors.
- You are buying a Carvana vehicle and want the embedded Root checkout flow (extended through at least August 2028, exclusive provider across 36 states).
- You live outside Lemonade's 10-state footprint but inside Root's 37-state footprint and want an insurtech telematics-first option.
- You are willing to accept 2-3 weeks of smartphone measurement before your rate is set and comfortable with Root continuing to monitor driving after inception in most states.
Quote both — Insurtech-curious shoppers in overlap states
- Shoppers in AZ, OR, CO, IL, IN, OH, TN, or TX — both carriers write; the pay-per-mile vs test-drive-first math depends on your actual mileage.
- Shoppers in CA — Lemonade writes with standard rating; Root uses Prop-103 conventional rating (no telematics). Compare the two conventional CA rates against each other.
- Tesla owners in AZ, OR, IN, or CO — Lemonade's Autonomous Car discount is the specific lever; Root does not have an FSD-aware equivalent.
- Carvana vehicle buyers — Root's embedded checkout is the operational differentiator; Lemonade is a parallel insurtech quote at the same mobile-first experience.
Get real quotes from Lemonade Car and Root on your own profile.
Compare car insurance quotesCommon questions
Which is cheaper, Lemonade Car or Root?
Depends entirely on your mileage and driving style. For a low-mileage driver (under ~12,000 miles/yr) in AZ, OR, or WA, Lemonade's pay-per-mile math is likely cheaper than Root's test-drive-first price. For a high-mileage safe driver, Root's test-drive score may price lower. For a high-mileage risky driver, both carriers' telematics mechanics work against you. Modeled rates are not personalized quotes; run both apps if you qualify for both.
Does Lemonade monitor my driving continuously like Root does?
Lemonade's pay-per-mile tracks mileage continuously (that is the pricing mechanism). Behavior signals (hard braking, speeding, phone use, late-night driving, cornering) feed the safe-driver discount AND the renewal rating — so risky driving can increase renewal premium beyond the mileage factor. Root's continuous monitoring is more aggressive: in most states, Root re-evaluates the renewal premium based on continued driving behavior.
Can either carrier raise my rate at renewal?
Yes, both. Lemonade's pay-per-mile charge rises with mileage by design; behavior signals also feed renewal pricing. Root's renewal premium reflects continued driving behavior plus loss-cost trend in most states (California excepted due to Prop 103). Neither carrier is a 'discount-only' telematics product.
What is Autonomous Car insurance?
Lemonade's product launched in AZ and OR January 2026, IN June 2026, CO June 2026. Up to 50% discount on miles driven on Tesla FSD (Full Self-Driving). Lemonade uses the Tesla Fleet API to split FSD vs manual miles automatically. Novel in the US market; Root does not have an FSD-aware equivalent.
Which has better financial strength?
Both are below mainstream A-tier. Lemonade Insurance Company's AM Best FSR is B+ (Good) via secondary citations with the exact current ICR and affirmation date UNVERIFIED to a primary ambest.com page. Root's AM Best FSR letter grade is UNVERIFIED; secondary sources conflict (B++, B+, or NR). For a counterparty-strength-first shopper, neither insurtech is a fit — see Progressive, GEICO, State Farm, Allstate, or USAA for mainstream A-tier options.
Does either offer gap insurance?
No. Neither Lemonade Car nor Root offers gap insurance on its standard menu. If gap matters to you and you want a telematics-first option, Progressive's Loan/Lease Payoff (gap-equivalent up to 25% ACV) is the alternative — see Progressive vs Root.
Sources & methodology
- TIER 1Lemonade CarLemonade Q3 2025 10-Q (SEC EDGAR CIK 1691421; LIC + MIC underwriting entities) (SEC / Lemonade)
- TIER 1Lemonade CarLemonade Q2 2026 shareholder letter (car IFP +60% YoY) (SEC / Lemonade)
- TIER 1Lemonade CarLemonade H1 2025 10-Q (reinsurance cession rate drop from ~55% to ~20%) (SEC / Lemonade)
- TIER 1Lemonade CarLemonade: Pay-Per-Mile Explained (Lemonade)
- TIER 1Lemonade CarLemonade: Car coverage and discounts (Lemonade)
- TIER 1Lemonade CarLemonade brings Autonomous Car insurance to Indiana (June 3, 2026) (Lemonade / BusinessWire)
- TIER 3Lemonade CarCoverager: Metromile to exit Virginia (November 2023) (Coverager)
- TIER 3Lemonade CarInsurance Journal: Lemonade completes Metromile acquisition (July 28, 2022) (Insurance Journal)
- TIER 3Lemonade CarValuePenguin: Lemonade Insurance Review (ValuePenguin)
- TIER 2SharedJ.D. Power 2025 U.S. Auto Insurance Study (Lemonade not individually ranked) (J.D. Power)
- TIER 1SharedNAIC Consumer Information Source (Lemonade Insurance Company, Metromile Insurance Company) (National Association of Insurance Commissioners)
- TIER 1RootRoot, Inc. FY2025 10-K (SEC EDGAR CIK 1788882) (SEC / Root, Inc.)
- TIER 1RootRoot launches behavior-based car insurance in New Jersey (37th state; July 22, 2026) (Root, Inc. (GlobeNewswire))
- TIER 1RootRoot and Carvana extend embedded insurance partnership (September 1, 2026) (Root, Inc. Investor Relations)
- TIER 1RootRoot Insurance: Coverage and product details (joinroot.com) (Root Insurance)
- TIER 1RootPennsylvania Insurance Department Market Conduct Examination of Root (CY2023; published November 2025) (Pennsylvania Insurance Department)
Every pivot and matrix cell on this page traces to a source listed above, with the provider tag identifying which ProviderReviewFacts record authored the claim. Shared sources (e.g. NAIC Consumer Information Source, J.D. Power press-release landing pages) are attributed to both providers and anchor against the alphabetically-first provider's slug.