How Does Lemonade Pet Insurance Work?

While researching pet health insurance, you’ve probably noticed the countless options on the market. Lemonade is one of the best pet insurance companies for affordability, plan customization, and add-on package availability.

If you’ve settled on Lemonade, you’re in a solid position to protect your pet’s health while getting the most bang for your buck.

But, before you purchase a policy, make sure you understand the simple question – how does Lemonade pet insurance work?

If you can’t answer that question yet, don’t sweat it. This article will give you the full scoop on on the following:

  • How the Lemonade sign-up process works
  • How to use your Lemonade plan at the vet
  • What Lemonade pet insurance covers
  • How Lemonade’s deductibles work
  • What add-on packages Lemonade offers

Once you’re done with this article, you can check out our in-depth Lemonade pet insurance review for more information. 

For now, keep reading to get the squeeze on this top-notch provider.

How Does the Lemonade Pet Insurance Sign-up Process Work?

Lemonade’s enrollment process is entirely online, so you can complete sign-up in minutes on the Lemonade app.

Before enrolling your pet in any plan, you’ll want to retrieve an online quote to make sure you’re getting the coverage options and monthly premium you need.

Lemonade is powered by AI technology with a chatbot feature that walks you through the enrollment process.

The bot generates your personalized quote by prompting you for the following information about your pet:

  • Name
  • Age
  • Species
  • Breed
  • Gender
  • Medical history
  • Address

Once you’ve arrived at your quote, you’ll be able to select add-on packages for your pet. To customize your cost, you can also mix and match annual deductibles, reimbursement rates, and annual coverage limits.

Regardless of the coverage limit and reimbursement level you select, your price will still depend on your pet’s age, breed, species, and location. Younger pets tend to have lower monthly premiums and fewer pre-existing conditions, so we recommend buying a pet insurance plan as early as possible – even if your pet is healthy.

If cost is a deciding factor for you, look at some of Lemonade’s discounts available at sign-up.

Opt to pay annually for a $25 discount or enroll multiple pets for 5% off your policy. You’ll get a 5% annual discount if you decide to renew your Lemonade pet insurance policy for another year. Lastly, you can snag 10% off a pet insurance plan if you bundle it with other Lemonade insurance services.

How Do I Use My Lemonade Policy at My Vet?

Your Lemonade pet insurance doesn’t function the same as your human health insurance. Human health insurance operates through networks, which means you can only use clinics connected to your specific insurance provider. You won’t be covered if you select a provider outside your insurance company’s network.

Pet insurance doesn’t operate through networks but instead works on a reimbursement system. There are pros and cons of this feature. On the bright side, you’ll be able to take your pet to any licensed veterinarian of your choice. You won’t have to worry about finding a veterinary care provider within a Lemonade network.

On the other hand, you’ll have to pay for your pet’s veterinary bills out of pocket and in total before Lemonade reimburses you. This is standard practice for most pet insurance providers – it allows you to take care of your pet’s medical needs as quickly as possible without scrambling to contact your pet insurance company. It also gives your insurance provider the chance to review your claims before reimbursing you.

We recommend having emergency vet savings on hand to cover these up-front expenses. You’ll have the peace of mind to afford the care your pet deserves and know that the money will be back in your pocket soon.

So, you won’t exactly use your Lemonade policy at the vet’s office. You’ll pay for your buddy’s treatment in full, saving any medical records and itemized invoices from the vet visit. You’ll then submit these documents as a claim through the Lemonade app, and the provider will reimburse you accordingly.

What Is Covered With My Lemonade Pet Insurance Policy?

Lemonade offers comprehensive accident and illness coverage for your pet’s unexpected veterinary needs. A general rule of thumb is that pet insurance will cover conditions or events that happen to your pet after your policy has begun. 

For example, if your cat develops cancer during your policy period, Lemonade will help you pay for diagnostics and treatment costs. If your dog breaks its leg in a car accident, the provider will reimburse you for hospitalization and surgical costs.

Those two examples fall under the accident and illness category, which is the main stipulation for traditional pet insurance coverage. 

Here are some injuries and illnesses Lemonade will cover:

 

Accidents

Illnesses

  • Car accidents 
  • Poisoning
  • Toxic ingestion
  • Broken bones
  • Sprains
  • Foreign object ingestion
  • Vomiting and diarrhea
  • Cancer
  • Infections
  • Chronic conditions
    • Allergies, diabetes, arthritis, etc. 
  • Hereditary conditions
    • Eye disorders, skin conditions, hip dysplasia, blood disease, etc.

Below we’ve listed other items Lemonade covers for your pet’s unexpected medical needs.

Diagnostic Testing

Procedures

Medications

  • Blood tests
  • Lab work
  • Urinalysis
  • MRIs, CT scans, X-rays
  • Ultrasounds
  • Outpatient care
  • Specialty clinics
  • Emergency care
  • Hospitalization
  • Surgery
  • Injections
  • Prescription medications

Like all pet insurance companies, Lemonade can’t cover everything. Here are its coverage exclusions:

  • Pre-existing conditions
  • Dental illnesses
  • Grooming
  • Prescription pet food
  • Cosmetic or elective procedures
  • Birds and exotic pets 

Remember that every pet insurance provider also enforces waiting periods. Lemonade’s waiting periods are two days for accidents, 14 days for illnesses, and six months for cruciate ligament events.

How Do Deductibles Work With Lemonade Pet Insurance? 

A deductible is a dollar amount you must pay out of pocket before your insurance starts covering costs. Lemonade’s annual deductible options are $100, $250, and $500. These are relatively low compared to other top providers’ deductibles, which can range anywhere from $100-$1,000.

The deductible you select is the cumulative amount deducted from your claims over the course of a year.

Here’s an example:

Let’s say you select the $250 deductible option and 90% reimbursement rate for your pet insurance plan. If your dog swallows a toy and requires a $6,000 emergency surgery, Lemonade will reimburse you $5,150.

$6,000 x 90% = $5,400

 

$5,400 – $250 deductible = $5,150

After you’ve met that deductible, Lemonade will cover future vet bills according to your reimbursement level and annual limit. Keep in mind that lower deductibles will get you to coverage quicker but cost more per month.

Take a look at some sample quotes with different deductibles:

This hypothetical plan is for a 1-year-old American Bulldog with a $100,000 annual coverage limit and 80% reimbursement rate. 

Annual Deductible Option

Plan Cost Per Month

$100

$44

$250

$34

$500

$24

We recommend selecting the $250 deductible option if you’re concerned about keeping costs down. With this option, you’ll have a mid-range monthly premium and lower out-of-pocket cost in the event of a hefty vet bill.

Does Lemonade Pet Insurance Have Any Add-Ons or Special Plans?

You can purchase Lemonade’s add-on packages for coverage of vet visit fees and physical therapy costs.

With the physical therapy package, Lemonade will reimburse you for items like acupuncture, chiropractic care, hydrotherapy, rehabilitation, and more.

Lemonade offers three wellness packages if your furry friend needs coverage for non-emergency vet care. 

The Preventive Package covers:

  • Annual wellness exams
  • Routine blood work
  • Fecal/internal parasite tests
  • Heartworm tests
  • Vaccinations
  • Medical advice chat access

The Preventive+ Package covers the following additional items:

Lastly, Lemonade designed a wellness plan for puppies and kittens. This package helps you cover the vet bills your little buddy will inevitably incur in its first year. With a Lemonade puppy/kitten wellness plan, you’ll get more money back for the services that get your new baby off to a healthy start.

This plan provides higher reimbursements for the items covered in the Preventive Care plans, along with:

About Lemonade Pet Insurance

Lemonade Inc. launched in 2015 in New York City. The company started out offering renters insurance and homeowners insurance and later added pet and car insurance to its portfolio.

Lemonade launched its pet insurance product in 2020. According to Shai Wininger, Lemonade’s COO and co-founder, the goal is to “make pet health insurance affordable and accessible” to all pet parents. 

The company offers policyholders a fully digital experience through its AI technology-powered mobile app. Pet owners can file claims and get reimbursed in just a few minutes. According to Lemonade’s website, its AI instant payout feature has allowed it to process a claim in three seconds.

Along with its hassle-free and lightning-fast claims process, Lemonade donates to charitable organizations through its Giveback program. The provider takes a flat fee upfront to pay out insurance claims then gives leftover funds to nonprofit organizations. 

Lemonade donates to nonprofits like the American Red Cross, United States Humane Society, and the CURE Childhood Cancer fund. In 2021 alone, Lemonade donated over $2 million to deserving charities.

Our Methodology

The 365 Pet Insurance research team looks at all pet insurance policies and comes up with our reviews based on coverage, plan options, cost, reputation, customer service, and species eligibility. We’ve also created a rating system to score pet insurance brands.

We’ve consulted with pet experts and dug into plans to develop what we think are the best overall plans, complete with ratings on coverage, how they handle claims, reimbursements, deductibles, limits, and more.

To make our list, pet insurance companies must have:

  • A variety of plan options
  • Affordable monthly rates

Our team revisits each company’s information at the end of every month to make updates and ensure the information is as accurate as possible.