State Farm is a more established insurer with strong financial backing and a wide range of coverage options, making it suitable for those who value traditional agent support and comprehensive policies. Lemonade is a newer, tech-driven company that offers competitive premiums and fast claims processing, appealing to customers comfortable with digital interactions and AI-powered services. However, Lemonade's financial strength ratings are not as high as State Farm's, and it has received some complaints about claim denials.
| Attribute | State Farm | Lemonade |
|---|---|---|
| Financial Strength Rating | State Farm Mutual Automobile Insurance Company and its affiliates: A++ (Superior) from AM Best; State Farm General Insurance Company: B (Fair) from AM Best | — |
| Customer Satisfaction Score | The Zebra: 8.71/10; Comparably survey: 20% by Caucasian users and customers; Verint's research: 81.7; NerdWallet survey: 79 out of 100 | — |
| Claims Processing Speed | Typically 30 to 45 days, but more complex cases can take longer | — |
| Policy Coverage Options | Liability, collision, comprehensive, medical payments, personal injury protection (PIP), uninsured/underinsured motorist coverage, homeowners, renters, condo, and life insurance | — |
| Premium Costs | Average full coverage: $212 per month; Minimum coverage: $72 per month | — |
| Digital Accessibility (Mobile App, Website) | Online portal and a mobile app for managing policies, making payments, filing claims, and tracking claim status. Mobile app is highly rated by both Apple and Google Play users. | — |
| Availability of Discounts | Multi-policy, safe driver, good student, and vehicle safety discounts | — |
| Agent Availability and Support | Extensive network of local agents; 24/7 claims support via a hotline | — |
| Policy Customization Options | Several car insurance coverage options to meet the diverse needs of drivers | — |
| Coverage Area (States Covered) | All states except Massachusetts and Rhode Island | — |
| Types of Insurance Offered (e.g., Auto, Home, Life) | Auto, home, life, health, and pet insurance | — |
| User Reviews and Ratings | Generally positive reviews and ratings. They receive fewer complaints than expected for a company of their size. | — |