Lemonade Expands Car Insurance Services to Indiana with Analysts Offering Mixed Outlook

Lemonade Inc (LMND) is expanding its car insurance services into Indiana, part of its nationwide rollout through 2025. Analysts offer a mixed outlook, with a "Hold" recommendation and a projected average one-year price target of $31.33, indicating a potential downside of 26.05%. GuruFocus estimates a slight downside potential of 0.83%.

Lemonade Inc. (NYSE: LMND), a digital insurance company powered by AI and social impact, has announced the launch of Lemonade Car in Indiana, marking a significant step in its nationwide expansion plans for 2025. The company aims to offer its tech-driven car insurance products to Hoosier drivers, following its recent rollout in Colorado.

Lemonade's entry into Indiana signifies a strategic move to capitalize on the state's car insurance market, which is estimated to be worth $5 billion annually. The company's existing customers in the state already account for hundreds of millions in annual premiums, making Indiana an attractive market for expansion. Daniel Schreiber, co-founder and CEO at Lemonade, stated, "Car insurance hasn't kept up with how people actually drive today. With Lemonade Car, we're using tech to change that—making coverage fairer, simpler, and smarter" [1].

The launch of Lemonade Car in Indiana is part of the company's broader strategy to grow its car insurance business. According to recent quarterly results and an Investor Day presentation, Lemonade Car has shown accelerating momentum, with its sequential in-force premium (IFP) growth outpacing the rest of Lemonade’s book in Q1 2025. This growth underscores the potential of Lemonade's digital car insurance offering.

Analysts have offered a mixed outlook on Lemonade's stock. Zacks Investment Research has given the stock a "Hold" recommendation, with a projected one-year price target of $31.33, indicating a potential downside of 26.05%. GuruFocus estimates a slight downside potential of 0.83%. Despite these mixed signals, Lemonade's stock has shown resilience, with shares up 19.5% year-to-date, outperforming the industry and the Zacks S&P 500 Composite [3].

Lemonade's expansion into Indiana is part of a broader trend in the insurance sector, where companies are adopting more tech-driven and customer-centric models. The company's focus on bundling insurance products and offering smart insurance tailored for tech-savvy customers highlights its innovative approach to the market.

References:

[1] https://www.galvnews.com/lemonade-continues-u-s-expansion-with-launch-of-car-insurance-in-indiana/article_c208ae7d-2f0e-5608-9aa0-ab1cc460b352.html
[2] https://www.morningstar.com/news/business-wire/20250707314189/lemonade-continues-us-expansion-with-launch-of-car-insurance-in-indiana
[3] https://seekingalpha.com/news/4465677-lemonade-launches-car-insurance-product-in-indiana