Sam Boughedda

Investing.com — Insure-tech firm Lemonade Inc (NYSE:) announced Wednesday that it is to offer car insurance through its newest product, Lemonade Car.

Following the announcement, Lemonade shares rose more than 7% to $73.28 as of the writing. 

Lemonade Car, according to the company is now available in Illinois but will eventually be available all over the United States.

According to them, Lemonade Car offers safer and more efficient drivers than other vehicles. It also has eco-friendly hybrids and EVs.

App will be based on telematics and analyze applicants’ driving habits. The app also provides roadside assistance and real-time crashes detection.

Lemonade stated that it will honor its commitment not to invest in polluting fuels or industries and would also include incentives for reducing CO2 emissions. The company will have lower prices for drivers who are safe and can drive low miles, as well as hybrid and electric vehicles that are more environmentally friendly.

“We wanted to introduce a product that will not only reinvent how people buy car insurance, manage their policy, and file claims, but also do something good for the planet. Since we can’t stop using cars just yet, we will help compensate for the CO2 emitted from our customers’ cars by financing reforestation on an ongoing basis.” added Wininger.