Lemonade filed a rate and form update for its Michigan pet insurance program on January 21, 2026, proposing an overall 12.2% rate increase. The filing affects 9,899 policies and approximately $5.3 million in written premium, with new business effective April 15, 2026, and renewals beginning May 15, 2026.

The increase is driven by a 15% rate hike for Accident & Illness coverage, while Preventative coverage remains unchanged. Lemonade cited adverse selection in its current pricing, particularly tied to its vet visit add-on, which it said was leading to overcharging for older pets, especially cats.

To address this, Lemonade is restructuring vet visit fees, replacing its factor-based model with flat annual fees of $120 for dogs and $87 for cats. The company said the change is intended to better align pricing with utilization patterns.

The filing also introduces tiered discounts for Affinity Groups and Strategic Partners, including Walmart, ADP, UKG, Entertainment Benefits Group, PerkSpot, Rover, and Gusto. Lemonade said these discounts reflect lower expected acquisition costs. The multi-pet discount is being increased from 5% to 10%.

At the same time, Lemonade is doubling installment fees for customers paying monthly, raising the charge from $1 to $2 per month, or $24 annually.

Policy documents highlight Lemonade’s digital-first servicing model, including the ability for customers to cancel policies directly in the mobile app and access onboarding and support through embedded hyperlinks.

This marks Lemonade’s second Michigan rate increase in recent years, following an 11.9% hike that took effect in November 2023.