Lemonade Insurance Company received approval for a 17% overall rate increase on its pet insurance program in Massachusetts. The change, effective August 20, 2025 for new business and September 19, 2025 for renewals, impacts 12,362 policyholders.

The filing applies a 20% increase to Accident & Illness coverage while keeping Preventative coverage unchanged. The company cited sustained veterinary inflation as the primary driver, noting that rising care and staffing costs have outpaced prior increases. The filing also introduces a Strategy Partner Discount for customers bundling Lemonade policies.

The revision follows a 7.8% increase in December 2024, and larger hikes of 28.2% and 20.25% in 2023. Regulators requested clarification on Lemonade’s relationship with ZP Insurance, LLC (Gusto Insurance Services), which was referenced in the filing.