Lemonade discloses auto insurance data breach impacting 190,000 applicants

Lemonade Inc., a technology-driven insurance provider, has disclosed a data breach that exposed the driver’s license numbers of approximately 190,000 individuals due to a technical flaw in its auto insurance quoting system.

The company made the revelation in a recent filing with the U.S. Securities and Exchange Commission (SEC), attributing the breach to a likely malfunction in its “car insurance quote flow.” According to the filing, the issue caused certain personal data to be mistakenly transmitted to a third-party data provider without being safeguarded by Lemonade’s usual protective protocols.

Lemonade stressed that the incident was isolated to its auto quoting system and that its core business operations remain secure. “We do not believe Lemonade customer data was targeted,” the company stated, emphasizing that it had swiftly taken corrective steps to resolve the vulnerability.

The breach comes at a time of heightened consumer activity in the auto insurance sector. The industry has seen a surge in quote requests, driven in part by rising insurance premiums. Tricia Griffith, president and CEO of Progressive Corp., recently described the market as experiencing “very high levels of ambient shopping,” reflecting increased consumer interest in personal auto coverage.

The incident at Lemonade is the latest in a series of cybersecurity setbacks within the auto insurance industry, highlighting ongoing vulnerabilities in online quote platforms. In March 2025, New York Attorney General Letitia James announced a $975,000 penalty against Root Insurance following a data breach that affected around 45,000 New Yorkers. That incident was part of a wider campaign by cybercriminals targeting consumer data through insurance quote systems.

In a similar case, the attorney general’s office reached a $500,000 settlement in December 2024 with Noblr, an auto insurance company accused of failing to adequately secure the personal data of more than 80,000 individuals.