Welcome back to Market on Close. I'm Sam Vardis live from the floor of the New York Stock Exchange. It's time now for overlooked stock.Shares of Lemonade are on the rise after Morgan Stanley upgraded shares this morning. So I'm joined by George Sillis to get us across this one, senior markets correspondent. So what is exactly the analyst saying which is behind uh this note today as to why the shares are rallying up at 9% right now, George.>> Yeah, I mean you look at Lemonade. In fact, in the last year, the ...

Car insurance can protect you financially from accidents, theft, vandalism, and extreme weather — but your coverage can also leave you exposed to car-related costs you might not expect. If you aren’t familiar with which situations aren’t covered, known as exclusions, you could get caught off guard by claims denials. Here are 12 things standard car insurance doesn’t cover, followed by a look at the main types of car insurance and how they can leave you without financial protection. Learn more: How does ...

We came across a bullish thesis on Lemonade, Inc. on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on LMND. Lemonade, Inc.'s share was trading at $72.16 as of December 2nd. Oscar Health (OSCR) Climbs 7.6% as Investors Await Cues on Upcoming Conference Valeri Potapova/Shutterstock.com Lemonade Inc. (LMND) continues to strengthen its position as an AI-native disruptor in the multi-trillion-dollar insurance industry, delivering rapid growth a ...

Core Insights - Florida has the highest average car insurance premium at $2,912, influenced by hurricanes, a large senior population, and high tourist traffic [2] - Louisiana ranks second with an average premium of $2,827, affected by state laws and recent tort reform [1][3] - New Jersey is the third most expensive state with an average of $2,160, impacted by climate disasters and increased minimum liability insurance [6] Summary by Category Car Insurance Costs - The average car insurance prices have increased by 11.3% in 2025 and by 57% since 2022, based on a report analyzing over 83,000 quotes [3] - The top ten most expensive states for car insurance in 2025 include Florida, Louisiana, and New Jersey, with premiums significantly higher than in other states [3][6] Factors Influencing Premiums - Florida's requirement for Personal Injury Protection (PIP) insurance accounts for nearly 20% of auto insurance premiums, alongside a high crime rate with over 46,000 cars stolen in 2023 [2] - Louisiana's recent tort reform means drivers more than 50% at fault cannot claim payment, contributing to higher insurance costs [1] - New Jersey's status as a "no fault" state requires insurance providers to cover medical expenses regardless of fault, affecting premium rates [6] Recommendations for Consumers - Consumers are advised to shop around for insurance annually to ensure competitive rates, especially when notified of premium increases [7] - Utilizing platforms like OfficialCarInsurance.com can help compare quotes from multiple insurers to find the best rates [8] - Factors such as credit score, driving record, and the type of vehicle can influence insurance rates, allowing consumers to take control of their costs [11]

Core Insights - Traffic violations significantly impact car insurance rates, with various infractions leading to different levels of rate increases Summary by Category Speeding - Speeding is the most common traffic violation in the U.S., contributing to 29% of traffic fatalities in 2023. A speeding ticket can increase insurance costs by 20% to 50% depending on various factors, including whether the driver has first-time ticket forgiveness [2][3] Running a Red Light - Red-light violations are prevalent, especially due to automated cameras. Insurance rates can increase by 20% to 25% for running a red light, with variations based on the ticketing method and state laws [4][5] Driving Under the Influence (DUI) - DUI convictions are among the most severe driving offenses, with nearly 650,000 arrests reported in the year leading up to October 15, 2025. Insurance rates can rise by 30% to over 100% following a DUI conviction [6][7] At-Fault Accidents - Over 2 million people are injured in traffic accidents annually, with property damage costs exceeding $140 billion. Insurance rates typically increase by an average of 55% after an at-fault accident, with the duration of record retention varying by state [8] Parking Tickets - Parking tickets are classified as nonmoving violations and generally do not affect insurance rates. However, unpaid parking tickets can impact credit ratings, which may indirectly lead to increased insurance costs [9] Clean Driving Record - A clean driving record without moving violations or accidents allows drivers to qualify for the lowest auto insurance rates, with average monthly costs ranging from $130 to $193 for good drivers [10] Insurance Pricing Factors - Insurance companies consider multiple factors when setting rates, including age, vehicle type, and location, which can lead to significant variations in insurance costs for different drivers [10][11]

Core Insights - Lemonade's third-quarter report exceeded Wall Street estimates, leading to a 22.1% stock price increase shortly after market opening [1][9] - The company reported a 42% year-over-year revenue growth, reaching $194.5 million, surpassing analyst expectations of $184.9 million [2] - Net losses per share decreased from $0.95 to $0.51, better than the anticipated loss of $0.70 per share [2] Financial Performance - Revenue for Q3 was $194.5 million, a 42% increase year-over-year [2] - Net losses per share improved from $0.95 to $0.51, against a consensus loss estimate of $0.70 [2] - Adjusted free cash flow was $18.1 million, down from $37.6 million in the previous year [3] Customer Growth and Metrics - Customer counts and in-force premium (IFP) showed strong growth, with a modest 5% increase in premium per customer [3] - The net loss ratio improved to 64%, down from 69% in the previous quarter and 81% in Q3 2024, indicating better profitability [5] Technological Advancements - The company's AI systems have become more efficient, significantly reducing claims handling costs [6] - Management anticipates continued improvements in operational efficiency due to advancements in AI [6] Expansion Plans - Lemonade is expanding its car insurance offerings across more U.S. states and increasing renter's and homeowner's policies in Western Europe [7]

Financial Data and Key Metrics Changes - In force premium grew to $1.16 billion, marking an eighth consecutive quarter of accelerating growth, with revenue up 42% year on year and in force premium growth at 30% [4][12] - Gross profit more than doubled to $80 million, with an adjusted gross profit of $81 million, resulting in a gross margin of 41% and an adjusted gross margin of 42% [13][14] - Adjusted EBITDA loss improved by about 50% year on year to a loss of $26 million, while operating cash flow was positive at $4 million [14][18] Business Line Data and Key Metrics Changes - The Car segment saw a 40% growth, with over half of that growth coming from existing Lemonade customers [4][5] - The gross loss ratio improved to 62%, an 11 percentage point year-on-year improvement, while the trailing 12-month gross loss ratio improved to 67% [12][14] - The LAE (Loss Adjustment Expense) ratio averaged 7%, significantly better than the industry average of 9% [10][11] Market Data and Key Metrics Changes - Customer growth was 24%, with a record addition of over 176,000 net new customers in the quarter [12] - Annual dollar retention (EDR) improved by 1 point to 85% compared to the prior quarter [15] Company Strategy and Development Direction - The company is focused on maximizing gross profit dollars rather than strictly adhering to loss ratio targets, allowing for flexibility in pricing strategies [6][62] - The introduction of the LOCO platform is expected to accelerate product development and operational efficiency [21][22] - The company is well-positioned to capture market opportunities in the evolving landscape of car insurance, particularly with the shift towards usage-based pricing [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBITDA profitability in Q4 of next year, with expectations for continued growth and improved profitability metrics [18][45] - The company anticipates a strong Q4, with revenue guidance implying a growth rate of approximately 49% year-on-year at the high end [19][20] Other Important Information - The company raised its full-year 2025 guidance across in force premium, gross earned premium revenue, and EBITDA loss [18] - The integration with Tesla's API is expected to enhance data collection for pricing and underwriting [25] Q&A Session Summary Question: How does the level of CAC-less customers compare to prior periods? - The 50% rate of CAC-less customers has been stable for several quarters, with a focus on driving customers to multiple policies [28][29] Question: Was there a contingent or profit share tailwind in the ceding commission in Q3? - The ceding commission was positively impacted by improved loss ratios, with an effective ceding commission rate of about 28% for the quarter [32][33] Question: Where does the company rate itself in terms of AI utilization? - The company utilizes AI extensively across its operations, with significant improvements in efficiency, but acknowledges that there is still much more potential to explore [40][41] Question: Is the company considering leaning more into growth at the expense of profitability targets? - The company remains committed to its EBITDA profitability target for Q4 of next year while optimizing for gross profit dollars [45][46] Question: What drove the decrease in the gross loss ratio in Europe? - The European business is experiencing significant growth and improved loss ratios due to better pricing flexibility and operational efficiency [71][72]

Core Insights - Driving skills significantly impact car insurance rates, with careful drivers enjoying lower costs and fewer deductibles, while reckless driving leads to higher expenses [1][4] - Good drivers typically have no accidents or tickets, which insurance companies use to determine discounts [3][8] Insurance Evaluation Factors - Insurance companies assess various factors beyond driving history to set rates, including driving habits tracked through usage-based insurance (UBI) programs [4][6] - UBI programs charge lower rates for safe driving practices, contrasting with standard insurance that rewards clean driving records [6][7] Good Driver Habits - Seven key habits can help improve driving records and minimize accidents: wearing seat belts, driving sober and alert, avoiding distractions, respecting speed limits, maintaining safe following distances, using turn signals, and checking for vehicle recalls [5] - The National Highway Traffic Safety Administration (NHTSA) reports that 49% of passengers killed in accidents in 2023 were not wearing seat belts, highlighting the importance of this habit [5] Insurance Discounts - Progressive offers a 34% discount for drivers who remain accident- and ticket-free for three years [8] - State Farm provides discounts after three years without violations and up to 30% savings through its UBI program [9] - GEICO offers discounts up to 22% for drivers who maintain an accident-free record for one year [10] Clean Driving Record Definition - A clean driving record is defined as having no moving violations, at-fault accidents, or driving-related convictions [11]

Core Insights - The U.S. has experienced another credit rating downgrade, with Scope Ratings lowering its long-term issuer and senior unsecured debt ratings from AA to AA- due to concerns over fiscal health and governance standards [5][2][4] - The national debt has surpassed $38 trillion, raising alarms about the government's ability to manage its fiscal responsibilities and address structural challenges [2][3] - Scope Ratings predicts that the U.S. public debt-to-GDP ratio could reach 140% by 2030, significantly higher than its peers, driven by persistent deficits and mandatory spending [4][2] Fiscal Health Concerns - The downgrade follows previous credit rating cuts by Moody's and S&P Global, indicating a trend of declining confidence in U.S. fiscal management [5][2] - Critics argue that lawmakers are failing to meet basic fiscal duties, contributing to a lack of predictability in policymaking and increasing the risk of policy missteps [2][3] - Unfunded liabilities from programs like Medicare and Medicaid are compounding the fiscal challenges facing the U.S. government [3] Economic Implications - The sustained deterioration in public finances and governance standards is a primary driver of the recent downgrade, highlighting the need for improved fiscal management [4][5] - The extension of tax cuts and high levels of mandatory spending are limiting budgetary flexibility, which could have long-term implications for economic stability [4][2] - Rising national debt is expected to lead to higher inflation, which has historically eroded purchasing power for Americans [10]

Core Insights - The article discusses strategies for reducing car insurance costs after job loss, emphasizing the importance of evaluating driving habits and coverage needs [1][2][20] Group 1: Assessing Coverage Needs - Evaluating changes in driving habits is crucial; if commuting is replaced with less driving, it may justify reducing coverage [3] - Maintaining comprehensive and collision coverage is often necessary if there is an auto loan, as lenders typically require these protections [8][9] Group 2: Cost-Saving Strategies - Before altering policies, it is advisable to check for existing discounts with the current insurance provider, such as low-mileage discounts or payment discounts [4][7] - Shopping around for quotes from multiple insurance companies can reveal potential savings by switching providers [4] Group 3: Temporary Policy Adjustments - If reducing coverage is necessary, it is important to review the last insurance policy renewal statement to identify which coverages can be adjusted [5] - Eliminating comprehensive and collision coverage can save an average of $77 per month, totaling nearly $1,000 annually, but comes with significant risk [9] Group 4: Coverage Changes to Avoid - It is not advisable to cancel the entire policy or reduce liability limits below state requirements, as this can lead to higher rates upon resuming coverage [17][20] - Maintaining some level of coverage is essential to avoid creating a coverage gap, which insurance companies view as a risk [17]