Lemonade announced Wednesday that it would begin offering car insurance through its newest product, Lemonade Car.

Lemonade stock has risen more than 7% in response to the announcement and is currently trading at $73.28.

Lemonade Car is presently available in Illinois but will be available throughout the United States, according to the firm.

"Lemonade Car is designed to offer better prices for safe and low-mileage drivers, as well as environment-friendly EVs and hybrid cars," they explained.

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The app will employ telematics to assess applicants' risk, measuring how safe and how much they drive while also delivering 24/7 roadside assistance, real-time crash detection, and emergency service dispatch.

In addition, Lemonade stated that it would uphold its long-standing promise to never invest in fossil fuels or polluting businesses, as well as to include CO2 emission-reduction incentives. It will provide lower costs for safe and low-mileage drivers, as well as environmentally beneficial EVs and hybrid vehicles.

"We wanted to introduce a product that would not only reinvent how people buy car insurance, manage their policies, and file claims, but would also benefit the environment." We won't be able to cease using automobiles right away, so we'll assist compensate for the CO2 created by our customers' cars by sponsoring reforestation on an ongoing basis," Wininger added.