Getting cheap renters insurance can protect you and your belongings without breaking the bank. We analyzed more than 10,000 quotes from 14 companies to find the most affordable options for most people. Our study found that these are consistently the cheapest renters insurance companies:
- State Farm
Cheapest renters insurance companies
Amica offers the cheapest renters insurance, at $150 a year, on average. However, there are other companies that consistently offer low-cost renters insurance as well. Our comprehensive study found average rates for some of the most popular renters insurance companies.
Ranging from $150 to $330 a year, there is large variability between companies’ rates. The average cost of renters insurance among the companies we considered was $249 a year, or about $21 a month. That means if you are currently paying more than that, it may be time to consider switching.
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Whether you are buying renters insurance for the first time or are ready to switch providers, consider getting a few quotes. By comparing renters insurance companies, you have a better chance of finding the cheapest rates available to you.
Get your cheapest renters insurance rates by comparing companies.
Getting cheap renters insurance quotes
When you get renters insurance quotes, you’ll need to have some information handy about where you live and who you are. For example, many companies will ask:
- How old you are.
- Where you live.
- Your property type, for instance, an apartment or house.
- Security features of your home, like sprinkler systems or burglar alarms.
- The value of your belongings.
This information determines how cheap your quote is, along with policy specifics. For example, there are four parts of a renters insurance policy: (1) personal property, (2) personal liability, (3) loss of use and (4) medical payments to others. Your quote should include coverage limits for all of these coverages.
The coverage limits are one of the most important parts of your quote because they indicate how much you’re insured for. A coverage limit is the maximum amount of money the renters insurance company will pay out if you file an approved claim. When you compare rates to find the cheapest company for you, make sure the coverage limits are as similar as possible — or else you’re not comparing apples to apples.
Renters insurance policies are standardized, and most people have a policy called the HO-4. Because policies don't differ much, there isn’t a lot of variation in the disasters that companies cover. How much you’ll pay may vary between companies, however.
For more information about what a standard renters insurance policy covers, check out our guide on what renters insurance covers.
Making your rates cheaper
To get your cheapest renters insurance rates, we recommend taking full advantage of discounts and shopping around. Here are some ideas for getting the lowest rates you can.
Don’t assume that rates are the same between companies. By getting quotes from a few companies, you give yourself options and have the opportunity to pick the policy that’s best for you. Saving $20 a month on your renters insurance premium translates to a few hundred dollars a year.
Shave a few bucks off your renters insurance premiums.
Raise your deductible
Raising your deductible lowers your renters insurance premium. Similarly, lower deductibles generally mean higher rates. Your deductible is the amount you have to pay toward a claim before your renters insurance company kicks in to help.
For example, imagine you have a $1,000 deductible and you file a claim for $5,000. Before your renters insurance policy reimburses you, you’ll first have to pay $1,000 toward the damages.
There is one caveat, however: you should only raise your deductible if you’ll be able to afford it in the event of a loss. That means if you aren’t ready to foot a $5,000 expense, you should not have a deductible that high.
Bundle renters and auto insurance
Purchasing multiple insurance policies from the same company could earn you a bundling discount, which commonly ranges from 5% to 10%. Bundling your renters and auto insurance policies, for instance, can also be convenient — having your policies under the same roof reduces the number of companies you must interact with.
Make your home safer
Many people can get cheaper rates by reducing their home’s risk of damage. For example, consider installing a burglar alarm or centrally monitored smoke detector. Small improvements to the safety of your home can save you a few bucks a month and get you your cheapest rates.
Decrease policy limits
Renters insurance has a few coverages, including personal liability and personal property coverage. Every coverage has a maximum payment amount. For instance, it's common to have personal property coverage up to $30,000. Any losses above $30,000 will not be covered.
If you lower your policy limits, you’ll probably save a few bucks a month on your renters insurance. However, it’s important to remember that you’re reducing how much protection you have. For this reason, we only recommend decreasing your policy limits if you think you have too much coverage.
For example, say your current renters insurance policy has $70,000 of personal property coverage, but you estimate that you only have $40,000 worth of belongings. This is an instance when lowering your coverage amount can be a smart way to make your premium cheaper.
We analyzed quotes from all 50 states, for 25 or more addresses in each state. Fourteen companies in total were considered. The policy coverage limits and specifications were as follows:
- $30,000 personal property.
- $100,000 personal liability.
- $1,000 medical payments to others.
- $500 deductible.
Monthly rates were calculated by dividing annual rates by 12. Lastly, information regarding specific insurers was sourced directly from the carriers’ websites.
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