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The Cheapest Renters Insurance Companies of 2021
Finding the cheapest renters insurance is as easy as going online and requesting quotes. But renters insurance coverage varies among insurers, so it’s important to research a carrier’s policy details and strengths and weaknesses. When shopping for cheap renters insurance, look beyond price and consider the quality of coverage and customer support an insurance company can provide.
The 4 cheapest renters insurance companies of 2021
- Best Rates: Farmers
- Best Basic Coverage: Nationwide
- Best Customer Support: State Farm
- Best for Military Members: USAA
Cost of renters insurance
- Actual cash value or replacement cost coverage: In their standard renters policies, many insurers pay actual cash value on personal property claims. If you file a claim, the insurer will pay the depreciated value of your belongings. Many insurers offer replacement cost coverage as an add-on. While replacement cost coverage might cost a few dollars more, it’s worth it because it allows you to replace your property with equivalent items at current market prices.
- Discounts: Most insurance companies offer discounts to help you reduce your rate. For example, a carrier may offer a discount for bundling car and renters insurance.
- Optional coverage: An insurance agent might offer you add-ons to your policy to increase your protection. For instance, you may choose to add identity theft coverage or additional coverage for expensive items, such as artwork or musical instruments. Optional coverage increases your premium, but they’re often worth the extra money when disaster strikes.
- Your deductible: You can lower your insurance rate by choosing a higher deductible, around $1,000 or more.
- Your credit score: Most states allow insurance companies to use your credit score as a factor in determining your rate. Folks with poor credit often pay more for renters insurance.
- Your location: People who live in areas prone to flooding, earthquakes, hurricanes, tropical storms or wildfires typically pay more for renters insurance. If you live in a high-crime neighborhood, you may also pay more for coverage.
We requested quotes from all but one of our top renters insurance companies and received a variety of rates. For each quote we selected standard coverage levels and used a profile of a married couple, both aged 40, living in Albany, New York.
Average cost of renters insurance
|Annual rate||6-month rate||Monthly rate||Weekly rate||Daily rate|
|USAA||Not available||Not available||Not available||Not available||Not available|
Average cost of renters insurance by state
Your price will also vary by state. This chart shows the latest aggregate data available, collected in 2017.
|State||Average monthly cost||State||Average monthly cost|
|District of Columbia||$13||North Dakota||$10|
Bear in mind that our quotes and the III state averages do not represent the price you’ll pay for renters insurance. For the most accurate price, you’ll need to request a personal quote.
Tips to keep your renter insurance cheap
- Adjust the deductible: Play around with the deductible you choose to see what your monthly payment might be. If you opt for a higher deductible, your monthly payment will go down. Just keep in mind that that means you’re on the hook for more money up front should you need to call on your insurance.
- Only get what you need: Carefully read the policies and only get the coverage you need. Also, accurately assess the value of your belongings so you’re not getting extra coverage you don’t need.
- Shop around: Compare prices with all the renters insurance companies. While you probably won’t find a huge difference in price, you might be able to save yourself a few dollars somewhere with one insurance company over another. Examine all the plan options and pay attention to the prices and the coverage.
- Bundle your insurance: Do you already have car insurance? You might be able to bundle your renters insurance with it to save yourself some money. Many insurance places will offer a discount if you have multiple plans, so check with your current insurance provider first.
How to budget my renters insurance
- Check out a yearly payment: While it might be easier on your wallet to pay your premium monthly, you’ll most likely save money if you pay the year in one fell swoop. Best of all, that means one payment and you’re done for the year. Go into your insurance shopping with the budget for the whole year in mind, and if you can, pay it all up front.
- Check out the timing: Most policies will be for 12 months but if you need a shorter policy, you might be able to find one for six months. Oftentimes the best deal is for 12 months, but we know that sometimes you’re living some place for a short period of time and don’t need that 12-month coverage. Just keep in mind that a shorter policy might cost more.
- Build it into your monthly budget: When considering the cost of the rent on any place, figure in the monthly cost of your renters insurance, because it’s incredibly important to have. Our purpose at The Simple Dollar is to provide guidance for people to live a frugal life and reach financial stability, so we have plenty of resources to help you figure out your monthly and yearly budget.
We welcome your feedback on this article and would love to hear about your experience with the renters insurance companies we recommend. Contact us at firstname.lastname@example.org with comments or questions.