The Cheapest Renters Insurance Companies of 2020

Fact-checked with HomeInsurance.com

If a fire races through your apartment complex or a storm damages your rental house, your landlord’s property insurance will cover the building itself, but you’ll have to pay for your belongings out of pocket. If a guest sustains an injury in your home, the property owner’s liability coverage won’t pay your legal costs. That’s why you need renters insurance. The good news is that renters insurance isn’t expensive in most locations.

Find the Best Renter Insurance

Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Find the Best Renter Insurance

Save money on home insurance with our simple comparison tool.

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 cheapest renters insurance companies

Farmers Insurance: Best rates

Pros Cons
Price Few optional coverages
Non-smoker discount No replacement cost option
Mobile app

Farmers Insurance offers some of the best rates. Its standard renters policies include $25,000 in personal property coverage and $100,000 in personal liability coverage, along with $5,000 in loss of use coverage and $1,000 in medical payments to others coverage. At these coverage levels, we received a quote for $10 per month. Of course, you can raise your coverage levels to fit your needs.

We also like the claims process. You can file a claim online, through an agent, over the phone through the toll-free number or with the mobile app. For simple claims, a Farmers representative will deliver your payment following an initial inspection.

Nationwide: Best base coverages

Pros Cons
Standard coverages Below average J.D. Power customer satisfaction rating
Theft extension option to cover property stored in a vehicle Price
Credit card coverage included

In its standard renters policies, Nationwide includes loss of use, medical payments, personal liability and personal property coverages, with a $500 deductible. Nationwide also includes credit card coverage to protect against fraudulent transactions and allows you to use part of your personal property coverage to pay for alterations you’ve made to the rental unit.

Nationwide’s standard policies also feature generous limits, such as $2,500 for watercraft, $2,500 for theft of cameras, firearms or jewelry, plus up to $1,000 to pay a fire department service charge. Nationwide’s standard policies include the Brand New Belongings feature, which pays the depreciated value of your personal property and the cost difference to repair or replace it.

State Farm: Best customer support

Pros Cons
Customer service Few discounts for renters
Price Below average rating for claims handling
Request a quote and buy renters insurance online

In J.D. Power’s 2019 U.S. Renters Insurance Study, State Farm scored five out of five stars in overall satisfaction. State Farm operates local offices from coast to coast, even in many small towns. If you need to buy additional insurance or file a claim, your dedicated agent will always be there to help you.

We also like State Farm’s rental insurance addons, which include earthquake and identity restoration coverages. You can even add business property and business liability coverage to your renters policy. State Farm covers all types of businesses, from restaurants to medical offices.

USAA: Best coverage for military members

Pros Cons
Earthquake, flood and replacement cost coverages included in standard policies Only available to military members and their families
Stored personal property covered worldwide Standard policies do not include loss of use or medical payments coverages
5-star J.D. Power ratings

USAA offers the best standard renters property coverage we’ve found. While most insurers require you to purchase optional coverages to pay for earthquake or flood losses, USAA offers them in its standard renters policies. Better yet, USAA renters policies also include replacement cost coverage at no additional cost.

In J.D. Power’s 2019 U.S. Renters Insurance Study, USAA earned five out of five stars in all ratings categories. USAA only offers insurance to members of the United States military and their families. The company also offers its members banking services, investment funds and retirement plans.

Cost of renters insurance

The price you pay for renters insurance will depend on the level of coverage you need, along with certain rating factors, including:

  • 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 coverages: An insurance agent might offer you addons 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 coverages increase 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
Farmers $120 $60 $10 $2.31 $0.33
Nationwide $198 $99 $16.50 $3.81 $0.54
State Farm $125 $62.50 $10.42 $2.40 $0.34
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
Alabama $20 Montana $12
Alaska $14 Nebraska $12
Arizona $15 Nevada $15
Arkansas $18 New Hampshire $12
California $15 New Jersey $14
Colorado $13 New Mexico $16
Connecticut $16 New York $16
Delaware $13 North Carolina $13
District of Columbia $13 North Dakota $10
Florida $16 Ohio $15
Georgia $18 Oklahoma $20
Hawaii $15 Oregon $14
Idaho $13 Pennsylvania $13
Illinois $14 Rhode Island $15
Indiana $14 South Carolina $16
Iowa $12 South Dakota $10
Kansas $14 Tennessee $17
Kentucky $14 Texas $19
Louisiana $20 Utah $13
Maine $12 Vermont $13
Maryland $13 Virginia $13
Massachusetts $16 Washington $14
Michigan $15 West Virginia $16
Minnesota $12 Wisconsin $11
Mississippi $21 Wyoming $12
Missouri $14

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.

Find the Best Renter Insurance

Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Find the Best Renter Insurance

Save money on home insurance with our simple comparison tool.

Methodology

To find the best cheap renters insurance, we turned to the most trusted industry experts. Consumer research company J.D. Power produces an annual study of the renters insurance market, rating and ranking insurers on factors that matter most, like claims handling, customer interaction, policy offerings and price. All of the companies we chose ranked among the top 10 in J.D. Power’s 2019 U.S. Renters Insurance Study.

The companies we chose write renters policies in all U.S. states and Washington, D.C. Although USAA only offers products to military members and their families, the U.S. Department of Defense employs nearly 1.4 million people who represent a sizable portion of the nation’s rental market.

We also considered each company’s financial strength. An insurer’s financial strength is a primary indicator in determining its ability to pay claims. So, we turned to AM Best’s credit rating service. AM Best has been in business since 1899 and specializes in providing credit ratings for the insurance companies.

AM Best Credit Rating
Farmers A (Excellent)
Nationwide A+ (Superior)
State Farm A++ (Superior)
USAA A++ (Superior)

Finding the cheapest renters insurance is important to most renters, but price is just one of the most important factors to consider. We chose these insurers based on a combination of price, coverage and customer care.

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