The Cheapest Renters Insurance Companies of 2021

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.

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.

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    America’s top-rated renters insurance

    • Policies starting at just $5/month
    • Sign up in seconds, claims paid in minutes
    • Zero hassle, zero paperwork
    In this article

      The 4 cheapest renters insurance companies of 2021

      Best rates – Farmers

      You can’t beat $10 a month for renters insurance. At such a good price with great coverage, it’s your best option for a good rate.

      J.D. Power Rating
      2/5
      AM Best Rating
      A
      Standard & Poor’s
      N/A
      SimpleScore
      3.4 / 5.0
      close
      SimpleScore Farmers 3.4
      Discounts 4
      Coverage Options 3
      Customer Satisfaction 2
      Support 4
      Accessibility 4

      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. 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.

      Best basic coverage – Nationwide

      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.

      J.D. Power Rating
      2/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA+
      SimpleScore
      3.8 / 5.0
      close
      SimpleScore Nationwide 3.8
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 2
      Support 4
      Accessibility 4

      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.

      Best customer support – State Farm

      Not only is State Farm incredibly accessible, but it comes highly rated in customer service. It also offers a good variety of add-ons, making it a decent option for many people.

      J.D. Power Rating
      5/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore State Farm 4.2
      Discounts 3
      Coverage Options 5
      Customer Satisfaction 5
      Support 4
      Accessibility 4

      In J.D. Power’s 2020 U.S. Renters Insurance Study, State Farm scored 836 out of 1,000 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 add-ons, 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.

      Best cheap coverage for military members – USAA

      For military families, USAA is the ideal option because it caters to exactly what you need. Its standard policies include extensive coverage, and you can even get retirement plans.

      J.D. Power Rating
      5/5
      AM Best Rating
      A++
      Standard & Poor’s
      N/A
      SimpleScore
      3.8 / 5.0
      close
      SimpleScore USAA 3.8
      Discounts 2
      Coverage Options 5
      Customer Satisfaction 5
      Support 3
      Accessibility 4

      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. 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.

      Find the Best Renters Insurance

      Save money on renters insurance with our simple comparison tool.

      Matching you with providers.
      We found results in
      Click at least 2-3 companies to find the very best rate.

        Powered by HomeInsurance.com (NPN: 8781838)

        America’s top-rated renters insurance

        • Policies starting at just $5/month
        • Sign up in seconds, claims paid in minutes
        • Zero hassle, zero paperwork

        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 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 rate6-month rateMonthly rateWeekly rateDaily 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
        USAANot availableNot availableNot availableNot availableNot 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.

        StateAverage monthly costStateAverage monthly cost
        Alabama$20Montana$12
        Alaska$14Nebraska$12
        Arizona$15Nevada$15
        Arkansas$18New Hampshire$12
        California$15New Jersey$14
        Colorado$13New Mexico$16
        Connecticut$16New York$16
        Delaware$13North Carolina$13
        District of Columbia$13North Dakota$10
        Florida$16Ohio$15
        Georgia$18Oklahoma$20
        Hawaii$15Oregon$14
        Idaho$13Pennsylvania$13
        Illinois$14Rhode Island$15
        Indiana$14South Carolina$16
        Iowa$12South Dakota$10
        Kansas$14Tennessee$17
        Kentucky$14Texas$19
        Louisiana$20Utah$13
        Maine$12Vermont$13
        Maryland$13Virginia$13
        Massachusetts$16Washington$14
        Michigan$15West Virginia$16
        Minnesota$12Wisconsin$11
        Mississippi$21Wyoming$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 Renters Insurance

        Save money on renters insurance with our simple comparison tool.

        Matching you with providers.
        We found results in
        Click at least 2-3 companies to find the very best rate.

          Powered by HomeInsurance.com (NPN: 8781838)

          America’s top-rated renters insurance

          • Policies starting at just $5/month
          • Sign up in seconds, claims paid in minutes
          • Zero hassle, zero paperwork

          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 inquiries@thesimpledollar.com with comments or questions.

          Methodology

          SimpleScore

          The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
          For every review, our editorial team:

          • Identifies five measurable aspects to compare across each brand
          • Determines the rating criteria for each aspect score
          • Averages the five aspect scores to produce a single SimpleScore™

          Here’s a breakdown of the five aspect scores and their rating criteria for our renters insurance reviews.

          Why do some brands have different SimpleScores on different pages?

          To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

          However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

          Discounts

          We awarded higher scores to insurance providers with more discounts available on their website.

          Coverage Options

          We gave providers with more renter insurance coverage options a higher score because they’re more likely to have a policy that best meets your needs.

          Support

          We awarded higher scores to renters insurance providers with the most channels for customer support.

          Customer Satisfaction

          We leveraged the J.D. Power Home Insurance Satisfaction Study℠ to see how customers rated their experience with each insurance provider. (If a provider wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

          Accessibility

          We awarded higher scores to insurance providers that have more online and mobile features to easily manage your policy and claims.

          Hedy Phillips

          Contributing Finance Writer

          Hedy Phillips is a freelance lifestyle writer based in New York. While she’s not writing on topics like living on a budget and tips for city dwelling, she can usually be found at a concert or sightseeing in a new city. Over the past 10 years, her bylines have appeared in a number of publications, including POPSUGAR, Hunker, and more.

          Reviewed by

          • Nashalie Addarich
            Nashalie Addarich
            Insurance Editor

            Nasha Addarich is an editor at The Simple Dollar and a former attorney who specializes in home insurance, auto insurance, life insurance, and savings. She is a former contributing editor to Reviews.com.