Renters insurance can be a lifesaver in an emergency, and it doesn’t have to break the bank. For only $10 to $20 per month, you could get thousands of dollars in coverage for your personal belongings. Renters insurance policies also offer personal liability protection and may even pay for your stay in a hotel if your place gets damaged by a fire or other covered event.
When picking a policy, try to strike a balance between low costs and sufficient coverage. Here are our recommendations for the cheapest renters insurance companies that offer competitive prices and solid coverage, so you can protect yourself and your home without overspending.
Key Points
• Renters insurance is affordable, usually costing $15 to $30 per month.
• Coverage typically includes personal property, liability, and loss of use.
• Higher deductibles can generally lower monthly premiums.
• Discounts are often available for bundling policies and installing safety devices.
• Coverage limits can be adjusted to fit individual budgets.
Top Cheap Renters Insurance Companies
The average cost of renters insurance is $15 to $30 per month, according to the National Association of Insurance Commissioners. Your cost will depend on several factors, including your location, the size of your home, and the amount of coverage you need.
To find you the cheapest renters insurance companies, we gathered quotes based on a sample address in Virginia and standard coverage (generally $30,000 in personal property and $100,000 in personal liability). Here are the most affordable providers based on our research.
| Company | Average Monthly Premiums | Average Annual Premiums |
|---|---|---|
| State Farm | $10.42 | $125 |
| Allstate | $13 | $136 |
| Progressive | $13 – $27 | $156 – $324 |
| Lemonade | $16.42 | $185 |
| Amica | $16 | $169 |
| Geico | $20.34 | $172.04 |
How to Find the Cheapest Renters Insurance Policy for You
Renters insurance is much cheaper than homeowners insurance, since it only covers the belongings inside your home and not the structure of your home itself. Still, it’s worth shopping around to find the most affordable plan for you, as the risks of no renters insurance can outweigh the costs. Here’s how you can find the cheapest renters insurance.
Estimate Your Personal Property Value
When choosing a plan, you’ll select a certain amount of personal property coverage. You can determine how much you need by estimating the value of your belongings. Create a list of your possessions, along with the value of each. You’ll want to select a plan that will cover the full value.
If you have valuable items, such as precious jewelry or fine art, you may choose to schedule them individually into your plan. By taking inventory of what you own, you can pick an appropriate policy without overpaying for more coverage than you need.
Determine Needed Liability & Loss of Use Limits
Along with reimbursing the value of your personal belongings in the event of a fire, robbery, or other covered event, renters insurance also protects against liability or loss of use. Here’s a closer look at what those terms mean:
• Personal liability: This protects you if someone gets injured on your property or if you cause damage to someone else’s property. It can cover legal fees, medical bills, and other costs. Common amounts are $100,000, $300,000, and $500,000.
• Loss of use: If a fire or other covered disaster makes your home uninhabitable, renters insurance will cover temporary housing in a hotel or elsewhere.
Whether you’re purchasing a plan on your own or because your landlord requires renters insurance, consider how much coverage you want in both of these areas. A plan with lower limits will likely be cheaper, but a plan with higher limits may give you more peace of mind.
Get Quotes from Multiple Companies
Pricing and coverage can vary among renters insurance companies, so shop around to find the cheapest plan. Comparing renters insurance quotes from three companies or more can help you find the best deal. As you review your options, make sure each one offers the level of coverage you need.
Compare Coverage & Deductibles Carefully
Renters insurance plans come with different levels of coverage and deductibles. The deductible is the amount you must pay out of pocket before your plan kicks in. A high-deductible plan will be cheaper from month to month, while a low-deductible plan will have higher premiums.
Similarly, more coverage will cost more, and lower coverage will cost less. You may choose between an Actual Cash Value (ACV) and Replacement Cost Value (RCV) plan. An RCV plan will reimburse higher amounts if your possessions are stolen or damaged, but it will be more expensive.
Comparing your options will help you strike the right balance between affordable monthly premiums and enough coverage in the event of an emergency.
Ways to Save on Renters Insurance Costs
Once you’ve picked a renters insurance provider, there may be opportunities to save on your plan, such as bundling with auto insurance or scoring a discount for installing a security system on your home.
Bundle with Auto Insurance
Many companies offer a discount if you take out multiple insurance policies from them. If you have a car, consider bundling with auto insurance from the same provider to get a reduction on your premiums.
Raise Your Deductible
Opting for a plan with a higher deductible will save you money from month to month. Keep in mind, though, that you’ll have to meet your deductible before the plan starts paying out. According to Progressive, renters insurance deductibles typically range from $250 to $2,500 on personal property claims.
Ask About Discounts (Safety Devices, Claims-Free, Payment Method)
Find out if your insurance provider offers any discounts on your plan. Some companies will lower your costs if you install theft prevention devices in your home, such as a security system or deadbolts on exterior doors.
You may also qualify for a discount if you haven’t filed any claims for a certain period of time or choose a certain payment method, such as automatic payments or annual bills instead of monthly ones.
Adjust Coverage Limits Appropriately
If your renters insurance premiums are too high, you may lower them by reducing the amount of coverage in your plan. Most plans offer personal property coverage ranging anywhere from $10,000 to $100,000. Renters insurance injury coverage may range from $100,000 to $500,000, and loss of use coverage is typically 20% to 30% of your personal property limit.
The Takeaway
Renters insurance doesn’t have to be expensive — in fact, the average cost is just about $14 per month. You can find the cheapest renters insurance for apartments by shopping around with multiple companies and comparing different levels of coverage and deductibles. Some providers also offer discounts for installing security devices or bundling plans.
As you pick a plan, make sure it offers enough coverage for your belongings and liability needs. By taking inventory of your stuff and researching your options, you can get the coverage you need at a price that fits your budget.
Looking to protect your belongings? SoFi has partnered with Lemonade to offer renters insurance. Policies are easy to understand and apply for, with instant quotes available. Prices start at just $5 per month.
FAQ
Is renters insurance really necessary?
Renters insurance is not typically required by law, but it can provide financial protection if a disaster strikes. It offers coverage if your personal belongings are stolen or damaged in a covered peril (like a fire), along with personal liability and loss of use coverage.
How much renters’ insurance coverage do I actually need?
The amount of renters insurance coverage you need depends on the value of your personal belongings. You can determine this by taking an inventory of your possessions and estimating their total value. Standard plans offer anywhere from $10,000 to $100,000 in personal property coverage. If you have high-value items, you may purchase supplemental coverage or schedule them into your plan. You should also consider your needs for liability and loss of coverage.
Does bundling renters and auto insurance always guarantee the lowest rate?
Bundling renters and auto insurance may score you a discount, but it doesn’t always guarantee the lowest rate. It’s possible you could find cheaper plans by purchasing them individually from two different companies. Getting quotes from multiple providers can help you find the lowest rate.
How much do renters insurance quotes vary between companies?
Renters insurance quotes will vary between companies, but the difference may not be huge. The average cost of renters insurance is around $173 per year, or about $14 per month. Even a small difference can add up over time, though, so it’s worth shopping around for a plan that fits your budget.
Do cheaper renters insurance companies provide worse service?
Cheaper renters insurance companies don’t necessarily provide worse service. As you compare the cheapest renters insurance quotes, read over customer reviews and communicate with providers directly to get a sense of their customer support.
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