The Cost of Renters Insurance (2024)
- The average cost of renters insurance is only $18 a month.
- Your actual rate depends on factors like your location and coverage needs.
- Bundling your renters and car insurance can save you a lot of money.
How much is renters insurance?
The average cost of renters insurance is $217 a year, or $18 a month, for a typical rental unit. The actual price you pay depends on factors like:
- Your location
- The amount of coverage you need
- Your insurance history and credit
- The discounts you can get
Each company weighs these factors differently, and some may offer you a cheaper rate than others. This is why it’s good to compare renters insurance quotes from a few different companies when you buy or renew your policy.
Renters insurance costs by company
State Farm has the cheapest renters insurance, costing an average of $11 a month. Lemonade is the next-cheapest company at $12 a month.
| Company | Monthly rate |
|---|---|
| State Farm | $11 |
| Lemonade | $12 |
| Allstate | $17 |
| Amica | $17 |
| Progressive | $19 |
| Assurant | $22 |
| Farmers | $23 |
| American Family | $27 |
Lemonade only offers renters insurance in 28 states and the District of Columbia, though it has plans to grow. It provides a fully online shopping experience, with live assistance by phone and online chat.
State Farm is more conventional. It offers online quotes, but an agent in your area usually follows up to finalize your purchase. Once you have an agent, you can work with them on an ongoing basis. This makes State Farm a good option for personalized service.
Renters insurance costs by coverage amount
Increasing your renters insurance coverage usually only has a slight impact on your policy’s cost. This means you don’t have to worry about a big rate increase if you need more coverage.
It only costs $5 more a month to raise your renters personal property Renters personal property covers your belongings for theft or damage from a covered peril like a fire. It’s sometimes called contents coverage. limit from $20,000 to $30,000, for example. This is a relatively small cost for an extra $10,000 in coverage.
Rates by coverage amounts
| Personal property limit | Monthly rate |
|---|---|
| $20,000 | $18 |
| $30,000 | $23 |
Raising the limits of your other coverages usually has even less impact on what you pay.
It can cost less than $30 a year to raise your personal liability Personal liability covers injuries and damage you cause to others. limit from $100,000 to $300,000. That’s a difference of less than $3 a month.
Renters insurance costs by state
Renters insurance rates range from $13 a month in North Dakota to $29 a month in Mississippi.
Renters insurance costs an average of $16 a month in California. The Golden State has the highest share of rental households in 2022, according to data from Statista.
It costs $18 a month in Nevada, which has the second-highest share. In New York, the No. 3 state for rentals, renters insurance costs $15 a month.
Average cost of renters insurance by state
| State | Monthly rate |
|---|---|
| Alabama | $25 |
| Alaska | $19 |
| Arizona | $21 |
| Arkansas | $26 |
| California | $16 |
| Colorado | $17 |
| Connecticut | $14 |
| Delaware | $16 |
| Florida | $20 |
| Georgia | $25 |
| Hawaii | $19 |
| Idaho | $16 |
| Illinois | $18 |
| Indiana | $19 |
| Iowa | $16 |
| Kansas | $19 |
| Kentucky | $20 |
| Louisiana | $29 |
| Maine | $13 |
| Maryland | $19 |
| Massachusetts | $15 |
| Michigan | $24 |
| Minnesota | $16 |
| Mississippi | $29 |
| Missouri | $21 |
| Montana | $13 |
| Nebraska | $17 |
| Nevada | $18 |
| New Hampshire | $14 |
| New Jersey | $15 |
| New Mexico | $17 |
| New York | $15 |
| North Carolina | $13 |
| North Dakota | $13 |
| Ohio | $22 |
| Oklahoma | $24 |
| Oregon | $16 |
| Pennsylvania | $17 |
| Rhode Island | $16 |
| South Carolina | $17 |
| South Dakota | $16 |
| Tennessee | $19 |
| Texas | $20 |
| Utah | $19 |
| Vermont | $14 |
| Virginia | $16 |
| Washington | $14 |
| West Virginia | $16 |
| Wisconsin | $15 |
| Wyoming | $14 |
Weather and crime rates are among the factors that cause insurance rates to vary by location.
Areas with wildfires, severe weather and high crime rates tend to cost insurance companies more in claims payments. Insurers counter this by charging higher rates in areas with risks like these.
How to reduce your renters insurance costs
Taking advantage of discounts and choosing a high deductible are good ways to reduce your renters insurance costs. Avoiding small claims can help keep your renters insurance costs low in the future.
Advantages of bundling car and renters insurance
Most companies offer multipolicy discounts for bundling your car and renters insurance. For example:
- Progressive gives you a discount of up to $30 on car insurance if you bundle it with your renters policy.
- Bundling with State Farm can save your household up to $704 a year.
Lemonade also offers a discount for bundling your car and renters insurance. Unfortunately, it only offers car insurance in seven states. Lemonade also gives you a discount for bundling your renters insurance with a Lemonade life or pet policy.
Many renters insurance companies also extend their bundling discounts to other types of insurance. These include umbrella policies and insurance for your boat or motorcycle.
Convenience is another advantage of bundling your car and renters insurance. You usually only have to work with one agent or representative for issues that affect multiple policies.
If your unit and car are damaged in a fire, for example, the same claims department can handle your renters and auto insurance claim.
Other renters insurance discounts to ask about
Check on the other discounts that may be available as you compare renters insurance quotes. Some of the more important ones to ask about include:
- Protective devices: State Farm, Farmers and many other companies give you a discount for basic home safety and security. Devices as simple as deadbolt locks and smoke detectors can save a few bucks off your renters insurance costs.
- Retired renters: You only have to be 55 and retired to qualify for Allstate’s discount for retired renters.
- Gated community: Progressive is among the companies with a discount for renters in a gated community or complex.
Pay attention to the questions an insurance company asks when you request a quote. Many of these are designed to see if you qualify for a particular discount. Taking the time to answer these questions accurately may save you money.
Why choose a high deductible
Choosing a higher personal property deductible Your insurance company subtracts your personal property deductible from its payment for theft or damage to your belongings. almost always lowers your renters insurance rate.
Since your deductible reduces your insurance payment, you don’t want it to be too high. Otherwise, you may not get enough insurance money after a theft or disaster.
However, just raising your deductible from $500 to $1,000 can reduce your renters insurance costs by up to 25%, according to the Insurance Information Institute (III).
Reasons to avoid small insurance claims
Avoiding small renters insurance claims can help keep your future renters insurance costs low.
Once you file a claim of any size, insurance companies view you as riskier to insure, or more likely to file a future claim. Claims cost insurance companies money. They make up for these costs with higher rates for riskier customers.
You may not get much from your insurance company for a $2,000 claim after your deductible. In this scenario, it may be cheaper in the long run to pay for the items yourself and avoid a rate increase.
On the other hand, if the value of your claim is more than a few thousand dollars, don’t hesitate to file a claim. The whole point of renters insurance is to protect yourself from large expenses after a major disaster or theft.
If you need help deciding whether to file a claim or not, ask your insurance agent. Your agent should be able to tell you if the type of claim you are considering will lead to a surcharge, or rate increase. Just make sure to emphasize that you are only inquiring. This keeps a claim off your insurance record while you decide whether to file one.
Methodology
LendingTree collected thousands of renters insurance quotes from the largest insurance companies in each state, based on data availability.
We used thousands of renters insurance quotes from across the U.S. for a 30-year-old single woman who has no recent renters insurance claims. Your rates may vary. Coverage limits include:
- Personal property coverage: $20,000
- Deductible: $500
- Personal liability: $100,000
- Guest medical protection: $1,000
- Loss of use: $9,000