The Cost of Renters Insurance by State and Company

At a time when many things are more expensive than ever, renter’s insurance remains surprisingly affordable. The average annual cost, according to a recent study by USA Today, is $173 per year—less than 50 cents per day. State averages range from a low of $48 (Alaska) to $294 (Louisiana).

In fact, depending on your situation and insurance needs, renter’s insurance could be virtually free. How? By bundling your renter’s and car insurance policy with the same company, you may qualify for a car insurance discount that easily pays for the renters policy.

How much is renter’s insurance in your state?

Here are average annual and monthly renter’s insurance rates based on a policy with $15,000 of personal property coverage.

Source: USAToday.com and Quadrant Information Services

What affects the cost of renter’s insurance.

• Coverage selections—Choosing higher limits, lower deductibles, and optional coverages will likely cause your renter’s insurance premium to increase.
• Discounts—Many insurers offer discounts for bundling your renter’s insurance with other policies (such as auto or life), or paying the policy premium in full rather than through installment payments.
• Company—Each insurance company has its own way of calculating policy rates. That results in rates varying, sometimes significantly, between companies.

What is the cheapest renter’s insurance company?

According to a recent study by USA Today, these are the cheapest renter’s insurance companies.

(1) Annual cost. Source: USAToday.com
(2) J.D. Power 2023 U.S. Home Insurance Study for Renters Insurance Customer Satisfaction.
(3) Accessed January 5, 2024

Allstate

Why it’s a good choice: Attractive discount for retirees in a rented home.

At $116 per month, Allstate offers the cheapest renter’s insurance. Besides the four standard renter’s insurance policy coverages, Allstate offers scheduled personal property coverage for high-value items, and identity theft coverage. Policy discounts include those for having multiple Allstate policies, being over age 55 and retired, and for enrolling in auto withdrawal of your payment. J.D. Power ranked Allstate renter’s insurance slightly below the national average.

Chubb

Why it’s a good choice: Good features for those living in a higher-value property.

Chubb offers renter’s insurance at a low cost. Its coverage options include extended replacement cost and water backup. Discounts include those for having a burglar alarm, having a fire-resistant structure, and living in a gated community.

State Farm

Why it’s a good choice: Discount for bundling auto and renter’s could negate the cost of the renter’s policy.

One of the country’s best-known insurance brands, State Farm offers cheap renter’s insurance with the four standard coverages. Options include pet medical, identity restoration, and earthquake coverage. The company offers discounts for bundling multiple State Farm policies and having home security devices.

What is the most expensive renter’s insurance company?

According to a recent study by USA Today, these are the most expensive renter’s insurance companies.

(1) Annual cost. Source: USAToday.com
(2) J.D. Power 2023 U.S. Home Insurance Study for Renters Insurance Customer Satisfaction.
(3) Accessed January 5, 2024

Travelers

Why it’s a good choice: Wide range of insurance choices, in addition to renters.

The most expensive insurer in our review, Travelers offers the four standard coverages, in addition to a replacement cost option and coverage for valuable items. Ways to save include a multi policy (bundling) discount, a loss-free discount (for those who avoid filing claims), and discounts for safety and home security systems.

Progressive

Why it’s a good choice: Multiple discount opportunities can help bring down the cost of a renter’s policy.

Progressive is one of the country’s best known renters insurance brands. Its renter’s coverage is the second most expensive in our review. Discounts may help bring down the cost, however. The company offers several, including multi-policy (bundling), quote in advance, documents by email, pay-in-full, and gated community. They also offer a single deductible benefit, so if a single event results in multiple insurance claims (for example, you have to file claims with both your auto and renter’s policies), you’ll pay only one deductible.

Progressive offers the four standard coverages, plus optional water back-up and personal injury coverage.

Erie

Why it’s a good choice: High customer service rankings.

Erie Insurance stands out for its customer satisfaction rankings: J.D. Power places it at number one among renter’s insurance providers. And its current Trustpilot score is slightly better than many competitors.

Erie’s coverage options include sewer and drain backup and earthquake. The company also offers optional coverage for those who rent out their apartment with home sharing platforms such as Airbnb. Discounts include multi-policy, safety systems, advance quote, and discounts based on the customer’s age.

What is renter’s insurance?

Renter’s insurance is essentially a stripped-down version of a standard homeowners insurance policy. Because you don’t actually own the structure (walls, floors, roof, common areas) of the building in which you live, a renter’s policy doesn’t provide insurance for those items.

What does renter's insurance cover?

A standard renter’s insurance policy does provide you with four types of coverage.

Besides these standard coverages, many insurers offer optional coverage for expensive jewelry, identity theft, business property, pet liability, and sump backup.

Standard renter’s insurance policies rarely cover damage due to watershed flooding (caused by a flooded river or ocean storm surge, for example), or earthquakes. However, coverage for floods is available through the National Flood Insurance Program, while many insurers offer optional coverage for earthquakes.

How to get the cheapest renter’s insurance

Renter’s insurance is relatively affordable. It's much cheaper than standard homeowners insurance, and a lot easier to get. In fact, insurer Lemonade claims you can have a policy in just 90 seconds!

But you do owe it to yourself to save money on a policy when you can. Here are a few ways to get the cheapest renter’s insurance.

Shop around

Renter’s insurance rates vary between insurance companies. So when shopping for a policy, check with at least three or four companies to see who can save you the most. Many insurers offer online quotes, so you can do the shopping from the comfort of home.

Ask about discounts

Many insurers offer a generous discount for “bundling” your renter’s insurance with an auto policy. You might also be able to earn a discount for paying your policy in full (rather than in monthly installments), or having smoke detectors and a security system.

Increase your deductible

You choose a deductible for your personal property coverage when you buy a policy. Choosing a higher deductible means you’ll receive less money if you have a claim, but you’ll also pay less for the policy.

Talk to an independent agent

Independent insurance agents are licensed professionals who represent multiple insurance companies. As they know the ins and outs of the policies they sell, they can help you find ways to save. Independent agents can also take on a lot of the legwork involved in buying a policy.

How to get renter’s insurance for virtually free

By understanding how insurance discounts work and doing a little math, it’s easy not difficult to see how you may be able to get your renter’s insurance virtually for free.

Of course, this depends on your situation. Specifically, you need to have another policy, such as car insurance, from a company that also sells renter’s and that offers a generous bundling discount.

For example, say you’re paying $1,000 per year for your car insurance. Your insurance company offers a 15% discount for having multiple policies. And you’re able to get renter’s insurance from the company for $150.

With no discounts applied, the total cost of this insurance package would be $1,150. But factor in the 15% bundling discount for the car insurance policy, and you save $150. That’s exactly the cost of the renter’s policy.

Still skeptical? State Farm, which is the country’s largest provider of car insurance, states explicitly on its website that “If you choose to bundle your renter’s and auto policies, you could save enough to cover your renter’s policy.”

The bottom line is that you owe it to yourself to do the math. Even if you don’t get “free” renters insurance, you may find that you can save a lot of money by bundling.

TIME Stamped: Renter’s insurance can be very affordable

Your cost of renter’s insurance will depend on your state, the company you choose, and other individual factors. However, by doing a little homework and checking around for the best discounts, you’ll find that renter’s insurance is hardly a luxury. In fact, the national average cost amounts to less than 50 cents per day.

Frequently asked questions (FAQs)

What is the average annual renter’s insurance cost for $15,000 of coverage?

According to a recent study by USA Today, the average annual cost for renter’s insurance with $15,000 of personal property coverage is $173.

What is the average monthly renter’s insurance cost for $15,000 of coverage?

According to a recent study by USA Today, the average monthly cost for renter’s insurance with $15,000 of personal property coverage is $14.41.

Why does renter’s insurance cost less than home insurance?

A renter’s insurance policy covers less than a homeowners insurance policy, therefore it costs less.

A renter's insurance policy is essentially a modified homeowners insurance policy that excludes coverage for things that the tenant does not own—specifically the dwelling itself (walls, floors, roof, other structural elements), plus any common areas. Insurance for those items is the responsibility of the landlord.

How can I get free renter’s insurance?

A renter’s insurance policy by itself isn’t free. However, if you already have a car insurance policy, and buying a renter’s insurance policy means you now qualify for the insurer’s bundling discount, you may find that the value of that discount more than pays for the cost of the renter’s policy.