Renters Insurance Costs on Average (2021)

A typical renters insurance policy costs around $19 per month. Find out where you may get it for a lower price. Only 40% of tenants have renters insurance, but that doesn't mean you shouldn't acquire one for yourself. Renters insurance is a low-cost option to safeguard your things against theft, unintentional damage, and other risks.

To begin, we will examine renters insurance rates in several states. Then we'll go over the elements that can affect the cost of your insurance. Finally, we'll teach you how to use that knowledge to select a renters insurance coverage that's both affordable and effective.

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State-by-state average renters insurance rates

The national average for renters insurance is $19 per month, although the rates you see may vary depending on where you live. This is because the likelihood of perils such as fire, storms, and robbery vary by location. To better understand these disparities, we gathered information on the average cost of renters insurance in each state.

The typical cost of renters insurance varies by state and can range from $12 to $37 per month (or $139 to $442 per year). Some states charge twice as much for the same coverage than other states. Due to this, we decided to investigate the states with unusually high or low insurance premiums.

Renters in the South face higher rates.

Louisiana had the highest average cost of renters insurance, followed by Michigan, Arkansas, and Oklahoma. The monthly premium in the top four most costly states was at least $30 — or $360 a year of coverage. Mississippi completed the top five. Home insurance costs are much higher, even though this is a much smaller amount, it can be a substantial burden for many renters. Rates may be higher in some states due to their greater vulnerability to risk factors such as storms. Another factor that may contribute to higher renters insurance premiums is the average age or condition of the buildings in which tenants live.

Western states have the lowest premiums.

Renters in New Hampshire, Utah, and Wyoming, on the other hand, paid an average of approximately $12 per month, or roughly $144 per year. Two of these states are located inland, where natural disasters are less common, causing insurance costs to rise along the coast. New York and Maine rounded out the top five most affordable renters insurance states. Because New York has the biggest proportion of renters in the country, vigorous competition for renters insurance helps keep prices low.

Where can I locate low-cost renters insurance?

We're continually examining industry statistics and reviewing policy details at Online Insure quote to find the best insurance solutions for renters. We recommend starting with our list of the finest renters insurance companies if you're seeking high-quality coverage from reputable insurers. State Farm is our overall top renter's insurance choice because of its consistently reasonable rates, solid customer service, and near-nationwide availability. On the other hand, money is a key consideration for many tenants. That's why we've developed a list of renters insurance companies that we recommend for economical coverage without sacrificing dependability.

What is the cost of renters insurance in my city?

We gathered typical renters insurance quotes for some of the most popular places for renters to live in the United States, in addition to the average cost in each state.

What factors influence the price of renters insurance?

We've seen how location and the frequency of natural catastrophes can influence a renter's insurance costs, but personal factors also play a role. These include many important variables that you as a tenant can influence: We'll go through each one to see what it means for your renter's insurance rate.

Credit history and claims

Insurers often believe that people who have a history of making claims are more likely to make future claims. Assume you had many insurance claims in the year preceding your application for a new renters insurance policy. That record could be interpreted as an indication that you're more likely to file claims in the future, resulting in a higher monthly premium. Homeowners' and renter's insurance claims can be kept on your insurance record for up to seven years. Not all claims are processed the same way. The implications for your future costs may be determined by the circumstances and amount of your earlier claim. Liability claims and large claim amounts are the most likely to raise your rate. When providing you with a renters insurance quote, insurers may also look at your credit history. Insurance firms have discovered that policyholders with lower credit ratings submit claims more frequently than those with higher credit scores. No matter how careful you are, buying insurance with negative credit is more expensive.

Options for coverage

The level of coverage you obtain will have a direct impact on your renter's insurance prices. Personal property coverage up to $25,000 and personal liability insurance up to $100,000 is included in the majority of the default policies we've looked at. If you're ready to spend more, you can adjust these figures to meet your specific requirements. Extending your property coverage costs far more than increasing your liability limits. We discovered that raising tenant's liability coverage from $100,000 to $300,000 increased annual premiums by 5% to 6%. When compared to the national average, that's only an extra $12 each year.

In contrast, we discovered that increasing property coverage limitations increased renter's insurance prices by 20% to 80%. The table above demonstrates how your annual premium varies depending on the combination of property and liability coverage you choose. The figures indicate the average cost of renters insurance in New York City offered by major insurance carriers with comparable coverage and a common $500 deductible.

Amount deductible

Your renter's insurance deductible is the amount you must pay before receiving compensation in the event of a claim. A normal renters insurance deductible is $500 or $1,000, but you can tailor your coverage to meet your specific needs. A bigger deductible means you'll be responsible for a larger portion of the costs if you ever file a claim, but it also means you'll pay lower rates. Lower deductibles imply better coverage but at a higher monthly cost.

Your priceless possessions

Most renter's insurance policies exclude high-value goods like jewelry or art from coverage or limit coverage to lower category-specific limits. Endorsements are add-ons to your renter's insurance policy that you can purchase to expand or increase coverage for specific things. Purchasing an endorsement will raise the cost of your renter's insurance policy, but it may be necessary if your most expensive possessions are not covered by basic insurance. Before you sign up with an insurer, make sure you understand the limits and coverages you're purchasing.

How to Save Using Deductibles and Discounts

How much does renters insurance typically cost? And what factors determine it? We've learnt a lot so far. Save money on renters insurance with these tips by looking for specific discounts and lowering your deductible.

Obtain all of the discounts for which you are eligible.

If you can demonstrate that you are a lower-risk customer, you will frequently pay reduced rates; therefore, if you are a tenant with fire alarms, burglar alarms, deadlocks, or other safety equipment, you may be eligible for a discount from your insurance. Spend some time going over the application to ensure you've marked all the applicable discounts. If you own a car, consider getting both your auto insurance and renters insurance from the same carrier to save money.

Select a lesser deductible.

As previously noted, choosing a greater deductible on your renter's insurance coverage can lower your cost. This, however, comes at the expense of less effective covering. You should select a deductible amount that corresponds to how much you are willing to spend out of pocket if you incur a loss. Always examine how changing your deductible affects insurance premiums, which you can generally do using an insurer's online pricing tool. Given that the majority of claim circumstances incur significant costs, we advocate erring on the side of a lower deductible.

Online renters insurance comparison

The renter's insurance companies you choose will also have an impact on the quotations you receive. Traditional insurers will cover renters, but their premiums may be higher unless they are combined with auto insurance or other goods. Meanwhile, there are numerous internet insurance firms offering renters insurance at competitive rates. You can use our tool to search and compare renter's insurance choices right now.