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Insurance can sometimes feel like an intimidating subject, and renters insurance is no exception to the rule.

What’s the difference between renters and homeowners insurance? What are premiums, deductibles, and coverage limits? And what’s the best way to find the cheapest renters insurance quote?

What if I told you that you could be paying as little as $5 per month for a renters insurance policy?

We’ll cover all that in our comprehensive guide to finding the cheapest renters insurance that works for you. But, first, if you’re in the market to compare insurance in general––and if you want to save cash, you should be –– Insurify is here for you.

Rather than wasting days speaking to individual agents, quote comparison site Insurify uses cutting-edge AI technology to provide you with dozens of auto insurance, homeowners insurance, and life insurance quotes, customized to your driver history and complete with personal discounts.

Renters Insurance: The Basics

According to the Insurance Information Institute, the average cost per month of renters insurance in the U.S. is around $15 per month.

That means that the average U.S. renter is paying around $180 per year for insurance, making renters insurance one of the most affordable insurance types.

Average Cost of Renters Insurance by State

But what is that money going towards?

A renters insurance policy protects you and the belongings in your rented property from misfortunes like property damage, theft, liability claims, and other accidents and unexpected events.

Renters pay a premium ––a monthly payment––each month in exchange for their renters policy. In exchange, their insurance company promises to provide them with coverage.

If a renter chooses to exercise this option––if, for example, their prized Ming vase was shattered as a result of a freak windstorm ––the renter files a claim with their insurance agency. The renter (also known as the policyholder ) then pays a deductible ––a predetermined amount of money paid out-of-pocket for each claim––and the insurer takes care of the rest.

Renters insurance covers three main categories: personal property coverage, personal liability coverage, and additional living expenses coverage.

  • Liability coverage: Provides liability protection: may cover medical expenses, property damage costs, or legal fees if you accidentally damage someone else’s property or a guest hurts themselves in your residence. Any liability costs that exceed your coverage limit, damage to your personal property, and additional living expenses Any liability costs that exceed your coverage limit, damage to your personal property, additional living expenses are excluded.

  • Personal Property: The cost to repair ( actual cash value ) or replace ( replacement cost coverage) your personal belongings should they be damaged or stolen. Damage to personal property over your coverage limit, liability damages, additional living expenses, medical bills due to bodily injury are excluded.

  • Additional Living Expenses: Additional coverage that pays for hotel bills or other living expenses if your current residence is damaged or otherwise not habitable. Sometimes also known as loss of use coverage. Repair costs from damage to your rented residence (your landlord’s insurance policy may cover that), personal liability coverage or personal property damage and medical payments are excluded.

These three categories are far from the only renters insurance types: most insurance providers offer additional coverage types, often known as add-ons or riders, for specific instances not covered by a typical plan. For example, some add-ons cover instances of water damage due to sewer-backup; others cover identity theft.

Now that we’ve got the basics of renters insurance down, let’s take a look at how you can quickly and easily find cheap renters insurance or lower your current policy’s cost.

Tip #1: Always Compare Quotes

The easiest and most important way to quickly and easily lower the cost of your renters insurance is to compare quotes from a wide array of companies. Often the lowest quote will come from a company you’d never expect.

There are a few ways to compare quotes. You can call the insurance provider ’s quote lines over the phone, or visit an insurance agent in person.

The quickest and easiest way, though, is often over the web. Quote comparison sites like Insurify use cutting-edge AI technology to deliver you dozens of personalized quotes in just minutes for free.

Beware of lead-generation sites, however. Sites like these promise a fair and objective insurance comparison experience but sell your personal data to advertisers and internet scammers instead.

Tip #2: Consider Bundling

Some of the most substantial discounts available to renters come from multi-policy discounts, a practice also known as bundling. If you purchase more than one insurance policy from the same provider––renters and auto coverage is one of the most popular combinations–– insurers like Nationwide and State Farm will reward you with cheaper overall rates.

Bundling insurance policies also means less of a headache when it comes to filing a claim,  since you’ll only have one insurance agent and agency to keep track of and communicate with.

Tip #3: Adjust Your Deductible

If you’re comfortable paying a higher out-of-pocket expense if you do have to file a claim, raising your deductible is one of the easiest ways to save on your monthly premium.

Don’t raise it too high, though, or you’ll be scrambling to find the cash to fork over when an accident does occur.

Tip #4: Invest in Home Safety and Security

Many companies that offer renters insurance coverage, like GEICO and Lemonade, offer discounts to policyholders who install home security or safety devices.

Security devices like burglar alarms make instances of theft or vandalism less likely to occur, and safety devices like sprinklers mean accidents like grease fires are less likely to spread out of hand. It’s a win-win!

Tip #5: Pay in Advance

If you have enough cash in the bank, paying your premiums in advance is an easy way to save.

Many renters insurance providers offer discounts to renters who pay their entire yearly premium in advance, or in quarterly rather than monthly installments.

Tip #6: Pay Digitally

Fewer mailed bills can take the pressure off the environment–– and off your credit card.

Renters insurance companies often have deals for customers who opt for paperless billing or sign off on their policy online.

Best Companies for Affordable Renters Insurance

You’ve tried the tips above and seen savings on your premiums. But what if you’re ready for a whole new company?

Learn about a few of the best renters insurance companies for cheap premiums below.

Lowest Overall Price: Lemonade

As a newer startup using AI to break into the competitive renters insurance market, Lemonade uses its proprietary technology to offer bare-bones renters policies at jaw-dropping rates of as low as $5 per month.

With premiums that cost less than a Brooklyn latte, Lemonade makes sure that you can afford your ideal apartment and stay safely insured.

  • A.M. Best Rating: N/A

  • J.D. Power Ranking: 866/1000

  • BBB (Better Business Bureau) Rating: B+

Best for Discounts: Allstate

Ranked 3rd on J.D. Power’s ranking of national renters insurance providers, Allstate is a reliable and well-established insurance company with a reputation for strong customer service.

Though other companies may offer lower premiums, Allstate is a dependable choice for Americans in the market for renters insurance, with strong customer service values and a wide range of potential discounts. Allstate advertises an average monthly premium of $15, which means that your policy cost may be substantially lower––or higher.

  • A.M. Best Rating: A+

  • J.D. Power Ranking: 841/1000

  • BBB (Better Business Bureau) Rating: A+

Best Customer Service: State Farm

As one of the oldest and best-known insurers in the U.S., it won’t surprise you to learn that State Farm renters insurance has received kudos for stellar customer service and quick handling of claims.

For a two-bedroom, one-bathroom apartment in Queens, NYC, with $100,000 liability, $25,000 personal property, $1,000 medical payment, and a $1,000 deductible, State Farm provides renters insurance at the reasonable price of $10.42 a month.

  • A.M. Best Rating: A++

  • J.D. Power Ranking: 836/1000

  • BBB (Better Business Bureau) Rating: A+

Best for Veterans and Military Families: USAA

Only available to U.S. military active service members or veterans and their immediate family, USAA is renowned for its customer service and reasonable cost––and its renters insurance product is no exception.

For a two-bedroom, one-bathroom apartment in Queens, NYC, with $100,000 liability, $25,000 personal property, $1,000 medical payment, and a $1,000 deductible, a renters quote from USAA is available at the low rate of $10 a month.

  • A.M. Best Rating: A++

  • J.D. Power Ranking: “Among the Best”

  • BBB (Better Business Bureau) Rating: A-

Keep in mind, however, that the best way to score the cheapest renters insurance is to personally compare quotes from a wide variety of insurers, as well as taking advantage of some of the other tips outlined above.

Each renter––and each rented home––is different, so your mileage may vary when it comes to the price of your individual quote.

Affordable Renters Insurance FAQ

  • The best way to find cheap renters insurance quotes is to compare quotes from several different companies. You can compare quotes in person, using a company's phone quote hotline, or online. Lemonade, USAA, State Farm, and Allstate all often offer low-priced renters quotes; however, the quoting process varies for each individual customer, and you may find a better quote elsewhere.

  • According to the Insurance Information Institute, the average cost per month of renters insurance in the U.S. is around $15 per month. That means that the average U.S. renter is paying around $180 per year for insurance, making renters insurance one of the most affordable insurance types.

  • Paying your premium in advance, opting for paperless billing, raising your credit score, bundling together your renters and auto policy, and installing home security or safety devices like burglar alarms or sprinklers are all simple and easy ways to lower your renters insurance premiums and score discounts from your insurance company.

  • If you want to avoid entering your information at dozens of insurance provider websites, use Insurify to quickly and easily compare insurance quotes across up to 20 insurance companies. You’ll just need to enter your information one time, and Insurify's patented artificial intelligence technology will deliver a side-by-side comparison of the cheapest rates for different coverage types. Insurify makes it easy to select the lowest premium for the coverage you need so you can get a policy that fits your budget.

How to Find the Best and Cheapest Renters Insurance

Buying renters insurance to protect your belongings is an easy choice. With a little detective work and our easy tips, you can quickly find insurance that meets both your needs and your budget.

Insurify uses cutting-edge technology to help you find dozens of coverage options and get the right insurance for your situation. Insurify can provide you with free renters, car, home, and life insurance quotes in just minutes: no spam – guaranteed.

Isabella Nilsson
Isabella NilssonInsurance Writer

Isabella is from Cleveland, Ohio. She graduated from Columbia University in 2020 with a double major in English and Creative Writing. Though writing is her first passion, she also loves hiking, biking, hang gliding, white water rafting, skydiving, extreme eating, and the occasional swim with sharks.