A renters insurance policy may cost less than you think. You’ve probably wondered about the cost of renters insurance coverage: does it cost less than auto or homeowners insurance? Does it change depending upon what state you live in? And what’s the best way to find the lowest rates?
In this article, we’ll take a look at the average cost of renters insurance in the United States in 2021 in each state and among many different groups. We’ll also examine some of the factors that insurers use to determine which renters are high-risk and when they should impose higher rates.
Taking the time to compare insurance quotes is one of the smartest financial decisions you can make. 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.
Average Renters Insurance Cost: Monthly and Annually
Whether you pay more or less, the answer may surprise you.
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.
$180 is a pretty hefty chunk of change. With the average price of a gallon of gas curr ently sitting at $2.38, you could afford approximately 75 gallons for the same cost as the average annual renters insurance premium for a U.S. renter.
But because renters insurance doesn’t usually cover structural damage to the building you rent (that’s your landlord’s job!) $180 is still far less than the average annual homeowners premium of $1,211––making renters insurance a pretty sweet deal.
How much does renters insurance cost in my state?
The cost of renters insurance varies in each state for a variety of different reasons.
States prone to floods, hurricanes, and other natural disasters ––like Florida or Alabama ––tend to have higher renters insurance costs.
By contrast, states with low crime rates and fewer weather-based calamities, like North and South Dakota, tend to have lower renters insurance rates. There’s also some quick and easy methods to lower your rates no matter what state you live in. We’ll get to that later.
Find out the average annual cost in your state below, but keep in mind that quotes will vary for each individual renter.
Average Annual Cost of Renters Insurance by State
Top 10 Most Expensive States for Renters Insurance
Renters insurance is a little pricier for the typical renter in these ten states.
Mississippi: $258 annual, $22 monthly
Oklahoma: $236 annual, $20 monthly
(Tied) Alabama: $235 annual, $20 monthly
(Tied) Louisiana: $235 annual, $20 monthly
Texas: $232 annual, $19 monthly
Georgia: $219 annual, $18 monthly
Arkansas: $212 annual, $18 monthly
Tennesse: $199 annual, $17 monthly
(Tied) New Yor k: $194 annual, $16 monthly
(Tied) Massachusetts: $194 annual, $16 monthly
Top 10 Cheapest States for Renters Insurance
Renters insurance is easy on the wallet in these ten states.
North Dakota: $120 annual, $10 monthly
South Dakota: $123 annual, $10 monthly
Minnesota: $140 annual, $12 monthly
Nebraska: $143 annual, $12 monthly
Iowa: $144 annual, $12 monthly
Montana: $146 annually, $12 monthly
Wyoming: $147 annually, $12 monthly
(Tied) Maine: $149 annually, $12 monthly
(Tied) New Hampshire: $149 annually, $12 monthly
Utah: $151 annually, $13 monthly
What Factors Into the Cost of Renters Insurance
The cost of your renters insurance plan is determined by your insurance company using a wide range of factors.
All renters insurance policies will insure you up to a certain price––often $100,000, $200,000, or even $300,000. The higher your chosen coverage amount, the more expensive the pricing of your premiums.
A claim costing above the coverage limit threshold for your policy may not be considered a fully covered loss by your insurance provider and policyholders may not receive full reimbursement.
Check out the three basic renters coverage types below.
|Coverage Type||What a Policy Covers (Usually!)||Exclusions: What a Policy (Usually!) Doesn’t Cover|
|Liability||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, additional living expenses|
|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|
|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.||The cost of repairing damage to your rented residence (your landlord’s insurance policy may cover that). Personal liability coverage or personal property damage.|
A deductible is the amount of money you have to pay out of pocket when you file an insurance claim. A higher deductible means lower monthly premiums––and vice versa.
Value of Property
The greater the value of your belongings, the more your personal property coverage will cost. A penthouse owner with a cherished collection of jewelry and racing bicycles will likely pay more for their renters insurance than a minimalistic studio-dweller.
Renters living in buildings with more security measures––like burglar alarms or alarmed gates––will pay less for their insurance due to a lower likelihood of vandalism, theft, and other types of property crime.
Renters insurance is often more expensive for those with a low credit score.
Because pets frequently contribute to property damage, a furry companion could hike up your renters insurance rates.
Add-Ons and Bundling
What renters insurance add-ons are right for you?
Many renters insurance companies offer optional add-ons (sometimes also known as riders) for your renters insurance policy.
These add-ons will insure specific types of events not typically covered by a renters insurance policy ––like water damage or identity theft––for an additional fee.
Renters insurance companies also often offer bundling deals with their renters insurance. That means that you can “bundle” your renters policy with another policy, often a car insurance plan, from the same company to receive a discount on both. State Farm is one company that offers discounts to renters who bundle their policies with an auto insurance plan.
How to Get a Renters Insurance Quote
Getting a renters insurance quote should be an easy and stress-free process. Here are the basic steps:
1. Brainstorm and Take a Home Inventory
Because the price of your renters insurance quote depends on the value of the belongings you’re insuring, you’ll need to take stock of everything you own and make a rough estimate of its value.
This is also a good time to sit down and make a list of what you’re looking for in a renters insurance plan. Do you have a prized possession or piece of jewelry you want to make absolutely sure that you cover? Are you interested in potential add-ons or discounts, like identity theft coverage or a security alarm discount?
2. Shop Around for Quotes and Speak to an Agent
Comparing quotes is one of the easiest ways to score major savings on your renters policy.
You can obtain quotes for free from dozens of insurance companies like GEICO, Lemonade, and State Farm in a few different ways: online, over the phone, or by visiting an insurance agent in person.
All three methods offer both advantages and disadvantages: one customer might prefer the extra customer service obtained from seeing an agent in-person, while another might appreciate the ease, speed, and user-friendliness of an online quote-comparison agent like Insurify.
3. Sign Off on Your New Policy
Once you’ve found a renters insurance plan and are satisfied with your policy costs and coverage level, you can sign off on your new policy with peace of mind.
Just remember to check-in and shop around for new renters insurance quotes regularly: biannually and whenever you experience a major life event like getting married or improving your credit score.
Regularly shopping around for quotes will help keep your monthly cost for renters insurance low and ensure that you’re continually satisfied with your insurance company ’s prices and customer service.
How Much is Renters Insurance FAQ
According to the Insurance Information Institute, the average cost of renters insurance in the U.S. is $180 annually. That’s about $15 per month.
According to the Insurance Information Institute, the average cost of renters insurance in New York is $194 annually. That’s about $16 per month.
According to the Insurance Information Institute, the average cost of renters insurance in Texas is $232 annually. That’s about $19 per month.
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How to Find the Best and Cheapest Renters Insurance
Whatever state you live in, buying renters insurance to protect your belongings is a no-brainer–– and surprisingly affordable. With a bit of research, you can quickly find insurance that meets both your needs and your budget.
Insurify uses patented AI technology to help you research your coverage options and get the right insurance for your situation. Insurify can provide you with free insurance quotes in just minutes, with no spam guaranteed.