Average Cost of Renters Insurance

Only 40% of renters have renters insurance, but that doesn't mean you shouldn't acquire a policy for yourself. Renters insurance is a low-cost option to protect your things against theft, unintentional damage, and other perils.

To begin, we'll look at renters insurance premiums in various states. Then we'll go over the various factors that can influence the cost of your insurance. Finally, we'll teach you how to use that knowledge to select a cheap and effective renters insurance coverage.

Average renters insurance rates by state

The national average for renters insurance is $19 per month, although the price you see may vary depending on where you live. This is due to the fact that the likelihood of risks 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 a month (or $139 to $442 per year). Depending on your state, an average policy could cost twice as much as you would pay elsewhere for the same coverage. This prompted us to take a closer look at the states where renters face abnormally high or low insurance premiums.

Renters in Southern states see higher rates

Louisiana had the highest average cost of renters insurance, followed by Michigan, ** Arkansas, and Oklahoma. In all three states, the monthly cost was at least $30 — or $360 for the whole year of coverage. Mississippi completed the top five.

While this is still less than what homeowners must pay for home insurance, 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 experience the lowest premiums

Renters in New Hampshire, Utah, and Wyoming, on the other hand, paid an average of approximately $12 a month, or roughly $144 per year. These states are located deep inland and see fewer natural disasters that push up insurance prices 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 of any state in the US, significant competition for renters insurance pushes down prices.

Where to find affordable renters insurance

At LowCostInsurance, we're always examining industry statistics and examining policy details to find the best insurance solutions for customers. If you want high-quality coverage from dependable providers, we recommend starting with our frequently updated list of the finest renters insurance companies.

State Farm is our top overall suggestion for renters insurance because of its consistently cheap 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.

How much is 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 affect the cost of renters insurance?

We've seen how location and the frequency of natural disasters can influence renters insurance costs, but personal factors also play a role. These include many important variables that you as a tenant can influence:

• Your insurance claims and credit history
• The amount and types of coverage you need
• Your policy deductible
• The type of valuables you own

We'll go through each one to see what it means for your renters insurance rate.

Claims and credit history

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 renters 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.

Coverage choices

The level of coverage you obtain will have a direct impact on your renters insurance prices. Personal property coverage up to $25,000 and personal liability insurance up to $100,000 are 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 personal property coverage costs far more than increasing your liability limits. We discovered that raising tenants 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 renters 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 renters 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 greater monthly cost.

Your valuables

Most renters 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 renters insurance policy that you can purchase to expand or increase coverage for specific things.

Purchasing an endorsement will raise the cost of your renters 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 discounts and deductibles

So far, we've learned how much a typical renter's insurance coverage costs, as well as the factors that influence it. Here's how to save money on renters insurance by looking for specific discounts and lowering your deductible.

Obtain all the discounts you qualify for

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 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.

Choose a lower deductible

As previously noted, choosing a greater deductible on your renters 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.

Compare renters insurance online

The renters insurance companies you choose will also have an impact on the quotations you receive. Traditional insurers will cover renters, but their rates may be higher unless you bundle it with auto insurance or other products.

Meanwhile, there are numerous internet insurance firms offering renters insurance at competitive rates. You can use our tool to search and compare renters insurance choices right now.