Average Cost of Renters Insurance in 2024

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Updated: May 22, 2024

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Renters insurance, averaging $12 per month or $138 per year, can protect your belongings and save you money in the long run. While it might not be the first thing that comes to mind while settling into a new rental, getting a policy will give you peace of mind.

The average cost of a renters insurance premium varies based on your coverages, deductibles, add-ons, location and insurance provider, among other factors. To cater to different renters, MoneyGeek analyzed rates across all 50 states and hundreds of cities to determine the average cost for consumers based on varying coverage levels.

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MoneyGeek, in partnership with Quadrant Corp, analyzed renters insurance quotes across all 50 states to determine the average cost of renters insurance. Average cost was determined using personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $1,000.

Average Cost of Renters Insurance

Cost is an important factor when shopping for renters insurance, and knowing average rates can help you find the best deal. The average cost of renters insurance this year is about $12 per month, or $138 per year, for $20,000 of personal property coverage, $100,000 of liability coverage and a $500 deductible.

However, cost can vary greatly based on location and coverage amount, among other factors. The cheapest renters insurance for you could be greater or less than the average.

Average cost of renters insurance is $12/month

Average Cost of Renters Insurance by Coverage Amount

For $20,000 in personal property coverage per month, the average cost of renters insurance is $12 per month or $138 per year, although this may increase if your coverage amount is higher. For instance, if you have $100,000 in personal property coverage, your average cost for renters insurance may be $36 per month or $426 per year.

Renters insurance increases in price as your coverage amount increases, so you’ll likely end up paying more if you have many valuable possessions. If not, you can often score a lower monthly rate with a low coverage amount.

Take a look at the table below and see how renters insurance rates change when you increase your coverage limits.

$20K Personal Property / $100K LiabilityAnnual Premium$138
$50K Personal Property / $100K LiabilityAnnual Premium$229
$100K Personal Property / $100K LiabilityAnnual Premium$374
$250K Personal Property / $300K LiabilityAnnual Premium$757

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Insurance Rates
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To determine how much renters insurance coverage you need, have an inventory or a list of your personal belongings and their value. The best renters insurance policy for you will have a coverage limit approximating the value of your property.

Average Cost of Renters Insurance by Company

The average cost of renters insurance varies by company, with State Farm being the cheapest option for $20,000 in personal property coverage at $99 annually. Generally, costs change between providers because the way they calculate premiums differs.

For instance, Travelers offers renters insurance at $239 per year — $140 more than State Farm. Toggle the table below to see how rates change based on provider and coverage.

Data filtered by:Results filtered by:
Coverage:$20K Personal Property / $100K Liability
State FarmAnnual Premium$99
AllstateAnnual Premium$111
NationwideAnnual Premium$139
FarmersAnnual Premium$156
TravelersAnnual Premium$239
State Farm

State Farm offers the most affordable renters insurance, covering personal property like computers, TVs, electronics, furniture, clothing and more due to burglary, fire, smoke damage and sudden and accidental water damage. You can save on insurance by bundling renters and auto coverage with State Farm.


Allstate also has inexpensive insurance for renters looking to protect their personal property. For just a few dollars a month, you can rest assured that your property is protected if something bad happens. Allstate also offers additional coverage options in the form of flood insurance and personal umbrella insurance.

Average Cost of Renters Insurance by Deductible

The average cost of renters insurance can vary significantly depending on your deductible, which is what you agree to pay before your insurance covers a claim. For instance, if you opt for a renters insurance policy with $20,000 in personal property coverage and a $1,000 deductible, you can expect to pay an average annual premium of $138.

However, if you're willing to take on a higher deductible, say $2,000, you'll be able to save on your annual premium, paying an average of $12 less. This flexibility in choosing your deductible allows you to tailor your policy to your budget and risk tolerance. To see the full breakdown of average costs by deductible and coverage, you can use the table below.

Data filtered by:Results filtered by:
Coverage:$20K Personal Property / $100K Liability
$500Annual Premium$150
$1000Annual Premium$138
$1500Annual Premium$133
$2000Annual Premium$126

Keep in mind that a lower deductible generally results in higher insurance rates, while a higher deductible can lead to lower premiums. It's crucial to strike the right balance between the deductible and premium that best suits your financial situation and peace of mind.

Average Cost of Renters Insurance by Credit Score

If you have a poor credit score, renters insurance can cost an average of $285 per year — $147 more yearly than for those with a good credit score. Your credit score influences the average cost of renters insurance, as providers use it as an indicator of a your financial responsibility and likelihood of making claims. Generally, individuals with higher credit scores tend to receive lower premiums, while those with lower scores may see higher rates.

Understanding the relationship between your credit score and renters insurance premiums can help you make informed decisions to manage your insurance costs effectively. To explore how rates change based on credit score and coverage, feel free to toggle the table below.

Data filtered by:Results filtered by:
Coverage:$20K Personal Property / $100K Liability
ExcellentAnnual Premium$108
GoodAnnual Premium$138
FairAnnual Premium$177
Below FairAnnual Premium$223
PoorAnnual Premium$285

While those with good credit scores pay an average of $138 per year for $20,000 in personal property coverage, individuals with poor credit may pay $147 higher annually. This contrast emphasizes the importance of maintaining a good credit score to not only secure affordable renters insurance but also to save on your expenses.

If you’re looking to lower your renters insurance rates, improving your credit score can be a valuable long-term goal. Build and maintain a strong credit history by paying bills on time, reducing outstanding debts and managing credit responsibly.

Average Cost of Renters Insurance by Claims History

Your claims history is a significant factor that influences your insurance premiums — having at least one claim in the past five years can result in average renters insurance rates of approximately $182 per year.

Insurance companies consider your past claims as an indicator of your risk profile. Individuals with a history of frequent or significant claims are seen as higher risk, leading to higher premiums, while those with a clean claims history tend to enjoy lower rates. To explore how rates change based on claims history and renters insurance coverage, you can easily toggle the table below.

Data filtered by:Results filtered by:
Coverage:$20K Personal Property / $100K Liability
Claim free for 5+ yearsAnnual Premium$138
1 claim in past 5 yearsAnnual Premium$182
2 claims in past 5 yearsAnnual Premium$231

Having a claim can significantly impact your renters insurance rates. For instance, having two claims in the past five years increases the average cost of renters insurance by $93 annually compared to having no claims at all. Strike a balance between using your insurance when necessary and avoiding filing unnecessary claims to maintain affordable coverage.

Average Cost of Renters Insurance by State

The cost of renters insurance can vary significantly based on location. A big factor to consider is if your rental is located in a disaster-prone state. If it does, you might encounter rates that are higher than the national average.

For example, renters in Alabama pay an average of $293 per year, while renters in North Dakota pay a yearly average of only $77. This may be caused by various factors, such as the population density or the likelihood of a natural calamity in the state. Use the table below to check the rates based on your coverage and the state you live in.

Data filtered by:Results filtered by:
Coverage:$20K Personal Property / $100K Liability
AlaskaAnnual Premium$85
AlabamaAnnual Premium$293
ArkansasAnnual Premium$219
ArizonaAnnual Premium$173
CaliforniaAnnual Premium$138
ColoradoAnnual Premium$105
ConnecticutAnnual Premium$138
DCAnnual Premium$112

How Much Renters Insurance Coverage Do You Need?

The coverage amount you should choose for your renters insurance policy depends on your unique needs and circumstances. When determining the appropriate coverage, consider several factors, including the value of your possessions, your location, lifestyle and other factors. Tailoring your coverage to align with these considerations will help ensure you have the right level of protection in place.

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    Value of Your Possessions

    Determining the value of your possessions is crucial for setting the right personal property coverage limits. To calculate this, make a detailed list of your belongings, noting their estimated values. For high-value items like jewelry, fine art, or collectibles, consider scheduling them separately or obtaining additional coverage. Conduct a comprehensive home inventory to determine the value of your possessions accurately. Document and list all your belongings along with their estimated values, as it can help measure how much personal property coverage you need.

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    Replacement Type

    There are two main types of replacement for your personal property: actual cash value (ACV) and replacement cost value (RCV). By default, renters insurance policies replace your items at actual cash value, which takes into account depreciation and pays out the current market value of your items. On the other hand, RCV covers the cost of replacing your items with new ones of similar kind and quality, and may cost extra. Choose the replacement type you need based on your needs and budget.

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    Your lifestyle can also significantly influence the amount of personal liability coverage you need. While most renters insurance should start with a minimum of $100,000 in personal liability coverage, your lifestyle factors, such as frequent hosting of guests or renting a property with a pool, may signal a need for higher liability coverage.

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    Location and Risk Factors

    The location of your rental property and the associated risk factors can impact your renters insurance rates and coverage needs. If you live in an area prone to natural disasters or high crime rates, you may need additional coverage or endorsements to protect against specific risks like floods or theft.

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    The deductible you choose can also affect your renters insurance premiums. A higher deductible typically results in lower premiums, but it means you'll pay more out of pocket in the event of a claim. Consider your budget and risk tolerance when selecting a deductible that aligns with your financial situation and needs.

Personal Property Coverage Calculator

When figuring out how much renters insurance you need, experts recommend the standard $100,000 in liability insurance and enough personal property protection to cover your possessions. Use MoneyGeek's calculator to estimate the value of your possessions so you know how much personal property coverage to buy.

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clothing & accessories

Clothes, shoes, bags, belts, hats, gloves, etc.


Factors That Affect Renters Insurance Cost

Several factors can affect the cost of your renters insurance, including coverage options and personal factors. Personal factors affecting your renters insurance rate include where you live, credit score and risk for natural disasters. Coverage options that could increase or decrease your rate include your coverage amounts for personal property and liability insurance, as well as any add-ons you choose to purchase.

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Since your circumstances are largely out of your control, how much coverage you select will, partly determine how much you pay for renters insurance.

Coverage Types That Impact Cost

Different coverage types can significantly influence the cost of your monthly renters insurance premiums. For instance, opting for a policy with higher coverage limits may lead to higher monthly costs, while a more basic policy with lower coverage limits may be more affordable.

It's crucial to carefully assess your needs and budget when selecting the right coverage type to strike the right balance between protection and affordability. These coverage types include:

  • Personal Property Coverage: This includes items such as your electronics, clothing, furniture and other valuable possessions. When choosing your coverage limit, it's essential to assess the total value of your belongings. You may need to purchase add-on coverage or endorsements for high-value items like jewelry or collectibles.
  • Liability Coverage: This protects you if you are found legally responsible for causing injury or property damage to others while in your rented property. This can help cover medical expenses, legal fees and damages in a lawsuit. A standard policy typically starts with a minimum of $100,000 in liability coverage, but higher limits are recommended.
  • Loss of Use Coverage: Also known as additional living expenses, it is designed to assist you when your rental becomes uninhabitable due to covered perils, such as fire or water damage. This coverage will help pay for temporary living arrangements, such as hotel stays, rent for a temporary residence, or even meals until your rental is habitable again.
  • Deductible: The amount you pay out of pocket before your renters insurance coverage kicks in to cover a claim can vary in amount, which can affect your premium. A higher deductible typically results in lower premiums, but you'll need to pay more upfront in the event of a claim.

Personalized Factors That Impact Cost

The average cost of renters insurance also depends on several personalized factors that reflect your unique circumstances and choices. Some situations impact the cost of your renters insurance, allowing you to tailor your policy to fit your needs and budget. From location-based considerations to credit scores, it’s essential to consider these personal factors:

  • Location: Location is another significant factor in the cost of renters insurance. Factors like crime, weather and natural disaster risk can result in higher costs.
  • Credit Score: Credit score may also influence your rate, with a higher credit score resulting in a lower monthly premium. However, not all states allow companies to use credit scores to determine rates for renters insurance.
  • Fire & Security Devices: With some renters insurance policies, you can lower your monthly premium by installing fire and security devices.
Compare Renters Insurance Rates

Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.

FAQ About the Average Cost of Renters Insurance

While renters insurance is a simple concept on its face, many factors determine a policy's cost. Here are some of the more common questions related to the cost of renters insurance:

How much does renters insurance cost per month?
How much does $100k personal property renters cost per month?
How much does State Farm cost per month for renters insurance?
What factors affect the cost of renters insurance?
How much should renters insurance cost?
How much is $300,000 liability coverage in renters insurance?

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About Margaret Wack

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Margaret Wack, a contributing journalist at MoneyGeek, is an award-winning poet with over six years of editorial experience in digital publications. She writes about insurance, saving, investing and banking, with bylines on Money Under 30 and Bankrate.

Wack earned her Bachelor of Arts in Classics, Comparative Literature and Poetry from Smith College and her Master of Arts from St. John's College.