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CheapRenters InsuranceAlabamaThe Best and Cheapest Renters Insurance Companies in Alabama for 2024: Rankings, Reviews and Rates
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CheapRenters InsuranceAlabamaThe Cheapest Renters Insurance in Alabama
Cheap Renters Insurance Companies in Alabama
The cost of renters insurance is an essential factor in picking a policy. On average, the most affordable provider in Alabama is USAA. However, it offers services only to former and current military members and their families.
The next two cheapest companies for renters insurance in Alabama are State Farm and Allstate. A State Farm policy costs an average of $11 monthly or $136 per year, while Allstate prices its average plan at $13 per month or $160 annually.
The average monthly and annual rates for each renters insurance company are based on quotes across a diverse collection of ZIP codes in the state. The prices are for a policy with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
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To help you find the right coverage at the cheapest rate, MoneyGeek ranked the leading renters insurance firms across Alabama. MoneyGeek’s scoring system analyzed the customer service quality, financial strength and affordability of insurers so you can find the best provider for your needs.
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Best Renters Insurance Companies in Alabama
USAA is the best renters insurance company in Alabama. It received a perfect MoneyGeek rating of 100 out of 100. However, USAA is only available to military members, veterans and eligible military family members. The top widely available option is State Farm, with a score of 97.
MoneyGeek calculated scores based on affordability, AM Best financial stability ratings and J.D. Power customer service scores.
These are not necessarily the cheapest options in the state. The best renters insurance companies in Alabama are determined based on a balance of quality and cost. Your insurer should be able to support you with good service at a fair price.
1
USAA
Score:100
With perfect scores in all categories, USAA is the best renters insurance company in Alabama. Additionally, the company offers valuable optional coverages like electronics coverage. That said, USAA policies are only available to current or former military members and eligible family members.
More About USAA
USAA offers renters insurance in all states. The company’s standard policy includes flood and earthquake coverage. It also offers optional endorsements, including electronics coverage and valuable personal property insurance.
You can also save some money with the company’s discount offers, which include bundling, staying claims-free and adding home security monitoring. Managing your account is also easy with USAA’s mobile app, which you can access while on the go. You can also use its online quote tool to get an estimate quickly.
That said, only military members and eligible family members qualify for USAA policies.
2
State Farm
Score:97
State Farm is the best renters insurance provider in Alabama for renters who are not eligible for USAA coverage. It has high ratings across all categories, including a perfect score for financial stability. State Farm also offers uncommon coverages, like personal injury liability, at an additional cost.
More About State Farm
State Farm only offers a total of three additional coverage options, fewer than the national industry average of seven. Additionally, State Farm only has two discount opportunities for renters insurance policyholders, including its bundling and protective home device discounts, which are both quite common.
Interested individuals can get an insurance quote on the company’s website. Clients can file claims and manage payments online. State Farm also has a mobile app, which allows policyholders to manage their insurance accounts with ease.
3
Allstate
Score:92
Allstate ranks third overall. It has high scores in affordability, financial stability and customer service. It offers personal injury coverage, which protects policyholders against large liability claims. With this coverage, you can prevent paying out of pocket if you are found responsible for a liability judgment exceeding your rental insurance policy’s limits.
More About Allstate
Allstate has comprehensive renters insurance policies available in all states. The company has four additional coverage options, which is less than the industry average. That said, Allstate offers five discount opportunities, including its unique retiree discount for policyholders at least 55 years old.
Interested individuals can get an instant personalized quote by visiting the company’s website. Policyholders can easily manage paying their bills online or through Allstate’s mobile app. The company also allows policyholders to file claims online.
4
Nationwide
Score:85
Nationwide is the fourth-best renters insurance company in Alabama. The company has high ratings in financial stability and customer service, although its pricing isn’t too impressive. Policyholders have the option to get many additional coverages, like credit card coverage, which applies to unauthorized credit or debit card transactions, forged checks and counterfeit money.
More About Nationwide
Nationwide offers comprehensive policies to renters in 44 states, including Alabama. Generally, the company offers 11 optional coverages that allow policyholders to get protection suitable for their needs. That is more than the national average of seven. Additionally, Nationwide has four discount opportunities that can help qualified policyholders save money.
Convenience is also not a problem for Nationwide policyholders. You can get a personalized quote through their website. Policyholders can manage their insurance policies, file claims and set up bill payments online or through Nationwide’s mobile app.
5
Farmers
Score:71
Farmers has an overall MoneyGeek score of 71 out of 100, driven by a high customer service rating. However, it has lower affordability and financial stability scores. It is the fifth-best renters insurance provider in Alabama. The company also offers common additional coverages, such as identity theft.
More About Farmers
Renters in 42 states, except Alaska and Hawaii, can get Farmers insurance. The company offers three endorsements, fewer than the national average of seven. These endorsements include identity theft, personal property replacement and scheduled personal property, all of which are commonly offered by renters insurance companies. That said, Farmers has seven discount opportunities.
Farmers also offers various features for a better user experience. You can get a personalized quote through the company’s website. Their mobile app allows policyholders to manage their insurance policies, view policy documents, file claims and communicate with their agent.
MONEYGEEK EXPERT TIP
Quality service is of utmost importance when choosing renters insurance in Alabama. It is often better to pay more for the best renters insurance instead of simply purchasing the cheapest possible plan, as it assures efficient claims servicing. You may even save money in the long run.
Largest Renters Insurance Companies in Alabama
Considering a company with a large market share can be beneficial for renters. Typically, big-name companies tend to be more financially stable, which ensures that eligible claims will be paid fairly and efficiently. Larger companies also have more money to invest in better customer service and user experience.
Company | Market Share | |
|---|---|---|
1. | State Farm | 27.2% |
2. | ALFA | 13.7% |
3. | Allstate | 12.0% |
4. | USAA | 8.8% |
5. | Travelers | 4.6% |
6. | Farmers | 4.4% |
7. | Liberty Mutual | 3.4% |
8. | Auto-Owners Insurance Co | 2.7% |
9. | Nationwide | 2.5% |
10. | Country Financial | 2.3% |
Average Cost of Renters Insurance in Alabama
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The average cost of renters insurance in Alabama is $203 per year, $44 more than the $159 national annual average.
Typically, Alabama renters pay an average of $17 for renters insurance every month, which is $4 more than the monthly national average. These rates are based on renters insurance policies with $20,000 personal property limits, $100,000 liability limits and a $500 deductible.
The average cost of renters insurance in Alabama may vary greatly depending on the amount of personal property coverage you purchase. Use the calculator below to see how prices can change based on the value of your personal property.
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MONEYGEEK EXPERT TIP
Renters in Alabama can save money on renters insurance by comparing quotes from different insurers. For instance, a typical renter can save as much as $185 per year by choosing State Farm instead of Farmers. That leads to around $15 in savings per month.
What Factors Impact Renters Insurance Cost in Alabama
Multiple factors can impact the cost of your renters insurance coverage, including your residential location and the type of coverage you want. Assess these factors when looking for renters insurance in Alabama.
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Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.
Renters Insurance in Alabama: What You Need to Know
Renters insurance is an affordable way to safeguard your property from unexpected disasters. It can offer useful protection from damage caused by fire, extreme weather events, burglary and more.
In Alabama, about 29% of the population are renters, and the average rental rate is $807 per month. For a standard renters insurance package with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible, the average monthly cost is $17, or about 2% of the monthly rental price.
What Renters Insurance Typically Covers in Alabama
Before you buy renters insurance in Alabama, you should understand what each policy covers. Some packages present additional coverage like identity theft insurance, but most plans offer the basic coverages of personal property, liability insurance, medical payments and additional living expenses.
In Alabama, personal property insurance will cover damages caused by natural disasters like tornadoes and hurricanes.
What Renters Insurance Typically Does Not Cover in Alabama
It’s important to know the situations that aren’t typically covered by renters insurance in Alabama. Here is a list of events that insurers usually don’t cover.
Read the policy’s fine print and ask your agent to obtain information on what your renters insurance plan does and does not cover. This information can help you make accurate and successful claims.
MONEYGEEK EXPERT TIP
If you want to know more about what renters insurance covers, you can get help from the Alabama Department of Insurance. The agency aims to protect Alabama policyholders by effectively regulating the insurance industry. It also provides information on how to file complaints and search insurance policies or agents.
You can reach the Alabama Department of Insurance through the following channels:
- Regular U.S. Mail Address: P.O. Box 303351, Montgomery, AL 36130-3351
- Overnight Address: 201 Monroe St., Suite 502, Montgomery, AL 36104
- Consumer Service Hotline: 334-241-4141 or 1-800-433-3966
- Consumer Service Email: consumerservice@insurance.alabama.gov
- Consumer Service Fax: 334-956-7932
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FAQs About Renters Insurance in Alabama
The best renters insurance companies in Alabama may vary depending on personal needs and circumstances. Moneygeek answers some commonly asked questions to help you make well-informed decisions.
The cheapest widely available renters insurance company in Alabama is State Farm. It has an average rate of $136 per year or approximately $11 monthly. However, the most affordable option for military members, veterans and eligible family members is USAA at an average of $121 annually.
MoneyGeek evaluated insurers in Alabama and found State Farm to be the best widely available renters insurance company. It has a MoneyGeek score of 97 out of 100. Overall, USAA has the highest rating of 100 out of 100, but its policies are only available to military members and their families.
The average cost of renters insurance in Alabama is $203 per year or approximately $17 per month. Average rates in the state range from $10 to $27 per month, depending on the provider.
Getting renters insurance in Alabama is not required by law. However, your landlord may require you to purchase a policy. It may help to evaluate your needs and circumstances to determine whether buying a policy is right for you. Reasons for getting renters insurance include financial protection against common perils and liability costs of third-party injuries.
Compare Renters Insurance Rates
Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.
Renters Insurance in Alabama Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from six of the top insurance companies in Alabama that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Alabama. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
About Mark Fitzpatrick
sources
- ALDOI. "Alabama Department of Insurance." Accessed March 30, 2022.