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CheapRenters InsuranceCaliforniaThe Best and Cheapest Renters Insurance Companies in California for 2023: Rankings, Reviews and Rates
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If you’re looking for a balance of quality and cost, MoneyGeek ranked the top renter's insurance providers in California so that you can find the best option at the lowest price. Our scoring system evaluates affordability, financial strength and customer service from insurers across California so you can find the right company for your needs.
CheapRenters InsuranceCaliforniaThe Cheapest Renters Insurance in California
Cheap Renters Insurance Companies in California
Many customers select their renters insurance provider based on overall cost. In California, the two most affordable carriers are Lemonade and Allstate. Lemonade’s coverage costs $7 per month, or $87 a year on average. For an Allstate policy, you’ll spend an average of $11 per month or $129 per year.
MoneyGeek’s data on providers’ monthly and annual premiums are for a policy with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500. The costs are based on quotes in several ZIP codes across the state of California.
Personal Property Coverage:
$20,000
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Cheapest Renters Insurance Companies in California by City
Lemonade has the lowest average renters insurance premium across 21 of the 23 cities we evaluated in California. However, when it comes to the cheapest option that is also the most widely available, Lemonade takes the top spot in every city we evaluated.
Companies With the Cheapest Renters Insurance in California by City
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- CityCheapest CompanyAverage Annual Premium
- Lemonade$69
- Lemonade$88
- Lemonade$64
- Lemonade$88
- Lemonade$94
- Lemonade$84
- Lemonade$69
- Lemonade$98
- Lemonade$98
- Lemonade$91
- Lemonade$88
- Lemonade$113
- Lemonade$72
- Lemonade$88
- Lemonade$118
- Lemonade$88
- Lemonade$79
- Lemonade$81
- Lemonade$76
- Lemonade$69
- Lemonade$102
- Lemonade$70
- Lemonade$101
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Best Renters Insurance Companies in California
In California, the company offering the best renters insurance is State Farm. It earned a score of 98 out of 100 in MoneyGeek’s unique rating system.
Our analysis considered multiple factors about each renters insurance company. These included user experience, affordability and financial stability.
Although these insurers may not offer the cheapest policies in the state, they can be more cost-effective in the long run. This is because the best renters insurance companies in California don’t only have low rates, they also provide quality service.
1
State Farm
Score:98
State Farm received high scores for user satisfaction and affordability. It earned a perfect 5 rating for financial stability. These high scores make it the best renters insurance provider in California. With State Farm, you can take advantage of a personal liability umbrella policy.
More About State Farm
State Farm policies are available in every state. The company has five additional coverages, which is less than the national average of seven. These include business owners insurance and business and professional liability coverage, which are unique. You also only have two discount options, which is significantly fewer than the national average of five.
You can lower your rate by having multiple State Farm policies and installing protective devices in your home. There's plenty of online support, such as quote tools and calculators, available on their website. You can also use their app to manage your insurance and file claims.
Read MoneyGeek's State Farm renters Insurance Review2
USAA
Score:98
With an overall score of 98, USAA has a high affordability rating and perfect scores in customer experience and financial strength. However, only military families can purchase policies from this insurance company.
More About USAA
You can purchase insurance from USAA in every state, but you must have a military background. The company provides six add-on coverages and four discount opportunities, which is lower than the average offerings from most insurers. Policyholders can add cell phone insurance to their policy or take advantage of an associate discount if they are actively serving in the military.
USAA allows for flexible payment plans, but it’s best to check if there are restrictions in your state. It’s possible to get an online quote from USAA if you qualify, but their website requires you to create an account first.
Read MoneyGeek's USAA renters Insurance Review3
Allstate
Score:95
Allstate ranked high in affordability, stability and service, earning an overall score of 95. You can get coverage to help protect you from damages caused by floodwater, which is a unique protection offered by the insurer.
More About Allstate
Renters insurance from Allstate is available in every state. Allstate offers the option to add four additional coverages to their policy, which is lower compared to the national average of seven. Their additional coverages that are not commonly offered by other insurers are personal injury and floor insurance. Allstate also provides five ways to lower your premium, which is equal to the national average. Discounts include a retiree discount and an autopay discount.
Allstate doesn’t fall short in terms of providing customers with resources. You can get an online estimate through their website and financial advice from their experts.
Read MoneyGeek's Allstate renters Insurance Review4
Travelers
Score:95
Travelers had a perfect score in financial stability and a high rating in affordability. However, its lower score in customer service caused it to earn an overall score of 95. Policyholders can lower their deductible by $100 every year they remain with Travelers.
More About Travelers
Travelers’ nine additional coverage options exceed the national average of seven. They offer several unique choices like decreasing deductibles, personal property replacement costs and refrigerated property coverage. Travelers is available in 50 states, making it available to most people. You have four options to lower your rates, including being a good payer and remaining claim-free. However, Travelers’ offers fewer discounts than the average across other insurers.
You can complete several transactions online. These include getting a quote or, for those who already have policies, managing policies, viewing information and filing claims.
Read MoneyGeek's Travelers renters Insurance Review5
Lemonade
Score:95
Lemonade earned an overall rating of 95. It has high scores in customer satisfaction and affordability but a low score in stability. You can add special coverage through Lemonade that can extend protection to your landlord's property if your pet causes any damage.
More About Lemonade
Lemonade has three discounts, which is lower than the national average of five. You can lower your rate by paying your premium annually. Lemonade also has six additional coverages, which is lower than the average of seven offered by most insurers. One of the more unique coverage options includes insurance that extends your landlord’s coverage.
Unfortunately, Lemonade is only available in 32 states. If it’s available in your area, you can use a mobile app to view your documents, file claims and make payments.
Read MoneyGeek's Lemonade renters Insurance ReviewMONEYGEEK EXPERT TIP
It’s tempting to buy the most affordable policy, but remember that the best renters insurance often involves a policy with better coverage. This can save you money in the long run.
Largest Renters Insurance Companies in California
Purchasing renters insurance from an insurer with a larger market share comes with advantages. Large companies typically have more financial strength, which means they’ll be able to pay out your claims. They also have more resources to invest in, which often translates to a better user experience during the claims process.
Company | Market Share | |
|---|---|---|
1. | State Farm | 17.6% |
2. | Farmers | 15.4% |
3. | Liberty Mutual | 6.4% |
4. | CSAA | 6.3% |
5. | Allstate | 5.9% |
Average Cost of Renters Insurance in California
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renters insurance is equal to the average.
The average cost of renters insurance in California is $238 per year. Compared to the national average, policyholders in the state pay 49% more.
These average rates are for renters with $20,000 in personal property coverage, liability coverage of $100,000 and a $500 deductible.
Insurers consider various factors when setting rates, so your quote might be different. The amount of personal property you own significantly impacts your insurance costs. MoneyGeek’s personal property calculator can help you determine how much coverage you need.
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MONEYGEEK EXPERT TIP
The provider you choose impacts how much you pay for renters insurance coverage. Comparing quotes from multiple providers can help you find cheap renters insurance in California. For example, purchasing a policy from Lemonade rather than Nationwide can save you $59 each month.
What Factors Impact Renters Insurance Cost in California
Several factors can impact renters insurance cost in California, including:
Location
ZIP code is important because areas with a higher risk of crime, wildfire damage and adverse weather conditions typically have higher rates.
Coverage Amount
The more coverage you purchase, the higher your premium.
Deductible
You have to pay a deductible to get your claim processed. A policy with a higher deductible will have a lower premium because you are required to pay more. In contrast, a plan with a lower deductible costs more because the carrier needs to pay more to cover your items.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)
An ACV policy considers the loss of value of your items over time, so it’ll pay less for old possessions. An RCV policy will reimburse you for a new item of the same type and quality. ACV plans cost less because they pay less for each claim. RCV packages are more expensive, but they mean you’ll get higher payout for your claim.
Credit Score
Providers in other states may consider your credit score while determining your premium, but California does not allow credit score to affect the cost of renters insurance rates.
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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 California: What You Need to Know
Spending on renters insurance is a smart investment because you can get protection for your valuable personal items at a low cost.
While renters insurance isn’t required in California, the cost of it is relatively low compared to the average monthly price of rent. In the state, about 44% of people are renters, and the average monthly rental rate is $1,614. The average monthly premium is $20 for a basic policy with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible. This rate is 1.23% of the average monthly price of rent.
What Renters Insurance Typically Covers in California
Check what exactly your policy covers before you buy renters insurance in California. A standard renters insurance package will cover personal property, additional living expenses, liability insurance and medical payments.
In California, personal property coverage will typically pay for damages caused by natural disasters like tornadoes, wildfires and others.
What Renters Insurance Typically Does Not Cover in California
Before buying a renters insurance package, get clarifications on what it does and does not cover. This information can help you report accurate and approved claims.
Renters insurance in California does not cover all situations. For instance, the following common problems may not be covered by your policy:
- EventDescription
Flooding
Coverage typically includes water damage from broken pipes, but flooding due to extreme weather events is generally excluded. In California, flooding due to natural disasters is quite common, so it’s recommended to get flood insurance through the National Flood Insurance Program (NFIP).
Earthquake Damage
A standard policy does not cover earthquake damage. California is at risk of earthquakes as it is situated on a fault line, therefore it’s advisable to buy additional earthquake coverage.
Structural Damage
Landlords have to buy extra coverage for their property’s frame and structure as they are not covered.
Roommate Property
Your roommate’s possessions are not covered, so they’ll need to buy their own policy.
Expensive Items
You need to get add-on coverage for costly items and valuables as they are excluded from standard renters insurance policies.
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If you want to learn more about the various types of insurance available in California, the Department of Insurance can provide you with information. They can help you understand insurance laws and regulations or assist you with a complaint.
You can reach the California Department of Insurance using the following channels:
- Physical Address
- Los Angeles Office: 300 South Spring St., 14F, Los Angeles, CA 90013
- Oakland Office: 1901 Harrison St., 6F, Oakland, CA 94612
- Sacramento Office: 300 Capitol Mall, 17F, Sacramento, CA 95814
- Consumer Hotline: (800) 927-4357 or (800) 482-4833
- General Questions and Inquiries Form
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FAQs About Renters Insurance in California
Understanding your options regarding renters insurance in California may be confusing. Here are the most commonly asked questions about coverage in the state.
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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 California Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from eight of the top insurance companies in California that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across California. 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
- California Department of Insurance. "Consumer Resources." Accessed March 29, 2022.
- California Department of Insurance. "General Questions and Inquiries Form." Accessed March 29, 2022.