Cheap Renters Insurance: Most Affordable Coverage Options for 2025

State Farm has the cheapest renters insurance policy with a cost of $8 per month for $20,000 of coverage.  Auto-Owners Insurance has the second cheapest renters insurance at $9 per month for the same coverage. 

For buyers looking for higher coverage amounts, State Farm is also the cheapest renters insurance.

• $50,000 Coverage: State Farm has the cheapest renters insurance rate at $12 per month, followed by Auto-Owners at $14 per month
• $100,000 Coverage:  State Farm has the cheapest renters insurance at $18 per month, followed by Auto-Owners at $23 per month
• $250,000 Coverage:  State Farm also offers the most affordable rate at $39 per month, followed by Nationwide at $52 per month

The table below allows you to see the cheapest renters insurance quotes by coverage level.

The cost of your policy can vary based on your unique situation and buyer profile.  Below are the cheapest renters insurance companies for various buyer type. 

Nationwide is the cheapest for renters with poor credit. State Farm has the cheapest renters insurance for buyers with more than 4 occupants, seniors, and young people.  Auto-Owners has the cheapest renters insurance for those with a clams history.

Each state has its own laws and regulations regarding insurance, which means the cost of insurance can vary significantly from state to state. MoneyGeek found that for $20K in personal property coverage:

• State Farm is the cheapest renters insurance company in 18 states.
• Allstate is the cheapest in 9 states.
• Auto-Owners Insurance is the cheapest in 4 states.

Overall, three different companies had the cheapest rates in at least one state, underscoring the importance of shopping around to find out which is the cheapest option near you. Click your state below to learn more the cheapest providers in your area.

If you or your family has a military background, you should also take a look at USAA. It's excluded from this analysis because of its eligibility requirements, but is frequently among the cheapest renters insurance companies.

Finding affordable renters insurance doesn't mean sacrificing quality coverage. With these practical strategies, you can lower your premiums while still protecting your personal belongings and financial security. Here are effective ways to reduce your renters insurance costs:

A standard renters insurance policy provides four main types of protection for tenants:

Personal Property Coverage
This protects your belongings from covered perils such as fire, lightning, theft, vandalism, and certain water damage. It typically covers items like:

• Furniture and appliances
• Clothing and jewelry (with limits for high-value items)
• Electronics and entertainment equipment
• Kitchen items and dishware
• Sports equipment and hobby materials
• Other personal possessions

Your coverage applies not just in your home but often worldwide, so items stolen while traveling may also be covered.

Personal Liability Protection
This protects you financially if someone is injured in your rental unit or if you accidentally damage someone else's property. It typically covers:

• Legal expenses if you're sued
• Medical bills for injured guests
• Property damage you cause to others
• Defense costs in lawsuits

Additional Living Expenses (Loss of Use)
If your rental becomes uninhabitable due to a covered peril, this coverage pays for temporary accommodations and related expenses such as:

• Hotel or temporary rental costs
• Additional food expenses
• Pet boarding if necessary
• Storage fees
• Laundry services

Medical Payments Coverage
This pays for minor injuries to guests in your home, regardless of fault, typically covering:

• Immediate medical attention
• Ambulance fees
• Emergency room visits
• X-rays and diagnostic tests

Standard renters policies typically don't cover:

• Flooding (requires separate flood insurance)
• Earthquakes (requires separate endorsement)
• Bed bugs, pests, or rodent infestations
• Normal wear and tear
• The physical structure of the building (covered by landlord's policy)
• Personal property used for business purposes (may need additional coverage)
• Extremely valuable items exceeding coverage limits such as expensive jewelry, watches, or art (may need scheduled property coverage)

Understanding your policy's specific terms, exclusions, and limits is a key step to ensure you have adequate renters coverage protection.

Renters insurance provides four essential types of protection, each requiring different coverage considerations:

• Personal Property Coverage Protects your stuff (furniture, electronics, clothes) when damaged or stolen.
• Personal Liability Coverage Protects you if someone gets hurt in your rental or you damage someone else's property.
• Medical Payments Coverage Pays smaller medical bills if guests get injured in your home, no matter who's at fault.
• Additional Living Expenses Covers hotel and extra costs if you can't live in your rental after a disaster.

The cost of your renters insurance depends on how much renters insurance coverage you need.

For Your Stuff (Personal Property): Typically this coverage amount impacts cost most

• Quick estimate: $20,000-$30,000 for a one-bedroom apartment, but you may need $250,000 or more for large homes with families
• Better approach: Walk through your home, take videos and estimate values
• Budget option: For young renters with less stuff, $10,000-$15,000 might be enough
• Important tip: Choose "replacement cost" coverage instead of “actual cash value”

For Liability Protection

• Basic recommendation: $100,000 if you're a young renter with few assets
• Better protection: $300,000 for most renters, especially pet owners
• Pet owners note: Your policy covers if your pet injures someone else, but not damage to your own property

For Medical Payments

• Standard amount: $1,000-$5,000 is typically sufficient for most renters
• Consider higher limits if you:
  • Frequently host guests or entertain in your home
  • Have potential hazards like pets, stairs, or slippery surfaces
  • Want to prevent small injuries from becoming lawsuits (higher limits often cost just a few dollars more)

For Living Expenses

• Simple calculation: 3-6 months of your current rent should provide adequate coverage

Key Takeaways

• Each coverage type will have a specific coverage amount when buying the policy.
• The right coverage balances cost with protection.
• Most renters can get solid protection for $15-20 per month.
• Remember to update your coverage when you buy expensive items or your living situation changes. Your insurance should grow with you.

When choosing renters insurance, you'll need to decide between two ways your belongings will be valued if damaged or stolen:

ACV reimburses you for what your belongings are currently worth, minus depreciation. This means:

• You get the original cost of the item minus its decrease in value due to age and wear
• Example: Your 5-year-old TV that cost $1,000 new might only be valued at $300 now
• Lower insurance premiums, but less coverage when you file a claim

RCV pays the full value needed to replace your items with new ones of similar kind and quality. This means:

• You receive enough money to buy a brand-new equivalent of what was lost
• Example: For that same 5-year-old TV, you'd get enough to buy a new comparable model
• Higher insurance premiums, but better coverage when you file a claim

Most insurance experts recommend RCV coverage if you can afford it, especially since the difference in premium is often just $5-10 per month while the difference in claim payout can be substantial.

What's Covered:

• Liability for injuries to others: If your pet bites or injures someone outside your household, your liability coverage typically covers their medical bills and any legal expenses.
• Damage to others' property: If your pet damages someone else's belongings (like a visitor's laptop or a neighbor's garden), this is usually covered under liability protection.

What's Not Covered:

• Damage to your belongings: If your pet destroys your couch or carpet, this is not covered.
• Damage to rental property: Damage your pet causes to floors, walls, or fixtures isn't covered and may come out of your security deposit.
• Certain dog breeds: Some insurers exclude coverage for breeds considered high-risk like pit bulls or Rottweilers.
• Medical bills for your pet: Your pet's healthcare needs require separate pet insurance.

Higher liability limits (at least $300,000) are recommended for pet owners to protect against potentially expensive claims, as the average dog bite claim costs around $50,000.

It can be difficult to know where to start looking for renters insurance. The frequently asked questions below can help guide you in your search for cheap renters insurance.