On average, the cheapest renters insurance company is Allstate at $10 per month. But the cheapest for you could depend on where you live and your coverage needs.
Cheap Renters Insurance: Most Affordable Quotes in 2021
Renters insurance is necessary for anyone who doesn’t own their home and wants to protect their belongings. However, just because industry experts strongly recommend renters insurance doesn’t mean you should pay an arm and a leg. MoneyGeek analyzed renters insurance rates across all 50 states and hundreds of cities to determine which companies offer the cheapest rates for you.
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The Cheapest Renters Insurance Companies for 2021
While quality coverage is something every renter wants, for the vast majority of people, the cost is the most important factor for renters insurance.
MoneyGeek found that Allstate has the most affordable policies across the country, with an average price of $10 per month. State Farm comes in at a close second with an average price of $11 per month. These rates are for a sample policy with $20,000 in property coverage, $100,000 in liability coverage and a $500 deductible. Your premiums may be higher or lower depending on your situation.
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- CompanyMonthly Rate
- 2.State Farm$11
Allstate renters insurance policies come with multiple types of coverage, including property coverage, guest medical and family liability coverage. Beyond its cheap base prices, there are many reasons to choose an Allstate policy.
- The company provides access to a local agent to answer any questions you may have about your coverage.
- Allstate also boasts a bundling discount when you purchase both renters insurance and auto insurance through them, potentially bringing your renters insurance costs to as little as $4 a month.
State Farm insurance policies are among the cheapest in the country. But they also have additional coverage benefits if you choose to pay more per month:
- State Farm makes it easy to increase coverage for valuable items like jewelry and business property.
- You can opt to buy inflation coverage so that your coverage limits will increase automatically over time.
You should note that these are the renters insurance companies that MoneyGeek has determined have the cheapest rates on average. However, if you're looking for more than just savings on your monthly bill, you should also consider the quality of these providers' customer service. MoneyGeek has scored the best renters insurance companies for those who want to balance value and quality.
The Cheapest Renters Insurance Companies by State
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 State Farm most frequently offers the cheapest renters insurance; it's the cheapest company in 18 states. Lemonade and Allstate are tied as runners-up, with both offering the cheapest renters insurance on average in 10 states. Overall, nine different companies had the cheapest rates in at least one state, so you should shop around to find out which is the cheapest option near you.
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.
Cheapest Renters Insurance Companies in Each State - Excluding USAA
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Which Companies Offer Cheap Renters Insurance in Big Cities?
Many factors can impact your insurance rates in each city, including crime, weather and population density. A city with a small population and low crime rate will typically have much lower rates, which is why Fargo, North Dakota, has some of the lowest rates in the nation: it's cheapest insurer chargers our renter around $4 per month. High-density areas with higher crime rates pay more for renters insurance, which is why a sample renter in Detroit, Michigan, could pay as much as $17 a month for their coverage.
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- Cheapest Company by CityMonthly Rate
- Albuquerque, NM - State Farm$8
- Anaheim, CA - Lemonade$6
- Anchorage, AK - Allstate$6
- Arlington, TX - Lemonade$7
- Atlanta, GA - Lemonade$9
- Aurora, CO - Allstate$8
- Austin, TX - Lemonade$5
- Bakersfield, CA - Lemonade$7
- Baltimore, MD - Lemonade$6
- Baton Rouge, LA - State Farm$11
How Can You Get Cheap Renters Insurance?
Is it possible to get cheap renters insurance online? Absolutely — an online quote system can provide you with quotes from multiple insurance companies offering cheap renters insurance. The best strategy to get cheap renters insurance is to compare quotes across several companies. While doing this, you should make sure to take advantage of available discounts and set an appropriate deductible.
Strategies To Get Cheap Renters Insurance
Get multiple quotes
Comparing rates among multiple companies is the best way to make sure you get the lowest possible price on your renters insurance.
Bundle your policies
Combining your renters insurance with your auto insurance or other policies is an excellent way to get a multi-policy discount.
Choose a higher deductible
Raising your deductible can help keep your premiums low but make sure you have enough on hand to pay it in an emergency.
To get a quote, you will need the following information:
- Date of birth
- Email address and phone number
- Address and ZIP code of your rental
- Date coverage will take effect
- Number of people living in the home full-time
- Name and type of any business conducted in the home, especially things like childcare or pet care
- Total value of your personal property
- Safety features (alarm system, deadbolt, sprinkler system, etc.)
- Credit score and insurance history
How Much Coverage Do You Need?
Like any insurance policy, the cost of your renters insurance depends on how much renters insurance coverage you need. Many people err on the side of saving money on their premiums, leaving them underinsured.
It is important to know exactly how much coverage you need before making a purchase. Buy too much, and you’re paying for coverage you’ll never use — buy too little, and you’re stuck paying thousands of dollars to make yourself whole again after a disaster. Industry experts recommend that you carry enough personal property coverage to replace your belongings if everything you own is destroyed and at least $100,000 in liability coverage.
Renters insurance is typically very affordable, costing $13 per month on average. And it’s one of the best ways to protect your assets. Purchase as much renters insurance as you need — when in doubt, it is better to be overinsured than underinsured.
Learn More About Renters Insurance
FAQ: Cheap Renters Insurance
It can be difficult to know where to start looking for renters insurance quotes. The frequently asked questions below can help guide you in your search for cheap renters insurance.
Expert Insight on Cheap Renters Insurance
Finding renters insurance can be confusing, and getting the best renters insurance for you can seem overwhelming. MoneyGeek spoke to experts, industry leaders and academics across the country to gain insight on renters insurance and help you make an informed purchase.
- Is it possible to be completely protected by a cheap renters insurance policy?
- Is there a common mistake people make when buying cheap renters insurance and, if so, how can they avoid it?
- What is the most effective way to save money on your renters insurance?
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MoneyGeek, in partnership with Quadrant Corp, analyzed renters insurance quotes across all 50 states and dozens of major cities to determine the renters insurance companies with the cheapest rates. The cheapest premiums were determined by gathering quotes for personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
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