Cheap Renters Insurance: Most Affordable Companies in 2025


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Key Takeaways

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State Farm has the cheapest renters insurance nationally at an average of $8 per month ($101 annually) for $20,000 in personal property coverage, followed by Auto-Owners Insurance at $9 per month.

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State Farm offers the lowest rates in 18 states, Allstate in nine states, and Auto-Owners in four states. This means the cheapest option depends on where you live, so compare quotes from multiple companies in your area.

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Nationwide is the cheapest for renters with poor credit. State Farm is the most affordable for seniors and young people, while Auto-Owners has the cheapest rates for those with a claims history.

Compare Renters Insurance Rates

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

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What Is the Cheapest Renters Insurance?

State Farm has the cheapest renters insurance policy overall. However, the most affordable option may vary depending on certain factors. The sections below show the best renters insurance rates by company, buyer profile and location.

Cheapest Renters Insurance Company Overall

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

Company logo for State Farm
Cheapest Renters Insurance OverallState Farm
MoneyGeek Score:
92/ of 100

Average Monthly Premium$8
Average Annual Premium$101
Overview

State Farm offers the cheapest renters insurance nationally, charging an average of $8 a month for $20,000 of coverage.  Our analysis found that State Farm has the cheapest renters insurance across all levels of coverage amounts.

Discount Options

To make your policy even cheaper, State Farm offers a discount if there are home security devices installed in your rented property, such as smoke detectors, fire alarms or a home monitoring system. You can also get a discount if you bundle discounts with State Farm’s other policies, such as auto insurance or life insurance.

Additional Coverage

Along with cheap renters insurance rates, State Farm also offers options to supplement your coverage. For instance, State Farm makes it easy to increase coverage for valuable items like jewelry or art. You can also opt to buy inflation coverage, which is where your coverage limits will increase automatically over time.

Company logo for Auto-Owners Insurance
Cheapest Renters Insurance (Runner-up)Auto-Owners Insurance
MoneyGeek Score:
88/ of 100

Overview

With policies averaging $9 per month, Auto-Owners ranks as the second-cheapest renters insurance provider nationally across coverage levels up to $100,000. 

Discount Options

Auto-Owners offers a number of discount opportunities for renters, from enrolling automatic payments and bundling policies to being a retiree over 55. For instance, if you’re at least 55 and have retired, or if you bundle a home and auto insurance policy you can qualify for a renters insurance discount with Auto-Owners.

Additional Coverage Options

For renters who want to supplement their policy with additional protection, Auto-Owners' endorsements include identity theft restoration and scheduled personal property. If you want to financially protect yourself against identity fraud, for instance, you can get that coverage with this provider.

Cheapest Renters Insurance by Coverage Level

State Farm is also the cheapest renters insurance for buyers looking for higher coverage amounts. Its average rate is $12 per month for $50,000 coverage, $18 per month for $100,000 coverage and $39 per month for $250,000 coverage. The table below shows the cheapest renters insurance quotes by coverage level.

Data filtered by:Results filtered by:
Select
Coverage:$50K Personal Property
State Farm$ 149$ 12
Auto-Owners Insurance$ 168$ 14
American Family$ 203$ 17
Nationwide$ 210$ 17
Allstate$ 214$ 18
Farmers$ 296$ 25
Chubb$ 338$ 28
Travelers$ 442$ 37

Cheapest Renters Insurance by Buyer Profile

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 types.

Buyer Type
Company
$20,000 Coverage
$100,000 Coverage

Poor Credit

Nationwide

$19

$32

More than Four Occupants

State Farm

$10

$21

Seniors

State Farm

$8

$17

Young People

State Farm

$9

$19

Previous Claims

Auto-Owners

$15

$27

Cheapest Renters Insurance Companies by State

Each state has different insurance laws and regulations, so renters insurance costs vary widely by location. We found that for $20,000 in personal property coverage, State Farm offers the cheapest renters insurance in 18 states, Allstate in nine states, and Auto-Owners in four states.

Since three different companies offer the lowest rates depending on your state, you'll want to compare quotes from multiple insurers in your area. Click your state below to learn more about the cheapest providers near you.

Data filtered by:Results filtered by:
Select
State:Alabama
Select
Coverage:$20K Personal Property
State Farm$ 145$ 12
Auto-Owners Insurance$ 157$ 13
COUNTRY Financial$ 163$ 14
Nationwide$ 214$ 18
Allstate$ 224$ 19
Travelers$ 359$ 30
Foremost Insurance$ 566$ 47

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

Cheap Insurance for Renters: Buying Guide

Choosing the right renters insurance policy and provider can save you money and ensure sufficient coverage. The most affordable renters insurance options for you depend on your coverage needs. Explore the sections below to learn more about finding the best rates and what renters insurance covers.

How to Get Cheap Renters Insurance

Finding affordable renters insurance doesn't mean sacrificing quality coverage. These six strategies can lower your premiums while keeping your belongings protected

  1. 1

    Get three to five quotes

    Start by comparing renters insurance quotes from multiple companies. Pricing can vary widely for identical coverage, so use online comparison tools or work with an independent agent to shop several insurers at once.

  2. 2

    Bundle your policy

    Combine renters insurance with other policies (auto, life) from the same provider for multi-policy discounts of 5% to 25%. This approach often yields the biggest savings across all your insurance needs.

  3. 3

    Choose a higher deductible

    Raise your deductible from $500 to $1,000 to reduce premiums by 10% to 25%. Just ensure you have enough savings to cover this higher out-of-pocket expense if you need to file a claim.

  4. 4

    Improve your credit score

    Most insurers use credit-based insurance scores to set rates. Pay bills on time, reduce debt and monitor your credit report for errors to qualify for better premiums.

  5. 5

    Install safety and security devices

    Add protective features to earn discounts:

    • Smoke/carbon monoxide detectors (2% to 5%)
    • Fire extinguishers (2% to 5%)
    • Deadbolt locks (2% to 5%)
    • Monitored security systems (5% to 20%)
    • Water leak detectors (3% to 10%)
  6. 6

    Pay annually instead of monthly

    Save 2% to 10% by paying your entire premium upfront annually rather than in monthly installments. Many insurers also offer discounts for automatic payment setup.

Buying Cheap Renters Insurance Online: A Step-by-Step Guide

Before starting, gather your rental address (with unit number), basic personal information, estimated value of your belongings, previous insurance information (if applicable) and a payment method. Once you have these in order, you can proceed with the following steps.

Step 1: Start Your Renters Insurance Quote

Visit the insurance provider's website or compare companies on MoneyGeek. Look for a "Get a Quote" button and enter your ZIP code when prompted to begin the process.

Step 2: Provide Property Details

Enter your complete rental address and specify the type of rental (apartment, house, condo). Note any security features that might qualify you for discounts.

Step 3: Select Coverage Amounts

Choose your desired personal property coverage amount and select a liability coverage limit (typically $100,000 to $500,000). Pick your deductible amount ($500 to $2,000).

Step 4: Apply Discounts

Most providers offer discounts for bundling with auto insurance, security features, automatic payments and paying annually instead of monthly.

Step 5: Review and Purchase

Verify all information is accurate and confirm your coverage start date. Enter payment information and complete your purchase.

Compare Cheap Renters Insurance Quotes

Our renters insurance calculator below can provide personalized quotes based on your coverage needs to help you accurately estimate potential costs.

Renters Insurance Calculator

MoneyGeek's renters insurance calculator will give you a customized estimate of your renters insurance costs.
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Jun 17, 2025

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Find the Best Renters Insurance for You

 

The companies above offer the cheapest renters insurance based on national averages. We recommend using our local data to find the cheapest renters insurance in your state.

If you're not just focused on savings, we also compiled resources to help you choose the right renters insurance company.

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If you want a balance of both affordability and service quality, we scored the best renters insurance companies across the country.

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If you're still not sure what the function of renters insurance is, learn more about what renters insurance covers.

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We crunched the numbers on the average cost of renters insurance so you can learn how rates change when you adjust coverage levels.

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Ready to buy a policy? Learn how to compare renters insurance quotes to get the best deal.

How Much Renters Insurance Coverage Do You Need?

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

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

  • Quick estimate: $20,000 to $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 to $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 to $5,000 is 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: Three to six months of your current rent should provide adequate coverage
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MONEYGEEK EXPERT TIP

To decide how much insurance to buy, you need to know the value of all your personal possessions, including furniture, clothing, electronics, appliances, kitchen utensils and even towels and bedding. In other words, if your home were to burn, you should have enough insurance to replace all of your possessions.

The easiest way to figure out how much renters insurance coverage to buy is to create a home inventory (a detailed list of all of your personal possessions, with their estimated value). An up-to-date home inventory will also make filing an insurance claim faster and easier.

I also recommend taking a video of all your possessions to have a documented record. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute

What Does Renters Insurance Cover?

A standard renters insurance policy provides four main types of protection for tenants. Each coverage type will have a specific coverage amount when buying the policy.

Personal Property Coverage

This protects your belongings (furniture, electronics, clothes) from covered perils such as fire, lightning, theft, vandalism and certain water damage. It 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 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, covering:

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

What is Not Covered in a Renters Insurance Policy?

Standard exclusions include flooding, earthquakes, bed bugs and normal wear and tear. Standard renters policies also set strict limits on valuables like jewelry ($500 to $1,500), electronics and collectibles. To protect these items:

  • Schedule Individual Items (Floater/Rider): Get items appraised and add them individually to your policy for their full value. This costs 1% to 2% of the item's value annually but provides comprehensive protection including accidental loss.
  • Increase Category Limits: For less expensive coverage, raise the sub-limits for specific categories. For example, increase jewelry coverage from $1,500 to $5,000 total. This option is more affordable but won't cover accidental loss.

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

How is Pet Damage Covered in Renters Insurance?

What's Covered:

  • Liability for injuries to others: If your pet bites or injures someone outside your household, your liability coverage 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 expensive claims, as the average dog bite claim costs around $50,000.

What is ACV vs. RCV?

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 five-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 five-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 to $10 per month while the difference in claim payout can be substantial.

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MONEYGEEK EXPERT TIP

Remember to update your coverage when you buy expensive items or your living situation changes. Your insurance should grow with you.

Cheapest Renters Insurance: Bottom Line

The right renters insurance coverage balances cost with protection. Compare cheap renters insurance offers and providers to find the best policy. This article highlights the most affordable options based on our analysis.

We also explored renters insurance coverage basics and provided guides to help you secure cheap policies. Most renters can get solid protection for $15 to $20 per month.

If you want cheaper renters insurance, compare quotes from multiple companies, bundle policies with the same insurer and choose a higher deductible. Make sure you have enough personal property coverage based on a home inventory of your belongings.

Compare Renters Insurance Rates

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

Why do we need ZIP code?

Affordable Renters Insurance: FAQ

Need guidance about finding cheap renters insurance? We've answered the most common questions to help you make the right choice.

Which company has the cheapest renters insurance per month?

Is affordable renters insurance reputable?

Why is renters insurance so cheap compared to home insurance?

Is renters insurance worth it if I don't have many valuable possessions?

Does renters insurance cover my roommate's belongings?

Will my renters insurance cover damage caused by my pet?

How quickly can I get renters insurance coverage?

If I file a claim, will my renters insurance cost increase?

Can my landlord require me to have renters insurance?

Do I need special coverage for my home office equipment?

Best Cheap Renters Insurance: Our Ratings Methodology

MoneyGeek 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 from $20,000 to $250,000 and a $500 deductible.

Renters insurance quotes were updated in April 2025.

Cheapest Renters Insurance Companies: Related Pages

About Rachael Brennan


 Rachael Brennan headshot

Rachael Brennan is a professional insurance writer. She has also worked in the insurance industry for more than a decade, earning her P&C license in all 50 states and her life, health and AD&D license in New York and the surrounding states. She has been published on a number of websites, including Policy Genius, Nerdwallet and Bankrate.


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