Compare the Cheapest Renters Insurance Providers
Renters insurance costs $15 per month on average, but most renters will be able to secure a policy for less with the right provider. Based on our 2024 survey of 1000 respondents with renters insurance, cost is the factor that people consider to be the most important when choosing a provider. Here are the cheapest renters insurance companies we reviewed based on premium alone:
| Provider | Monthly Cost | Annual Cost |
|---|---|---|
| State Farm | $10.50 | $126 |
| Toggle | $12.59 | $151 |
| Lemonade | $13.33 | $160 |
| Allstate | $14.42 | $173 |
| Nationwide | $14.50 | $174 |
Using data from Quadrant Information Services, we obtained quotes for each provider in this article and compared them to the average annual premium in the United States. All averages are calculated using premium data from over 15,000 zip-codes across all 50 U.S. states and D.C. assuming $30,000 in personal property coverage with a $1,000 deductible. According to this data, the average cost of renters insurance is$180 annually. Read ourfull cost methodologybelow.
For providers unavailable in Quadrant’s database, we calculated the average annual premiums using quotes we manually pulled from the provider’s website or representatives. Quotes include comparable policy details in ZIP codes across the U.S. Your cost may vary depending on your location, coverage and personal property needs.
Our Picks for the Cheapest Renters Insurance Providers
After in-depth research, we found the following providers to offer the cheapest renters insurance on the market today, all offering policies below the national average.
- Lemonade: Our top pick
- State Farm: Our pick for affordable premiums
- Toggle: Our pick for custom pricing
- Allstate: Our pick for seniors
- Nationwide: Our pick for valuable endorsem*nts
We at the Guides Home Team strive to provide authoritative ratings and recommendations on the best and cheapest renters insurance companies. To that end, we comprehensively analyzed 20 top renters insurance companies by poring over provider websites, speaking to representatives and gathering third-party data from reputable sources like AM BestandJ.D. Power. Our cost analysis uses sample premiums provided by Quadrant Information Services, a leading source of property and casualty insurance solutions and data.
Using this data, we scored providers against our objective rating methodology and narrowed down our recommendations to the top five affordable renters insurance companies based on cost, coverage, claims experience, financial stability and more.
Learn more about our methodology.
The Top Cheap Renters Insurance Companies
While State Farm offers the cheapest overall premiums, Lemonade is our top pick because it offers the highest quality affordable coverage.
Best Value Renters Insurance: Lemonade
Our Top Pick
4.6
Cost: 4.8
Availability and Ease of Use: 5
Brand Trust: 5
Coverage: 3.5
Our Review
A.M. BestNRJ.D. Power854/1000
MONTHLY COST$13.33
Why We Picked Lemonade
Lemonade is great for renters who are looking for cheap insurance and want to spend as little time interacting with their provider as possible. The company puts a strong emphasis on technology, allowing customers to quickly generate quotes online and complete most tasks, including filing a claim, from their mobile devices. Lemonade’s claims are powered by artificial intelligence, allowing the company to settle straightforward claims in minutes.
According to our 2024 survey of 1000 renters, 92% of customers are satisfied with Lemonade. Customers like Lemonade’s affordable cost, easy to use portal and app, useful coverage options and customer service.
Discounts and Add-ons
Discounts
- Lower rates for a high deductible choice of $2,500
- Safety devices
- Claim history
Add-ons
- Landlord property damage
- Valuable items, such as bikes, fine art, collectibles and jewelry
- Significant other
- Water backup damage
Cheapest Renters Insurance: State Farm
Our Pick for Affordable Premiums
4.3
Cost: 4.3
Availability and Ease of Use: 5
Brand Trust: 4.7
Coverage: 3.5
Our Review
A.M. BestA++J.D. Power844/1000
MONTHLY COST$10.50
Why We Picked State Farm
We found that State Farm consistently offers cheap premiums compared to many of its competitors. It also performed well in our other rating categories, such as support availability, communication channels and brand authority, making the company a sound choice for renters looking for cheap policies.
Despite its affordable premiums, State Farm packs in some types of coverage that competitors would typically charge extra for as additional coverage options. Standard State Farm policies include coverage for jewelry and furs, business personal property and fire department service charges. However, the company has fewer discount options than some of the other options on this list.
97% of our 2024 renters insurance survey respondents with coverage from State Farm are satisfied with the company due to their affordable cost, useful coverage options and customer service.
Discounts and Add-ons
Discounts
- Safety features
- Multi-policy bundling
Add-ons
- Backup of sewer or drain
- Special computer coverage
- Identity restoration
- Earthquake damage
Other Affordable Renters Insurance Companies
If Lemonade and State Farm aren’t right for you, explore our other recommended cheap renters insurance companies.
Toggle Renters Insurance
Our Pick for Custom Pricing
4.1
Cost: 4.3
Availability and Ease of Use: 3.6
Brand Trust: 4.5
Coverage: 4
Our Review
A.M. BestAJ.D. PowerNR
MONTHLY COST$12.59
Why We Picked Toggle
Toggle is a tech-forward renters insurance provider that can be a good choice for anyone working to build their credit. As a renter, the monthly payments you make to your landlord are not reported to the three major credit reporting bureaus responsible for maintaining credit score data. However, Toggle’s unique Credit Lift option can help you report and get credit for your monthly rent payments.
If you are looking for a more customizable option for your renters insurance, Toggle may be worth considering. It includes more unique options for add-on coverage, ranging from protection for pet damage to specialized coverage for the tools and equipment if you have a side hustle. This allows the monthly cost of your policy to be very flexible, with the most basic tier of coverage averaging $5.09 per month.
According to our 2024 survey, 75% of Toggle customers are satisfied with the company because of its affordable cost, customer service and bundling options. All customers that were dissatisfied with the provider cited denied claims as the reasoning.
Discounts and Endorsem*nts
Based on our research, Toggle currently offers a diminishing deductible discount and a multi-policy discount. Although it does not offer any additional discounts on renters policies, Toggle users do receive a wide variety of discounts on products and services such as meal kits, streaming services, moving services, internet, and dining.
The company also offers multiple policy endorsem*nts, including:
- Identity protector
- Temporary living costs
- Pet Parent
- High-value items
- Side hustle
Allstate Renters Insurance
Our Pick for Seniors
4.3
Cost: 5
Availability and Ease of Use: 4.2
Brand Trust: 4.7
Coverage: 2.5
Our Review
A.M. BestA+J.D. Power835/1000
MONTHLY COST$14.42
Why We Picked Allstate
During our review process, Allstate led the ratings with the highest score of 98.5. It scored well for everything from affordability and savings to flexibility and extra coverage. Additionally, the company has outstanding customer service and expertly takes care of its policyholders’ needs.
Allstate’s discounts are another method for reducing your cost of renters insurance. In addition to typical discounts, such as bundling and staying claims-free, Allstate rewards retired seniors and renters who enroll in autopay with lower prices.
Our 2024 survey of 1000 renters found that 94% of customers are satisfied with Allstate due to its affordable cost, customer service and useful coverage options.
Discounts and Add-ons
Discounts
- Retired seniors discount
- Autopay
- Claim-free history
- Bundling with an Allstate auto policy
Add-ons
- Scheduled personal property add-ons
- Identity theft protection
Nationwide Renters Insurance
Our Pick for Valuable Endorsem*nts
4.5
Cost: 4.5
Availability and Ease of Use: 4.6
Brand Trust: 5
Coverage: 4
Our Review
A.M. BestAJ.D. Power852/1000
MONTHLY COST$14.50
Why We Picked Nationwide
Nationwide’s national average monthly premium is $14.66 for a policy that covers your belongings, personal liability, medical expenses and loss of use. Beyond basic coverage, Nationwide offers Brand New Belongings, an optional feature that covers your personal property at replacement cost. It also has a generous discount for bundling with auto insurance.
95% of Nationwide customers surveyed are satisfied with the company because of its quality customer service, affordable cost and useful coverage options.
Discounts and Add-ons
Discounts
- Bundling
- Claims-free
Add-ons
- Brand New Belongings
- Building ordinance or law
- Identity theft protection
- Water backup
How Much Renters Insurance Do I Need?
Although renters insurance benefits both the tenant and landlord, it is not required by law. However, many landlords stipulate in their lease agreements that their tenants must have renters insurance. This lowers their liability in the event that someone is injured in your rental unit and reduces the likelihood they will be sued for damages to personal property.
Specifically, landlords seek liability coverage and often require a policy limit of $100,000 or more. You won’t have to meet a threshold for personal property coverage, but it may be wise to purchase it since landlords are only responsible for damage to the building itself and will not cover loss or damage to your items. The amount of personal property coverage you need is equal to the value of all of your personal belongings.
How To Get Cheap Renters Insurance
Renters insurance rates are less expensive than homeowners insurance because renters aren’t responsible for covering damage to the structure they live in. The average renter can expect to pay just $15 per month for coverage, but many renters can pay even less with the right provider and coverage selections.
If you suspect you’re paying too much, consider the following ways to reduce the cost of renters insurance:
When you choose a higher deductible, you save money on policy premiums. The opposite is true, too – a low deductible will save you money when you file a renters insurance claim at the expense of a higher premium. Based on our analysis of average premium data from Quadrant information services, increasing your deductible by $500 will decrease the annual cost of your policy by around 10-15%.
Most providers offer various discounts to help you save on your renters insurance premiums, such as paying annually or remaining claims-free. If your provider offers multiple lines of insurance, bundling your policies is a great way to simplify your bills and save up to 25% annually.
According to the Insurance Information Institute, other common renters insurance discounts include savings for:
- Installing security devices
- Installing safety devices, such as deadbolts or smoke detectors
- Maintaining good credit
- Staying with the same insurer
- Being over 55 years old
Insurance providers don’t all calculate risk similarly, so it’s worth comparing multiple policies that are roughly equivalent in terms of deductibles and coverage limits. This also means that the cheapest provider on this list may not be the cheapest provider for your unique profile, so make sure to get your own quotes to make sure you’re getting the best rate.
The Guides Home Team also consulted industry experts on how to maximize savings when shopping for renters insurance. Here are their top tips:
“The best way to save money on renters insurance is to shop around. Compare different providers and theircoverage options, as well as the rates they offer. Doing this can help you find a policy that fits your budget while still providing adequate coverage for yourpersonal belongings.”
Shaun Martin, Owner,We Buy Houses In Denver
“The biggest mistake consumers make when shopping for renters insurance is focusing only on price. While affordability is important, it’s crucial to consider the policy’stypes of coverageand limits, as well as theinsurance company‘s reputation and customer service.”
Andrew ALokenauth,Fluent in Finance
“Cheaperrenters insurance policiesare typically not as comprehensive as pricier ones, but that does not mean they do not have adequate coverage. A cheap policy should still provide enough coverage for your belongings and liability protection in case of an accident or other incident. However, it is important to carefully review the policy to make sure you understand what is covered and what is not.”
Alex Capozzolo, Co-Founder,SD House Guys
“In cases where the local law or your lease requires you to carry renters insurance, but you don’t think you can afford it or aren’t interested in really using it, going with the cheapest possible plan can make sense.”
Leonard Ang, CEO,iPropertyManagement
Savings When Bundling Renters Insurance
Bundling renters insurance with another insurance product, usually an auto policy, is a powerful way to save money on insurance. Savings can be anywhere from 5% to 25%, depending on the provider. In addition to cutting costs for renters insurance, bundling your policies makes it more convenient to get a quote, manage your policy or file a claim. The low-cost renters insurance companies with the highest savings opportunities when bundling with auto are Auto-Owners and Allstate.
Find the Cheapest Renters Insurance Near You
Location plays a major role in your cost of renters insurance. Your local cost of living and risk for certain perils like property crime, as well as weather hazards such as tornadoes and hurricanes, can cause your premium to be different than someone with the same amount of coverage in a neighboring state or even city.
Use the following table to find the cheapest renters insurance companies in your state and city:
Discover our top rated renters insurance providers in your state using the dropdown below:
Select
Arizona Arkansas California Colorado Connecticut Florida Georgia Illinois Indiana Iowa Maryland Massachusetts Michigan Missouri North Carolina Nevada New Jersey New Mexico New York Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina Tennessee Texas Virginia Washington Wisconsin
Affordable Renters Insurance as a High-Risk Renter
Not all providers calculate risk similarly, leading to very different rates in certain common situations like having a poor credit score or claims history.
Cheapest Renters Insurance for Poor Credit
In some states, renters insurance carriers can reference parts of your credit score through what’s known as a credit-based insurance score. They use this information to help inform your overall risk profile, with poor credit often leading to higher premiums. On average, renters with poor credit will pay $49.42 per month for renters insurance, which is over 200% higher than the average for renters with good credit. Based on our research and pricing data from Quadrant Information Services, Toggle and Lemonade offer some of the cheapest renters insurance options for customers with low credit.
Cheapest Renters Insurance With a Claims History
If you have filed a claim recently, even at a previous address or through another insurer, it signals that you’re more likely to file again in the future. Most insurers will offer higher rates or even deny coverage altogether based on the number of claims you have filed in the last five years. Those with a previous theft claim can expect to pay around $20 per month for renters insurance while renters with a water damage claim history will pay an average of $19. Our research shows that State Farm offers the most affordable premiums to renters with a claims history averaging $11.87 per month regardless of the type of claim. To avoid premium hikes in the future, we recommend looking for a company that offers a “claim rate guard” endorsem*nt which keeps your monthly cost the same even if you need to file a claim.
Frequently Asked Questions About the Cheapest Renters Insurance
While the cost of Lemonade renters insurance depends on factors like your location and chosen deductible, its policies are generally low-cost due to its innovative technology. It can resolve simple claims in minutes using artificial intelligence, cutting costs and making insurance more affordable.
According to our research, State Farm and Toggle tend to offer the cheapest renters insurance policies at $10.50 and $12.59 per month, which is about 20% less the national average.
Renters insurance isn’t required by law, but most landlords require tenants to have insurance as part of their lease agreement. This means that most renters will need insurance.
The cost of renters insurance depends on your location, coverage limits, claims history and other factors. According to our data, the average monthly premium in the U.S. is $180 per year, which is about $15 per month.
Damage from floods and earthquakes is not typically covered by a standard renters policy. Some insurers may offer these coverages as endorsem*nts, but you can also get supplemental coverage from a specialty insurer. Flood insurance can be purchased through the federally backed National Flood Insurance Program or dozens of private flood insurers. In California, earthquake insurance is typically purchased through the California Earthquake Authority.
Other Insurance Resources From MarketWatch Guides
Read our comprehensive guides on the following insurance categories to find top providers and peace of mind that you have all aspects of life covered.
- Leading Pet Insurance Companies
- Top Travel Insurance Companies
- Best Homeowners Insurance Providers
- Leading Renters Insurance Companies
- Affordable Renters Insurance Providers
- Top Term Life Insurance Providers
- Budget-friendly Homeowners Insurance Companies
Methodology
Through in-depth research of the industry, we created a comprehensive rating system to rank renters insurance providers. We researched each company by gathering cost information and requesting quotes, combing through policy information, secret shopping and reading customer reviews to understand the customer service experience, and accessing financial reliability scores.
We used these rating factors to determine the best renters insurance companies to help with your decision when looking at policies:
- Cost: 40%
- Availability and ease of use: 25%
- Coverage: 20%
- Brand trust:: 15%
We routinely monitor and update data on a regular basis to ensure the reviews reflect the most up-to-date information and advice. See our full methodology here
A.M. Best Disclaimer
How We Gather Cost Data
We at the MarketWatch Guides Team gathered renters insurance quotes for the providers in this article using data from Quadrant Information Services. Quadrant is a leading source of property and casualty insurance solutions and data.
The sample renter our quotes are based on is a 30-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:
- Personal property: $30,000
- Loss of use: $9,000
- Liability: $100,000
- Medical payments: $1,000
For each provider, we gathered a quote for 50% of the ZIP codes in every state the provider is licensed in. We used the most populous ZIP codes for our study. We took the average of these individual quotes to calculate a national average premium per provider.
In some cases, cost data for a top renters insurance company isn’t offered in Quadrant’s database. To gather price information for these providers, we manually pulled quotes directly from insurers’ websites or representatives. We used the same sample homeowner demographics and comparable policy details for more than 20 ZIP codes across the U.S.
Our sample rates are for informational purposes only. Actual premiums will vary.
*AM Best rating accurate as of June 2024.AM Best disclaimer
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
Mike MillerSenior Writer
Mike Miller is a writer with a decade of experience producing product and service content to help consumers make informed purchasing decisions. Mike has a bachelor’s degree in creative advertising. In his spare time, Mike enjoys riding and fixing motorcycles, reading a good book and spending time with his wife and two cats.
Sabrina LopezSenior Editor
Sabrina Lopez is an editor with over six years of experience writing and editing digital content with a particular focus on home services, home products and personal finance. When she is not working on articles to help consumers make informed decisions, Sabrina enjoys creative writing and spending time with her family and their two parrots.
Mark FriedlanderAdvisor
Mark Friedlander is Director, Corporate Communications, at the Insurance Information Institute (Triple-I), a New York-based nonprofit research and education organization focused on providing consumers with a better understanding of insurance. Mark serves as a national spokesperson for the Triple-I, handling a wide array of insurance industry media issues. His responsibilities also include spearheading the association’s hurricane season communications strategy and its member company support and media outreach in Florida, where he is based.
