Average Cost of Renters Insurance in 2024

Renters insurance, averaging $12 per month or $138 per year, can protect your belongings and save you money in the long run. While it might not be the first thing that comes to mind while settling into a new rental, getting a policy will give you peace of mind.

The average cost of a renters insurance premium varies based on your coverages, deductibles, add-ons, location and insurance provider, among other factors. To cater to different renters, MoneyGeek analyzed rates across all 50 states and hundreds of cities to determine the average cost for consumers based on varying coverage levels.

• Average Cost of Renters Insurance Cost
• Average Cost by Coverage Amount
• Average Cost by Company
• Average Cost by Deductible
• Average Cost by Credit Score
• Average Cost by Claims History
• Average Cost by State
• How Much Renters Insurance to Buy
• Factors Impacting Cost
• FAQ About Renters Insurance Costs

Cost is an important factor when shopping for renters insurance, and knowing average rates can help you find the best deal. The average cost of renters insurance this year is about $12 per month, or $138 per year, for $20,000 of personal property coverage, $100,000 of liability coverage and a $500 deductible.

However, cost can vary greatly based on location and coverage amount, among other factors. The cheapest renters insurance for you could be greater or less than the average.

For $20,000 in personal property coverage per month, the average cost of renters insurance is $12 per month or $138 per year, although this may increase if your coverage amount is higher. For instance, if you have $100,000 in personal property coverage, your average cost for renters insurance may be $36 per month or $426 per year.

Renters insurance increases in price as your coverage amount increases, so you’ll likely end up paying more if you have many valuable possessions. If not, you can often score a lower monthly rate with a low coverage amount.

Take a look at the table below and see how renters insurance rates change when you increase your coverage limits.

The average cost of renters insurance varies by company, with State Farm being the cheapest option for $20,000 in personal property coverage at $99 annually. Generally, costs change between providers because the way they calculate premiums differs.

For instance, Travelers offers renters insurance at $239 per year — $140 more than State Farm. Toggle the table below to see how rates change based on provider and coverage.

The average cost of renters insurance can vary significantly depending on your deductible, which is what you agree to pay before your insurance covers a claim. For instance, if you opt for a renters insurance policy with $20,000 in personal property coverage and a $1,000 deductible, you can expect to pay an average annual premium of $138.

However, if you're willing to take on a higher deductible, say $2,000, you'll be able to save on your annual premium, paying an average of $12 less. This flexibility in choosing your deductible allows you to tailor your policy to your budget and risk tolerance. To see the full breakdown of average costs by deductible and coverage, you can use the table below.

Keep in mind that a lower deductible generally results in higher insurance rates, while a higher deductible can lead to lower premiums. It's crucial to strike the right balance between the deductible and premium that best suits your financial situation and peace of mind.

If you have a poor credit score, renters insurance can cost an average of $285 per year — $147 more yearly than for those with a good credit score. Your credit score influences the average cost of renters insurance, as providers use it as an indicator of a your financial responsibility and likelihood of making claims. Generally, individuals with higher credit scores tend to receive lower premiums, while those with lower scores may see higher rates.

Understanding the relationship between your credit score and renters insurance premiums can help you make informed decisions to manage your insurance costs effectively. To explore how rates change based on credit score and coverage, feel free to toggle the table below.

While those with good credit scores pay an average of $138 per year for $20,000 in personal property coverage, individuals with poor credit may pay $147 higher annually. This contrast emphasizes the importance of maintaining a good credit score to not only secure affordable renters insurance but also to save on your expenses.

If you’re looking to lower your renters insurance rates, improving your credit score can be a valuable long-term goal. Build and maintain a strong credit history by paying bills on time, reducing outstanding debts and managing credit responsibly.

Your claims history is a significant factor that influences your insurance premiums — having at least one claim in the past five years can result in average renters insurance rates of approximately $182 per year.

Insurance companies consider your past claims as an indicator of your risk profile. Individuals with a history of frequent or significant claims are seen as higher risk, leading to higher premiums, while those with a clean claims history tend to enjoy lower rates. To explore how rates change based on claims history and renters insurance coverage, you can easily toggle the table below.

Having a claim can significantly impact your renters insurance rates. For instance, having two claims in the past five years increases the average cost of renters insurance by $93 annually compared to having no claims at all. Strike a balance between using your insurance when necessary and avoiding filing unnecessary claims to maintain affordable coverage.

The cost of renters insurance can vary significantly based on location. A big factor to consider is if your rental is located in a disaster-prone state. If it does, you might encounter rates that are higher than the national average.

For example, renters in Alabama pay an average of $293 per year, while renters in North Dakota pay a yearly average of only $77. This may be caused by various factors, such as the population density or the likelihood of a natural calamity in the state. Use the table below to check the rates based on your coverage and the state you live in.

The coverage amount you should choose for your renters insurance policy depends on your unique needs and circumstances. When determining the appropriate coverage, consider several factors, including the value of your possessions, your location, lifestyle and other factors. Tailoring your coverage to align with these considerations will help ensure you have the right level of protection in place.

Several factors can affect the cost of your renters insurance, including coverage options and personal factors. Personal factors affecting your renters insurance rate include where you live, credit score and risk for natural disasters. Coverage options that could increase or decrease your rate include your coverage amounts for personal property and liability insurance, as well as any add-ons you choose to purchase.

Different coverage types can significantly influence the cost of your monthly renters insurance premiums. For instance, opting for a policy with higher coverage limits may lead to higher monthly costs, while a more basic policy with lower coverage limits may be more affordable.

It's crucial to carefully assess your needs and budget when selecting the right coverage type to strike the right balance between protection and affordability. These coverage types include:

• Personal Property Coverage: This includes items such as your electronics, clothing, furniture and other valuable possessions. When choosing your coverage limit, it's essential to assess the total value of your belongings. You may need to purchase add-on coverage or endorsements for high-value items like jewelry or collectibles.
• Liability Coverage: This protects you if you are found legally responsible for causing injury or property damage to others while in your rented property. This can help cover medical expenses, legal fees and damages in a lawsuit. A standard policy typically starts with a minimum of $100,000 in liability coverage, but higher limits are recommended.
• Loss of Use Coverage: Also known as additional living expenses, it is designed to assist you when your rental becomes uninhabitable due to covered perils, such as fire or water damage. This coverage will help pay for temporary living arrangements, such as hotel stays, rent for a temporary residence, or even meals until your rental is habitable again.
• Deductible: The amount you pay out of pocket before your renters insurance coverage kicks in to cover a claim can vary in amount, which can affect your premium. A higher deductible typically results in lower premiums, but you'll need to pay more upfront in the event of a claim.

The average cost of renters insurance also depends on several personalized factors that reflect your unique circumstances and choices. Some situations impact the cost of your renters insurance, allowing you to tailor your policy to fit your needs and budget. From location-based considerations to credit scores, it’s essential to consider these personal factors:

• Location: Location is another significant factor in the cost of renters insurance. Factors like crime, weather and natural disaster risk can result in higher costs.
• Credit Score: Credit score may also influence your rate, with a higher credit score resulting in a lower monthly premium. However, not all states allow companies to use credit scores to determine rates for renters insurance.
• Fire & Security Devices: With some renters insurance policies, you can lower your monthly premium by installing fire and security devices.

While renters insurance is a simple concept on its face, many factors determine a policy's cost. Here are some of the more common questions related to the cost of renters insurance: