Cheapest Renters Insurance Companies of 2023

Whether you’re renting a studio apartment or an entire home, renters insurance is a leasing prerequisite expected by most landlords. On top of other initial costs like your application fee, security deposit, utilities, etc., finding an affordable renters insurance policy is often a top priority for tenants.

House Method reviewed 70+ renters policies and generated custom quotes with each carrier to pinpoint the top four cheapest renters insurance policies available nationwide.

The providers below can provide free quotes for renters insurance coverage. Contact them today to get started.

The Top 4 Cheapest Renters Insurance Companies

• Lemonade — Quickest Claims Process
• Geico — Most Accessible Customer Service Reps
• State Farm — Most Comprehensive Personal Property Coverage
• Allstate —Best for Bundling

Compare Affordable Renters Insurance Providers

Company	Lemonade	Geico	State Farm	Allstate
Our Take	Quickest Claims Process	Best Customer Service	Best Personal Property Coverage	Best for Bundling
Monthly Premium	Starts at $5 per month	Starts at $12 per month	Starts at $12 per month	Starts at $12 per month
Savings vs. Average	$15	$8	$8	$6
House Method Star Rating	4.9	4.7	4.5	4.2

Lemonade — Quickest Claims Process

Why We Chose Lemonade

House Method rated Lemonade’s renters insurance with 4.9 out of 5 stars, earning particularly high marks for its quick claim processes. Unlike many of its competitors, Lemonade offers a fully-digital coverage experience facilitated by its AI-operated insurance model. Using automated features to review claim submissions, Lemonade is able to dish out payments in as little as three seconds. Its turnaround times pale in comparison to the 30-45 day waiting period upheld by competing providers. And as an all-online company, there’s no paperwork or processing fees involved either.

Renters Insurance Cost and Coverage

With basic policies starting as low as $5 per month, Lemonade is among the most affordable renters insurance providers on the market. Premiums will always vary depending on the level of coverage and deductible you select at sign-up. Lemonade also offers car, pet, term life, and homeowners insurance, and they offer exclusive discounts for bundling your renters insurance coverage with another policy.

A standard renters insurance policy through Lemonade includes coverage for:

• Personal property: Basic personal belongings throughout the home like furniture, clothing, electronics, etc.
• Portable electronics: Laptops, headphones, tablets, smartphones, gaming devices, etc.
• Personal liability: Helps cover the costs if someone is injured on your property or you accidentally damage someone else’s property
• Medical payments to others: Medical bills as a result of someone becoming injured on your property.
• Loss of use: Should the property you’re renting become uninhabitable after a covered loss, this clause covers tenants for necessary hotel fees and additional living expenses until you return to stable housing.

Renters can also opt to purchase additional coverage for damage caused by water back-ups, appliance breakdowns, or extra protection for valuables like jewelry, bicycles, musical instruments, cameras, etc.

Geico — Best Customer Service

Why We Chose Geico

We scored Geico with 4.8 out of 5 stars and named it the best renters insurance coverage option for accessible customer service representatives. Unlike Lemonade, Geico has live customer service representatives available 24 hours a day, seven days a week, to assist customers with enrollment, claim submissions, or any other questions. Geico is a great option for tenants new to renters insurance or anyone who would benefit from a basic walk-through of their coverage options. We only docked a few points from Geico’s overall score because its renter policies are underwritten by third-party insurers and not Geico itself.

Renters Insurance Cost and Coverage

According to its online pricing, Geico’s most basic renters insurance options start at around $12 a month. However, your premium is subject to change based on where you live, the coverage level you select, and any additional policy add-ons purchased at sign-up.

A renters insurance policy through Geico includes coverage for:

• Household appliances, furniture, collectibles, and electronics
• Clothing
• Accidental damage to the property
• Expenses related to the uninhabitability of the property due to a covered loss
• Legal and medical expenses should someone get hurt while on the property being rented

Unexpected circumstances that qualify for coverage through Geico include:

• Visitor injuries
• Water damage
• Windstorms
• Theft
• Vandalism
• Fire
• Smoke damage

State Farm — Best Personal Property Coverage

Why We Chose State Farm

House Method scored State Farm with a 4.7 out of 5 stars and elected it as the most comprehensive personal property coverage option. Whereas some providers instate per-item coverage limits for losses eligible for indemnification, State Farm doesn’t have any maximums on personal property and loss of use coverages. In terms of monthly cost, State Farms’ average rates sit fairly in line with Geico’s, though its limited selection of three deductibles may make it more expensive in the long run.

Renters Insurance Cost and Coverage

Similar to Geico, State Farm’s most basic renters insurance policy starts at about $12 per month. As with any carrier, where you live, your custom coverage specifications, the size of the property is covered, and your deductible option will all influence the amount you’ll pay per month. Still, a base rate of $12 sits below the $15 industry-average monthly cost of renters insurance.

With a policy through State Farm, tenants will be covered for personal property, loss of use, liability protection, and medical/legal fees to others.

Extra coverage options offered by State Farm, available for an additional fee,  include:

• Incidental business liability
• Additional business property
• Additional liability coverage
• Waterbeds
• Computers
• Jewelry
• Earthquake damage

Allstate — Best for Multiple Discounts

Why We Chose Allstate

We scored Allstate with a 4.6 out of 5 stars but felt compelled to include it as one of the most affordable renters insurance options by virtue of its generous spread of discounts. Based on the company’s website, the average Allstate renters insurance policy costs roughly $16 per month. Though that is slightly higher than the rates of the other renters insurance policies we’ve reviewed thus far, that premium can be reduced significantly if you’re eligible for any of Allstate’s policy discounts.

Renters Insurance Cost and Coverage

Though Allstate’s premiums are slightly above the other carriers we’ve reviewed above, it offers some one-of-a-kind discounts that boost its overall affordability. Firstly, policyholders age 55 years or older are automatically eligible for 25% off their premium. Current Allstate customers who already have auto insurance through the carrier are eligible for a multi-policy discount when they bundle two or more insurance plans. Allstate also offers a small discount for policyholders who enroll in auto-pay through its Easy Pay Plan.

Cheapest Renters Insurance Rates in Every State

According to the Insurance Information Institute’s (III) 2019 analysis of average premiums for homeowners and renters insurance by state, Wyoming and Utah ranked as the most expensive regions for coverage. On the other hand, Wisconsin and South Dakota were among the cheapest. Whereas a policy in Wyoming costs an average of $252 per month, South Dakota tenants only pay around $48 per month.

How to Find Cheap Renters Insurance

To save money on your renters insurance policy, consider the following advice:

1. Compare prices. In this analysis, the carrier that came out on top might not automatically be the best choice for you. Make sure you compare the same coverage levels offered by each company when you request online quotes from at least three different providers.
2. Bundle your other insurance policies. Many insurers provide a bundling discount when you buy more than one policy, such as renters and vehicle insurance.
3. Invest in your home’s safety features. Many insurers will cut your price if your home has smoke detectors, burglar alarms, sprinkler systems, or other equipment that lessen your risk of fire or theft.
4. Keep an eye out for covert discounts. Depending on the insurance provider you choose setting up autopay for your premiums could help you save money, depending on the insurance provider you choose.

How Much Does Renters Insurance Cost?

The amount you’ll pay for renters insurance will depend on the coverage and deductible options you select at enrollment. That said, the average cost of renters insurance is around $18 per month or $219 per year for most tenants across the United States.

Typical Renters Insurance Discounts and Deals

Renters and Auto Bundling

Though bundling options will depend on your provider, most top-rated carrier offer incentives for the multi-policy bundle — renters and auto being a popular combo. By purchasing two forms of insurance under the same carrier, you’ll qualify for additional savings. It can also be a time-saver when managing your policies because all your coverage details will be accessible in one place.

Non-Smoker Discounts

Being a non-smoker can save you anywhere from 5-20% on your renters insurance policy, depending on your carrier. Negligently discarded cigarettes have been known to cause devastating wildfires, and smoking indoors is still considered one of the leading causes of house fires. By committing to a non-smoking lifestyle, tenants create lower risks for carriers.

Renter’s Safety and Security Systems

Some carriers will save you up to 20% on your policy if you have a home security system. Naturally, cameras and other smart security devices will likely deter burglars or anyone considering a home invasion. This offers an added layer of defense for carriers who would otherwise be responsible for financial losses due to burglary or theft.

How to File a Renters Insurance Claim

You might not think to call your renters insurance provider immediately after a fire, flood, theft, or other unprecedented events. However, it’s crucial to do so as soon as possible to start the claim process effectively. In this section, we’ll walk you through the steps of filing a claim:

1. Notify the proper authorities. If necessary, file a police report. Before making any other calls, submit a police report if a crime like theft or vandalism is involved. Any police officers you speak with or who visit your premises for an inspection should be noted by name.
2. Get in touch with your insurance company. The insurance company must be informed immediately of any damage, theft, or injury likely to result in a claim, as most renters insurance policies require. That doesn’t mean you have to call immediately, but if you do, the reimbursement process can start sooner. Insurance company and circumstance-specific reporting requirements may differ, but your policy and supporting documentation will outline what you need to report. You can also submit a claim online with some companies.
3. Keep a record of all damage, stolen items, etc., at the core of the claim. Go room by room if necessary to document the damage, taking photos or videos. This is especially crucial if the property must be made safe and habitable immediately. Make a list of the things that were destroyed, stolen, or damaged, along with an estimate of their value.If you have already done a thorough home inventory of your belongings, this will go much more quickly. The insurance company will set up a time for an appraiser to interview you and look at the damage to figure out how much you can expect in compensation. During the inspection, be sure to accompany the appraiser and point out any structural damage or trouble spots.

How We Ranked the Cheapest Renters Insurance Companies

Our proprietary ratings are based on a comprehensive rating system crafted specifically for our renters insurance category. All supporting data to back our carrier rankings are sourced from reputable public databases such as carrier websites, financial strength ratings by AM Best,

the National Association of Insurance Commissioners, the Insurance Information Institute (III), and more. The backbone of our rating system prioritizes the experiences of real renters with renters insurance as recorded through an anonymous public survey.

Final Verdict: Which Renters Insurance Company is the Cheapest?

Based on our research, we found Lemonade to offer the cheapest renters insurance policy on the market. With a fully-digital insurance model, Lemonade offers some of the fastest services in the industry while leaving out standard processing fees thanks to its paperless operations. On top of already low rates, it also provides its policyholders with more opportunities to save through bundling incentives as well.

Geico, State Farm, and Allstate offered comparable monthly rates. However, no matter the provider you enroll with, your premium will always depend on the personal specifications of your policy and location.

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