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Cheapest Renters Insurance Companies of 2022

Updated Nov 9, 2022

Updated Nov 9, 2022

Home > Renters Insurance > Cheapest Renters Insurance Companies of 2022

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Whether you’re renting a studio apartment or an entire home, renter’s 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+ renter’s 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

  1. Lemonade — Quicket Claims Process
  2. Geico — Most Accessible Customer Service Reps
  3. State Farm — Most Comprehensive Personal Property Coverage
  4. Allstate —Best for Bundling

Compare Affordable Renters Insurance Providers

CompanyLemonadeGeicoState FarmAllstate
Our TakeQuickest Claims ProcessBest Customer ServiceBest Personal Property CoverageBest for Bundling
Monthly PremiumStarts at $5 per monthStarts at $12 per monthStarts at $12 per monthStarts at $12 per month
Savings vs. Average$15$8$8$6
House Method Star Rating4.94.74.54.2

Lemonade — Quickest Claims Process

Quickest Claims Process

Why We Chose Lemonade

House Method rated Lemonade’s renter’s 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.

Pros and Cons of Lemonade

Pros

  • Quick coverage processes — it takes an average of 90 seconds to enroll in a policy and two minutes to submit a claim.
  • User-friendly app available on iOS and Android
  • Donates a portion of money leftover from unpaid claims to one out of 100+ non-profit organizations of your choice.

Cons

  • Only currently available in 37 states plus Washington, D.C.
  • Primarily operates through AI, so might not be a good fit for tenants looking to work with a live insurance agent.

Renters Insurance Cost and Coverage

With basic policies starting as low as $5 per month, Lemonade is the cheapest renters insurance provider on the market. Premiums will always vary depending on the level of coverage and deductible you select at sign-up. Lemonade also offers exclusive discounts for tenants who bundle their renter’s insurance with auto, pet, life, or homeowners insurance.

A standard renters insurance policy through Lemonade includes coverage for:

  • Personal property: Basic personal belonging throughout the home like furniture, clothing, electronics, etc.
  • Portable electronics: Laptops, headphones, tablets, smartphones, gaming devices, etc.
  • Personal liability: Any fees that ensue should someone get hurt on your property and decide to pursue legal action.
  • Medical payments to others: Medical bills as a result of someone becoming injured on your property.
  • Loss of use: Should the property your renting because uninhabitable, 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

Geico Home Insurance

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.

Pros and Cons of Geico

Pros

  • Provides several savings opportunities through policy bundling (auto, life, home insurance, etc.)
  • Has an online personal property calculator to help you determine the best level of coverage to select based on each item’s replacement cost
  • Offers a lower-than-average deductible option of $100

Cons

  • Renters insurance policies are administered through third-party insurance companies, not through Geico, which can make filing a claim slightly more complicated
  • Customers can’t choose the third-party carrier that they’ll be matched with.

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.

Pros and Cons of State Farm

Pros

  • Unlimited coverage for personal property and loss of use claims
  • Includes inflation coverage, which automatically increases the amount of coverage available relative to any increases in costs of the surrounding property due to shifting supply and demand.
  • Offers a long list of optional coverage riders for things like waterbeds, identity theft restoration, earthquake damage, and more.

Cons

  • Fewer discounts available than competing renters insurance carriers
  • Customer service hours are more limited and don’t include 24/7 assistance

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

Allstate Renters Insurance

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 renter’s insurance policies we’ve reviewed thus far, that premium can be reduced significantly if you’re eligible for any of Allstate’s policy discounts.

Pros and Cons of Allstate

Pros

  • Offers a claims tracking feature through its mobile app, allowing customers to have constant insight into the status of their report.
  • Includes unique coverage options for things like flood insurance and theft restoration.
  • Has a high A+ financial stability rating from A.M. Best

Cons

  • Slightly more expensive per month than other leading renters insurance options
  • Minimal list of add-on coverage riders

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 renter’s 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 renter’s 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 renter’s 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 renter’s 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 renter’s 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 renter’s 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 renter’s insurance as recorded through an anonymous public survey.

Quickest Claims Process
Lemonade
  • Easy-to-use mobile app and interface
  • Customizable coverage options
  • Fairly painless claims process

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.

Frequently Asked Questions

How can I lower my renter's insurance cost?

The simplest way to lower the cost of renters insurance is by opting for the most basic yet effective coverage offered by your carrier. Some providers also offer exclusive discounts for tenants who invest in minimizing risk throughout their property. Renters with home security systems, proper smoke and carbon monoxide detectors, and non-smokers are sometimes eligible for lower premiums at sign-up. Other discounts like multi-policy bundling or enrolling in auto-pay can save you money on your renter’s insurance policy.

What is the most basic renters insurance coverage?

The most basic renters insurance policy will typically include three standard types of coverage: personal possessions, additional living expenses, and liability protection. Most providers have automatic limits and deductibles assigned to their most affordable policy option, which can then be adjusted based on your coverage preferences.

Is renters insurance required?

Renter’s insurance isn’t legally required in any state, but landlord reserve the right to refuse tenancy to prospective renters who refuse to invest in coverage. Most landlords typically ask that tenants have at least $100,000 in liability coverage, but those specifications will vary from lease to lease at the property owner’s discretion.

Why is renters insurance cheaper than home insurance?

Renter’s insurance covers less than home insurance, which is why it’s cheaper. Renter’s insurance is primarily designed to cover the personal belongings and liability of the tenant, not structural issues related to the property itself. Home insurance —  something that should exist under the landlord’s name — relates to the physical property itself, which can be far more expensive to indemnify in the event of a coverable loss.

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