What Is the Average Cost of Renters Insurance in the U.S? 2024 Rates by State

The national average cost of renters insurance is around $12 per month, according to NerdWallet's most recent analysis. Where you live, your coverage limits and your claim history and other factors will have an impact on how much you pay for coverage. Learn how you can lower your renters insurance costs as well as what you should consider when deciding on a policy.

On This Page

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  Average Cost of Renters Insurance by State

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  Which States Have the Most Affordable Renters Insurance?

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  What Factors Affect the Cost of a Renters Insurance Policy?

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  How Much Renters Insurance Do I Need?

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  How To Lower Your Renters Insurance Cost

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  How To Find Cheap Renters Insurance

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  FAQs

Average Cost of Renters Insurance by State

Renters across the U.S. pay $12 per month on average for renters insurance but this cost can range widely based on where you live. For example, renters in Wyoming and Alaska pay the cheapest rates on average ($8 per month), while renters in Mississippi and Louisiana pay the highest rates ($21 per month).^[1]

The below table provides a state-by-state breakdown (including the District of Columbia) of the average cost of renters insurance coverage based on Nerdwallet’s most recent analysis of renters insurance rates.^[1]

^{*Policies included: $30,000 in personal property coverage; $100,000 in personal liability coverage; $10,000 in additional living expenses coverage; $1,000 in medical payments coverage; $500 deductible}

Which States Have the Most Affordable Renters Insurance?

According to NerdWallet, on average, the cheapest renters insurance rates were quoted for renters in Wyoming and Alaska at $8 per month. Wisconsin, Iowa and Vermont were the next cheapest states ($9 per month), followed by New Hampshire, North Dakota, Maine, Ohio, Pennsylvania, Minnesota and Virginia ($10 per month).^[1]

Even so, the average rates in over half of all the U.S. states were either at or below the national average of $12 per month.^[1]

What Factors Affect the Cost of a Renters Insurance Policy?

The cost of a renters insurance policy can vary depending on various factors, including your coverage limits, deductible and where you live. Here is a more detailed analysis of the factors that affect the cost of renters insurance:

• Location: Living in an area that is vulnerable to theft, crime and natural disasters can lead to higher insurance premiums. For example, if you’re renting in Hawaii in an area recently devastated by wildfires, then you may see a rise in your rate when you renew your policy in the future.^[2]
• Coverage limits: The higher the coverage limit, the more expensive the policy will be. The coverage limit is the maximum amount that the policy will pay out in the event of a covered peril.
• Deductible: Choosing a higher renters insurance deductible will result in lower monthly payments. Just be mindful that you will pay more out of pocket before your insurance coverage kicks in if you file a claim.
• Previous claims: The more claims on your insurance record, the higher risk you are to renters insurance companies. Insurers increase rates as a result.
• Credit score: Some insurance companies use credit-based insurance scores when calculating premiums. Higher credit scores can correlate with cheaper renters insurance rates.^[3]
• Insurance company: Each company uses its own methodology for calculating rates. That’s why you might see one insurer offering a cheaper rate for the same level of coverage.
• Discounts: You may qualify for more discounts with one company versus another, potentially resulting in a lower rate.
• Pets: Dogs in particular are considered a potential risk due to the possibility of dog bites, especially if the dog is considered a high-risk breed like a mastiff or pitbull.^[4]

How Much Renters Insurance Do I Need?

In general, you will want enough personal property coverage to insure the combined value of all your belongings, including your furniture, electronics, clothing and jewelry. To help you calculate this, it is recommended that you keep a home inventory, where you document each item you possess and how much each item costs. You should also note that if a property claim is approved, you will only be reimbursed for each item’s actual cash value, which deducts for depreciation and wear and tear.

In addition, keep in mind that certain valuables like jewelry will be subject to a sublimit. For example, even if you have $30,000 in personal property coverage, rings may be reimbursable only up to $1,000 per ring.

You can insure items with sublimits for their full value by purchasing scheduled personal property coverage and scheduling each item.

How To Lower Your Renters Insurance Cost

Read below for a few tips on reducing how much you pay for renters insurance:

• Increase your deductible.
• Bundle your insurance policies to enjoy a bundling discount.
• Ask about additional discounts like having a claims-free history.
• Compare rates from multiple insurers (be sure to use an apples-to-apples comparison when it comes to coverage).
• Take steps to reduce risks such as installing smoke detectors or security systems which can lower your renters insurance premium.
• Review your coverage annually and make sure your policy reflects your needs and budget.

How To Find Cheap Renters Insurance

You should shop around and compare quotes from at least three to five insurance companies to find the best rate for insuring your rental unit since insurance companies' rating systems differ and some insurers may offer you the same coverage at a lower rate. You'll have to provide each insurer with details like the amount of personal property coverage you want, along with personal information such as your age and claims history. However, this can make for a tedious and repetitive process if you reach out to insurance carriers one at a time.

Fortunately, you can speed up the process by obtaining rates through an insurance marketplace like SmartFinancial. After you answer a few questions, we can connect you with a licensed insurance agent who can help you find the best policy for your circumstances. To compare renters insurance quotes at no cost, click here now.