Cheapest Renters Insurance Companies | June 2024

Lemonade, State Farm and Toggle are among the most affordable renters insurance companies across the U.S.
Lemonade and Toggle allow users to fully customize their policy and only pay for what they need
Providers on this list cost $13.43 per month on average

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with our partner, Lemonade

Updated: Jun 28, 2024

Written by Graham Ray

Written by Graham Ray Senior Writer

Graham Ray is a senior writer whose knowledge of the insurance industry is bolstered by nearly four years of experience as a licensed life and health insurance agent. He has more than two decades of experience as a writer and editor in journalism, digital marketing and advertising. Graham has written everything from newspaper feature stories and corporate brand style guides to public relations campaigns.

Senior Writer

Edited by Tori Addison

Edited by Tori Addison Editor

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

After analyzing dozens of the best renters insurance companies, we at the Guides Home Team compiled this list of the best cheap renters companies. Overall, State Farm offers the cheapest renters insurance rates, averaging around $10.50 per month, which is about 15% cheaper than its peers. Lemonade’s average rates are slightly higher — about $13 per month — but its industry-leading digital experience and quick claims process make it our top pick for cheap renters insurance.

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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

How We Gather Cost Data

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 our full cost methodology below.

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: Best for affordable coverage
Toggle: Our pick for custom pricing
Auto-Owners: Our pick for in-person experience
Allstate: Our pick for seniors
Nationwide: Our pick for valuable endorsements

Why Trust Us

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 Best and J.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

Our Review

A.M. Best NR J.D. Power 854/1000

MONTHLY COST $13.33

Why We Picked Lemonade

Why We Picked Lemonade

The average cost of a Lemonade renters insurance policy is around $13 per month, about 14% lower than the national average of $15. Lemonade is our top pick for cheap renters insurance, providing the best value for the cost of its coverage. The company scored particularly well in our review based on cost, customer convenience and brand trust. Plus, Lemonade finished third overall — higher than the competitors in this review — in J.D. Power’s 2023 Customer Satisfaction Study, earning 854 of 1,000 points.

Lemonade may benefit renters looking for affordable premiums and those who want to spend as little time as possible interacting with their insurer. The company puts a strong emphasis on technology, using artificial intelligence (AI) to help customers quickly generate quotes and file a claim from their mobile devices. In an internal survey our team conducted in May 2024, a Lemonade customer complimented the company’s app: “It’s easy to use and has a sleek interface. That’s what I used to renew my policy.”

Pros and Cons

Pros Has a straightforward digital sign-up process based on our experience Provides many discounts to help lower rates Average monthly cost of $13 per month is 14% lower than the national average Cons Not scored by the credit rating agency AM Best, which can help customers assess financial strength Offers no endorsements for severe weather events

Discounts and Add-ons

Discounts

Claims history
Safety devices (fire alarm, burglary alarm, etc.)
Paperless discount

You can also achieve lower rates by selecting a higher deductible of $2,500.

Add-Ons

Equipment breakdown
Landlord property damage
Spouse
Significant other
Tenant pet damage
Valuable items, such as bikes, fine art, collectibles and jewelry
Earthquake (available in California and Arkansas)

Multi-Policy Bundling Options

Auto insurance
Life insurance
Pet insurance
Homeowners insurance

Cheapest Renters Insurance: State Farm

Our Pick for Affordable Premiums

4.3

Our Review

A.M. Best A++ J.D. Power 844/1000

MONTHLY COST $10.50

Why We Picked State Farm

Why We Picked State Farm

Based on our national cost data, State Farm offers the lowest overall premiums for renters insurance at around $10.50 per month. State Farm also performed well in our other rating categories, such as customer support availability, available communication channels and brand authority. One State Farm customer who responded to our May 2024 survey noted the benefits of speaking with an agent during enrollment: “While I would have preferred an all-digital process, speaking with someone did help ensure I took advantage of any discounts I qualified for.”

Despite its cheaper premiums, State Farm packs in some coverage that competitors would typically only offer as add-ons for an extra price. Standard State Farm policies include coverage for jewelry and furs, business personal property and fire department service charges.

However, renters only qualify for a limited number of discounts, which could mean fewer savings opportunities.

Pros and Cons

Pros Provides the cheapest policy among the insurers we reviewed Holds an above-average score for customer satisfaction based on the 2023 J.D. Power survey Has a vast network of local agents for in-person support Cons Offers a limited number of discounts compared to some competitors May require customers to speak with an agent to sign-up for coverage

Discounts and Add-ons

Discounts

Safety features
Multi-policy bundling

You can also lower your monthly premiums by selecting higher deductibles.

Add-Ons

Earthquake damage
Identity restoration
Personal umbrella liability policy*
Pet medical insurance*

*Indicates separate policies you can purchase to supplement your renters insurance coverage.

Multi-Policy Bundling Options

Auto insurance

Additional Affordable Renters Insurance Companies

While Lemonade and State Farm are our top picks, we also recommend the following renters insurance companies for cheap coverage.

Toggle Renters Insurance

Our Pick for Custom Pricing

4.1

Our Review

A.M. Best A J.D. Power NR

MONTHLY COST $12.59

Why We Picked Toggle

Why We Picked Toggle

Toggle is one of the most affordable renters insurance providers we reviewed, charging an average of $12 per month. Toggle is a tech-forward renters insurance provider that may benefit people 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.

According to another survey our team conducted of 1,000 renters nationwide in February 2024, 75% of Toggle customers said they are satisfied with the company. If you are looking for a more customizable option for renters insurance, Toggle offers unique options for add-ons, ranging from protection for pet damage to specialized coverage for the tools and equipment if you have a side hustle. However, Toggle might not offer many discounts compared to other options on our list.

Pros and Cons

Pros Affordable provider with varying levels of available coverage Offers many endorsements to customize coverage Easy to add coverages and see the effect on pricing when getting a quote, based on our experience Cons Availability is limited to 29 U.S. states, fewer than competitors such as State Farm No customer service reviews on Trustpilot or the Better Business Bureau (BBB)

Discounts and Endorsements

Discounts

Toggle does not offer standard renters insurance discounts based on our review. However, Toggle users can also access a variety of discounts on other products and services, such as meal kits, streaming services, moving services, internet and dining.

Add-Ons

Identity protector
Pet parent
Replacement cost
Side hustle
Significant other
Temporary living costs

Multi-Policy Bundling Options

Auto insurance

Auto-Owners Renters Insurance

Our Pick for Bundling

4.0

A.M. Best A+ J.D. Power NR

MONTHLY COST $12

Why We Picked Auto-Owners

Why We Picked Auto-Owners

A renters insurance policy with Auto-Owners costs around $12 per month, 20% cheaper than the national average of $15. The company also offers several discounts that can lower costs for qualifying renters, including savings for paying your premiums on time, buying more than one type of policy, and setting up automatic and online payments.

The company offers the option of contacting an independent agent for an estimate, which can help you get a personalized policy based on your needs. The agent can work with you to understand your local area’s risks and personal property details so you can find a policy that fits your budget. According to our February 2024 external survey of 1,000 renters nationwide, Auto-Owners policyholders who responded said that affordable cost was the top reason they were satisfied with the company.

Pros and Cons

Pros Provides several discounts to help customers lower monthly rates Lets you work with an independent agent for a quote Offers add-on to cover the full cost of replacing damaged items with new ones Cons Availability is limited to 26 U.S. states, fewer than competitors such as Allstate and Nationwide Must contact an agent to receive a quote

Discounts and Endorsements

Discounts

Multi-policy discount
Payment history
Paid-in-full discount
Green discount (paperless billing)
Protective devices discount
Advance quote
Favorable loss history
Hurricane/wind mitigation discounts

Add-Ons

Renters Plus (covers refrigerated products, water and sewer backup, waterbed liability and a glass deductible waiver)
Personal property replacement cost
Scheduled personal property for high-value items

Multi-Policy Bundling Options

Auto insurance
Life insurance

Allstate Renters Insurance

Our Pick for Seniors

4.3

Our Review

A.M. Best A+ J.D. Power 835/1000

MONTHLY COST $14.42

Why We Picked Allstate

Why We Picked Allstate

Although Allstate’s average monthly cost of $14 is close to the national average, you can save money through discounts. Allstate may especially benefit senior renters who want to save on premiums. The provider offers a discount of up to 25% to renters aged 55 or older who do not work a full-time job.

In addition to its senior discount, Allstate lets any customer buy a bundled policy, and it lowers premiums if you bundle renters insurance and auto insurance. When we surveyed 1,000 renters insurance policyholders in February 2024, nearly two-thirds of Allstate customers said they bundled their coverage with auto insurance. The insurer also has an easy-pay plan that can save you money if you set up automatic payments.

Pros and Cons

Pros Qualifying senior citizens can save up to 25% on premiums Offers a scheduled personal property endorsement add-on to cover specific, high-value items Provides several policy bundling options Cons Below-average customer satisfaction score in J.D. Power’s 2023 study Higher cost than some competitors

Discounts and Add-ons

Discounts

Multi-policy discount
Protective devices
55-and-retired
Autopay

Add-Ons

Scheduled personal property coverage for high-value items
Personal umbrella policy
Identity theft protection
Flood Insurance

Multi-Policy Bundling Options

Auto insurance
Motorcycle insurance
Term life insurance

Nationwide Renters Insurance

Our Pick for Valuable Endorsements

4.5

Our Review

A.M. Best A J.D. Power 852/1000

MONTHLY COST $14.50

Why We Picked Nationwide

Why We Picked Nationwide

Nationwide charges an average of around $14 per month for renters insurance, just under the national average of $15. Although this rate is slightly higher than other insurers we reviewed, Nationwide provides discounts for buying multiple policies, installing protective devices and staying claims-free. The insurer also has brand-new belongings coverage, which helps you replace your damaged items based on the actual market value.

The company also offers other endorsements, including valuables-plus coverage that provides extended protection for expensive items. The company received one of the highest scores in J.D. Power’s 2023 customer satisfaction study, highlighting quality service. Nearly 95% of Nationwide customers who responded to our February 2024 survey said they are satisfied with the company.

Pros and Cons

Pros Provides many endorsements that allow customers to enhance coverage One of the highest customer satisfaction scores in the 2023 J.D. Power survey Offers brand new belongings coverage to fix or replace damaged or stolen items Cons Might be required to speak with an agent to get a quote Offers a limited number of discounts

Discounts and Add-ons

Discounts

Multi-policy bundling
Claims-free
Protective devices

Add-Ons

Brand new belongings
Earthquake
Theft extension
Valuables plus
Water backup

Multi-Policy Bundling Options

Auto insurance

Calculate the Cost of Renters Insurance

Get an estimate on how much you could pay for renters insurance with our top recommended provider, Lemonade.

How Much Renters Insurance Do I Need?

Although renters insurance benefits both the tenant and landlord, it is not required by law. The amount of renters insurance you need will depend on the value of your personal items, location and other relevant risk factors. In our latest renters insurance survey, conducted in February 2024, most respondents choose at least $50,000 in personal property coverage and a $500 deductible. Note that the specific coverage amounts available to you may vary depending on your chosen insurer.

Your lease agreement may also require you to meet certain coverage requirements. Specifically, landlords may require liability coverage and a policy limit of $100,000 or more. Leases typically do not include requirements for personal property coverage, but keep in mind that landlords are only responsible for damage to the structure of the building and will not cover losses or damage to your items. See the table below for recommendations on how much coverage to buy based on recommendations from the Insurance Information Institute (Triple-I).

Coverage Area	Triple-I Recommendation
Personal property	Varies depending on your belongings
Loss of use	Varies depending on your living costs
Liability coverage	$100,000–$300,000
Medical payments to others	$1,000–$5,000

How To Get Cheap Renters Insurance

Renters insurance rates typically cost less than homeowners insurance because renters are not responsible for covering damage to the structure of the building. The average renter can expect to pay $15 per month for coverage, but you might pay even less with the right provider and coverage selections. Here are some tips to help you find cheaper coverage.

Shop Around

Not every insurance provider calculates risk the same, so it’s worth comparing multiple policies with equal or similar deductibles and coverage limits to find the best value. You can also request quotes from various providers to compare rates based on the coverage you need.

Look For Discounts

Most providers offer various discounts to help you save on your renters insurance premiums, such as paying premiums annually, having a rental with fire alarms and other safety devices, or remaining claims-free.

Increase Your Deductible

When you choose a higher deductible, you can save money on policy premiums but will pay more out-of-pocket when you first file a claim. The opposite is also true — a low deductible can save you money when you file a renters insurance claim at the expense of a higher premium. However, since the deductible is the amount you must pay before insurance coverage kicks in, it is important to select an amount you can comfortably afford in the event of a claim.

Bundle with Another Type of Insurance

If your provider offers multiple lines of insurance, such as auto or pet insurance, bundling policies is a straightforward way to simplify your bills and save up to 25% annually.

Ask an Expert

—Shaun Martin

Owner of We Buy Houses in Denver

“The best way to save money on renters insurance is to shop around. Compare different providers, coverage options and the rates offered. Doing this can help you find a policy that fits your budget while still providing adequate coverage for your personal belongings.”

Do Cheap Renters Policies Offer Comprehensive Coverage?

Whether or not you receive comprehensive coverage will depend on the policy and provider you select. Although not every cheap renters insurance policy will offer extensive coverage, the companies in this review, for example, offer comprehensive base policies at rates below the national average.

We recommend getting personalized quotes from at least three companies and learning more about each insurer’s coverage and claims processes before making a final decision. It’s important to buy a policy that meets your individual needs, rather than just picking the cheapest option. This way, you can ensure proper coverage with fewer out-of-pocket expenses in the event of an unexpected claim.

“Cheaper renters insurance policies are 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 and what is not covered.”

—Alex Capozzolo, Co-Founder of SD House Guys

“Going with the cheapest possible plan can make sense in cases where 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.”

—Leonard Ang, CEO of iPropertyManagement

Finding Affordable Renters Insurance as a High-Risk Renter

Having a relatively low credit score, certain dog breeds and a history of making renters insurance claims can make you a high-risk applicant. For example, on average, renters with poor credit will pay $49.42 per month for insurance — over 200% higher than the average rate for renters with good credit. Toggle and Lemonade offer some of the cheapest renters insurance options for customers with low credit, based on data from Quadrant Information Services.

Many insurers will offer higher rates or even deny coverage 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.

If you’re a high-risk renter, we recommend getting quotes from at least three providers to ensure you get the best rates available.

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:

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.

Renters insurance is significantly cheaper than homeowners insurance because it only covers your personal belongings and liability. Homeowners insurance covers the entire structure of a home and other features on a property, and as a result, generally offers more coverage than a renters policy.

Typical deductibles for renters insurance range from $500 to $1,000, though a deductible can reach as high as $5,000. Lower deductibles for renters insurance will carry a slightly higher premium but will require lower out-of-pocket costs if you file a claim.

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.

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

If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.

Graham Ray Senior Writer

Tori Addison Editor

Cheapest Renters Insurance Companies | June 2024

Compare the Cheapest Renters Insurance Providers

Our Picks for the Cheapest Renters Insurance Providers

The Top Cheap Renters Insurance Companies

Best Value Renters Insurance: Lemonade

Cheapest Renters Insurance: State Farm

Additional Affordable Renters Insurance Companies

Toggle Renters Insurance

Auto-Owners Renters Insurance

Allstate Renters Insurance

Nationwide Renters Insurance

Calculate the Cost of Renters Insurance

How Much Renters Insurance Do I Need?

How To Get Cheap Renters Insurance

Shop Around

Look For Discounts

Increase Your Deductible

Bundle with Another Type of Insurance

Do Cheap Renters Policies Offer Comprehensive Coverage?

Is cheap renters insurance typically as comprehensive as more expensive policies?

When would you recommend cheap renters insurance over a more expensive policy?

Finding Affordable Renters Insurance as a High-Risk Renter

Find the Cheapest Renters Insurance Near You

Frequently Asked Questions About the Cheapest Renters Insurance

Why is Lemonade renters insurance so cheap?

Why is renters insurance cheaper than homeowners insurance?

What is a common deductible for renters insurance?

Other Insurance Resources From MarketWatch Guides

Methodology

More resources: