If you rent a house or apartment, renters insurance provides financial protection against the loss or destruction of your possessions. Renters insurance is affordable, as you can typically buy a policy covering thousands of dollars worth of property for around $15 – $30 per month (NAIC.com). Already a tremendous value, this article will teach you 10 ways to save money on your renters insurance policy.
Compare Renters Insurance Quotes
Comparing quotes and coverage is the best way to find a renters insurance policy that you can afford. The best place to start is your local insurance agent who has access to several different insurance companies.
A Higher Deductible Can Lower Your Renters Insurance Premium
A deductible is the amount you must pay before the insurance provider will make payments on a claim. As a rule, the higher the deductible is (or the more you must pay first), the lower the premium. In determining the deductible that’s right for you, you should weigh the costs of paying a higher premium year after year with the cost of paying a higher deductible should you end-up filing a claim. Renters insurance deductibles usually start at $250 and go up from there.
A Good Credit Rating = Lower Renters Insurance Costs
Good credit has always been one of the easiest and most effective ways to lower insurance costs. A good credit rating shows the insurance company that you pay your bills on time, which means you’re less risky to insure – less risk leads to lower premiums.
Buy Your Renters and Auto Policies from the Same Company
A large number of companies offer multi-line discounts if you combine renters insurance with auto coverage. Having both policies with one company is not only convenient, it can save you money.
Save on Renters Insurance by Installing Safety and Security Devices
Taking initiative to prevent potential losses and damage is another way to save money on renters insurance. The installation of smoke detectors, a fire extinguisher and dead bolt door locks and window locks can lead to savings since your home is less of a security risk.
Stop Smoking and Start Saving on Renters Insurance
Smoking is one of the leading causes of residential fires, damaging more than 23,000 homes every year. Some insurance providers offer reduced premiums to non-smokers.
Senior Discounts on Renters Insurance
Research has shown that retired individuals are less risky to insure. Renters aged 55 and older can look to save up to 10% on their renters insurance.
Save on Renters Insurance with Group Coverage
Ask you agent if they have companies that provide discounts if you belong to groups like AAA or a union. Some companies offer additional discounts if you belong to a group.
Staying with an Insurer Can Lead to Lower Renters Insurance Premiums
Many insurance companies reward loyalty with lower premiums, as an incentive to keep you happy. Take advantage of these offers by staying with an insurance provider for several years. You may be able to save up to 5% if you stay with the same company for three to five years, with the discount growing to 10% after the six-year mark.
Check Your Renters Insurance Policy Annually
Over the course of a year you may sell items in your possession or acquire new belongings. An annual review of your insurance policy will allow you to adjust your coverage amounts and has the potential to save you money.
Even though renters insurance doesn’t cost a bundle, you can still find ways to save. By following the steps outlined in this article, your affordable Renters Insurance policy may become even more affordable!
FAQs
Renters insurance is relatively inexpensive. According to NerdWallet, the average renters policy costs about $15 per month for up to $30,000 in personal property coverage. That's solid coverage for less than the cost of a few cups of coffee a week.
How to decrease the cost of renters insurance? ›
How Do You Decrease the Cost of Renters Insurance?
- Shop around for the best policies. ...
- Bundle coverage with your vehicle or other assets. ...
- Increase your policy deductible. ...
- Decrease coverage limits. ...
- Location matters. ...
- Consider payment options. ...
- Keep your credit score up!
Renters insurance is relatively inexpensive. According to NerdWallet, the average renters policy costs about $15 per month for up to $30,000 in personal property coverage. That's solid coverage for less than the cost of a few cups of coffee a week.
What is the most common deductible for renters insurance? ›
You'll choose your deductible when you buy a renters insurance policy. A higher deductible means your claims will cost you less money out of pocket. Typically, renters insurance deductibles are $500 or $1,000, but companies often provide a range of options.
What are the 3 things renters insurance provides you with and what purpose does each of them have? ›
Renters insurance covers personal property, personal liability, medical payments and additional living expenses or loss of use, up to the limits of your policy. Learn more about what renters insurance covers and the types of renters insurance coverages.
Who has the cheapest renter insurance? ›
Overall, State Farm offers the cheapest renters insurance rates, averaging around $10.50 per month, which is about 15% cheaper than its peers.
What is one way to lower your insurance costs? ›
Increase your deductible
Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can decrease your auto insurance payments.
Why is my renters insurance so high? ›
Some location-based factors that impact renters insurance rates can include: The rate of crimes, especially theft, in your ZIP code. The weather and climate in your area, since locations prone to fires, storms and hurricanes are riskier.
How often should you shop around for renters insurance? ›
The Zebra recommends shopping around for renters insurance at least once a year. Annual reviews allow you to ensure your coverage aligns with your current needs and any updates to your belongings, property, or living situation.
What is the average renters insurance in the US? ›
How Much Does Renters Insurance Cost? Renters insurance costs an average of $157 a year for a policy with $15,000 of personal property coverage. The average cost of renters insurance for a policy with $30,000 is $199 annually, and a $50,000 policy costs an average of $260 a year.
Renters insurance is only tax-deductible when it covers a location in which you are operating a business. More specifically, you can only deduct the percentage of your home allocated to business from your taxes. A home office must conform to IRS guidelines to be eligible for a tax deduction.
What are four or more factors that will increase your renters insurance premiums? ›
What Factors Affect How Much Renters Insurance Costs?
- Location. Your ZIP code determines the risk of natural disasters, crime and other hazards that could damage your property or cause liability claims. ...
- Type of Dwelling. ...
- Claim History. ...
- Coverage Limits. ...
- Deductible. ...
- Security Features. ...
- Discounts.
Actual cash value (ACV) is the depreciated value of the item. Actual cash value renters insurance is renters insurance in which the insurer pays the amount you originally paid for or the amount it minus its depreciation (minus your deductible).
Which one of the following is not covered by renter's insurance? ›
Items not covered with renters insurance include: Personal property loss that exceeds the coverage limits on your renters insurance policy. Liability situations that exceed the limits on your policy. Damages caused to the structure of the building you are renting (which is covered by your landlord's homeowners policy).
Which of the following should be covered by renter's insurance? ›
Your personal property, personal liability, additional living expenses, and guest medical expenses are usually covered under your renters insurance.
Does renters insurance cover clothes? ›
Personal property coverage covers your possessions—including electronics, clothing, and furniture—in case of loss or damage. Your possessions may be covered even if you're away from home when the loss occurs.
What is the best way to save on your renters insurance premiums quizlet? ›
The best way to save on your renters insurance premiums? increase your deductible.
What factors do you think determine the premium paid for a renters insurance policy? ›
Determining how much renters insurance you need for your particular situation largely depends on the value of your personal belongings, as well as how much liability coverage you think you'll need.
What is one way to reduce the cost of a homeowners insurance policy? ›
Raise your deductible
The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent.
