60% of renters skip this $14/month policy. Here’s the math on why that’s expensive.
Renters insurance costs an average of $165 per year, or about $14 per month, according to NerdWallet’s analysis of rates across the country. That average is based on a standard policy: $30,000 in personal property coverage, $100,000 in liability coverage, and a $500 deductible.
$14 a month is one Chipotle lunch. Two coffees. For that, you get coverage that can pay tens of thousands of dollars if your apartment burns down, your laptop gets stolen, or a guest gets hurt and sues you.
The 60% of renters who skip it are not saving money. They are making a bet, and the math on that bet is terrible. We will run the numbers below.
Why Every Source Quotes a Different Price
You will see $14, $15, $23, and $5 a month quoted across the internet. Nobody is lying. Each source priced a different sample policy.
| Source | Monthly cost | Policy behind the number |
|---|---|---|
| NerdWallet | $14 ($165/yr) | $30K property / $100K liability / $500 deductible |
| MoneyGeek | $15 ($182/yr) | $20K property / $100K liability / $500 deductible |
| ValuePenguin | $23 | $30K property / $100K liability / $1K medical / $500 deductible |
| NAIC (via Insurance Information Institute) | $14 ($171/yr) | Actual premiums paid, national average |
Your quote will differ based on your state, credit, how much you own, and your carrier. Use these benchmarks to spot a good deal or a ripoff, not as a guaranteed price.
Average Renters Insurance Cost by State
Your state is the biggest single factor in your price. Louisiana renters pay more than twice what Vermont renters pay, mostly because of hurricanes, lawsuits, and regional theft rates.
| State | Per year | Per month |
|---|---|---|
| Louisiana | $315 | $26 |
| Mississippi | $250 | $21 |
| Georgia | $250 | $21 |
| Florida | $245 | $20 |
| Texas | $230 | $19 |
| California | $200 | $17 |
| New York | $195 | $16 |
| Ohio | $155 | $13 |
| Pennsylvania | $150 | $12.50 |
| Illinois | $145 | $12 |
| Vermont | $120 | $10 |
| Wyoming | $120 | $10 |
Renters Insurance Cost by Coverage Amount
MoneyGeek’s data (liability and deductible held constant, only property coverage changes):
| Property coverage | Per month | Per year |
|---|---|---|
| $20,000 | $15 | $182 |
| $50,000 | $26 | $310 |
| $100,000 | $43 | $517 |
| $250,000 | $90 | $1,080 |
Doubling coverage from $50K to $100K adds $207 a year, not double the price. Do not shave coverage to save $5 a month.
Cheapest Renters Insurance Companies
| Carrier | Per year | Per month |
|---|---|---|
| Amica | $107-$116 | $9-$10 |
| State Farm | $165 | $14 |
| Lemonade | $190 | $16 |
What Raises or Lowers Your Price
Your credit score
Poor-credit renters pay about 79% more than good-credit renters: $295 a year versus $165. Four states ban credit-based pricing: California, Hawaii, Massachusetts, and Michigan.
Your claims history
One theft claim raises your premium about 24%. Claims stay on your record 5 to 7 years. Pay small losses yourself and keep your record clean.
Bundling with auto insurance
Bundling renters and auto saves 10% to 25%. On a $165 policy, that is $16 to $41 back every year.
What Renters Insurance Does NOT Cover
Floods are not covered. Contents-only flood insurance runs $100 to $300 a year. Earthquakes are not covered without an endorsement ($50-$150/year). Your roommate’s stuff is not covered. High-value items like jewelry are capped at $1,000 to $2,500 unless scheduled.
Is Renters Insurance Worth It? The Real Math
A standard policy costs $165 a year. A modest one-bedroom holds $10,000 to $15,000 of stuff. About 1 in 50 renters files a property claim yearly. Then add liability: one $25,000 claim wipes out 150 years of $165 premiums.
How to Lower Your Cost
- Get three quotes minimum. The gap between cheapest and priciest routinely tops $100 a year.
- Bundle with auto insurance. 10% to 25% off.
- Pay annually, not monthly. Saves $24 to $60 a year in installment fees.
- Ask about every discount. Security system: up to 5%. Claims-free: up to 10%.
- Improve your credit. Moving from poor to good credit can nearly halve your premium.
FAQs
How much is renters insurance per month?
About $14 a month ($165/year) nationally. Budget options start near $5/month.
Does renters insurance cover flood damage?
No. Buy separate contents-only flood insurance ($100-$300/year) if you live near water.
Can roommates share one policy?
Generally no. Each roommate needs their own policy, typically $10 to $15 a month.
Sources: NerdWallet, MoneyGeek, ValuePenguin, NAIC via Insurance Information Institute, Lemonade. Actual quotes vary by risk profile.
