Among several ways to save on your renters insurance, taking advantage of the variety of available discounts is only the beginning. While renters insurance is likeable to homeowners insurance, the difference is that you don’t have to pay to insure the structure in which you live.
However, like homeowners policies, there are several ways you can save on renters insurance. We’ve compiled a few savvy tips to get cheaper renters insurance without compromising on coverage.
1. Understand Your Coverage Needs
Before diving into renter’s insurance, take stock of what you need to protect. Make a list of your valuable possessions and estimate their total value. Understanding your coverage needs will prevent you from over-insuring (and overpaying) or under-insuring (and being left vulnerable).
2. Shop Around
Get quotes from several different insurance companies. Different companies offer policies at varying prices, which means comparing rates can help you save more by choosing the lowest rate.
Your credit history, where you live and the coverage amount also factor into different rates. On average, renters pay $246 annually for a renters policy with coverage up to $40,000 for personal property, a $1,000 deductible and $100,000 of liability.
Here’s a table showing how much you can save just by comparing different renters insurance rates.
| Coverage Level | Highest Rate | Lowest Rate | $ Savings |
|---|---|---|---|
| $20,000 with $500 deductible and $100,000 liability | $291 | $145 | $146 |
| $20,000 with $500 deductible and $300,000 liability | $321 | $156 | $165 |
| $20,000 with $1,000 deductible and $100,000 Liability | $269 | $133 | $136 |
| $20,000 with $1,000 deductible and $300,000 liability | $298 | $143 | $155 |
| $40,000 with $500 deductible and $100,000 liability | $417 | $198 | $219 |
| $40,000 with $500 deductible and $300,000 liability | $451 | $209 | $242 |
| $40,000 with $1,000 deductible and $100,000 liability | $387 | $184 | $203 |
| $40,000 with $1,000 deductible and $300,000 liability | $421 | $195 | $226 |
Not all renters insurance policies are created equal. It pays (literally!) to shop around and compare quotes from multiple insurers. Look beyond the big names and consider regional or specialized insurers that may offer competitive rates. Online comparison tools can be incredibly helpful in this regard, allowing you to easily see which policies offer the best value for your money.
3. Raise Your Deductible
Typically, renters insurance deductibles start at $500. Increasing it saves you money on renters insurance. However, be cautious. Make sure you can afford to pay the deductible if you need to.
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4. Bundle Up for Savings
If you already have auto insurance or another type of insurance policy, bundling your renters insurance with these existing policies can lead to significant savings. Many insurers offer discounts for bundling, so don’t hesitate to ask about this option when shopping for renters insurance.
5. Install Security Devices
Some companies look favorably on clients that take their security seriously. Install smoke detectors, a fire extinguisher, burglar alarm to ensure your apartment’s safety. Ask your landlord to install these items if you live in a state where such items aren’t required. Ask potential insurers about all the discounts they offer and see which ones you qualify for. Few companies will ask for anything more than a statement that shows these items are included in the apartment.
6. Review and Adjust Your Coverage Annually
Your renters insurance needs may change over time. Maybe you’ve acquired more valuable items or downsized your living space. Review your policy regularly to ensure it reflects your current situation and adjust your coverage accordingly. This proactive approach can prevent you from paying for coverage you no longer need or missing out on essential protection.
7. Consider the Reputation and Financial Stability of the Insurer
Price shouldn’t be the sole factor in your decision-making process. It’s essential to choose an insurer with a strong reputation for customer service and a solid financial standing. After all, you want to be confident that your insurer will be there for you when you need to file a claim.
Conclusion
Finding affordable renters insurance doesn’t have to be a daunting task. By following these tips—understanding your coverage needs, shopping around, bundling policies, adjusting your deductible, seeking discounts, reviewing your coverage annually, and choosing a reputable insurer—you can save on renters insurance costs while ensuring you have the protection you need.
