Car Insurance for Renters

How to find a cheap renters and auto insurance bundle

If you’ve ever gone through the car insurance quote process, you’ve probably been asked if you have renters or homeowners insurance policy. Insurance companies ask this because they often offer discounted renters-and-car insurance bundles. Let’s dive into some of the best discounts for renters and auto insurance bundling.

Best car insurance companies for renters

The Zebra conducted a survey with the intention of understanding insurance companies from a customer's perspective. We asked how each major carrier held up in online experience, claims satisfaction, ease of use, customer service, trustworthiness, and willingness to recommend. According to survey results, respondents who rented their homes rated USAA as the top overall auto carrier for this demographic. State Farm and Nationwide were also placed highly in the overall category as well as several other individual queries. While USAA took the top spot for every category, State Farm and Nationwide placed among the top five carriers for willingness to recommend, trust, ease, customer service satisfaction and online satisfaction. 

If you qualify for USAA coverage, it could be a great choice for your next auto policy. State Farm was given the same star rating by renters, so this carrier is a viable option for drivers who don't qualify for USAA.

How to get a multi-policy discount on car insurance

Bundling car insurance and renters insurance with the same company saves policyholders an average of 5%. If you're in the process of getting renters or car insurance quotes, have the below information on hand.

Information required for car insurance

• Personal information of all drivers, including drivers license, DOB, and driving history, including a timeline of major violations
• Vehicle information, including VIN
• Address
• Insurance history
  
  

Information required for renters insurance:

• Personal information of all individuals living at the residence
• The estimated value of personal property
• Desired liability limits
• List of valuable items in the apartment/home requiring additional coverage
  
  

Renters insurance covers your personal liability, personal property (including theft protection and vandalism), additional living expenses (also known as loss of use) and medical payments to others. Most renters insurance policies will carry coverage limitations for high-value personal belongings such as jewelry, musical instruments, fine art, and guns. These items are sometimes valuable enough to exceed personal property coverage limits. If you own a particularly valuable piece of art or jewelry, look into an add-on coverage option to insure it at its full replacement cost.

While you should be able to make changes to your policy at any time, you can get the most accurate quote possible upfront if you have this information from the start. Your multi-policy discount will be applied to your renters and car insurance policies as long as you maintain both with the same company. Below is a look at the average cost of a renters and car insurance bundle.

Which companies offer the best renters and car insurance discounts?

Just how much can you expect to save via a multi-policy discount? Typically it amounts to less than a 10% discount if you bundle with renters. Homeowners, on the other hand, enjoy the most savings when they bundle with auto insurance.

According to our survey of rates from top insurance companies, Erie Insurance offers the cheapest car insurance when bundled with renters insurance.

The second cheapest was USAA, an insurance carrier reserved for military members and their families. If you're not eligible for either Erie or USAA, look into GEICO, which costs about $9 more per month than USAA.

These estimates are based on a general profile. This isn’t a renters-and-car insurance quote — the prices and discounts above apply only to auto insurance.

Is bundling renters and auto insurance worth it?

Bundling is a convenient way to manage all of your policies with one company — whether that be a renters policy or home insurance. Another perk is the discount you receive — depending on the savings, you may be able to offset the renters insurance cost with the right deal. As illustrated above, some companies offer steeper bundling discounts than others. Here are our tips on when and when not to bundle your policies.

You should bundle auto and renters if:

• You can save money by bundling rather than managing separate policies. Compare the annual savings from different insurance companies and go with the most affordable bundling option that meets your coverage needs.
• You'd rather manage one invoice for all of your insurance payments.
  
  

You should not bundle auto and renters if:

• It doesn't save you any money. Explore your options elsewhere and don't be afraid to switch companies.
• Renters coverage is provided through a subsidiary considered less than well-regarded. Read our reviews of insurance companies.

Looking for a competitive renters insurance quote? Feel free to call our in-house insurance agency at 855-493-9138 to get a rate for renters coverage.

Simple tips to save on car insurance coverage

Now that we’ve outlined how to get car insurance as a renter, let’s go over some simple ways how to save.

Make sure you have the correct coverage

It’s important to gauge your coverage needs. If you drive an older, paid-off vehicle worth less than $4,000, you probably don't need comprehensive or collision coverage. These policies — which are not required by law — are designed to cover damage to your vehicle. But if your car isn’t worth much to begin with, you might end up paying for coverage you don't need.

You can determine the value of your vehicle through online resources such as Kelley Blue Book and NADA. If you need liability coverage but want to cut costs, consider raising your collision and comprehensive deductibles. By raising your deductible, you take on a greater amount of financial responsibility in the event of a claim and lower the premium on your personal auto policy.

File claims with care

While auto insurance is designed to protect your vehicle, you should only file a claim in a couple of scenarios:

1. If someone is injured. Medical expenses can skyrocket quickly and you’ll most likely be unable to cover the damage yourself.
2. If you are the at-fault driver and the not-at-fault driver does not want to be paid out-of-pocket for the repairs.
3. If the value of the damage is greater than the insurance premium increase you would receive after filing a claim.

The last one can be a little tricky to determine. Unless you have accident forgiveness built into your policy, every insurance company will raise your rates after an at-fault accident or collision claim. Because insurance companies believe you’re more likely to get into an accident in the future if you’ve had one previously, they will increase your rates to offset anticipated claims payouts.

If you’ve been in an at-fault accident and are unsure of whether to pay for the damage yourself, consider these steps.

• Get an estimate for the repairs at a local repair shop.
• Use our State of Insurance analysis to see how much an at-fault accident would raise rates in your state. Consider this value over three years — the period over which your insurance company will charge you.
• Compare the out-of-pocket costs with the rate increase plus your deductible. If it is cheaper to file a claim, do that.
  
  

Double-check your discounts

A major benefit of maintaining renters and auto insurance policies with the same company is the discount. Here are some other standard discounts about which you should inquire.

• Good driver
• Good student discount (ages 16-25)
• Good/safe teen driving discount (pre-approved safety training course)
• Telematics programs
• Payment by bank account
• Paid-in-full discount
• eSignature discounts
• Paperless billing discount
• Multi-vehicle discount

Learn more about common car insurance discounts.

Shop around

While a multi-policy discount for your renters and car insurance is great, it’s only one of the ways you can cut car insurance costs. The easiest way to make sure you’re getting the best insurance rate is to assess offerings from as many companies as possible. Because renters insurance tends to be priced consistently across companies, focus saving on your auto insurance policy first and foremost. Find the best renters insurance companies by consulting reviews and use resources from A.M. Best and J.D. Power to gauge insurance providers' financial strength and customer satisfaction.

The Zebra partners with Lemonade to deliver affordable renters insurance. Curious about how much you could save with a Lemonade policy? Click the button below to get started on a quote.

Data sourcing and methodology

The Zebra conducted comprehensive auto insurance pricing analysis using its proprietary quote engine, comprising data from insurance rating platforms and public rate filings. The Zebra examined nearly 53 million rates to explore trends for specific auto insurance rating factors across all United States zip codes, averaged by state, including Washington, DC.

The analysis used a consistent base profile for the insured driver: a 30-year-old single male driving a 2013 Honda Accord EX with a good driving history and coverage limits of $50,000 bodily injury liability per person/$100,000 bodily injury liability per accident/$50,000 property damage liability per accident with a $500 deductible for comprehensive and collision. For coverage level data, optional coverage (that must be rejected in writing) is included where applicable, including uninsured motorist coverage and personal injury protection.

National property and casualty losses information is from the Insurance Information Institute and the NOAA National Centers for Environmental Information U.S. Billion-Dollar Weather and Climate Disasters report.

Data may vary slightly throughout report due to rounding.