Renters Insurance Discounts

Renters insurance discounts: what to know and where to look

Generally, renters insurance runs quite cheap when compared to auto insurance or home insurance. An average renters insurance policy costs just under $16 per month. While that’s certainly more affordable than other insurance types, many insurance companies offer discounts as well.

We’ll look at common renters discounts and other ways to save money on your renters insurance policy.

 

Renters insurance discounts — table of contents

1. What are the best renters insurance discounts?
2. Renters insurance discounts by company
3. Other ways to save money on renters insurance policies
4. How to set coverage limits on a renters insurance policy
5. Renters insurance discount FAQs
6. Renters insurance discounts: considerations

 

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What are the best renters insurance discounts?

Renters insurance discounts — and even their availability — will vary from one insurer to another. However, the following discounts are some of the most commonly available to most policyholders.

 

Security systems 

Most policyholders can expect discounts for having burglar alarms or sprinkler systems in your home can help you save money.

 

Autopay/paperless payments

Setting up recurring payments online can lead to discounts through some insurers.

 

Paid in full

Paying the full cost of your insurance upfront can lead to savings in most cases.

 

Senior discounts

Some insurance companies offer renters insurance discounts of up to 25% for senior citizens.

 

Bundling multiple policies

Commonly referred to as a multi-policy discount, pairing your renters coverage with life insurance or auto insurance is a great way to save money. Most insurance companies who sell renters coverage also offer other products such as homeowners and car insurance.

 

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Renters insurance discounts by company

Every insurance company differs in the types and availability of discounts that are offered. However, here are some commonly available discounts from a few of the more popular renters insurance companies.

 

State Farm renters insurance discounts

• Multiline discount
• Home security discount
• Higher deductible

 

Allstate renters insurance discounts

• Multi-policy discount
• Fifty-five and retired discount

 

Progressive renters insurance discounts

• Multi-policy discount
• Quote in advance
• Paperless/electronic paperwork discount
• Pay in full discount
• Secured/gated community

 

Nationwide renters insurance discounts

• Multi-policy discount
• Protective devices (alarms, smoke detectors, etc.)
• Claims-free

 

GEICO renters insurance discounts

• Bundle renters and auto insurance
• Security system discount
• Smoke alarms discount

 

Lemonade renters insurance discounts

• Bundle renters and pet insurance
• Pay annually
• Protective devices (alarms, smoke detectors, etc.)

 

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Other ways to save money on your renters insurance policy

Most renters insurance companies provide some form of discounts, but there are many other ways that you can affect your monthly premiums. Have a look at some policy-specific ways to reduce your renters insurance costs.

 

Adjusting your coverage limits

Renters insurance is not only a great way to protect your personal property but also covers against damage to others and accidental injuries in your rental unit. The coverage limits that you choose for these parts of your policy can greatly affect the amount that you will pay. Setting lower coverage limits for your personal belongings, personal liability, additional living expenses and medical payments can lower your monthly rate. Some companies may have adjustable limits for other coverage types as well. For example, Lemonade allows you to set a separate limit for your portable electronics.

However, remember that saving a few dollars a month may not outweigh the protection you are effectively giving up in these scenarios. It’s best to make sure your limits are set high enough to make you whole after a covered loss.

 

Consider your personal property payout value

If you are really trying to save money month to month, but still want renters insurance coverage, you may want to consider a policy that pays out at actual cash value instead of replacement cost value. These coverage options determine how your insurer will pay out in the event of a covered loss.

In general, coverage at actual cash value will be cheaper as you will only be paid for the value of an item at what is currently worth. This factors in depreciation and is not likely to pay enough to fully replace all of your belongings. Replacement cost value will pay to replace your property with an item that is of similar quality.

 

Setting a higher deductible 

Setting a higher deductible can save money on your renters insurance. Deductibles have an inverse relationship with monthly payments, meaning that lower deductibles lead to higher monthly insurance rates. Just make sure that your deductible is set at an amount that you can easily cover.

 

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How to set coverage limits on a renters insurance policy

When signing up for renters insurance, you will likely be expected to set the coverage limits. It’s important to know what each section of your policy covers and a rough estimate of your coverage limits. Below you'll find a quick guide to what renters policy covers and the common minimum of coverage available.

• Liability coverage: (Common limit: $100,000) This protects you in a number of situations, including if someone is injured in your apartment or your dog bites someone while out on a walk. 
• Personal property: (Common limit: variable) This protects your personal belongings and should be set in accordance with the value of your possessions. A home inventory can help determine how much you need. 
• Additional living expenses: ($3,000 - $5,000) Covers added expenses if you are unable to live in your rental unit due to a covered loss. Amounts can vary widely depending on the company you choose and where you live. For instance, setting higher limits is highly encouraged in locations where rent and other costs are higher than average. 
• Medical payments to others: ($1,000) This coverage is designed to help with the cost of medical bills if someone is injured on your property. 

It’s also important to be aware of policy exclusions. Carefully read your renters insurance policy documents to ensure you know what is and isn’t covered. For instance, it’s helpful to know that the walls and structure of your apartment or rental unit are typically covered by your landlord’s insurance. 

 

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FAQs

 

What renters insurance discounts are available?

Depending on your insurer, renters can get discounts for having security systems, setting up automatic payments, being a senior citizen, paying the full premium upfront and bundling your renters coverage with your life insurance or an auto insurance policy.

 

Which renters insurance companies are cheapest?

The Zebra found that the cheapest average monthly renters insurance rates were from the following companies: USAA ($10.66), State Farm ($11.66), and American Family ($13). However, GEICO’s website claims that policies start at $12 a month while newcomer Lemonade claims that their policies start at just $5 per month. Keep in mind that there are many factors that go into your monthly rate, including the location of your rental unit as well as the coverage types and limits that you choose. 

 

How do I find cheap renters insurance rates?

Shop around and only buy the coverage that you need. Start by getting renters insurance quotes from a number of carriers to find which ones offer the best rates. It’s important to have a rough estimate of the value of your personal belongings as well. This can help when setting your coverage limits. 

 

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Renters insurance discounts: considerations

Protecting yourself and your personal belongings is hugely important and can help you gain greater peace of mind. While discounts may be enticing, remember that some companies may be able to provide better rates out of the gate. A great place to start is by calling 1-855-493-9138 for quotes from a number of top carriers.

You can simply click the link below to get a competitive renters insurance quote from The Zebra's trusted partner, Lemonade. 

 

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