Average Cost of Renters Insurance (2022) – ValuePenguin
what factors affect the cost of renters insurance?
Renters insurance quotes are based on several factors, including:
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claims and credit history
Insurance companies believe that people with a history of claims are more likely to file claims in the future.
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Not all claims look the same. Insurance companies will consider the type of claim you filed and the settlement amount when determining your insurance quotes. Large claim amounts and liability claims are the most likely to increase your renters insurance rates.
Insurers may also charge you more for insurance if you have a low credit score. Statistically, tenants with lower credit scores tend to file claims more often than those with high credit scores. that makes it riskier for them to insure people with bad credit, resulting in higher rates for those people.
The amount of coverage you get directly affects your renters insurance rate. While it may be tempting to get the cheapest policy, it’s important not to cut your coverage so low that you’re left unprotected if something happens.
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for example, a renter living in dallas with $15,000 of personal property pays about $15 per month for insurance. it costs $19 per month if you increase that coverage to $25,000. Even though it’s $4 more per month, the difference will seem minimal if your stuff is destroyed in a fire and you don’t have enough money to replace it.
Increasing your personal property coverage costs much more than increasing your liability limits. Expanding renters liability coverage from $100,000 to $300,000 increases the average cost of renters insurance by about 7%.
Your renters insurance deductible is the amount you must pay to replace your things if you file a claim. the typical renters insurance deductible is $500 or $1,000, but most companies offer a variety of options.
Choosing a higher deductible means you’ll pay less for insurance, but you’ll also be responsible for more of the costs if you ever file a claim. lower deductibles mean better protection but at a higher monthly cost.
high-value items, such as jewelry or art, are generally covered down to lower category-specific limits or excluded entirely. endorsements are upgrades to your renters policy that you can purchase to add or increase coverage for valuable items.
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Adding additional coverage increases the cost of your renters insurance policy. however, that coverage may be necessary if you have valuables that are not covered by a basic policy. Be sure to review what limits and coverages you’re buying before you sign up with an insurer.
how to save money on renters insurance
Only 57% of renters have renters insurance, but that doesn’t mean you should stop getting a policy. renters insurance is an affordable way to protect your belongings from theft and accidental damage.
The best way to save money on renters insurance is to research available discounts and compare quotes to find the cheapest company.
qualify for discounts
Renters insurance companies don’t usually offer many discounts. however, you can save money by choosing a company that offers discounts that you can easily qualify for. Some of the most common renters insurance discounts are:
compare renters insurance quotes online
Renters insurance rates can vary based on your location, personal information, the amount of coverage you need, and your claims history. for that reason, the cheapest company for you may be different than the cheapest option in your state. We always recommend comparing quotes from multiple companies to ensure you get the best rate available.