The 6 best renters insurance companies of 2023

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Whether you're renting a studio apartment or an entire single-family home, renters insurance covers what your landlord's policy does not. If a fire destroys your rented home, renters insurance could cover your personal belongings and valuables. If someone sues you for injuries on your property, renters insurance will make sure you're covered.

The average renter's insurance policy costs between $15 and $20 per month. You could get additional savings by bundling your renters insurance policy with car insurance or other types of insurance. Insider gathered data from several renters insurance companies based on customer service and premium prices where available. We base our sample quotes on data for two people renting a two-bedroom, one-bath, single-family with no pets in Philadelphia.

Best for cheapest renters insurance: State Farm

Best renters insurance overall: Lemonade

Best for discount opportunities: Erie

Best for senior renters: Allstate

Best for business professionals: Farmers

Best for military members: USAA

Compare the best renters insurance companies

Best for cheapest renters insurance: State Farm 

State Farm is an established insurance company that receives high marks for customer and claims satisfaction.

According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, State Farm is priced at $10 a month which is significantly more affordable than the national average. However, your renters insurance will be based on a number of factors like where you live. 

Read our State Farm insurance review here.

Best renters insurance overall: Lemonade

Lemonade is an easy-to-use digital platform provider that offers affordable coverage. Lemonade isn't available in all states, but it has good ratings for customer service where available. 

According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, Lemonade starts at $5 a month which is significantly more affordable than the national average. However, your renters insurance will be based on a number of factors like where you live. 

Read our Lemonade insurance review here.

Best for discount opportunities: Erie

Erie only operates in 12 states plus Washington, D.C. It won't make sense for everyone, but it does have a reputation for good customer service and claims satisfaction in the regions where it does operate. Erie Insurance is known for its low prices across the board, however, it also offers a number of discounts to curtail your premiums even further. 

According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, Erie starts at $15 a month which is on par with the national average. However, your renters insurance will be based on a number of factors like where you live. 

Read our Erie Insurance review here.

Best for senior renters: Allstate

Allstate is a national carrier that ranks well for customer service, but its insurance premiums aren't always the cheapest. However, Allstate has a discount that allows renters who are 55 years or older to enjoy 25% of their premiums. 

According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, Allstate starts at $15 a month which is on par with the national average. However, your renters insurance will be based on a number of factors like where you live. 

Read our Allstate insurance review here.

Best for business professionals: Farmers

Farmers takes the sixth spot in J.D. Power's renters insurance customer satisfaction survey.  You may qualify for a discount if you are a business professional such as a doctor, nurse, engineer, dentist, teacher, police officer, or firefighter.  You can obtain a quote by speaking to a Farmers insurance representative.

Read our Farmers Insurance review here.

Best for military members: USAA

If you're in the military or a veteran, USAA is an option worth considering. Its life insurance is the only product open to non-military customers.

According to the Insurance Information Institute, the average renters insurance cost $174 per year or $14.50 per month. According to Insurify, USAA is priced at $10 a month which is significantly more affordable than the national average. However, your renters insurance will be based on a number of factors like where you live. 

Read our USAA insurance review here.

The best renters insurance companies ranked by customer satisfaction

How much people like their renters insurance providers may factor into your decision. According to a J.D. Power survey, these are the top renters insurance companies in the US, based on customer rankings:

Average annual premium for renters insurance by state

Like homeowners insurance and car insurance, the cost of renters insurance will vary by state. Where you live will play a significant role in the amount you pay in premiums.

Here's the average annual premium for renters insurance by state, according to the Insurance Information Institute.

How did we choose the best renters insurance companies?

Customer satisfaction: We use JD Power's renters insurance customer satisfaction survey to evaluate the quality of service a company provides to its customers. Renters insurance providers that offered the best customer service ranked No.1 and #2. 

Financial stability ratings: We use AM Best to determine a provider's financial strength. AM Best is a credit rating agency that assesses an insurance company's ability to pay claims to its policyholders. A company that receives an A++ to B+ is stable in financial strength, while anything lower than a B means that a company is unstable or unable to meet its financial obligations.

Market share: The higher a company's market share, the more popular it is among policyholders nationwide. We gathered data on market shares from the S&P Global Market Intelligence. 

Average premiums: While lower home and renters insurance premiums do not mean quality insurance, we do our best to balance a policy's cost with the value an insurer provides. A good premium is on par with or below the average cost of renters insurance which is $174 annually, according to the most recent data from the Insurance Information Institute.

Renters insurance — frequently asked questions  (FAQ)

The type of home you live in won't play a large role in the cost of your renters insurance primarily because this insurance policy covers you and your belongings. However, your renter's insurance costs will vary based on your location and how much coverage you need.