How Much Does Renters Insurance Cost?

Renters insurance cost an average of $173 a year, or about $14 a month, for policies written in 2023, the most recent year in the National Association of Insurance Commissioners (NAIC) national premium report, published in July 2026. State averages ranged from $125 in South Dakota to $263 in Mississippi. Your own quote will depend on the coverage amount and deductible you choose, along with your address, your claims history, and the insurer. A higher deductible lowers the premium, but the insurer subtracts it from payments for covered loss of or damage to your belongings.

Average renters insurance cost by state

The NAIC averages cover the HO-4 form, the standard renters policy, which insures your belongings and your personal liability but not the building. Each state's figure blends the coverage amounts, deductibles, and insurers in the NAIC data for that state, so use it to see how your state compares, not as a quote.

The five highest averages are all in the South: Mississippi, Louisiana, Oklahoma, Alabama, and Arkansas. The NAIC names catastrophe exposure, such as hurricanes along the southeastern coast and tornadoes in the central and southeastern states, as one reason premiums differ from place to place. Prices on policies written after 2023 are not in the data yet.

How much coverage you buy changes the price

The more coverage you buy for your belongings, the more you pay. These are the NAIC's 2023 countrywide renters averages by amount of coverage:

About three of every four renters policies in the NAIC data insured less than $35,000 of property, and $20,000 to $24,999 was the most common amount. Policies in the $50,000 range averaged $41 a year more than policies in the $25,000 range. Set your limit at what it would cost to replace everything you own; how much personal property coverage you need shows how to add it up.

What else insurers look at when pricing a policy

The NAIC lists these factors besides your coverage amount and deductible:

• The insurer. Different companies charge different premiums for similar coverage.
• Your location. Premiums reflect the area's catastrophe risk and its fire protection, including how close the building is to a fire station and a working hydrant.
• Your claims history. Past claims for theft, fire, water damage, or liability can raise your price. Insurers see past claims through shared databases such as the Comprehensive Loss Underwriting Exchange (CLUE).
• Your credit. Unless your state restricts it, the insurer may use a credit-based insurance score, a score built from your credit history that estimates how likely you are to file a claim. If credit information contributes to an adverse decision, such as a higher price, you can generally get notice of it, review your credit report, and dispute errors.
• How claims are settled. A policy that pays to buy new replacements costs more than one that pays the depreciated value of what you lost. The Insurance Information Institute, an industry group, estimates replacement cost coverage at about 10 percent more, roughly $17 a year at the national average. Replacement cost vs. actual cash value shows how far apart the two payouts can be.
• Liability limit and add-ons. Higher liability limits and optional add-ons called endorsements, such as extra coverage for jewelry, raise the premium. Liability coverage explained covers how much to carry.
• Pets. Some insurers will not cover you if you own certain dog breeds.

How your deductible changes the premium and the claim payout

Your deductible is the amount you pay out of pocket on a claim before the insurer pays. It applies to each claim for loss of or damage to your belongings, so two thefts in one year mean two deductibles. A policy with a $1,000 deductible costs less than the same policy with a $500 deductible, and the Texas Department of Insurance says that switch can cut a home insurance premium by as much as 20 percent.

Example: you insure $25,000 of belongings and are quoted $180 a year with a $500 deductible. If the $1,000 deductible saves the full 20 percent, you pay $144 a year, or $36 less. Here is what each choice pays on two losses:

On any loss of $1,000 or more, the higher deductible costs you $500 more, and at $36 a year it takes about 14 years of savings to make that up ($500 divided by $36 is 13.9). Choose the higher deductible only if you could pay $1,000 from savings right after a theft or fire. Claims can also raise your premium or affect whether the insurer renews your policy, so the NAIC suggests paying for a loss yourself when it is not much more than your deductible.

In some locations, policies also carry a separate catastrophe deductible, such as for hurricanes, stated as a percentage rather than a dollar amount. Check the declarations page, the summary page of your policy, for the deductibles that apply to you.

How to lower your premium without losing coverage you need

1. Get at least three quotes, as the NAIC suggests, with the same coverage amount, deductible, liability limit, and claim settlement (replacement cost or actual cash value) in each. How to compare renters insurance quotes has a checklist.
2. Ask each insurer to price both a $500 and a $1,000 deductible so you can see the actual savings.
3. Ask which discounts you qualify for. The NAIC says many insurers discount for smoke detectors, burglar alarms, sprinkler systems, and deadbolts, and the Texas Department of Insurance also lists claim-free and multi-policy discounts.
4. Before you bundle renters with auto insurance, compare the bundled total with the cheapest separate renters and auto quotes.
5. Re-shop at least every three years, as the Texas Department of Insurance recommends, and update your coverage amount when you buy or sell major items.

For what a standard policy covers and leaves out, see what renters insurance covers.