National averages
| Source | Average | Basis |
|---|---|---|
| NAIC data | $168 a year (2022) | Average premiums actually paid |
| NAIC guidance | $15–$30 a month | Typical policy |
| NerdWallet | $165 a year | $30,000 property, $100,000 liability, good credit |
| Insurify | About $22 a month | $30,000 personal property |
Averages differ because each source uses different limits and customers. The important point: a basic policy is cheap compared with replacing everything you own.
Most and least expensive states
| Most expensive | Average / yr | Least expensive | Average / yr |
|---|---|---|---|
| Mississippi | $256 | North Dakota | $119 |
| Louisiana | $241 | ||
| Oklahoma | $227 | ||
| Alabama | $221 | ||
| Texas | $213 | ||
Source: NAIC premium data averaged over 2018–2022, via AZ Big Media (May 2026).
Southern states with hurricane, tornado and hail risk cost the most. Theft rates and local claim costs also play a part.
What changes your price
| Factor | Effect (NerdWallet 2026 sample) |
|---|---|
| Good credit, no claims | $165 a year |
| One recent claim | $205 a year |
| Poor credit | $295 a year |
Other factors include your personal property limit, deductible, replacement cost vs. actual cash value, liability limit and optional add-ons. Credit-based insurance scores are used in many states.
Is it worth the cost?
Consider a renter with $30,000 of belongings. At the NAIC average of about $168 a year, ten years of cover costs roughly $1,680, less than 6% of what it would take to replace everything after a fire. And the policy does more than replace belongings: liability cover can pay legal costs and damages if a guest is injured or you accidentally flood the unit below, and loss-of-use cover pays for a hotel while your apartment is repaired. Those risks can cost far more than the premium.
The NAIC also notes that choosing actual cash value instead of replacement cost may save money upfront but can cost much more after a claim, because older items are paid at their depreciated value.
Monthly vs. annual payment
Many insurers offer a discount for paying the full year upfront, and some add installment fees to monthly plans. If you can afford the annual premium, it’s usually the cheaper option. Autopay and paperless billing can earn small discounts too.
Discounts
- Bundling with car insurance, often the biggest saving.
- Protective devices: smoke alarms, fire extinguishers, sprinklers, deadbolts and alarm systems.
- Paying in full instead of monthly.
- Claims-free history.
- Autopay and paperless billing at some insurers.
Discount types from NAIC consumer guidance; amounts vary by insurer and state.
Ways to pay less without losing protection
- Raise your deductible modestly, such as from $500 to $1,000, if you have savings.
- Set the right property limit using a home inventory, so you don’t over-insure.
- Keep replacement cost. Switching to actual cash value saves a little now but pays much less after a loss.
- Compare insurers. Prices for the same cover ranged from about $135 to $190 a year among insurers NerdWallet sampled; see our insurer comparison.
- Don’t file tiny claims. A claim raised the sample price by about $40 a year.
For what to include in your policy, see our coverage guide.
Frequently asked questions
What is the average cost of renters insurance?
About $168 a year in NAIC data for 2022, or roughly $14 a month. The NAIC says typical policies cost $15 to $30 a month.
Which state has the most expensive renters insurance?
Mississippi, averaging about $256 a year over 2018–2022, followed by Louisiana, Oklahoma, Alabama and Texas.
Does credit affect renters insurance?
In many states, yes. NerdWallet’s sample price rose from $165 to $295 a year with poor credit.
How can I get cheaper renters insurance?
Bundle with car insurance, add safety devices, pay annually, choose a sensible deductible and compare several insurers.
Is replacement cost renters insurance worth it?
Usually. It costs a little more but pays to buy new items instead of their depreciated value.
Sources
- AZ Big Media – Renters insurance costs by state (NAIC data, May 2026)
- NAIC – Renting your home? Protect your belongings with renters insurance
- NerdWallet – Best renters insurance companies 2026 (Sept 2026)
- Insurify – Renters insurance
- Insurify – Cheap renters insurance 2026
- New Jersey DOBI – Renters insurance guide
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.