The average renter’s insurance cost in the U.S. is $180 per year. Renters’ insurance protects renters against losses while living in a residence they do not own. Renters’ coverage only protects the tenants and the things they own, so the building itself isn’t covered by renters’ insurance.
Renters’ insurance rates vary based on where you live and how much coverage you need, so it’s important that you shop around for the best rates.
Keep reading to find out how you can reduce your renters insurance costs.
Shop Around
When it comes to insurance costs you need to shop around. You need to gather quotes from several insurance providers before you make a decision.
Just make sure you’re comparing quotes that offer the same coverage to each other. It might seem like you’re quoted much less, but if your bases aren’t covered then the insurance doesn’t matter.
If a policy is significantly more or less expensive than others you need to find out why. Look at their coverage rules and exactly what you’ll be signing up for.
You also need to understand the difference between renters insurance vs landlord insurance. Both types of insurance can be applied to the same property, but they each cover different things. You don’t want renters insurance that also covers the building, so don’t pay for coverage you don’t need.
Increase Your Deductible
Your deductible is the amount you pay out of pocket before your insurance policy kicks in. When you increase your deductible you can save money in the long run. You’re basically saying you’ll pay less now in renters insurance premiums, but pay more out of pocket if you need to file a claim.
This method only works if you don’t need to file a claim soon. You need the lower premium rates to make up for the money you’ll be paying out of pocket. So not only do you need to make sure you can handle covering a higher deductible in an emergency, but you also need to balance premium costs with possible deductibles.
Change Your Payment Method
Many insurance companies offer discounts if you pay for a full year’s premium all at once. This could lead to sizeable savings without needing to change anything about your coverage.
Talk to your insurance company to see how your payment method can affect your bill. Also compare the differences between paying monthly, quarterly, and annually. You might find that you can save a bit of money by simply switching things around.
Reduce Your Renters Insurance Costs
When it comes to renters insurance costs, you want to keep them as low as possible. It might take some time, but if you do your research you’ll be able to find a solution that keeps your costs low without sacrificing your coverage. So go ahead and start exploring your options today.
If you enjoyed this article, check out our news section for more money-saving tips.
