Our take
While cost is an important factor in determining what company to purchase renters insurance from, there are other factors that you should also consider, including a company's financial health and customer satisfaction scores. When shopping for coverage, make sure to evaluate if a company can meet its financial obligations and what its policyholders say about its customer service.
Best renters insurance companies
Most insurance companies offer renters policies, making the process of choosing overwhelming. To simplify the process, we reviewed dozens of carriers looking for cheap renters insurance rates along with a good reputation. Here are the top renters insurance companies overall based on rates, customer service, complaints and financial stability. Not all companies operate in all states.
| Company | J.D. Power score | NAIC complaint ratio | AM Best rating | Average rate $40k/$1k/$100k | Insurance.com rating (out of 5) |
|---|---|---|---|---|---|
| State Farm | 829 | 0.95 | A++ | $184 | 4.72 |
| Amica | 844 | 0.23 | A+ | $192 | 4.6 |
| Erie | 856 | 0.38 | A+ | $253 | 4.56 |
| Auto-Owners | 834 | 0.33 | A++ | $218 | 4.51 |
| Allstate | 809 | 0.9 | A+ | $245 | 4.41 |
| American Family | 813 | 0.37 | A | $257 | 4.32 |
| Nationwide | 812 | 0.87 | A+ | $285 | 4.3 |
| Farmers | 800 | 0.54 | A | $300 | 4.11 |
| Travelers | 790 | 0.54 | A++ | $387 | 3.97 |
| Progressive | 791 | 8.45 | A+ | $201 | 2.08 |
Best national renters insurance companies
These are the best companies available nationwide; we consider a company offering policies in 40 states or more to be national.
| Company | J.D. Power score | NAIC complaint ratio | AM Best rating | Average rate $40k/$1k/$100k | Insurance.com rating (out of 5) |
|---|---|---|---|---|---|
| State Farm | 829 | 0.95 | A++ | $184 | 4.72 |
| Amica | 844 | 0.23 | A+ | $192 | 4.6 |
| Allstate | 809 | 0.9 | A+ | $245 | 4.41 |
| Nationwide | 812 | 0.87 | A+ | $285 | 4.3 |
| Farmers | 800 | 0.54 | A | $300 | 4.11 |
| Travelers | 790 | 0.54 | A++ | $387 | 3.97 |
| Progressive | 791 | 8.45 | A+ | $201 | 2.08 |
Best regional renters insurance companies
These are the best renters insurance companies operating in a smaller portion of the country.
| Company | J.D. Power score | NAIC complaint ratio | AM Best rating | Average rate $40k/$1k/$100k | Insurance.com rating (out of 5) |
|---|---|---|---|---|---|
| Erie | 856 | 0.38 | A+ | $253 | 4.56 |
| Auto-Owners | 834 | 0.33 | A++ | $218 | 4.51 |
| American Family | 813 | 0.37 | A | $257 | 4.32 |
How we chose the best renters insurance companies
We gathered data on renters insurance companies from trusted third-party sources: AM Best, the National Association of Insurance Commissioners (NAIC) and J.D. Power. We then gathered average renters insurance rates for a policy with $40,000 in personal property coverage, $100,000 in liability coverage and a $1,000 deductible. Using these important factors, we ranked the top companies in the nation for renters insurance.
Top renters insurance companies
Get the details on our five top renters insurance companies overall here.
State Farm
State Farm is the largest insurer in the country and one of the oldest. In addition, the carrier consistently ranks well with customers and has the strongest financial strength rating of A++. It's the cheapest company we ranked at an average of $184 a year.
Pros:
- Low rates
- Several ways to file a claim (in-person, over the phone, online, through the app)
- Offices and agents available nationwide
Cons:
- You are required to have an agent, even if you prefer to handle things online
- Wasn't the top company in J.D. Power's survey
State Farm’s renters policies can vary from one state to another, largely due to state regulations.
State Farm renters insurance discounts available include:
- Auto and renters bundle
- Home safety devices
Amica
Amica has consistently been one of J.D. Power's top-rated insurance companies for home insurance, both for overall satisfaction and for claims handling. Among the companies we ranked, Amica has the second-lowest average rates at $192 a year.
Pros:
- Low rates
- High J.D. Power scores
- Lowest complaint ratio of ranked companies
Cons:
- No agents available, direct sales only
- Not available in Alaska or Hawaii
Amica renters insurance discounts include:
- Multi-line (bundling)
- Loyalty
- E-discount (paperless)
- Claims-free
- Autopay
Erie
Erie is highly rated by J.D. Power and offers affordable renters insurance rates with all of the standard coverage you expect.
Pros:
- Low rates
- Excellent J.D. Power rating
- Several discounts
Cons:
- No online quoting
- Not available in all states
Erie renters insurance discounts include:
- Auto and renters bundling
- Multi-policy discount with other policy types
- Home safety devices
- Advance quote
- Age of insured
Auto-Owners
Auto-Owners is a super-regional company that consistently ranks among the best in the nation for home and renters insurance. Rates are not the lowest, but Auto-Owners boasts the highest possible AM Best financial stability score.
Pros:
- Highly rated with J.D. Power
- Top AM Best score
- Lots of discounts
Cons:
- Not available in all states
- No online quoting; policies are only sold through agents
Auto-Owners renters insurance discounts:
- Multi-policy discount (bundling with auto, life)
- Payment history (on time)
- Green discount (paperless)
- Protective devices
- Favorable loss history (claims-free)
- Paid in full
- Advance quote
- Hurricane/wind mitigation (SC and FL only)
Allstate
Allstate has the cheapest renters' insurance rates of the companies we surveyed outside of USAA, which is only open to military families.
Pros:
- Cheap rates
- Available nationwide
- Easy online quoting
Cons:
- Lower J.D. Power rating
- You're required to have an agent, even if you prefer to handle things online
Allstate renters insurance discounts:
- Auto and renters bundling
- 55+ and retired
- Easy pay plan
- Windstorm mitigation (in some areas)
Best renters insurance companies by state
Select your state below to see the average annual rate.
| Company name | Min of $40,000/$100,000 |
|---|
How to compare renters insurance companies
Not sure how to choose the best renters insurance company? Comparing renters insurance companies takes just a few simple steps.
- Request quotes from three to five companies, ensuring the coverage level is the same on each policy.
- Review the coverage and check for any extras or exclusions that differentiate them.
- Compare the rates.
- Look at each company's reputation using J.D. Power, AM Best and any other third-party ratings to ensure the company is reputable.
How much does renters insurance cost?
Insurance.com found that the average cost of renters insurance is $247 per year, which is only $21 per month. However, your premiums may be lower based on where you live, the level of coverage you get and the carrier you choose.
Why do I need renters insurance?
Without renters insurance, there is no coverage for your personal property. Many renters think that they don't own anything of a high value, so they don't need coverage. But imagine what would happen if the home you rent were to burn to the ground. How much would it cost to replace everything you own?
That includes all of your furniture, clothes, dishes, electronics and everything else in your home. It's easy to underestimate the value of all of your belongings. You don't have to own fancy jewelry or expensive home theater equipment to make renters insurance a worthwhile investment.
Most carriers will pay for damages caused if your water heater fails or a pipe leaks. However, they are not typically covered if your belongings are lost due to flooding from heavy rainstorms or a hurricane. Renters can purchase flood insurance if they live in high-risk areas.
Methodology
Insurance.com rated renters insurance companies based on average annual rates, sourced from Quadrant Data Services in 2023, J.D. Power ratings, complaint ratios from the National Association of Insurance Commissioners (NAIC) and AM Best Financial ratings. Rates were gathered for $40,000 in personal property coverage with $100,000 in liability and a $1,000 deductible.
Renters insurance FAQs
Is renters insurance required?
No law requires you to buy renters insurance, but some landlords require it as part of the lease agreement.
What factors should you consider while choosing renters insurance?
The best way to find cheap renters insurance and quality coverage is by shopping around and comparing renters insurance quotes from several companies. Before you choose renters insurance, take a look at what your deductible is and the types of coverage offered. You may want to add options such as flood coverage or replacement cost for additional coverage. Our renters insurance guide has everything you need to know.
