The top renters insurance companies in 2023 are also some of the best home insurance companies, which means renters can get the same great service as homeowners.
We've ranked the best renters insurance companies based on price, customer satisfaction and financial stability to make shopping for renters insurance easier.
State Farm, Erie and Progressive ranked among the top-rated companies for renters insurance in our analysis. See how the biggest insurance companies compare for renters insurance below.
Key takeaways
- State Farm is the best renters insurance company in 2023, based on rates and reputation.
- Erie and Progressive landed in second and third place overall for renters insurance.
- A good renters insurance company offers low rates along with excellent 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-rated companies based on rates, customer service and financial stability.
| Company | J.D. Power Score | AM Best rating | Average Rate $40k/$1k/$100k | Insurance.com rating (out of 5) |
|---|---|---|---|---|
| State Farm | 836 | A++ | $217 | 4.11 |
| Erie | 851 | A+ | $275 | 3.71 |
| Progressive | 831 | A+ | $243 | 3.6 |
| Nationwide | 859 | A+ | $303 | 3.67 |
| Allstate | 836 | A+ | $195 | 3.5 |
| Farmers | 839 | A | $320 | 2.87 |
| Travelers | 801 | A++ | $410 | 2.55 |
| USAA* | 886 | A++ | $188 | 5 |
*USAA is only available to military members, veterans and their families and is therefore not ranked
Top renters insurance companies by category
While the companies are ranked overall above, some companies shine in particular areas. We've listed a few of those categories here.
State Farm: Best renters insurance company overall, cheapest renters insurance
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++. State Farm checks nearly all the boxes:
- Low rates
- Several ways to file a claim (in-person, over-the-phone, online, through the app)
- Offices and agents available nationwide
- A full-featured website and mobile app
- Plenty of coverage options
State Farm’s renters policies can vary from one state to another, largely due to state regulations. In addition, the insurer doesn’t offer as many discounts as other companies, but rates are already low.
In fact, only USAA, which isn't ranked due to eligibility requirements, has lower rates than State Farm, which has an average annual renters insurance rate of $207.
Allstate: Best for seniors and retirees
Allstate offers what you would expect from the best-rated renters insurance companies: coverage for your personal property, reimbursed living expenses, medical coverage if a guest is injured on your property and liability insurance for covered hazards such as a burglary or fire. Allstate has a renter discount of up to 25% for retirees aged 55 and over.
Nationwide: Best for customer satisfaction
Nationwide ranked in the number one spot for customer satisfaction on J.D. Power's 2022 renters insurance survey. With various policies available, Nationwide is a one-stop shop for customers, which may add to their overall satisfaction with the company.
USAA: Best for military
USAA consistently scores highest in the J.D. Power renters insurance study every year based on what policyholders have to say. It’s also the cheapest overall with an average rate of $188 a year.
Although USAA scores high with customers and provides comprehensive renters insurance for a low price, it doesn’t win the award for best renters insurance based on one important factor — USAA isn’t available to everyone. Only military members, veterans and their families can get coverage.
Lemonade: Honorable mention
Lemonade ranked second in J.D. Power’s annual study of renters insurance satisfaction. Lemonade does renters insurance differently by providing straightforward, online-only coverage. We don't have enough information on Lemonade to rank the company here, but it's worth mentioning due to its high customer satisfaction rating.
Best renters insurance companies by state
Select your state below to see the average annual rate.
| Company Name | Min of $40,000/$100,000 |
|---|---|
| Allstate | $255 |
| Auto Club Enterprises Insurance Group | $183 |
| CSAA | $261 |
| Farmers | $198 |
| Liberty | $186 |
| Nationwide | $301 |
| Liberty | $186 |
| State Farm | $177 |
| Travelers | $197 |
| USAA | $169 |
How much does renters insurance cost?
Insurance.com found that the average cost of renters insurance is $347 per year, which is only $29 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?
It's simple: Without renters insurance, there is no coverage for any of 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, your clothes, your dishes, your 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.
Frequently asked questions about renters insurance
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.
Methodology
Insurance.com rated renters insurance companies based on average annual rates, sourced from Quadrant Data Services in 2022, J.D. Power ratings 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.
