Renters insurance costs about $165 per year — roughly $14 a month — per NerdWallet’s national rate analysis published in September 2026. That assumes a standard profile: $30,000 in property coverage, $100,000 in liability, and a $500 deductible. Treat it as a budgeting benchmark, not a quote.
Key Takeaways
- National average: about $165/year (~$14/month) for $30,000 personal property / $100,000 liability / $500 deductible, per NerdWallet’s September 2026 analysis.
- Other national datasets land in the same neighborhood: the Insurance Information Institute (III) cites $171/year, InsureDBetter finds $151/year, and MoneyGeek finds $185/year.
- Coverage level is the biggest lever: Compare.com’s real-quote data shows $30k/$100k averaging $20/month, $50k/$500k averaging $30/month, and $100k/$750k averaging $43/month.
- Your state, deductible, credit-based insurance score, and claims history move the number — a renter in Louisiana pays nearly double the national average.
- Figures below were verified in September 2026. Rates change, so always get 3+ current quotes before buying, and talk to a licensed agent in your state.
The Headline Number: $165 a Year
As of September 2026, NerdWallet’s national rate analysis found an average renters insurance cost of $165 per year, or about $14 per month. It has become the most widely cited benchmark in the industry, and it’s the number most quote engines hover around for a clean, standard profile.
That “clean, standard profile” part matters. The $165 figure assumes:
- $30,000 in personal property coverage (your belongings)
- $100,000 in personal liability coverage (injuries or damage you’re responsible for)
- A $500 deductible (what you pay out of pocket on a claim)
It also assumes a renter with no claims history and average credit, in a middle-of-the-road state. Change any of those assumptions and the number moves — sometimes a lot. A $1,000 deductible, a cheaper state, or a smaller personal-property limit all push the price down. A hurricane-prone ZIP code, a claims history, or a weak credit-based insurance score push it up.
For context on the range real renters see, Liberty Mutual cites Insurify data showing average premiums falling in the $12–$20 per month band depending on location, coverage limits, and deductible — right in line with the national benchmarks.
What the Other Datasets Say
NerdWallet isn’t the only source measuring the national average. Here’s how the major 2026 datasets compare, so you can see where each number comes from:
| Source | National average | Profile assumptions |
|---|---|---|
| NerdWallet (via Apartment List) | $165/year (~$14/mo) | $30k property, $100k liability, $500 deductible |
| Insurance Information Institute (via SoFi) | $171/year | Most recent III national data |
| InsureDBetter | $151/year (~$13/mo) | $30k property, $100k liability, $500 deductible |
| MoneyGeek (56 carriers, 897 ZIP codes) | $185/year | $20k property, $100k liability, $1,000 deductible |
| ValuePenguin (2026 update) | $23/month (~$276/year) | $30k property, $100k liability, $500 deductible, real-quoted rates |
The range — $151 to $276 — looks wide until you notice the methodology differences. MoneyGeek’s profile uses a $1,000 deductible but only $20,000 in property coverage across hundreds of ZIPs; ValuePenguin gathers live quotes from nine carriers for a specific renter profile rather than averaging filed rates. None of them is wrong; they just measure slightly different things.
The practical takeaway: budget $14–$23 a month for a standard policy, and expect to land somewhere in that band unless your state or profile is unusual. That’s the honest use of these benchmarks.
What Moves the Number Most
1. How much coverage you buy
This is the single biggest lever you control. Compare.com’s analysis of real quotes shows exactly how cost scales with coverage level:
- $30,000 property / $100,000 liability → ~$20/month
- $50,000 property / $500,000 liability → ~$30/month
- $100,000 property / $750,000 liability → ~$43/month
(Source: Compare.com real-quote analysis)
Notice the math: jumping from $30k to $50k in property coverage adds about $10/month — but it also comes with five times the liability limit. Going from $50k to $100k in property coverage adds about $13/month. The lesson is one renters often get backward: buying more coverage is cheap, because renters insurance itself is cheap. Skimping on a $3/month difference to save on a $100,000 liability limit is bad economics. Our guide to how much coverage you actually need walks through sizing it to your belongings.
2. Where you live
Location is the factor you can’t change, and it’s enormous. InsureDBetter’s 2026 state data puts Louisiana at $266/year ($22/month) and Alaska at $101/year ($8/month) — same coverage profile, nearly triple the price. Hurricanes, tornadoes, crime rates, and local construction costs drive the gaps. See the full breakdown in our state-by-state averages to find where your state falls on the cost map.
3. Your deductible
Raising your deductible from $500 to $1,000 lowers the premium — InsureDBetter’s 2026 tables show it saves about $14 a year ($196/year at $500 vs. $182/year at $1,000), while doubling your out-of-pocket exposure on a claim. A $250 deductible pushes the average to about $211/year. The trade-off is straightforward: only raise the deductible if you can actually pay it when something goes wrong. Our renters insurance deductible guide works through the math.
4. Your claims history and credit-based insurance score
Filing claims raises rates — insurers track them through a CLUE report that typically holds 5–7 years of history. And in most states, insurers use a credit-based insurance score as a rating factor: InsureDBetter’s 2026 data shows excellent credit averaging $153/year while poor credit averages $480/year — more than triple. (Four states — California, Massachusetts, Hawaii, and Michigan — prohibit using credit in insurance rating.) Our explainer on the factors behind your quote covers all nine.
How to Use This Number (and How Not To)
Use $14/month as a starting budget line and a sanity check. If a quote comes back at $12–$25/month for a standard profile, you’re in normal territory. If it’s $40/month in North Dakota with no claims history, something is off — shop harder.
Do not use it as a quote. These are national averages built from specific profiles, and your rate is set by your state, your ZIP code, your building, your credit profile, your claims history, and the carrier. The single most reliable step you can take is getting three or more quotes with identical limits and deductibles, then comparing the fine print — not just the premium. And when you’re ready to buy, talk to a licensed agent in your state rather than guessing at the right limits.
The 5-Year Math: Why the Deductible Barely Moves the Needle
It helps to see the deductible trade-off over time, not just per year. Using InsureDBetter’s 2026 tables:
- $500 deductible: ~$196/year → $980 over 5 years
- $1,000 deductible: ~$182/year → $910 over 5 years
Total savings from the higher deductible: $70 over five years. But if you file even one claim in that period, you pay $500 more out of pocket with the $1,000 deductible — wiping out the savings more than seven times over.
That’s not an argument against $1,000 deductibles. It’s an argument for choosing deliberately: a $1,000 deductible makes sense if you have the savings to cover it and you plan to skip small claims anyway (which you should — filing a claim near your deductible costs you most of the payout and still risks a rate increase). It doesn’t make sense as a way to “save money,” because $14 a year isn’t savings — it’s a rounding error with $500 of risk attached.
Monthly vs. Annual Billing
Most carriers let you pay monthly or annually, and the difference is small but real:
- Pay-in-full discounts: many insurers discount annual payment — ValuePenguin lists payment discounts among the standard ways to trim a premium. The discount is typically a few percent.
- Installment fees: monthly billing sometimes carries a small per-payment fee. Over a year, that can quietly add $20–$40 to a $165 policy — proportionately large on a cheap policy.
- Autopay: paying automatically, monthly or annually, often earns its own small discount.
If cash flow allows, annual + autopay is the cheapest combination. If not, monthly is perfectly fine — just check whether your carrier charges installment fees, and factor them into quote comparisons. A $14/month quote with a $3 monthly fee is really a $17/month quote.
FAQs
Why is my quote higher than the $14/month average?
Usually location, a claims history, a credit-based insurance score, or higher coverage limits. Renters in Gulf Coast states or areas with high property-crime rates routinely pay two to three times the national average for the same profile. Check your limits and deductible first — a $250 deductible or $50,000 in property coverage explains a big chunk of a high quote.
Is renters insurance worth it at these prices?
For most renters, yes. At roughly $14–$20 a month, a single covered loss — a stolen laptop, a burst pipe ruining a wardrobe, a guest injury — can exceed a decade of premiums. The III notes the average is about $171/year, and Compare.com points out that renters insurance is inexpensive precisely because it doesn’t cover the building structure itself.
How much renters insurance do I need?
Start with the value of your belongings: most tenants land on $20,000–$40,000 in personal property coverage and at least $100,000 in liability coverage, per Liberty Mutual’s guidance. Your lease may require a minimum liability amount — check it before you quote.
Do I pay monthly or yearly?
Most carriers offer both. Paying annually can shave a small amount off the total through pay-in-full discounts, while monthly billing sometimes carries a small installment fee. If cash flow is tight, monthly is fine — the difference is minor compared to the other levers above.
How often do renters insurance rates change?
Carriers file rates with state regulators periodically, and averages move year to year with weather losses, construction costs, and claims trends. If your renewal jumps, shop it — loyalty rarely pays in this market, and a fresh set of quotes costs you nothing but time. Premiums have been climbing in recent years — see our breakdownof why renters insurance premiums are rising in 2026.
