With renters insurance, cutting costs doesn't have to mean cutting back. Here are a few easy ways to save money on your renters insurance without skimping on coverage.
Reduce your risk, reduce your rates
Where you live will play an important role in determining your renters insurance rates. In general terms, prices will vary based on your state, city, and neighborhood. Safer locations mean lower rates, so renting in a low-crime area near a fire station may save you money.
Your rates will also reflect the safety of the rental property itself. For example, an older, unrenovated building has a higher risk of electrical and plumbing issues, and that can mean higher rates. Fortunately, steps as simple as installing smoke detectors and fire extinguishers in your apartment can mean real savings, even if you do rent an older property. Ask your agent about available safety discounts for your renters insurance.
Bundle and save
Many insurers offer significant discounts if you buy more than one policy with the company. For renters, this usually means bundling auto insurance with a renters policy, but life, business, and other plans may also qualify. If you have several insurance needs, be sure to talk to your agent about multiple line discounts.
Choose the right deductible
A deductible is the amount of a covered loss or liability that you pay out of your own pocket. In other words, it is the amount "deducted" from any payout by your insurer. For example, if a fire causes $1,500 in insured damage to your personal property and your deductible is $500, then your insurer will pay you $1,000.
Your renters insurance premiums will reflect the deductibles that you agree to pay. Lower deductibles mean higher premiums; higher deductibles mean lower premiums. Keep in mind that an insurer will not reimburse you for a loss amount that is lower than the deductible. This means if your deductible is $2,000 and you suffer $1,750 in losses, then you are entirely responsible for those costs, even if the cause of the loss is covered by your policy.
When choosing a deductible, think carefully about the out-of-pocket costs that you are willing - and able - to pay. A disciplined saver may be able to offset the greater risk of a high deductible with cash reserves. Others, however, will have to balance the benefit of a higher deductible against the risk of greater out-of-pocket expenses.
The information in this article was obtained from various sources not associated with State Farm. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. These suggestions are not a complete list of every loss control measure. The information is not intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. Nor is it intended to effect coverage under our policy. State Farm makes no guarantees of results from use of this information.