Editor’s note: This is a guest post by Jeanine Skowronski, senior editor of personal finance at PolicyGenius.
Here’s the thing: Renters insurance is actually pretty cheap. In most states, a standard policy costs less than $20 a month. But if you’ve got a lot of personal property to insure, are on a tight budget, or otherwise find yourself looking at quotes that are higher than average, there are steps you can take to lower the expense long term. Here are six tricks to scoring cheaper renters insurance.
Add some security features
Renters insurance covers stolen property, so anything you can do to minimize the odds of a break-in can lower your premiums. Sure, installing a five-star alarm system is expensive, but there are smaller fixes you can make, like replacing old door hinges. Seriously, shoddy hinges make break-ins much easier, so swapping in some shiny new ones could net you a discount. You can also upgrade your locks. (We hear deadbolts are very effective.) Plus, some seemingly larger security upgrades aren’t as costly as you may think. You can get certain window alarms, like stickies sold by Doberman Security, for under $20.
Upgrade your fire prevention game
Fire is another commonly covered renters insurance peril (insurer-speak for incidents that can lead to claims), so taking steps to mitigate one can also lead to lower premiums. The fastest — and cheapest — way to do so involves installing smoke detectors, though, admittedly, your landlord is likely required to have some on the premises already. Buying a fire extinguisher or having a sprinkler system could help, too. Another trick: Quit smoking, which, just so you know, could lower your health insurance and life insurance rates, too.
Bundle
People associate bundling with homeowners and auto insurance, but many companies offer discounts for bundling renters insurance with another policy, too. If you’re looking for first-time coverage or getting close to your policy’s renewal date, call your current insurer(s) up and ask if they offer a multi-policy discount. You could wind up saving a couple extra bucks each month — which adds up over time.
Shop around
If bundling with a current insurer turns out to be a no-go, go ahead and shop around. All insurers price policies differently, so premiums can vary — meaning there’s no need to blindly accept the first price you’re quoted. If at first you don’t like what you see, try, try again.
Move
OK, we’re half-joking here, given moving isn’t always cost-efficient. But it’s still worth noting that your zip code, building and apartment size can all affect your renters insurance rates. So if you’re already thinking about leaving an old, janky building or downsizing to a smaller spot, add lower renters insurance to your list of pros.
Tweak your policy
If money is seriously tight, consider making some changes to your policy. Upping your deductible — the amount of money you’re expected to pay out of pocket before your insurance kicks in — will lower your monthly premiums, as will decreasing your coverage limits. And if you have what’s known as a replacement cost policy, you could save by switching to an actual cash value one.
A replacement cost policy stipulates your insurer cover the price of (you guessed it) replacing the item. An actual cash value policy, on the other hand, stipulates your insurer pay out what the item is worth at the time it was lost, damaged or stolen. As such, you won’t recoup as much. (Think about it: A seven-year old laptop has likely depreciated heavily in value.) But your monthly premiums should go down. And, hey, some renters insurance is better than none.
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