Jul 01 2008

Saving money on renters insurance

It’s time to renew our renters insurance policy, and I’m glad I shopped around!

I got quotes from about five different companies. Last year, our deductible was $250, and this year, we’re increasing it to $500.

Last year, we paid $150.25 for our annual policy. With a higher deductible, it would have been $136.25. Not bad, but I wanted to do better.

By switching companies, our new rate will be $102 for the year! That’s $48 cheaper than last year, and $34 less than my next best rate. I’ll take those savings, thank you.

Since I’m going to start our new policy today, I actually expect a few dollars back from our old insurance company, since they’ll prorate it.

To avoid being hit with a $100 addition to our budget next July, I’m going to deposit $8.50 each month into an ING Direct subaccount ($102 / 12 months = $8.50), and I’ll earn a tiny amount of interest.

By the way, if you don’t have renters insurance, totally get it. I haven’t had to file a claim (thank goodness) but there are two instances in the last year that made me think, “I am so glad we have insurance.”

The first was when a neighbor’s apartment had a small fire, and the second was when my hot water tank burst and shot hot water everywhere.

Ya just never know when something bizarre will happen and ruin all of your stuff.

9 Responses to “Saving money on renters insurance”

  1. This post comes at a good time for me. I just started having to pay insurance on my apartment and I forgot that I needed to look for my own to see if I could get a price lower than what the office was charging.

    Thanks for the reminder.

    lulugal11’s last blog post..Shawn Says Quit Complaining about Gas Prices!!!!!

  2. I totally agree with you! Renters insurance is great! We had a flood in our basement earlier this year. Thankfully, nothing was damaged to the point we had to file a claim but it certainly was a relief to know it was there if we needed it!

    Ariel’s last blog post..Adjustments

  3. Our homeowners insurance (for our co-op) covers my wife’s engagement ring. This could be the case for renter’s insurance as well which would be another reason to have it!

    FFB’s last blog post..Some Rights Reserved

  4. @FFB: Great point! For our policy, I believe we had to add a portion of insurance to cover jewelry.

    But, if your co-pay is less than the cost it would be to replace, it’s definitely worth it!

  5. Our renters insurance also covers our stuff while in transit when we are moving. (My DH and I are both military). We also have additional coverage for our computers (5!) and my jewelry.

    A friend’s computer was covered when it was damaged moving from FL to TX. He got full replacement cost of the computer.

  6. got any good suggestions for places that offer cheap and reliable renter’s insurance? it’s something we don’t have…and we own a lot of expensive stuff! any help would be appreciated :)

    tiffanie’s last blog post..love and finance

  7. I’ve never had to file a claim with any insurance company, and doing that seems to be the true test of a “good company” versus a bad one.

    In all of my insurance experiences (car, renters, life), we’ve gone with national companies everyone has heard of. I’m not sure if that matters, but it is a bit more reassuring to me.

    We’re switching from Allstate to State Farm, and it’s pretty much based on price. I couldn’t find anything cheaper than State Farm, but if “Bob’s insurance company” offered me a cheaper rate, I doubt I’d be comfortable going with them anyway.

    Get some quotes from a few companies and choose one that balances the best price with the best reputation, is what I’d say. Good luck!

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Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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