What is a Renter Discount?

A renter's discount can reduce total insurance rates by up to 30% for drivers who rent their homes. Esurance and Amica are the only two companies that offer a renter's discount.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 21, 2021

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Here's what you need to know...

  • If you rent your residence, you may qualify for a renter’s discount on your insurance policy
  • A related homeowner’s insurance discount may be available for drivers who own their home
  • Bundling policies may qualify you for an additional auto insurance discount
  • Only two companies, Amica and Esurance, offer this discount
  • Combined with an auto insurance policy, drivers with Esurance can save up to 30 percent off their renter’s insurance

While homeownership is the quintessential American dream, the reality is that many people live in an apartment or in a leased home.

If you currently rent your primary residence, you may not have the financial benefits associated with homeownership, such as extra deductions on your tax return related to homeownership.

However, you may still be able to save money on some of your living expenses in different ways.

Some car insurance companies offer unique discounts on auto insurance policies that are specifically designed to help renters like you save money.

There are different qualifications for these discounts through different providers, but you may be surprised by how easy it is for many people to qualify for this additional financial savings on your premium.

Compare car insurance quotes right here to find the best rate for the coverage you need. Enter your ZIP code above to begin.

Learning More about a Renter’s Discount


To qualify for a renter’s discount on car insurance with some providers, you may need to prove that you rent your home, such as by showing the provider a copy of your lease.

Simply renting a home or apartment may qualify you for a renter’s discount in some cases.

In other cases, you may also have to purchase your renter’s insurance policy through the same provider in order to bundle your coverage types together.

This latter option means that you may need to find a provider that offers both renters and auto coverage to customers.

More than that, you may need to compare the rates for both types of policies from several leading providers before you decide which company to buy your coverage from.

Finding a Great Car Insurance Company

If you are preparing to look for financial savings on your auto policy through a renter’s discount, you need to focus your attention on finding a provider that has a proven track record of excellence and that is known for processing claims quickly and without hassle.

Using the Internet is a great way to research some of the top auto insurance providers and to learn more about their financial strength. This step will help you to determine which car insurance companies you should reach out to for a new quote and which ones you should avoid.

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Why Insurers Offer a Renter’s Discount

You may be wondering why some car insurance providers offer a renter’s discount to their customers and why others do not. Each insurance provider offers a unique range of discounts that can help drivers to save money in various ways.

Some companies may offer a renter’s discount if you bundle your renter’s and auto policies together.

This discount typically is because the provider saves money on administrative overhead when you bundle policies together, and the provider may pass these savings onto the consumer in the form of a discount.

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Exploring Alternatives to a Renter’s Discount

You may be interested in saving as much money as possible on your car insurance premium, but you may be challenged to find a renter’s discount that you can qualify for.

Perhaps you are not a renter, and you need to find an alternative discount that is similar to a renter’s discount.

A homeowner’s discount is one of the most common alternatives to a renter’s discount, but there are other financial discounts available to consider as well. These include:

Because there are so many different discounts that you could potentially qualify for through different auto insurance companies, it is important to note that the companies that offer a renter’s discount may not provide the best rate overall.

For example, you may save more money through an auto insurance company that offers a combination of other discounts that you qualify for. With this in mind, you may consider getting a few car insurance quotes from providers that do not offer a renter’s discount.

Understanding the Best Way to Save Money When Bundling Coverage


If you are using a renter’s discount that requires you to bundle your renter’s and auto coverage together with the same provider, it is important to carefully review rate quotes for both types of policies.

The best coverage option available will give you the maximum amount of car insurance coverage that you need at the best rate.

The premium for the renter’s coverage and the auto coverage must be reviewed together so that you can find the best deal overall when all expenses are taken into account.

Choosing an Ideal Coverage Limit

One factor that will play a key role in the cost of your auto insurance is your coverage types and limits. All drivers need to purchase at least the minimum amount of coverage required by law and by their car loan lender if they have one.

Because you are financially responsible for any damages that you cause and that exceed your coverage benefits, it makes sense to think about increasing your coverage limits in some cases.

This increase can help you to dramatically decrease your exposure to out-of-pocket expenses in many situations.

Consider the cost of a moderate or worst-case scenario accident and how much of these expenses would be covered by minimum-level coverage. Then, think about your ability to pay for these additional expenses out of your own pocket.

If you would be financially strained by this scenario, consider increasing your car insurance coverage type or limits to a more desirable level.

Request quotes for the same type and amount of coverage from each provider so that you can easily determine which quote is most affordable for your budget.

Shopping for Rates When You Move


When you relocate to a new rental home or apartment, your auto insurance rates and rental coverage rates may both change. This is a great time for you to start shopping around and comparing insurance rates for both your renter’s and auto coverage.

Keep an eye open for providers that offer a renter’s discount on car insurance coverage if you want to save money when buying your new policy, but remember the benefit of expanding your search beyond this as well.

Compare car insurance quotes by using our free tool below. You might be surprised by how much you could save.

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