The national average for renters insurance is $180 a year or around $15 a month, according to Quadrant Information Services. Liberty Mutual claims that its rates start as low as $5 per month on its website.

Renters have the option to change the cost of their plan by selecting different coverage options. For example, increasing a lower deductible will lower your monthly costs. Likewise, increasing your policy limits will raise your monthly or annual premium.

If you are able to spend more for more comprehensive protection, you can set a higher payout limit for your policy. Having increased limits on your liability coverage and personal property coverage may save you significantly if you experience a covered loss.

Generally, the cost of your renters insurance policy depends on the following factors:

• Type of coverage you select
• Coverage limits and deductible
• Your location
• Your credit score
• Your prior claims history

Insurers view certain characteristics as a higher risk, which translates to higher premiums. For example, you may pay more for renters insurance if you live in an area with high theft rates. Alternatively, you can lower your starting rate by having a clean claims history and a high credit score.

Those with a history of making claims have a higher likelihood of filing more claims in the future than a renter with no prior claims history. Statistically, individuals with poor credit tend to file more claims on their policies — whether it’s car insurance, renters insurance or home insurance.

Where you live also impacts the premium rate. In areas where there is a greater risk of property damage from unexpected events, you can expect higher insurance rates. Areas prone to hurricanes, severe weather and wind storms, as well as lightning strikes, can lead to an increased cost. Local crime rates also have a direct effect on your costs.

To help keep rates affordable, Liberty Mutual offers several discounts. By monitoring how these factors affect your rates and relying on discount options, you can help save yourself some money on renters insurance.

Liberty Mutual Discounts

Liberty Mutual offers five discounts, which are typical of insurance discounts offered by other providers. Discount options and eligibility include:

• Early shopper: Getting a quote before the expiration of your current policy
• Claims-free: Being claims-free with your previous carrier for the last five years
• Online purchase: Getting an online quote and completing the policy purchase online
• Multi-policy: Bundling your insurance coverage, like Liberty Mutual auto insurance and renters insurance policies
• Auto-Pay: Setting up automatic payments for your renters insurance premiums