Moving into an apartment, especially if it’s your first one, can be expensive. Most renters look for any way to save money, and the idea of adding renters insurance to your bill can sound stressful.

Thankfully, renters insurance is relatively inexpensive. In fact, the average cost of renters insurance is just $15 a month. Other policies can cost less than your typical streaming service. This is because rates depend on a variety of factors. Knowing what is affecting the cost of your renters insurance can help you save money on your policy.

Who You Insure With 

Many apartments offer insurance, but this is usually more expensive than purchasing renters insurance directly. Your rates are typically cheaper if you purchase renters insurance through your car insurance provider, so be sure to ask if your insurance company offers renters insurance.

Location 

Renters insurance premiums vary state to state and even zip code to zip code. This is due to the general cost of living in the area, distance from a fire station or hospital, and history of claims in the area.

Credit Score 

As your credit score can affect your eligibility for an apartment, it can also affect how much you pay for renters insurance. Low credit scores mean the insurance agency may view you as a higher risk to insure, which means they will charge more for insurance. You can raise your credit by paying off loans and debt, such as credit cards.

Value of Insured Items 

Renters insurance covers three areas: personal liability, personal belongings and additional living expenses. For personal belongings, you generally want to purchase enough renters insurance to cover the total replacement cost value of your belongings. The average renter owns around $35,000 in belongings, which means they likely need at least $35,000 in coverage. More expensive items may need more coverage, which means higher premiums.

Claims History 

Filing claims often raises your insurance rates in order to compensate for the compensation the insurance agency had to pay out. When an accident occurs, evaluate the damage. If the repair costs are much cheaper than the price of your deductible (usually $500-$1,000 for renters insurance), then it may be cheaper to pay for expenses out of pocket. If the cost for repairs is more expensive than your deductible or someone else is involved in the accident, however, you will likely want to file a claim.