What Are the Best Loans If You Have Bad Credit?

If you need to borrow money but your credit is less than stellar, it’s possible you’ll wind up with a bad credit loan. These loans are geared toward individuals with imperfect credit histories who can prove their income and ability to repay the loan. As a result of their bad credit, however, consumers who use bad credit loans typically pay much higher interest rates and loan fees. Bad credit loan customers may also be limited in how much they can borrow as well as the terms of their loan’s repayment.

From our perspective, LendingClub is the overall best option when it comes to getting a loan when you have bad credit.

Borrow Money with LendingClub

What To Do If You Think You Have Bad Credit

Step 1 — Get Your Actual FICO Score

The only way to find out if you have bad credit is to take a look at your FICO score, which isn’t difficult since many companies offer online access for free. While your FICO credit score isn’t the only credit score you have, it’s the one used by most lenders that offer personal loans. 

According to myFICO.com, the credit score ranges are as follows:

• Exceptional: 800 and up
• Very Good: 740 to 799
• Good: 670 to 739
• Fair: 580 to 669
• Poor: 579 or below

If your credit score falls below 579, there’s a good chance you could only get approved for a bad credit loan. If your credit is just “fair,” on the other hand, there’s still a chance you’ll wind up with a loan for bad credit.

Get My FICO Scores

Step 2 — Compare Multiple Offers

Once you have determined your credit score, you’ll want to start comparing offers from different lenders to see what fits your needs. You can use this tool to start that process.

Continue reading to find out how Good Financial Cents breaks down the best loans for bad credit and what you should watch out for. 

Best Bad Credit Loans of 2020

If you feel you’re a candidate for a bad credit loan, it still makes sense to compare loan options to find the best deal. Loans for bad credit may come with higher interest rates and more fees, but some are still better than others.

For the purpose of this guide, we compared all the bad credit lenders to see how their loan products stack up. The following loans are the best of the best when it comes to loans for poor credit:

• LendingClub
• Avant
• LendingPoint
• OneMain Financial
• Upstart

Bad Credit Loan Reviews

Before you apply for a loan with one of the bad credit lenders above, it helps to have a basic understanding of their loan offerings, interest rates, and any other important details they offer. The following individual loan reviews can help you determine which lender offers loans that might work for your situation.

#1: LendingClub

LendingClub is a peer-to-peer lender that operates outside of traditional banks. This means loans funded through the platform are initiated by private investors instead of banks, and it also means you may be able to get funding through LendingClub if you can’t get approved for a loan elsewhere.

Investors in search of higher returns on their money can agree to offer loans to consumers with bad credit who present a higher risk. As a result, LendingClub personal loans come with APRs that range from 6.95% to 35.89%. Obviously, loans with rates on the higher end of the scale will go to those with low credit scores.

Before you apply, it’s important to be aware that LendingClub charges an origination fee that can equal up to 6% of your loan amount. You can repay your loan anywhere from 36 to 60 months, and there’s no prepayment penalty if you pay your loan off early.

• Pros: No minimum credit score requirement: check your rate online without a hard inquiry on your credit report
• Cons: Potential for a high origination fee and interest rate

Get a Loan from LendingClub Today  

#2: Avant

Avant is another lender that often extends personal loans to consumers with low credit scores. With Avant, your interest rate will fall somewhere between 9.95% and 35.99% and you can repay your loan from 24 to 60 months. A loan funding fee of up to 4.75% of your loan amount is required as well, which will push up the cost of borrowing.

Avant claims that they have loaned $4 billion dollars to more than 600,000 consumers so far and that they have a 95% customer satisfaction rate. You can apply for a personal loan through Avant online, and you can even check your rate without a hard inquiry on your credit report.

• Pros: No minimum credit score requirement; you can check your rate online without a hard inquiry on your credit report
• Cons: High APRs and loan fees for bad credit

Borrow Better and Faster with Avant

#3: LendingPoint

LendingPoint is another bad credit lender that offers personal loans to consumers who are willing to pay whatever APR it takes. Loans from LendingPoint come with APRs between 15.49% and 35.99%, and your loan origination fee can be as high as 6% of your loan amount.

You can repay your loan for anywhere from 24 to 48 months, and loans are offered in amounts up to $25,000. LendingPoint also lets you check your rate online without a hard inquiry on your credit report. You do need a minimum credit score of 585 to qualify for one of their loans.

• Pros: Check your rate without a hard inquiry; low minimum credit score requirement
• Cons: Pricey APRs and loan origination fee; loans not available in every state

Sign Up Today with LendingPoint

#4: OneMain Financial

OneMain Financial offers personal loans in amounts between $1,500 and $20,000, and you can repay your loan for anywhere from 24 to 60 months. Interest rates range from 18.00% to 35.99%, and an origination fee may apply as well.

You can apply for a bad credit loan with OneMain Financial online, and you can get your loan approved and funded within a matter of days. You can even check your rate and gauge your ability to qualify without a hard inquiry on your credit report.

Finally, note that OneMain Financial has 1,600 physical locations in 44 states. To have your loan funded, you’ll need to visit a OneMain Financial location and meet with a loan specialist.

• Pros: No minimum credit score requirement; borrow up to $20,000
• Cons: Potential for pricey APR and loan origination fee; you are required to visit a physical branch to have your loan funded

Get Started with OneMain Financial

#5: Upstart

Upstart is a unique online lender that makes it easier for borrowers with poor credit to qualify for a loan. This company considers more than your credit score when approving you for a personal loan, meaning they may give more weight to additional factors like your income and how much education you have.

Borrowers who qualify can access between $1,000 and $50,000 in loan funds with a repayment period of 3 or 5 years. Interest rates range from 5.69% to 35.99%, however, depending on creditworthiness and other factors.

Fortunately, loans from Upstart don’t come with any prepayment penalties. You can also check your rate online without a hard inquiry on your credit report.

• Pros: No minimum credit score requirement; borrow up to $50,000
• Cons: Potential for pricey APR and loan origination fee

Get the Loan You Deserve with Upstart

How We Chose the Best Loans for Bad Credit

The lenders above offer loans that can be exorbitantly expensive when you factor in interest rates and fees. Since expensive loans are the norm for consumers with bad credit, however, these still represent the best loan options for people with risky credit profiles.

With that in mind, here are the factors we considered to come up with the loans for this list:

Easy Rate Check

Having the ability to check your loan rate online without a hard inquiry on your credit report is beneficial for potential borrowers who aren’t quite ready to fill out a full loan application. We ranked lenders who offer this option higher as a result. With an easy rate check, you can get an idea of your interest rate and loan fees before you apply.

Check Your Credit Score for FREE

No Prepayment Fees

While loans for bad credit typically come with high interest rates and more loan fees, we think prepayment penalties cross the line. We looked for bad credit loans that don’t charge prepayment penalties since borrowers should have the option to pay their loans off early.

Ability to Apply Online

Lenders that let you apply for a personal loan online are considerably more convenient, so we gave a better loan score to loan companies that offer this option. Bonus points were applied if you can complete the full loan application online and have your loan funded electronically.

Loan Reviews

We also looked at individual loan reviews on company loan pages and websites like Trustpilot. While all lenders have their share of poor loan reviews, the lenders that made our list boast considerably more positive user reviews than bad ones. Most of the lenders that made the cut for our ranking have customer approval rates over 90%.

Loans for Bad Credit: What to Watch Out For

Bad credit loans are not ideal since they come with high rates and fees that push up the total cost of borrowing. However, some bad credit loans are also considerably “better” than others based on how they charge fees and the rates they offer. Here’s everything you should watch out for before you apply.

Consider the Impact of High Rates

First, it can be immensely helpful to check your rate with multiple lenders in this space before you apply. There’s a huge difference between paying 25.00% APR and 35.99% APR even though both rates aren’t great, so you’ll want to pay the lowest interest rate that you can.
How much difference can it make? Imagine for a moment you need to borrow $10,000 and repay it over 60 months. Here’s what your monthly payment would look like — and how much interest you would pay overall — if you repaid your loan over 60 months with three different rates:

Loan APR	Monthly Payment	Total Interest Paid
10.99%	$217.37	$3,042.46
25.99%	$299.35	$7,960.73
34.99%	$354.84	$11,290.34

Avoid Origination Fees If You Can

Also try to avoid loan origination fees if you can, although this may be difficult if your credit score is on the low end of the scale. Loan origination fees are charged as a percentage of your loan upfront, so you can’t avoid them — even if you pay your loan off early. They also add unnecessary expense to your bad credit loan without any benefit for you, the borrower.

Check for Prepayment Penalties

Also, make sure to check for any prepayment penalties that may apply to your loan, and if you can, opt for a lender that doesn’t charge these fees. It would be nice to have the option to pay your loan off early without a penalty if you wind up having the money you need to do so. If you’re able to pay your loan off ahead of schedule, you could pay a lot less in interest over your loan’s term.

Bad Credit Loans: Should You Improve Your Credit First?

If you’re worried about the impact of a bad credit loan on your finances, it can make sense to spend some time improving your score before you apply. If you’re able to pay all your bills early or on time for several months, for example, you could have a positive impact on your score. That’s because your payment history is the most important factor that makes up your FICO score. According to myFICO.com, this factor alone makes up 35% of your score.

The same is true if you’re able to pay down debt to decrease your credit utilization. This advice is based on the fact that how much you owe in relation to your credit limits is the second most important factor making up your FICO score at 30%.

In the meantime, try to avoid opening and closing too many accounts since either of these moves can also ding your score.

If you were able to move the needle and boost your credit score in the “fair” or “good” range, there’s a very good chance you could qualify for a less expensive personal loan with better rates and terms. Of course, this isn’t always possible if you need to borrow money sooner rather than later.

The Bottom Line

Bad credit loans may come with pricey APRs, but they are often the only option of last resort for borrowers whose credit has taken a hit. If you’re in the market for a loan and know you’ll need to get a loan for bad credit, the best thing you can do is compare loan options to find the best deal.

Keep an eye out for bad credit loans with the lowest interest rate and origination fee you can qualify for.

Also, look for lenders that let you check your rate and get prequalified online and before you fill out a full loan application.

With enough research, you should end up with a bad credit loan that helps your finances instead of making them worse.

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Ex-financial planner convicted on fraud charges

A former East Stroudsburg financial planner has been tried and convicted on fraud charges stemming from a scheme that netted him millions of dollars in ill-gotten gains.The U.S. Attorney’s Office for the Middle District of Pennsylvania announced Thursday that Anthony Diaz, 52, was convicted on seven counts of wire fraud and four counts of mail fraud following a 12-day trial held before U.S. District Court Judge Malachy E. Mannion in Scranton that wrapped up on Wednesday. [...]

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The Cheapest Colorado Renters Insurance Companies 2020

Over 32 percent of Colorado residents—roughly 500,000 people—rent their homes, according to data from the U.S. Census Bureau. If you’re one of those people, consider purchasing renters insurance to protect your personal belongings from fire, theft or extreme weather events.

When talking about insurance, the first thing that comes to mind is cost. Some policies, like home and auto, can cost thousands of dollars per year. But in Colorado, the average cost of renters insurance is $159 per year, which is lower than the U.S. national average of $180. For about $13 per month, you can have peace of mind knowing that your prized possessions are covered.

There are a few things to consider before you purchase renters insurance. First, make sure you know the total estimated value of your personal belongings, so you can gauge how much coverage you need. Also, think about how much you can afford to pay out-of-pocket if you needed to replace your items without aid from the insurance company. That will determine your deductible.

Find the Best Renter Insurance

Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Best renters insurance companies in Colorado

Purchasing insurance often sounds simpler than it is. Shopping for renters insurance can be challenging because there are dozens of providers on the market. So how can you determine which provider will give you the best value for your budget?

To simplify your shopping experience, we put together a list of the cheapest and best Colorado renters insurance companies. These providers were rated highly in J.D. Power’s 2019 Renters Insurance Study, which uses real customer reviews to rate insurers on overall satisfaction, price, policy offerings and customer service. Check out the full list of ratings in the table below.

• American Family: In J.D. Power’s study, American Family earned high marks in each category, making it our top pick for Colorado renters insurance.
• State Farm: State Farm ranked just below American Family in J.D. Power’s study and is lauded by customers for offering affordable premiums.
• AAA: With AAA, Colorado residents can choose from a wide range of coverage options while keeping their annual costs low.
• Allstate: Allstate is a great insurance provider for renters that are looking to save big on their premiums, but care less about extensive coverage options or customer service.

	Overall satisfaction	Policy offerings	Price	Customer service	Billing
American Family	5 out of 5	5 out of 5	5 out of 5	5 out of 5	5 out of 5
State Farm	5 out of 5	5 out of 5	5 out of 5	5 out of 5	5 out of 5
AAA	3 out of 5	5 out of 5	5 out of 5	3 out of 5	3 out of 5
Allstate	2 out of 5	3 out of 5	2 out of 5	2 out of 5	2 out of 5

The amount you’ll pay for your renters insurance premium is determined by a few criteria, including the location of your home, the type of building, the value of your belongings, your claims history and your credit score, among others. Here is a look at the best insurers for specific needs.

Cheapest Colorado renters insurance for extensive coverage options: State Farm

State Farm’s basic renters insurance policy is pretty comprehensive, but the company also offers a personal articles policy that includes coverage for things like prosthetics, medical devices, furs, fine art and collectibles.

Cheapest Colorado renters insurance for bundling policies: Allstate

Allstate offers a variety of insurance products, including home, auto, life, business and identity. If you add renters insurance to the bundle, you can save money on your annual premium.

Cheapest Colorado renters insurance for claims-free renters: Allstate

If you’ve filed an insurance claim in the past, you know your annual rate increases as a result. However, if you’re claims-free when you purchase renters insurance through Allstate, you’ll get a discount of up to 20 percent and get rewarded for each year you remain claims-free.

We also looked at how these four providers were ranked by similar market research firms. In the table below, you can see how American Family, State Farm, AAA and Allstate are rated by AM Best and the Better Business Bureau (BBB).

	J.D Power	AM Best	BBB
American Family	5 out of 5	A	A
State Farm	5 out of 5	A++	A+
AAA	3 out of 5	A	A+
Allstate	2 out of 5	A+	A+

Frequently asked questions

How much renters insurance do I need in Colorado?

Renters insurance is not a requirement for Colorado residents. But it’s still a good idea to purchase some coverage. Without it, you’ll have to pay completely out-of-pocket to replace your personal items if they get damaged.

What does renters insurance cover?

Most basic renters insurance policies cover your belongings such as clothing and electronics up to a certain amount, as well as liability coverage that pays to repair someone else’s home if you cause damage. Some policies also come with additional living expenses coverage, which pays for hotel fees and restaurant meals if you were to get displaced from your home.

What is the best renters insurance company in Colorado?

There isn’t one insurance company that is the best option for every Colorado resident. Every insurance company has different strengths, like providing excellent customer service versus offering the most discounts, so it depends on what you’re looking for. Additionally, each provider will offer you a slightly different rate based on your unique circumstances, like your home’s location and your credit score. That’s why it’s important to shop around for multiple quotes before choosing a provider.

How can I save money on renters insurance?

There are a variety of ways to save money on your renters insurance policy. As you’re shopping around, visit the discounts page of each provider. Most companies offer savings if you bundle your policies, pay your premium in full, enroll in paperless billing, raise your deductible, install certain safety features in your home and raise your credit score.

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Freelancer Tax Guide

If you make a substantial amount of income as a contractor or freelancer, or if you freelance full time, you are required to declare that income in your 2019 tax return and make quarterly tax payments to the IRS.

“Freelance,” “self-employed” or “contractor” income is money made without being a full or part-time employee. In other words, it’s income you receive without the standard W-2 tax form associated with traditional employment. This means funds aren’t automatically withheld throughout the year by an employer to cover your tax burden.

Turbo Tax

H&R Block

TaxAct

Although many sources claim you don’t need to file freelance taxes if your tax burden would be less than $1,000. According to the IRS, contractors and freelancers are required to file an income tax return if net earnings from self-employment are $400 or more.

Using a freelance tax guide can help you file your 2019 taxes and better understand your tax burden as a contractor.

The forms you need for freelance taxes

The two tax forms you may already be aware of are the W-2 tax form, which is received through traditional employment, and the 1040 form, which is the standard U.S. Individual Income Tax Return.

As a freelancer, there are other tax forms needed to file in order to do taxes properly.

Form 1099-MISC

Also referred to as the Miscellaneous Income tax form, this is the tax form used to calculate tax liability as a freelancer. If you made all of your income through freelancing, it would all appear on this form. Otherwise, your income might be split between a 1099-MISC form and a W-2 form.

Businesses you did contract work for may also send you a 1099-MISC form. If you did contract work for multiple businesses, you’ll need to collect this form from each business.

Form 1099-K

If you received any payments through what’s known as a “payment settlement entity” or “PSE,” they should send you a 1099-K form. PSEs include third-party settlement organizations like PayPal and Stripe.

The 1099-K form is a statement of a reportable payment transaction. In some cases, a company or individual you did contract work for may not send you a 1099-MISC form and instead pay you via a PSE. If this is the case, you’ll need this document to report that income.

Form 1040-ES

This is the form you use to pay quarterly estimated taxes, which is an option some freelancers take to split up their taxes over four separate payments throughout the year. If you don’t want to fill out the form, you can also pay quarterly estimated taxes easily online through the IRS website.

Form W-9

If you did any freelance work for a business, you should have received a W-9 to fill out.  This is the official form used by third parties to obtain your name, address and taxpayer information. If a company asks you to fill out a W-9 form, it means they will report to the IRS that they paid you money for contract work.

What you can deduct in freelance taxes

As a freelancer and a self-employed person, the government recognizes you as a business entity whether you’ve incorporated yourself as a business or not. This means you can take certain business tax deductions that W-2 employees generally can’t.

Some of the most common tax deductions taken by freelancers include the following:

Home office costs

If you maintain an office at home, you can write off the cost of that office on your taxes. You’ll need to calculate the overall size of your home or apartment in relation to your home office, then calculate how much rent you pay specifically for the square footage of that office space. Using the Simplified Option, you’d deduct $5 per square foot of office space.

In order to take this deduction, your home office must only be used for business purposes. For example, if you typically work out of your living room, you can’t claim it as your home office because it’s used for other purposes.

Utilities

If you maintain a home office, you can calculate the utility costs for maintaining that office as well — but only that office space, not the rest of your home. Typical utility costs include gas, electricity, heating, air conditioning and phone service.

Professional development costs

If you took any classes or courses relevant to your freelance profession, you can deduct these expenses on your taxes.

Professional website costs

Costs related to your freelancing website are considered a business expense and can be deducted from your taxes.

Software costs

Any expenses associated with the software you use exclusively for your business can be deducted from your taxes.

Mileage and travel expenses

If you travel or drive to conduct business as a freelancer, you can write off the mileage on your taxes. The IRS issues standard mileage rates every year for this purpose.

Costs of forming a business

If you’ve incorporated your freelance business, you can write off the expenses of doing so on your taxes, as these are a legitimate business expense.

Naturally, you’ll want to write off as many expenses as you can. But it’s important to be truthful and accurate when making deductions. According to Suzanne Vanzant, Owner at Professional Public Accountants in Miami, Florida, freelancers have a tendency to inflate their deductions to avoid paying more taxes.

“There are markers and red flags the IRS looks for when evaluating the information presented to them on your tax return and they will take notice if the expenses are too high against the income,” Vanzant explains.

Self-employed people tend to be more vulnerable to audit than W-2 employees for this very reason.

How to file 2019 freelance taxes

If you’re a freelancer, you’ll need to file what most would consider a “complex” tax return. This means you likely won’t be able to use any free tax software if you want to declare your freelance income or take deductions.

It’s important to treat your freelance career as a business. For this reason, it may be a good idea to work with a tax professional so you can claim all relevant deductions and gain some protection against mistakes or an audit.

If you prefer to file taxes on your own, you can do so for free through the IRS website. Free tax filing software may be available to you if you made $69,000 or less over the course of the year. If you made more than this, you’ll need to file taxes by manually filling out forms, which means you’ll need to know how to fill out each form accurately. This can be risky for anyone who isn’t a tax preparer, as there are a lot of possibilities to make mistakes. You can also print out your relevant tax forms and mail them to the IRS.

In most cases, it’s safer — albeit more expensive — to use paid software or rely on a professional tax preparer if you received most or all of your income through freelancing.

Quarterly filing for freelance taxes

If you didn’t know about filing quarterly estimated taxes, you’re not alone.

“One of the most common mistakes I see independent contractors make is the failure to make estimated quarterly tax payments,” Vanzant says. “Failure to make estimated tax payments can ultimately end in an underpayment penalty on their taxes. We have a pay-as-you-go system and the IRS wants its money as you make your money.”

Generally, federal quarterly estimated taxes must be paid on the following dates:

• April 15^th
• June 15^th
• September 15^th
• January 15^th

However, you should check with the IRS each year and save the dates they post into your calendar.

If you only made under $400 freelancing throughout the entire year, you likely don’t need to report it. But any substantial sum you made over the course of the year must be reported to the IRS and requires you to pay accurate quarterly estimated taxes on it. Failure to pay quarterly taxes isn’t the only way you can earn a penalty. Vanzant reminds freelancers and contractors that if you underestimate the amount owed, or simply don’t make the payments at all, there will be a charged penalty.

Nonetheless, estimating quarterly taxes can be challenging. The best way to do it is to look at your previous years’ freelance tax liability and divide it by four. The IRS also provides a tax worksheet to help you do the calculations.

Unfortunately, there is no simple equation for calculating estimated taxes, as they depend on your deductions and the income you make. Many financial experts recommend you set aside between 25 and 30 percent of your income for taxes in a separate account throughout the year.

The bottom line

Filing taxes as a freelancer can be a headache, but once you understand your obligations, it gets easier year after year. It may be a good idea to work with a professional if you’re filing as a freelancer the first time. Doing so will give you some protection against mistakes and an audit, and you’ll be more likely to claim all relevant tax deductions.

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Dear Penny: How Do I Invest in My Grandchild With Little Savings?

Dear J.,

You’re a smitten new grandma. So it’s not surprising that you want to give the world to your family’s sweet new addition.

I’m a childless personal finance columnist. So it’s not surprising that I’m going to tell you that with credit card debt and not much money saved, you can’t afford to do that.

But I’m also realistic. I know that babies have a way of making people forget their own needs and invest everything they have in the promise they see in those adorable apple cheeks.

So I know the odds of you discarding this advice are high, but I’m going to give it anyway: Secure your own future before you invest in your granddaughter’s. Don’t do this for yourself. Think of this as an investment in her.

When your savings are sparse, one small, unexpected expected expense can throw your life into disarray. Credit card debt only increases the risks. You’re also not preparing for the very big and expected expense that is your own retirement. 

Who do you turn to in times of need? For many people, family is the starting place. That’s why so many adults are part of the “sandwich generation.” They’re raising kids of their own while also helping out their aging parents.

Of course, it’s a wonderful thing to have your parents around and to be able to help them out. But let’s not kid ourselves: It’s a financial strain for many. 

Every dollar that a parent spends on their own parent is a dollar they aren’t investing in their child’s future. So I think everyone will benefit if you focus on your own finances first. (And in the meantime, babysit! The value of your experienced and trusted caregiving cannot be overstated. Her parents need the help, I’m certain, and you and the baby will get the gift of each other’s time.) 

But I’m not saying you can’t spend a cent on your granddaughter until you’re debt-free with six figures in the bank. (Like you’d listen to that!)

Instead, start small while you’re getting your own house together.Maybe you earmark $100 or so in your budget for your granddaughter on her birthday and holidays. Try setting a goal for where you want your savings to be at the end of 2020, and tell yourself that if you hit that target, you’ll give yourself permission to begin a nest egg for her. 

Assuming you want to invest in her education, a 529 savings plan is often the best way. If your son or daughter opens one on her behalf, you can contribute to it. Otherwise, you could open one and name your granddaughter as the beneficiary.

The money you invest will grow tax-free. As long as the money is used for costs the IRS considers qualified educational purposes, like college tuition, supplies, and room and board, withdrawals are tax-free as well. (While 529 plans have traditionally been used for college savings, you can now withdraw up to $10,000 tax-free for K-12 private school tuition.)

Many brokerages will let you open one with a minimum deposit of as little as $15 or $25. You could let other family members know about the account in case they’d also like to gift small amounts for special occasions.

If you want to set aside money for more than just your granddaughter’s education, you could opt for a good, old-fashioned high-yield savings account. You don’t say anything about the finances of your granddaughter’s parents. But kids have a way of costing more than their parents ever expected. 

So if you think her parents might struggle to pay for expenses like child care, diapers or health care, a no-frills savings account could be a valuable lifeline.

While you asked how to invest money for your granddaughter’s future, I hope you realize that money isn’t the only thing you have to give — or even the most valuable. The time you spend with her is priceless —  both for the bond you two form and the support that lends, by extension, to her parents.

Robin Hartill is a senior editor at The Penny Hoarder and the voice behind Dear Penny. Send your questions about saving money to AskPenny@thepennyhoarder.com.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Thomas Cook prepaid travel cards to close

Thomas Cook prepaid travel cards to close

Mastercard has announced that Thomas Cook’s range of currency cards will stop working on 6 April.

Emma Lunn Fri, 01/31/2020 - 09:18

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Thomas Cook's travel card range consisted of the Lyk card, Thomas Cook Multi-Currency Cash Passport, Thomas Cook Single Currency Cash Passport and the Co-operative Travel Cash Passport.

The cards have continued to work as normal since Thomas Cook’s collapse in September 2019 but Mastercard has announced that cardholders won’t be able to use their cards, or reload them, after 6 April 2020. However, they will have until 6 April 2026 to redeem their cash from Mastercard.

The prepaid cards were issued by Wirecard and provided by Mastercard but part of the Thomas Cook brand.

Cardholders should claim any cash on their cards as soon as possible as each card has a £2 monthly inactivity fee if it's not used for 15 months.

Cash can be reclaimed through your online account or you can call Mastercard's card services on 0800 023 2098. You should receive your money within three to five days of cashing out.

The currency will be returned to you in pounds, at the Thomas Cook exchange rate on the day. This means you could get less cash back if you originally loaded the currency when the exchange rate was better.

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Lloyds Bank, Halifax and Bank of Scotland are closing 56 branches – check if yours is one of them

Lloyds Bank, Halifax and Bank of Scotland are closing 56 branches – check if yours is one of them

The decision raises further concerns about the impact of branch closures on elderly and vulnerable customers

Stephen Little Thu, 01/30/2020 - 16:09

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Lloyds Banking Group has announced it is axing 56 branches of Lloyds, Halifax and Bank of Scotland. 

The group says it is closing 31 Lloyds, 10 Halifax and 15 Bank of Scotland branches between April and October 2020.

The Lloyds group has closed over 400 branches since 2014 when it began a round of cost-cutting.

The closures are expected to result in under 80 job losses with many of the staff expected to be redeployed into other branches.

A spokesperson from Lloyds Banking Group says: “We are committed to having the largest branch network in the UK and, in addition to our branches, all our customers can also use the Post Office to access their banking locally, alongside our mobile branches which visit many rural communities.

“This is in response to changing customer behaviours and the reduced number of transactions being made in branches.”

The decision will raise further concerns about the impact of closures on the elderly and the vulnerable.

When banks close, elderly and disabled customers often struggle to access vital financial services, with those in rural areas the worst affected.

Banks argue that branch closures are necessary as customers are increasingly doing their banking on the internet or over the phone.

Jenny Ross, Which? money editor, says: “The loss of yet more branches to an already devastated network will hit communities across the UK hard, as there is still a clear demand for access to traditional banking services and cash.”

Full list of branches closing

Lloyds

Acomb

Bath Oldfield Park

Belvedere

Bournemouth West Southbourne

Blaby

Bristol Downend

Bristol Hanham

Calne

Cheadle (Cheshire)

Cobham Surrey

Colwyn Bay

Cowbridge

Dursley

East Dulwich

Gerrards Cross

Hayle

Holmfirth

Leeds Moortown

London Blackheath

Malmesbury

Market Rasen

Moreton

Mumbles Swansea

Newcastle-upon-Tyne Haymarket

Nottingham Aspley

Portchester

Reddish

Scunthorpe Ashby

Upton-by-Chester

Wickham Hants

Worcester St Johns

Halifax

Billericay

Boscombe

Hull Holderness Rd

Knaresborough

Locks Heath

Marlow

Reading Lower Earley

Southsea

Stoke Newington

Whitton

Bank of Scotland

Auchterarder

Balfron

Edinburgh Dalry Road

Edinburgh Greenside

Edinburgh Liberton

Edinburgh Tollcross

Galston

Grantown-on-Spey

Huntly

Killin

Kinross

Livingston

Loanhead

Tullos

Turriff

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UK households have been overcharged on energy bills for seven years, says watchdog

UK households have been overcharged on energy bills for seven years, says watchdog

Customers have overpaid by £800 million because Ofgem was not tough enough on energy network companies

Stephen Little Thu, 01/30/2020 - 11:11

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UK households have been overpaying on their electricity for the past seven years because the regulator has allowed electricity companies to make bigger than expected profits, the government spending watchdog says.

A report from the National Audit Office (NAO) published today has found that British homes and businesses have overpaid by at least £800 million over the last seven years.

It says that while the electricity network companies have provided a good service, the cost to consumers has been greater than it should have been.

The NAO says that the energy regulator Ofgem allowed some companies to set performance targets too low and cost budgets too high.

The regulator also overestimated how much money shareholders would need to incentivise them to invest in network companies.

This means that around £130 a year of a typical household’s annual electricity bill goes towards the running and maintaining of the networks.

Gareth Davies, the head of the NAO, says: “Ofgem’s regulation of electricity networks has delivered good service performance but higher than necessary costs for consumers.

“Its approach to price controls used insufficiently demanding targets and the eight-year price control period meant a longer wait before these targets could be reset.”   

Price controls

Ofgem introduced a price control framework known as RIIO in 2013 to ensure consumers are provided with a reliable service and not overcharged.

Under the current spending rules, networks are given an allowance to run and invest in their systems. If they spend less, they can keep half and return half to their customers.

On average, networks expect to spend 3% less than their allowance until RIIO-1 ends in 2021.

One company, National Grid Energy Transmission, is forecasting an underspend of 22%.

The NAO says that since this was introduced the electricity networks have seen returns of 9%, around 4% higher than the average UK company. Of this, 1.5% came from rewards for exceeding performance targets.

The NAO says targets for this scheme were fixed too far in advance, meaning networks were already exceeding their targets before RIIO-1 started.

It estimates that this has cost consumers at least £800 million.

Ofgem says that it is cracking down on network profits with the next round of price controls in 2021.

Akshay Kaul, Ofgem’s director of network price controls, says: “We acknowledge that the overall costs to consumers to date have turned out to be higher than they needed to be.

“That’s why our tough new round of price controls will lower returns to save consumers money, whilst pushing companies to go further on decarbonisation and ensuring we retain one of the world’s most reliable energy systems.” 

Citizens Advice estimated in 2017 that gas and electricity networks have overcharged consumers by £7.5 billion.

Gillian Guy, chief executive of Citizens Advice, says the report is further evidence that energy networks have enjoyed a major windfall at the expense of consumers.

She says: “Ofgem has made good progress towards a tougher settlement next time around. The regulator must hold its nerve, resist the efforts of networks to water down its proposals and deliver a price control that works for consumers.”

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Mis-sold Wonga customers will only get 4.3p back for every £1 they are owed

Mis-sold Wonga customers will only get 4.3p back for every £1 they are owed

People mis-sold loans by payday lender Wonga have been told they’ll only receive 4.3% of their compensation claim.

Emma Lunn Thu, 01/30/2020 - 10:12

Wonga’s administrators have started writing to the firm’s unsecured creditors stating the amount of compensation they will receive for mis-sold loans.

Administrators Grant Thornton said they would be paying a “first and final dividend” totalling £23,090,071.32, representing 4.3p in the pound on agreed creditor claims of £535,636,017.75.

A statement on Wonga.com said: “This is being communicated to all successful creditors on 29 January and payment of the dividend will be completed within a four-week period thereafter. Please note that the dividend you will receive will be significantly smaller than your claim amount.”

Wonga went into administration in August 2018 after a raft of mis-selling complaints. About 390,000 customers had an outstanding complaint about being mis-sold an unaffordable loan – such as one they couldn’t repay without falling further into debt or getting behind on bills.

It was decided that if a loan was unaffordable, customers could complain and receive compensation – called “redress” – from the administrators. The redress is a refund of the interest and charges on the loan plus 8% statutory interest.

But because complainants are treated as unsecured creditors of the firm, they only receive redress once all the secured creditors and Wonga’s staff have been paid what they are owed from the firm’s coffers.

The deadline to submit a claim was 30 September when Grant Thornton said it had received about 390,000 claims for refunds with a total value of about £460 million – equating to about £1,200 per claim.

Claimants were warned they would get "significantly less" than full compensation, but few expected to get so little. A typical £1,200 claim will result in a payout of just £51.60.

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12 Free YouTube Channels to Binge

Last week, I wrote about our experiences over the last year after canceling our cable service. We’ve essentially moved on to a small rotating selection of streaming video services which, along with our antenna, meets our video needs.

One element of that article that seemed to intrigue a few readers is our family’s use of YouTube. I mentioned that there are several YouTube channels that we watch and sometimes even binge-watch. A few of them are probably familiar to longtime Simple Dollar readers, in fact.

Here’s the issue: YouTube can sometimes be a “needle in a haystack” challenge when it comes to discovering quality content. There are a lot of mediocre videos on YouTube, along with some downright bad ones. The trick with YouTube is to discover a few channels producing videos regularly that you really enjoy and get value out of and subscribe to them.

Here are 12 channels we subscribe to in our house. We use the YouTube app on our Roku device and, every once in awhile, tune in to one of these channels and watch several videos in a row. Some of these channels are ones I watch solo, occasionally while eating lunch. Other ones get watched as a family.

All of these channels are completely free. I find each one of them enjoyable and sometimes binge-worthy, and the value I get from them is actually higher than the value I got from our cable package over the last few years.

CGP Grey focuses on short explanatory videos on a wide variety of subjects.

CGP Grey’s channel centers around short explanatory videos, usually animated but often mixed with graphs and other supporting information, on a wide variety of topics. The videos are sometimes interconnected, usually in collections of two or three videos, and sometimes completely standalone.

For me, enjoyment of this channel comes from the variety of topics and the consistently solid job that Grey does in explaining them, with just enough humor, self-deprecation and tongue-in-cheek perspective to keep things light even when the subject being tackled is difficult.

Binging with Babish centers on fairly complex home cooking with a wonderful dose of humor.

I’ll be honest: I haven’t actually made a whole lot of the dishes presented on this channel because, although they look amazingly delicious, many of them are very time-consuming. I have made a few, but what I really pull out of “Binging with Babish” are specific ideas to improve things I already make.

However, what really makes the channel work is the host’s sense of humor and the pacing of the videos. The videos are paced so that you’re not stuck on a particular technique for longer than the time needed to explain it well (or get in a quick joke). Rather, they move right along to the next step at a nice pace. The humor is present throughout, but it never gets in the way of presenting the techniques or dishes. It’s just well-executed.

Kurzgesagt features beautifully animated videos on science, technology, politics, philosophy and psychology.

“Kurzgesagt” is a series of very well-animated videos that provide wonderful simple explanations of topics that might otherwise be very complex. The topics tend to hew close to science, technology and philosophical material, but it does such a great job of taking something that seems really complex and making it approachable. This is aided by the absolutely wonderful high-quality animation style of the videos.

Something I really appreciate about Kurzgesagt videos is that they’re very well-sourced with additional information if I want to know more about anything in the video. More than once, I’ve gone down a rather deep rabbit hole of ideas as a result of something described in one of their videos.

Bon Appétit includes several different series on various food and home cooking topics, often with a wonderful tongue-in-cheek attitude.

The Bon Appétit YouTube channel is actually a mix of several different ongoing programs on various food topics, each with a distinctive set of hosts and with a different angle. Somehow, almost all of those shows work individually, yet they complement each other well. It’s aided by a great sense of humor and a consistent goal — at least from my perspective — of trying to deconstruct foods down to basic elements and techniques that you can pull out of the videos.

I actually like almost all of the individual “shows” on this channel, but if I had to pick one standout, it would be Claire Saffitz’s ongoing series in which she attempts to make gourmet versions of junk food, like pizza rolls. She picks apart what’s good and what’s bad about particular junk food items, then figures out how to make versions that accentuate the good and minimize the bad, explaining everything clearly, all with a great sense of humor.

Marques Brownlee presents wonderfully insightful reviews of technology products, often with a very critical eye on small details.

Marques Brownlee is hands down the best reviewer of tech products I’ve ever seen. His channel is filled with beautifully-filmed videos examining technology products in detail along with other related tech topics. I’ll be honest — most of the stuff he looks at are items that I would honestly never buy. It’s his approach to reviewing that pulls me in.

Why watch if I’m not interested in buying the items? For me, it’s the eye for detail and the willingness to criticize and identify problems and tradeoffs. Brownlee simply sees things that I don’t and then manages to make those things very clear through words and video. I walk away from his videos with a better way of evaluating tech products, which will help me in making my own decisions later on if I do decide to buy something. That, to me, is what a truly great review and critic does. I genuinely feel like Marques Brownlee would be an incredible person to have in a product design lab — you know, if he wasn’t making a boatload of money off of his excellent YouTube videos.

Shut Up and Sit Down presents insightful tabletop game reviews, often intermeshed with well-executed skits.

“Shut Up and Sit Down” is a channel focused on board game reviews, using humor, simple skits, and very good analogies and explanations to not only explain what’s good and bad about a particular board game, but also delves into why those elements are good and bad.

I tend to see the channel as more of a celebration of what’s actually good about tabletop games in general: the social aspects, decision-making involved, the pieces themselves and the pure fun of a shared experience. I’ve been in the hobby long enough that I sometimes don’t agree with “Shut Up and Sit Down’s” takes, but I do appreciate the passion of it, not just for the individual games reviewed but for the experience of playing analog games as a whole.

TED offers short presentations by speakers on an enormous variety of subjects.

Most of us are familiar with TEDTalks at this point. An expert in some particular area gives a short talk — 10 minutes or so — on some interesting or relevant aspect of that area of expertise to a live audience.

The TED Talks Youtube channel is simply a collection of these talks, with new ones added roughly five times a week. I tune in solely for the variety; some of them won’t click, but sometimes they’ll shake my thinking and get me to dig into a new topic in depth.

Talks @ Google also offers spoken presentations on a wide variety of subjects, often a bit longer and more in depth.

Talks @ Google is essentially the same as the TED Talks channel, listed above, except that the talks are closer to an hour rather than ten minutes. These also cover cover a very wide array of topics, just with more depth in each topic.

I’ll admit that because of the sheer volume of videos on this channel, I do tend to be more selective about the ones I watch, skipping a fair percentage of them. They’re all good, don’t get me wrong, but the amount of content is simply beyond what I have time for. It’s a wonderful channel to browse, pick, and choose from.

Pro Home Cooks offers wonderful videos on specific food topics, particularly fermented foods, sandwiches, and many other dishes.

This channel, formerly known as Brothers Green, did more than perhaps anything else to inspire my love of making fermented foods at home, something that has developed into a real hobby of mine. I love making homemade sourdough bread, fermented pickles, sauerkraut, and all kinds of things along those lines.

It was the calm and clear yet joyous and fun approach of these videos that really drew me in and made me want to try making these things. For me, this channel has almost definitely resulted in more at-home projects and activity than any other.

Coach Daniel offers incredibly well-done commentary on basketball, making in-depth basketball strategy approachable.

I’m not the biggest televised sports fan. I enjoy going to live baseball games and I sometimes listen to them via streaming audio when I’m doing something else. I enjoy watching live soccer, too, and I’ll watch some World Cup games. The one sport I follow closely at all these days is basketball, and I’ll be honest: Coach Daniel is a big part of why.

The videos on this channel just click with me, dissecting what’s going on in a basketball game in an understandable and approachable way. He manages to bring a lot of depth to a casual fan watching basketball, vastly increasing my appreciation for what players are doing on defense and what they’re doing away from the ball. Sometimes, things get even more fascinating the more you look at them. Coach Daniel does that for me for basketball.

NPR Music offers a series of short concerts from an enormous variety of musicians.

I often turn on the NPR Music channel when I’m doing something on the main floor and simply want to explore a variety of music. The channel is almost entirely an endless series of short concerts filmed in the NPR offices, where the musicians play just three or four songs each, with some explanation between songs as to what they’re about.

This channel has introduced me to more new music that I’ve loved over the last several years than, well, everything else I can think of combined. Yeah, I often hear stuff on there that I appreciate but doesn’t click with me, but the sheer variety of performances exposes me to all kinds of genres and all kinds of artists, leading me to appreciate music I would have never heard before.

I love discovering new channels, but I keep coming back to these.

I definitely check out different channels, and my family members have different tastes and watch a lot of different channels that don’t click with me at all, but these twelve consistently draw me back in, time after time.

It’s likely that many — or even most — of these won’t click with you, but I’m almost positive that one or two will, and if you’re considering cutting cable, those channels are free resources that will nudge you even more towards canceling that service.

Good luck!

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The Cheapest Tennessee Renters Insurance Companies 2020

Renters insurance provides peace of mind when you need it the most. If a fire, theft, flood, tornado or other covered event destroys your possessions, renters insurance provides financial relief to replace these items. Given the volatile weather Tennessee can face, this protection is vital for Tennessee renters.

There are several components that make up renters insurance policies. The first is the personal property aspect. This covers items in your apartment such as your clothes, computer, mattress and furniture under a covered event.

Then there’s the personal liability feature. With this, you receive protection if a guest incurs injury in your apartment and has medical expenses as a result. Your policy covers these bills so you don’t have to worry about financial loss in a lawsuit.

Lastly, there is a loss-of-use coverage component. This takes effect if you cannot live in your apartment due to fire, flood, or other event and have to pay for a hotel, additional expenses for food, even parking.

So, how much renter’s insurance do you need? This depends on the estimated value of your possessions and your landlord’s requirements (if they have any.) If you own more items, you might consider bumping up your personal liability amount.

Now that you know more about renter’s insurance, here are some of the best providers in the state.

Find the Best Renter Insurance

Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Best renters insurance companies in Tennessee

When searching for the best Tennessee renters insurance companies, compare a variety of factors such as the company’s reputation, its financial strength, how well it processes claims and customers’ overall satisfaction with a company. With this in mind, here are the top renter’s insurance providers in the state:

• Allstate: Allstate is an excellent option for seniors and others who seek a reputable, inexpensive provider. Allstate has several discounts and coverage options to help you customize your plan.
• Esurance: Esurance is a simple option for people who need basic coverage. It also has a few add-on options such as sewer or drain backup, replacement cost and earthquake coverage.
• Nationwide: Nationwide made the list thanks to its outstanding reputation for being “on your side.” Renters insurance through this company is affordable.
• State Farm: State Farm charted a similar course. The provider earned a five out of five with J.D. Power, showing a high-level of satisfaction among all its customers. State Farm also provides some of the cheapest rates for renters insurance. You could pay less than $15 monthly (depending on how much coverage you require.)
• USAA: USAA continues to be the best for military families, as the company offers unparalleled service, excellent rates and a wide selection of policy choices.

	J.D. Power rating	AM Best rating	BBB rating
Allstate	2 out of 5	A+	A+
Esurance	Not rated	A+	A-
Nationwide	2 out of 5	A+	A+
State Farm	5 out of 5	A++	A+
USAA	5 out of 5	A++	Not rated

As you can imagine, insurance needs vary based on age groups. With this in mind, here are some of the best renters insurance companies for certain people.

The best Tennessee renters insurance for college students: Esurance

Esurance is a no-frills option that helps you fulfill your landlord requirements. It offers some of the cheapest policies for renters insurance with monthly costs averaging $15.

The best Tennessee renters insurance for customer service reputation: State Farm

If you want to go with a provider that has an outstanding reputation, State Farm is an excellent fit for you. It earned top marks in the J.D. Power customer satisfaction survey. In fact, State Farm is one of the only providers who earned five out of five stars. It also offers affordable rates, especially if you bundle multiple policies with the provider.

The best Tennessee renters insurance for seniors: Allstate or USAA

This is a tie between Allstate and USAA. If you or a family member have been in the military, there’s no better option than USAA. It’s among the least expensive providers on all things insurance, and the customer service is exceptional. Meanwhile, Allstate has an excellent reputation (it earns an A+ rating with the Better Business Bureau), and it offers some of the lowest rates for seniors (depending on where you live and how much personal property coverage you require.)

Frequently asked questions

How much renters insurance do I need in Tennessee?

How much insurance you needs depends on how much coverage you need for personal property and any requirements your landlord imposes Most policies come with $100,000 of protection for the dwelling and $10-$15,000 in personal property, but you might want to opt for more if you have expensive equipment such as cameras, computers or collectibles.

What’s the best renters insurance company in Tennessee?

State Farm is a smart option to choose because it has the highest customer satisfaction rating, according to J.D. Power. It also offers generous discounts if you bundle your renters insurance with other policies (auto, life, etc.) from State Farm. That said, because people have different insurance needs, you might find that a different option is the best company for your circumstances.

What do you look for in a renters insurance company?

Some of the factors you want to examine are the provider’s reputation, customer satisfaction and financial strength. You can research the company’s reputation through the Better Business Bureau, which assigns a grade based in part on how well a provider resolves customer issues. J.D. Power’s customer satisfaction survey is a great resource to use to learn more about customer reviews, while a provider’s AM Best rating indicates the financial strength of the company and its ability to pay out claims.

How do you file a claim?

Many insurance providers allow you to file claims through its website or app. You have to register online to set up an account (this normally takes 3-5 minutes) or you can call the customer service number and choose the prompt to begin your claim.

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Assurant Renters Insurance Review 2020

Assurant renters insurance comes with two types of coverage: personal property coverage and personal liability coverage. It also offers extra protection from pet damage, identity fraud expense, earthquakes (only in Washington State and California) and involuntary unemployment if you lose your job.

Assurant is known for below-average customer service, and there aren’t many discounts available, like from some of its competitors. That said, if you have car insurance through Geico, you can bundle your Geico policy with your Assurant renters insurance and get a 3% discount on your car insurance policy. Still, your monthly premium on your car insurance would need to be over $400 for this discount to offset the price you’ll pay for your Assurant policy.

Find the Best Renter Insurance

Enter your ZIP code below and be sure to click at least 2-3 companies to find the very best rate.

Price	Rates include: $12.67/month; $50,000 liability; $250 deductible $13.00/month; $100,000 liability $14.34/month; $300,000 liability Replacement cost is included in quotes. You can pay monthly, quarterly or annually (best value). For more specific details, get a quote from Assurant.
Best for	Someone who wants specialty coverage
Not for	Someone who picks insurance based on customer reviews
States served	All 50 states and Washington, DC
Discounts	Multi-policy
AM Best Rating	A
Standout features	Long list of specialty coverages

The specs

Assurant offers two renters insurance policies: “Protect your belongings” or “Just cover the basics.” Pricing below is based on coverage for an apartment in California with specialized coverage for an earthquake.

The claim

Assurant makes a few standout statements concerning its renters insurance.

You can add your roommate to your policy. That way, you share the cost of your coverage for personal belongings and liability.

Assurant includes several types of coverage that you’d probably pay extra for, and it also offers options you won’t usually find from competitors.

Is it true?

1. Yes. Your roommates are covered by Assurant renters insurance at no additional cost. The Better Business Bureau (BBB) gives Assurant Group an A+ rating.

2. Yes. Assurant renters insurance includes coverage for:

• Fire
• Theft
• Smoke
• Aircraft
• Vehicles
• Lightning
• Freezing
• Explosion
• Vandalism
• Pipe bursts
• Power surge
• Windstorm or hail
• Riot or civil commotion
• Volcanic eruption
• Ice, snow or sleet
• Cracked AC, water or heating system
• Earthquakes
• Pet damage
• Food spoilage
• Bed bugs
• Floods
• Falling objects

Competitors don’t always consider some of these items.

Our deep dive

Because Assurant’s focus is on rental insurance rather than all other insurance, it can offer inviting optional coverages that few other insurance carriers provide. It also has low deductible plans that are also somewhat uncommon.

Assurant’s renters insurance coverage is in line with competing companies with a few notable add-ons, and it also gives you the flexibility to customize the limits of your policy.

Assurant renters insurance protects your belongings from a standard set of perils:

• Theft
• Smoke
• Burst pipes
• Explosions
• Fire and lightning
• Windstorm and hail
• Vandalism and malicious mischief

Also, renters can supplement their policy with optional coverages for an additional fee:

• Replacement cost coverage that will pay for the full replacement cost of an item.
• Sewer backups that cover damage to your property as a result of a clogged sewer or drain.
• Pet damage coverage to repair or replace any items your furry friend damages
• Rent insurance in case you lose your job and can’t pay your rent for a month or more.
• Identity fraud coverage that will pay all costs you incur as a result of identity theft or fraud.
• Earthquake coverage that pays for damage to your property (only available in Washington State and California).

Cost rundown

Assurant renters insurance has lower-than average deductible options, ranging from $250 to $500. The coverages come with options between $5,000 and $95,000, which are equally as flexible. Renters can get personal liability coverage for up to $300,000. Renters who choose to take advantage of Assurant’s unemployment insurance option can receive a maximum of $500 a month for up to two months.

The main discounts you get with Assurant is through the payment plan you choose. But you will get the best rate by paying for your coverage in full, making four quarterly payments or bundling with your Geico car insurance policy.

Cheaper alternatives

When compared to other companies that offer renters insurance, Assurant was consistently higher. For example, this are rates for coverage for a single 32-year old female, living in an apartment in Chicago with one pet.

	Allstate	Assurant	State Farm
Deductible	$500	$500	$500
Coverage	30,000	30,000	30,000
Yearly cost	$212	$307	$136

Both State Farm and Allstate offer a discount to bundle your renters and your car insurance policies. Assurant offers a discount if you bundle your Geico car insurance with your renters insurance.

The competition

Both State Farm and Allstate are competitors of Assurant, and both offer lower rates for the same coverage as Assurant. Lemonade also provides renters insurance for as little as $5 per month. Assurant does offer a deductible as low as $100. The lowest deductible offered by Lemonade is $250. 

State Farm’s lowest deductible is $1,000. A low deductible provides a few advantages to renters. First, if you make a claim, you typically get a bigger check. For instance, if you had a fire in your apartment and you lose $3000 worth of your belongings, Assurant will pay you $2,900, whereas State Farm will only pay $2,000.

Discounts can also add up. Like all three insurance carriers, American Family offers one of the highest discounts on renters insurance–30% if you bundle your policy with other insurance plans from the company.

J.D. Power & Associates gives State Farm five stars for overall satisfaction, policy offerings, price, the billing process and interaction. It gives Allstate two stars for overall satisfaction, cost, billing process and interaction, three stars for policy offerings and five stars for claims. American Family gets five stars across the board, as does USAA insurance. Assurant isn’t listed.

AM gives Assurant it’s Best “A” rating for an insurer’s ability to meet its financial obligations to its customers.

What others are saying

For customer service, Assurant has mixed reviews for making a claim or contacting a provider. Renters also said they had trouble canceling a policy, which can’t be done online. According to Consumer Affairs, Assurant renters insurance has an overall satisfaction rating of 1 ½ stars based on 112 ratings submitted in the last year.

On the Better Business Bureau, Assurant receives 1 star based on 114 customer reviews.

The bottom line

Assurant has affordable basic and add-on coverage in all 50 states and Washington, DC. It offers a usable and comprehensive website with a great deal of information. Coverage and pricing meet most every renters needs with specialty coverage available for a price. Assurant doesn’t offer any discounts other than the small discount for bundling your renters insurance with Geico car insurance. Compared to the 30% discount given by American Family, the 3% bundling discount is small.

Assurant also falls short when it comes to pleasing its customers, with more complaints than praises across the board. It’s also more expensive than the companies we compared. But if you want extra coverage in case your pet eats your sofa or unemployment protection in case you lose your job, Assurant can help, whereas its competitors may leave you hanging.

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