Allstate and USAA's average home insurance rates are cheaper than the Michigan average rate.Allstate comes in at $130 a month on average for home insurance, and USAA comes in at $160 a month. Knowing what coverage offerings Detroit's most popular home insurers provide can help you get the best homeowners insurance at the cheapest quote.
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What are Detroit's cheapest home insurance companies?
Detroit homeowners get their most affordable home insurance with Allstate, at $130 a month. USAA is the city's second-cheapest home insurer at $160 a month.
It should be noted that USAA only provides home insurance for currently serving military and veterans, as well as their families.
For non-military, the second-cheapest home insurance provider in Detroit is State Farm, at $188 a month.
How much is homeowners insurance in Detroit?
The average cost of home insurance in Detroit is $184 a month. This is 43% higher than the average Michigan home insurance rate of $129 a month.
|Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.|
Your final home insurance rate is based on various factors, including:
- Your ZIP code
- Age of your home
- Construction materials used
- Your insurance claim history
A standard homeowners insurance policy's coverage offerings differ very little from insurer to insurer. Why is there such a difference in cost then? The reason is that different home insurance providers gauge risk factors, such as the ones noted above, differently. For example, one company may put more weight on the age of your home as a risk factor than another. This results in different rates. This is why comparing quotes from multiple home insurance providers is in your best interest.
Find the best home insurance for you in Detroit
The deductible you choose will also affect your final home insurance rate. The higher your deductible, the lower your premium is.
Detroit's best home insurance companies
We found Allstate, USAA and State Farm to be the best home insurers in Detroit. Here's why:
Allstate: Best customer service
On top of having the lowest average home insurance rate in Detroit of $130 a month, Allstate also comes in first for customer satisfaction. Allstate currently has a rating of 0.76 on the National Association of Insurance Commissioners' (NAIC) Complaint Index, the lowest rating of the most popular insurers in Detroit. The index is based on a home insurance company's record of resolving various claim-oriented issues, such as payout and claim resolution time. The average national complaint index rating is 1.0. The lower an insurer's index, the better. This puts Allstate in a very strong position.
USAA: Best for military
USAA has the second-cheapest home insurance rate in Detroit, with an average of $160 a month. Also, if you are a currently serving or veteran military member, USAA offers an excellent combination of cost and coverage.
USAA is considered the "best of the best" among insurance companies. In J.D. Power's 2021 U.S. Home Insurance Study, USAA received a score of 882 out of 1,000, the best of any home insurer in the study. USAA isn't officially ranked in the study due its limited client base, otherwise it'd be at the top of the study.
State Farm: Most popular
Even though it has the third-lowest rates for home insurance in Detroit at $188 a month, State Farm currently holds 8.78% of the home insurance market share, according to the NAIC's Property and Casualty Insurance Industry 2021 Market Share Report. This makes it the most popular home insurance company in Detroit.
State Farm tends to be very popular nationwide. A large part of this is because of its reputation for excellent insurance claims resolution and satisfaction. J.D. Power gave State Farm an above-average ranking of 876 out of 1,000 in its 2022 U.S. Property Claims Satisfaction Study, the highest ranking among Detroit home insurance providers.
We collected quotes from every ZIP code in Detroit from the following home insurance companies:
- Great Northern
- State Farm
Average rates for a standard HO-3 homeowners insurance policy we calculated using the following coverages:
- $275,000 dwelling (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
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