Best Cheap Home Insurance In Michigan (from $94 a month)

On average, your neighbors pay $143 a month.

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Compare Michigan's Best, Cheapest Home Insurance Companies

The average cost of homeowners insurance in Michigan is $1,710 a year, according to our study. Auto Club offers the cheapest annual rate, $1,122, in the Great Lakes State.

Michigan's long, cold winters and vulnerability to extreme weather present home insurance concerns. We reviewed the top companies in the state to help you find the best insurer and rate. This article covers:

Average cost of homeowners insurance in Michigan

The average annual cost of home insurance in Michigan is $1,710, but the price varies significantly among companies. We've seen annual premiums as low as $1,122. When shopping around, you can compare your rate with the average rate of another insurer. Here are the cheapest insurance companies we found in Michigan:

Cheapest home insurance companies in Michigan
Company Yearly rate
Auto Club $1,122
Frankemuth $1,221
USAA $1,410
State Farm $1,566
Michigan average $1,710
Allstate $2,016
Farmers $2,239
Farm Bureau $2,397
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Compare quotes from Michigan's cheapest home insurance companies.

Your home insurance deductible is the amount you pay out of pocket when you file a claim, and it affects your annual rate. Your premium will be higher if you have a lower deductible. In Michigan, increasing your deductible from $500 to $2,000 saves you about $300 a month.

 

The dwelling coverage amount also affects your annual rate. You should have enough dwelling coverage to rebuild your home if it is completely destroyed. Doubling your dwelling coverage from $150,000 to $300,000 increases your monthly rate by over 50% in Michigan.

 

Best home insurance companies in Michigan

The rates highlighted above are statewide averages, and price is only one consideration when choosing an insurer. The best home insurance company for you depends on additional factors, such as coverages and claims experience. We picked the best companies in Michigan, each for a different reason. Here are our choices:

State Farm: best value

State Farm's fair rates, claims experience and widespread accessibility make it QuoteWizard's choice for the best value in Michigan. State Farm is the largest provider of home insurance policies both in Michigan and the U.S. Its size means that you should be able to find an agent close to you, which is especially important if you value face-to-face interaction.

Home insurance rates from State Farm tend to be in the middle of the pack. We found that State Farm has an average annual rate of $1,566, which is $144 less than the state average.

The lower price doesn't come at the expense of customer service. State Farm had a National Association of Insurance Commissioners (NAIC) Complaint Index of 0.74 in 2020. That means that it received less complaints relative to its share of the market than what is expected.

Most insurance companies offer discounts for bundling policies and making your home safer, and State Farm is no different. For instance, State Farm says bundling homeowners and auto insurance can save up to $965 a year.

Auto Club: cheapest rates

If you're after an affordable option, then consider Auto Club. Our study found that the company has the cheapest home insurance in Michigan, offering homeowners insurance almost $600 less than the state average.

Auto Club had a NAIC Complaint Index of 0.68 in 2020, which means the company received fewer complaints than other insurers, after adjusting for market share.

USAA: best for military service members and their families

USAA provides home insurance to active military members, veterans and their families. It offers fair rates, with an annual average of $1,410 in Michigan — that's $300 below the state average.

Overall, USAA customers are satisfied with the company. USAA received a rating of 889 out of 1,000 in J.D. Power’s 2020 U.S. Home Insurance Study. USAA's customer service and financial backing make it a logical one-stop shop for qualifying members, as the company offers a number of financial services, including bank accounts, auto insurance and personal loans.

Home insurance rates in Michigan by city

We found that out of the 10 biggest cities in Michigan, Ann Arbor had the cheapest home insurance rates of $1,338 a year. Detroit, on the other hand, had the highest annual rate, $4,402.

Home insurance rates in Michigan by city
City Yearly rate
Ann Arbor $1,338
Dearborn $2,642
Detroit $4,402
Flint $3,295
Grand Rapids $1,522
Lansing $1,558
Livonia $1,675
Sterling Heights $1,771
Troy $1,560
Warren $2,381
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Home insurance rates in Michigan by county

Out of the 10 biggest counties in Michigan, Ottawa had the cheapest home insurance rates of $1,401 a year. Wayne, the most populated county in Michigan, had the highest annual rate, $2,883.

Michigan county home insurance rates
County Yearly rate
Genesee $2,251
Ingham $1,529
Kalamazoo $1,589
Kent $1,484
Macomb $1,772
Oakland $1,770
Ottawa $1,401
Saginaw $1,980
Washtenaw $1,507
Wayne $2,883
Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Biggest home insurance companies in Michigan

Here are some of the biggest home insurers in Michigan by number of policies written. Also included is the NAIC complaint index, which shows how many complaints an insurer gets. The lower the score, the better.

Company Market share NAIC Complaint Index
State Farm 13.8% 0.74
Allstate 3.5% 1.0
USAA 2.1% 0.73
Farmers 1.6% 0.57
Auto-Owners 1.4% 0.41
Liberty Mutual 1.1% 0.11
Note: Market share and NAIC complaint index from NAIC’s 2020 reports.

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