Key Takeaways
- Allstate is the cheapest provider in Detroit, charging $1,644 a year, on average.
- Detroit’s average home insurance cost is $3,915 a year — almost double the statewide average of $2,017.
- Auto Club is another affordable provider, charging an average $2,082 a year.
In this article
Average home insurance rates in Detroit
The average home insurance rate in Detroit is $3,915 a year, or $326 a month.
Statewide, homeowners pay an average of $2,017 a year — or $158 less per month.
Several factors can affect your annual home insurance premiums, including:
- Your home’s location.
- Your home’s age and construction style.
- Your insurance claim history.
- The cost of rebuilding your home.
Your coverage costs will also vary based on your home insurance deductible amount and how much dwelling coverage you need. Usually, a smaller deductible will result in higher premiums:
| Deductible | Annual premium |
|---|---|
| $500 | $4,190 |
| $1,000 | $3,915 |
| $1,500 | $3,747 |
| $2,000 | $3,598 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
And, as the chart below shows, homeowners who need more dwelling coverage will typically pay more:
| Dwelling coverage amount | Annual premium |
|---|---|
| $200,000 | $3,126 |
| $275,000 | $3,915 |
| $350,000 | $4,603 |
| $425,000 | $5,607 |
| $500,000 | $6,768 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
To get your best rate for the coverage you need, compare home insurance quotes from a number of companies.
Cheapest home insurance companies in Detroit
Allstate is the cheapest home insurance provider in Detroit, charging an average annual rate of $1,644.
Auto Club has the city’s second-cheapest average, with an annual cost of $2,082.
| Insurance company | Annual premium |
|---|---|
| Allstate | $1,644 |
| Auto Club | $2,082 |
| USAA | $2,159* |
| Frankenmuth | $3,144 |
| The Hanover | $4,987 |
| Farmers | $9,474 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *Only available to current/former military and their families. | |
See how much you could save with a new home insurance policy
Detroit's best home insurance companies
We found Allstate and Auto Club to be the best insurance companies in Detroit. Here’s why:
Best rates: Allstate
Allstate has the city’s cheapest rates, charging an average of just $1,644 a month. The company also offers a wide range of discounts for customers, including:
- Multi-policy discount: Up to 25% for bundling home and auto coverage.
- Responsible payment discount: Savings for paying from a reliable source, like escrow.
- Claim-free discount: Up to 20% for switching to Allstate without a recent claim.
Best customer service: Auto Club
Auto Club leads the way in customer satisfaction, scoring the highest of all available providers on the J.D. Power satisfaction score index.
What’s more, the company also offers the city’s second-cheapest home insurance rates. The average Auto Club policy runs $2,082 a year, which is nearly $2,000 less than the citywide average.
Customer service ratings for Detroit home insurance companies
In terms of J.D. Power score, Auto Club leads the way, with a customer satisfaction rating of 817. On the NAIC Complaint Index, Auto Club is ranked second-highest, but The Hanover tops the list with a score of 0.08.
J.D. Power’s customer satisfaction scores are based on customer surveys that rate home insurers on interaction, policy offerings, price, billing process, policy information and claims. Higher scores are better than lower ones.
| Insurance company | Overall satisfaction score |
|---|---|
| Farmers | 792 |
| Allstate | 815 |
| Auto Club | 817 |
| Frankenmuth | Not included |
| The Hanover | Not included |
| USAA | 884* |
| Source: J.D. Power 2022 U.S. Home Insurance Study. *Brand is not rank eligible because it does not meet study award criteria. | |
The NAIC Complaint Index compares insurance companies by confirmed complaints. A company with a 2.0 Complaint Index rating has twice as many confirmed complaints as expected for its size. A 0.5 rating reflects half as many as expected.
| Insurance company | Overall satisfaction score |
|---|---|
| The Hanover | 0.08 |
| Auto Club | 0.19 |
| Frankenmuth | 0.30 |
| USAA | 0.37 |
| Farmers | 0.39 |
| Allstate | 0.52 |
| Source: National Association of Insurance Commissioners (2022 data) | |
Home insurance risks in Detroit
Detroit experiences a number of weather events that can be a risk to homeowners. Thankfully, many of them — thunderstorms, tornadoes and winter storms — cause damage that is generally covered by most home insurance policies.
For homeowners, the biggest risk from these storms is flooding, which is fairly common in Detroit and is usually not covered by standard insurance policies.
Flood insurance in Detroit
Although flood insurance isn’t covered under homeowners insurance, you can purchase a separate policy to protect your home in the event of flood damage.
If you live in a high-risk flood zone, lenders may require you to obtain a flood insurance policy.
Frequently asked questions
The average cost of home insurance in Detroit is $3,915 a year, or $326 a month.
Allstate is the cheapest home insurance company in Detroit. For most drivers, Auto Club and Frankenmuth are the next-best options.
Michigan does not require homeowners to obtain an insurance policy. However, most lenders do, so if you have a mortgage you’ll likely need to get it.
Methodology
We collected quotes from every ZIP code in Detroit, Michigan, for a standard HO-3 homeowners insurance policy 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)
Home insurance by city
- Detroit
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