Allstate has the cheapest home insurance rates for Michigan homeowners, followed by Auto Club. Michigan's home insurance premiums are higher than the national average. This makes finding the best combination of policy price and coverage important. We put together this guide to help give you a clear overview of the best companies to consider.
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The cheapest home insurance companies in Michigan
Allstate has the most affordable home insurance in Michigan, with an average rate of $86 a month. Auto Club is the next-cheapest at $99 a month.
| Company | Monthly rate |
|---|---|
| Allstate | $86 |
| Auto Club | $99 |
| Frankenmuth | $128 |
| USAA | $131 |
| Farmers | $248 |
| Hanover | $317 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
How much does home insurance cost in Michigan?
Michigan homeowners pay an average of $168 a month for home insurance. This is 6% higher than the national average home insurance rate of $159 a month.
When calculating your homeowners insurance quote, providers look at various factors. These include:
- Age of the home
- Your ZIP code
- Construction materials
- Your insurance claim history
Coverage points in a standard home insurance policy are usually the same from insurer to insurer. Why the differences in policy price, then? This comes down to how insurance companies gauge the different risk calculation factors. One insurer may consider the age of your home to be a greater risk than another insurer and raise your rate accordingly because of it. To make sure you're getting the best coverage for your dollar, compare quotes from several different home insurers.
See how much you could save on home insurance
The deductible you choose for your home insurance policy will also influence your rate. In most cases, the higher your deductible, the lower your premium. The table below shows how different providers' rates change with different deductible amounts.
| Company | $500 | $1,000 | $1,500 | $2,000 |
|---|---|---|---|---|
| Allstate | $94 | $86 | $78 | $76 |
| Auto Club | $108 | $99 | $93 | $89 |
| Farmers | $256 | $248 | $241 | $231 |
| Frankenmuth | $151 | $128 | $125 | $118 |
| Hanover | $334 | $317 | $304 | $292 |
| USAA | $140 | $131 | $119 | $119 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Depending on the age of your home, you may be able to save money on home insurance costs by changing your deductible. If your home is newer, or you've had newer systems installed, consider going with a high deductible to lower your premium throughout the year. If your home is older, however, it could be more feasible to go with a lower deductible.
The amount of dwelling coverage you choose can also affect your rate. As a rule, you want to purchase enough dwelling coverage to rebuild your house if you experience a total loss. The table below shows how the home insurance rates of different providers in Michigan change with higher dwelling coverage amounts.
| Company | $200,000 | $350,000 | $425,000 | $500,000 |
|---|---|---|---|---|
| Allstate | $68 | $102 | $120 | $137 |
| Auto Club | $78 | $131 | $159 | $189 |
| Farmers | $193 | $292 | $360 | $441 |
| Frankenmuth | $106 | $160 | $212 | $268 |
| Hanover | $268 | $344 | $396 | $448 |
| USAA | $109 | $152 | $172 | $191 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Michigan's best home insurance companies
We found Allstate and Auto Club to be Michigan's best home insurance companies. Here's why:
Allstate: Cheapest rates and best discounts
Allstate's average home insurance in Michigan is $86 a month, 49% cheaper than Michigan's average rate. This is due in part to the wide range of discounts it offers policyholders. These include:
- Welcome and loyalty discount: You can get a discount of up to 10% off your premium that remains for as long as you carry your homeowners insurance policy with Allstate.
- Early signing discount: Save up to 10% off your premium by getting an Allstate home insurance policy at least seven days before the expiration of your current policy.
- Claim-free discount: If you sign on with Allstate with no recent claims on your insurance history, it can result in up to 20% off your annual premium.
- Multi-policy discount: Bundling your home insurance with an Allstate car or life insurance policy can help you save up to 25% off your annual insurance costs.
Auto Club: Best combination of cheap rates and customer satisfaction
Auto Club has an average home insurance rate in Michigan of $99 a month, 38% cheaper than the average state premium.
On top of low rates, Auto Club also has a good reputation for customer satisfaction. J.D. Power gave Auto Club a rating of 817 out of 1,000 in its 2022 U.S. home insurance study for overall customer satisfaction. This is the highest rating of the providers we looked at in this study.
Furthermore, Auto Club currently has a rating of .007 in the NAIC Complaint Index, which measures the number of complaints an insurer receives relative to its size. The national average is 1.0, and the lower the index rating, the better.
Michigan's cheapest home insurance by city and county
In looking at five of Michigan's biggest cities, Grand Rapids gets the lowest home insurance rates with Allstate, with an average of $67 a month. Lansing has the second-cheapest rate with Allstate at $70 a month.
| Company | Ann Arbor | Dearborn | Detroit | Grand Rapids | Lansing |
|---|---|---|---|---|---|
| Allstate | $76 | $127 | $137 | $67 | $70 |
| Hanover | $283 | $276 | $416 | $292 | $267 |
| Farmers | $143 | $435 | $790 | $176 | $164 |
| Frankenmuth | $93 | $179 | $262 | $109 | $101 |
| Auto Club | $80 | $104 | $174 | $71 | $82 |
| USAA | $115 | $153 | $180 | $123 | $124 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |||||
Get cheap homeowners insurance in Michigan
Looking at five of Michigan's largest counties, Ingham County gets the cheapest average rates with Allstate at $71 a month. Kent County has the second-cheapest premium, also with Allstate, at $72 on average.
| Company | Genesee | Ingham | Kalamazoo | Kent | Livingston |
|---|---|---|---|---|---|
| Allstate | $103 | $71 | $80 | $72 | $77 |
| Hanover | $361 | $284 | $282 | $299 | $300 |
| Farmers | $417 | $166 | $170 | $170 | $162 |
| Frankenmuth | $165 | $101 | $103 | $105 | $108 |
| Auto Club | $121 | $79 | $100 | $74 | $94 |
| USAA | $134 | $121 | $120 | $124 | $123 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |||||
Michigan home insurance: FAQs
How much is home insurance in Michigan?
Michigan's average home insurance rate is $171 a month. This is 6% higher than the national average rate of $159 a month.
What home insurance company has the cheapest rates in Michigan?
Allstate has the cheapest home insurance rate in Michigan, at an average of $86 a month.
Why is Michigan home insurance so expensive?
Floods are not uncommon in Michigan due to heavy rains. Flooding can do significant damage to a home, hence the higher risk and higher homeowners insurance rates. Flooding is not covered by any home insurance policy; however, you can purchase flood insurance through the FEMA-backed National Flood Insurance Program (NFIP).
Furthermore, Michigan experiences an average of 15 tornadoes a year. This danger also increases home insurance premiums.
Methodology
We collected quotes from every ZIP code in Michigan for a standard HO-3 homeowners insurance policy using the following coverages:
- $275,000 dwelling coverage (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
Sources:
Home insurance by city
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