Best Homeowners Insurance in Michigan (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
Michigan homeowners get the best overall rate for home insurance with Citizens Insurance Group of the Midwest, at an average of $1,004 a year.
State Farm is the most popular home insurance company in Michigan, and Frankenmuth has the lowest complaint rate.
Michigan’s cheapest home insurance companies
Citizens Insurance Group of the Midwest (CIGM) has the cheapest homeowners insurance rate in Michigan, with an average of $1,004 a year. AAA is next at $1,904 a year.
To compare, the average home insurance rate in Michigan is $2,467 a year.
Cheapest home insurance companies in Michigan
| Company | Average annual rate |
|---|---|
| CIGM | $1,004 |
| AAA | $1,904 |
| USAA* | $2,156 |
| State Farm | $2,259 |
| Great Northern | $2,464 |
| Frankenmuth | $2,676 |
| Farmers | $4,803 |
Best homeowners insurance companies in Michigan
CIGM, State Farm, Frankenmuth and USAA are the best home insurance companies in Michigan based on cost, customer satisfaction and other factors.
| Company | Average annual rate | Overall satisfaction (higher is better) | Complaint index (lower is better) |
|---|---|---|---|
| Best overall: CIGM | $1,004 | NA | 0.83 (below average) |
| Most popular: State Farm | $2,259 | 873 (above average) | 1.69 (above average) |
| Lowest complaint rating: Frankenmuth | $2,676 | NA | 0.18 (below average) |
| Best for military families: USAA | $2,156 | 899 (above average) | 2.26 (poor) |
Sources: J.D. Power’s 2024 Property Claims Satisfaction Study and 2022 complaint data from the National Association of Insurance Commissioners (NAIC).
Best overall: CIGM
CIGM provides the best combination of cost and customer satisfaction in Michigan. Its average home insurance rate of $1,004 a year is less than half the state average rate of $2,467.
CIGM’s NAIC Complaint Index of 0.83, which reflects its claim-based complaints compared to similar-sized insurers, is well under the national average rating of 1.0.
| Pros | Cons |
|---|---|
Lowest average rate in Michigan Below-average complaint index Easy claim filing | No local offices |
Most popular: State Farm
State Farm has a 9.2% market share for property and casualty insurance in the U.S., according to the National Association of Insurance Commissioners (NAIC). This is the highest share of the insurers we surveyed in Michigan.
J.D. Power gave State Farm an above-average rating of 873 out of 1,000 for overall customer satisfaction in its 2024 Property Claims Satisfaction Study. The average satisfaction rating is 869.
| Pros | Cons |
|---|---|
Average rate below state average High customer satisfaction rating Good discounts | High complaint rating |
Best complaint rate: Frankenmuth
Frankenmuth has the lowest complaint rate of the Michigan insurance companies we surveyed, at 0.18. This is well below the average NAIC Complaint Index of 1.0.
| Pros | Cons |
|---|---|
Good complaint resolution | Average home insurance rate higher than state average No online insurance quotes |
Best for military members: USAA
USAA offers home insurance perks tailor-made for military members. This includes coverage of personal property damaged by an act of war and coverage of military uniforms with no deductible.
| Pros | Cons |
|---|---|
Coverage especially for Armed Forces members Below-average home insurance rate Excellent customer satisfaction and complaint ratings | Only available to active duty and retired military, as well as their families No assigned agents |
Cost of home insurance in Michigan
The average cost of homeowners insurance in Michigan is $2,467 a year. This is 12% less than the national average of $2,801.
Home insurers use many different factors when calculating your quote, including:
- Your ZIP code
- Construction materials used to build your home
- Age of home
- Your claim history
- Policy coverage limits and deductibles
- Discounts
While home insurance policy offerings tend to be similar from company to company, they rarely cost the same. This is because home insurance companies weigh rate and risk factors differently. One company may see the age of your home as a higher risk than another company, for example.
To get the best home insurance coverage for your needs at the cheapest price, compare home insurance quotes from several companies.
Home insurance rates by coverage amounts
The dwelling coverage limit you choose affects your home insurance quote. For example, there’s a $618 cost difference between a $350,000 and a $450,000 home insurance policy in Michigan.
Home insurance cost by dwelling coverage limit
| Coverage amount | Average annual rate |
|---|---|
| $350,000 | $2,146 |
| $400,000 | $2,467 |
| $450,000 | $2,764 |
When choosing your dwelling coverage limit, make sure it equals the replacement value of your home in the event of a total loss. This is usually less than your home’s market value.
Michigan home insurance rates by city
Of Michigan’s 15 most populated cities, Ann Arbor has the lowest average home insurance rate of $1,742. Detroit has the state’s highest average rate of $5,018 a year.
Home insurance rates by city
| City | Average annual rate |
|---|---|
| Ann Arbor | $1,742 |
| Carleton | $2,506 |
| Dearborn | $3,290 |
| Detroit | $5,018 |
| Farmington Hills | $2,429 |
| Flint | $3,809 |
| Grand Rapids | $1,967 |
| Lansing | $1,939 |
| Livonia | $2,365 |
| Rochester | $2,173 |
| Sterling | $2,204 |
| Troy | $2,187 |
| Warren | $3,262 |
| Westland | $2,833 |
| Wyoming | $1,947 |
Methodology
The rates shown in this article are based on non-binding quotes collected from Quadrant Information Services. Your rates may vary. Average rates were compiled from rates in Michigan. The following coverages and deductible were used unless otherwise noted:
- $400,000 dwelling coverage
- $40,000 other structures
- $200,000 personal property
- $80,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible
*USAA is only available to active duty and veteran military members and their families.