Find the Cheapest Homeowners Insurance Quotes in Your Area
ValuePenguin researched insurance quotes for a sample 2,000 square foot home in 103 cities in the state of Michigan in order to determine which cities had the highest and lowest annual home insurance costs. Based on this sample property, Michigan homeowners pay on average $1,409 per year for home insurance. Our research shows that there are significant price differences between home insurance rates in different cities. Below we profile several cities in the state of Michigan and discuss our research findings. Read more below, or use our quote tool above to start finding the best homeowners insurance quotes.
- Cheapest Homeowners Insurance Companies
- Homeowners Insurance Rates in Michigan's Largest Cities
- Top 5 Best Cities for Home Insurance In Michigan
- Top 5 Most Expensive Cities for Home Insurance in Michigan
- Best Homeowners Insurance Companies in Michigan
- Do Michigan Homeowners Need Flood Insurance?
Cheapest Homeowners Insurance Companies in Michigan
We obtained quotes for our sample $200,000 house across 103 cities from State Farm, Allstate, Liberty Mutual and Farmers. We averaged quotes from each company across the 103 cities to find which companies had the most affordable homeowners insurance rates in Michigan. The graph below shows the average annual premiums for our sample 2,000 square foot home by company:
Find the Cheapest Homeowners Insurance Quotes in Your Area
Homeowners Insurance Rates in Michigan's Largest Cities
Our researchers evaluated homeowners insurance rates across the cities with the highest population in Michigan. Our study implemented constant variables to gather quotes that can be compared to one another. On average, the homeowners in the ten largest cities pay 33% more than the rest of the state on homeowners insurance. The average cost of insuring our sample home in these regions was $1,877 per year.
Detroit is the most populous city in the state of Michigan and the largest American city situated near the U.S.-Canada border. Detroit rose to prominence as a key manufacturing center for the American automotive industry. Detroit has been listed as the most unsafe city in the state of Michigan, which contributes to the high homeowners insurance rates in the area. Average home insurance costs in Detroit were found to be $3,923 per year, which is 178% more expensive than the state average.
Annual costs for home insurance vary widely by provider. If you're looking for cheap homeowners insurance in Detroit, we suggest starting with Liberty Mutual. They quoted an annual rate of $560 for homeowners insurance in Detroit, which provides $1,783 in savings over State Farm, the next cheapest option. Detroit ranked as the most expensive city for homeowners insurance of all the 103 cities in the research study.
Grand Rapids, MI
Grand Rapids is the second largest city in the state of Michigan. Plaster mining was the first industry established in Grand Rapids. The city would eventually evolve with lumber becoming a major export in the late 19th century, which led to Grand Rapids being dubbed “Furniture City”. Homeowners in Grand Rapids pay $1,010 for home insurance annually, on average. Home insurance rates in Grand Rapids are 28% lower than the state average.
Home insurance premiums in Grand Rapids vary widely by provider. Liberty Mutual quoted the best home insurance rate at $415 annually and Allstate quoted the highest at $1,391. Grand Rapids has the second most affordable home insurance rates in the state of Michigan.
Warren is the third largest city in the state of Michigan with an approximate population of 134,000. Warren is home to the General Motors Technical Center, which is listed on the National Register of Historic Places. Intersect 696 bisects the city and runs west to east. Based on our study, the average homeowners insurance quote in the city was $1,668. This figure represents an 18% premium when compared to the state average.
Liberty Mutual quoted the best home insurance rate in the city at $616 annually. State Farm offers the next cheapest quote, which is $731 more when compared to the quote offered by Liberty Mutual. Residents of Warren pay $259 more than the state average for home insurance.
Sterling Heights, MI
Sterling Heights is the fourth largest city in the state of Michigan. Sterling Heights is situated approximately 18 miles from Anchor Bay. The average annual home insurance cost in Sterling Heights was $1,277 per year, which is 9% lower than the state average.
Liberty Mutual quoted the most affordable home insurance rate in the city with an annual cost of $639. The average resident pays $132 less for home insurance when compared to the state average. Farmers offered the most expensive quote at $1,668 per year.
Lansing is the fifth largest city in the state and serves as the state capital. Lansing is named after the home village in New York of many early settlers to the area. The first capital of Michigan was initially Detroit, but was subsequently changed to Lansing in 1847. The city is situated approximately 90 miles northwest of Detroit. The average homeowners insurance rate in Lansing was $1,082, which is $327 less than the state average.
Allstate quoted the most expensive rate in Lansing at $1,850 annually. That is $1,339 more expensive than the quote of $511 provided by Liberty Mutual. On average, homeowners in Lansing save 23% on their home insurance when compared to the state mean.
Ann Arbor, MI
Ann Arbor is the sixth largest city in the state of Michigan with an approximate population of 114,000. The city is home to the University of Michigan, the region’s oldest university. The average home insurance quote for our sample home in Ann Arbor was $1,088, which is 23% more affordable than the state average.
Liberty Mutual quoted the best home insurance rate at $612 per year. The highest rate of $1,511 was offered by Allstate, which represents an $899 increase from the lowest rate provided by Liberty Mutual. Ann Arbor is the ninth most affordable city in the state of Michigan for home insurance.
Flint is the seventh largest city in the state. The city has deep ties to the auto industry, but was initially a major lumber producer for the area. Flint ranks as the second least affordable city for homeowners insurance in the state. Our study found that the average homeowners insurance premium in Flint was $2,987, which is $1,578 more than the state average.
Farmers offered the most expensive homeowners insurance quote in the city at $5,947. This is the second most expensive home insurance quote offered by any insurance company amongst the ten largest cities in the state. Liberty Mutual offered the lowest quote for our sample home at a cost of $758.
Dearborn is the eighth largest city in the state and the home of Henry Ford. Ford offered the city of Dearborn help with public sector projects. The population of Dearborn was positively impacted with the growth of the Ford Motor Company. We found the average annual home insurance cost to be $2,423. Dearborn’s home insurance costs are 72% more than the state average.
Home insurance rates offered in Dearborn vary by $3,046 amongst the companies in our study. The cheapest homeowners insurance rate in Dearborn was quoted by Liberty Mutual at $793 per year. The next most affordable option was quoted by State Farm at $2,207.
Livonia is the ninth largest city in the state. The city was once a city known for its farmland, but that changed in 1948 when General Ford Motors Corporation opened an automatic transmission plant in the area. This city has average homeowners insurance rates that are 1% lower than the state mean. Livonia residents pay on average $1,399 a year for homeowners insurance.
Liberty Mutual offered the best homeowners insurance quote in the city at a cost of $646. The second most affordable quote gathered was offered by State Farm at a cost of $1,208 annually. Farmers offered the most expensive quote at $2,097 per year, which is $1,451 more than Liberty Mutual.
Westland, the tenth largest city in the state of Michigan, was originally named Nankin Township. The name of the city was only changed after the establishment of the Westland Shopping Center. The average homeowners insurance rate in Westland was $1,911. The average annual rate for homeowners insurance in Westland was $502 higher than the state average of $1,409.
Farmers quoted the most expensive homeowners insurance rate in Westland at $3,900 annually. That is $3,145 more expensive than the quote provided by Liberty Mutual, the most affordable homeowners insurance quote in the area. Liberty Mutual quoted our sample home an annual home insurance rate of $755.
Least Expensive Homeowners Insurance in Michigan: by City
The graph below shows the five most affordable cities of all 103 cities which were part of this study. The cities are listed in order of average price starting with the lowest average home insurance quote and ascending. The figures listed in the graph represent the average home insurance rate in each city. Holland is the cheapest city in Michigan for homeowners insurance. Residents pay $990 annually on average, which is $419 lower than the state average.
Holland has the most affordable average home insurance quotes in the state of Michigan. The mean cost of home insurance in Holland was $990. This represents a discount of 30% when compared to the state average. Holland is the only city with an average quote below $1,000 in Michigan.
Grand Rapids, MI
Despite being the second largest city in the state, Grand Rapids offers affordable home insurance premiums. As previously mentioned, Grand Rapids is the second cheapest city in Michigan when it comes to homeowners insurance. The mean home insurance quote in the city was $1,010, which is 28% cheaper than the state average.
Niles ranks as the third most affordable city in Michigan for home insurance. The mean home insurance quote gathered for the city of Niles was $1,026, which is $383 less than the state average. On a percentage basis, this represents a 27% discount.
Bay City, MI
Bay City offers the fourth most affordable home insurance rates in the state of Michigan. Residents pay on average $1,044 per year, which is $365 less than the state average. The lowest rate in the city was offered by Liberty Mutual at $550.
Houghton is ranked the fifth least expensive city in Michigan for home insurance. On average, residents pay $1,071 for home insurance, which represents a 24% lower rate when compared to the state mean. On an annual basis, residents save $338 on homeowners insurance versus the state average.
Most Expensive Homeowners Insurance in Michigan: by City
The graph below displays the five most expensive cities for home insurance in Michigan of all 103 cities which were part of this study. The cities are listed in order of price starting with the highest average rate and descending. The figures listed represent the average home insurance rate in each city. The most expensive city for homeowners insurance was Detroit where our research found an average annual rate of $3,923, which is $2,514 higher than the state average.
Best Homeowners Insurance Companies in Michigan
In searching for the best insurance company in the Wolverine State, you should consider coverage features, financial stability, affordability and customer service. Focusing on customer service, we collected a list of the largest homeowners insurance companies and rated their customer service quality through the number of customer complaints. Using this metric, the top-rated homeowners insurance companies in Michigan are AAA, Hanover and Frankenmuth. The worst major insurance companies in Michigan by this standard are Farmers, Liberty Mutual and USAA. However, this doesn't mean these insurers have poor customer service. Policyholders in Michigan appear generally content with the service of the largest insurers in the state, with none of the 10 largest insurance groups having a customer complaint rate above the national median of 1.0.
Customer satisfaction is measured with a complaint ratio calculated by the National Association of Insurance Commissioners. The number of complaints is adjusted relative to the size of a company so that large insurers aren't disproportionately punished for more complaints. The scale has a median score of 1.0, with a lower complaint index indicating that customers are more likely to be happy with their service.
|Rank||Company||Market share||Complaint index|
|2||Auto-Owners Insurance Group||14.7%||0.43|
|3||Auto Club Insurance Association||14.1%||0|
|6||Michigan Farm Bureau||5.7%||0.41|
|8||Farmers Insurance (Foremost)||4%||0.61|
Michigan Homeowners Insurance Companies Reviews
We reviewed the five largest homeowners insurance companies in Michigan, based on market share: State Farm, Auto-Owners Insurance Group, Auto Club Insurance Association (also known as AAA), Allstate and Hanover. In reviewing the insurers, we focused on policy coverage and features, customer experience and financial stability.
The largest homeowners insurance provider in Michigan, State Farm distinguishes itself in the state through the number of additional coverage features it offers for its policies. If you're looking for an insurer that will cater to specific insurance coverage needs, State Farm is a solid choice.
Using State Farm's online quote tool, you can opt to include many of the optional coverage features you'll see offered by other insurers, such as water and sewer backup coverage and loss assessment coverage. However, State Farm can also add a variety of unique features if you request it from its agents in Michigan. For example, if you plan to rent out your home for part of the year, State Farm offers rare home rental coverage that will protect you from the property and liability risks of temporarily leasing your home.
From a customer service perspective, State Farm ranks in the upper half of Michigan's 10 biggest insurers with a complaint ratio far below the national median. State Farm home insurance rates in Michigan are competitive, too. Prices are close to the state average and are generally cheaper than other major names such as Allstate and Farmers.
From a financial stability perspective, there are few safer bets than State Farm. The company is rated "A++" by A.M. Best, its highest possible rating, for its financial condition and operational performance.
Auto-Owners Insurance Group
Auto-Owners insurance is the largest homeowners insurance company based in the state and it is headquartered in Lansing, Michigan. Auto-Owners is a solid option if you don't mind shopping for a homeowners insurance policy through agents.
One downside is that you won't be able to get an online quote for a home insurance policy from Auto-Owners. Auto-Owners works exclusively through independent insurance agents, and if you want to compare prices you'll have to contact one of them. Fortunately, Auto-Owners' website does provide a tool for finding local independent agents near you, and the use of agents can provide a personal touch to the process if you prefer comparing prices through a local expert rather than an online quote tool.
You'll have to talk to an Auto-Owners agent to find exactly what coverage you're eligible for, but the insurer does boast some competitive features you may not always see with other major companies. For instance, Auto-Owners offers a service line endorsement to cover damage to underground service lines caused by wear and tear or rust. And if you bought your home with cash or have finished paying off your mortgage you're in luck. Auto-Owners offers a mortgage-free discount for those who don't have a mortgage or line of credit on their homes.
A customer complaint ratio of 0.43 indicates Auto-Owners has much better customer service than the national median, though it still ranks behind the other four insurers on this list on that metric. From a financial strength perspective, Auto-Owners is as solid as it gets, receiving an "A++" from A.M. Best and putting the carrier on par with State Farm.
Also referred to as the Auto Club Insurance Association, AAA home insurance is only available for the association's members. Unfortunately, in Michigan you'll also have to be a member of AAA just to get a quote. If you're looking for a home insurance policy, we only recommend shopping with AAA if you're a member or plan on getting membership.
That said, if you do go with Auto Club you can expect a standard home insurance policy. AAA policies will include all the usual features you expect in a policy—such as dwelling and personal liability coverage—and a few optional coverage features like personal property replacement cost and identity theft coverage, which are generally commonplace for home insurers. AAA does offer some pricier packages called Protection Plus and Platinum Advantage that expand the scope of your coverage, increasing the coverage limits for valuable items and for living expenses if your home is rendered uninhabitable. However, these packages don't stand out among other major insurance companies in Michigan.
Where AAA really shines is its customer service. Its complaint ratio of zero is the lowest among the biggest insurance companies in Michigan. The Auto Club has excellent financial stability too, with an "A-" rating from A.M. Best, though this rating isn't as strong as some of the other best homeowners insurance companies in Michigan.
The fourth biggest insurer in Michigan by market share, Allstate generally won't offer you the most competitive rates, nor does it add value with interesting coverage features.
With an average quote 25% higher than the Michigan state average, Allstate offers some of the least competitive rates in our sample. You may be able to save on your base premium through its variety of discounts, but the available discount features are fairly common amongst the major insurers. Allstate does offer the convenience, however, of a comprehensive online quote tool that will let you adjust your coverage, add-ons and discounts to get an accurate final price. The one unique feature we saw in Allstate's Michigan offerings was its Claim RateGuard policy, an optional add-on that ensures your premiums won't rise just because you file one claim. This could be an option for you if you're risk-averse and worried about the impact claim could have on your premiums.
Allstate has a good customer complaint ratio (0.38), but it’s not as strong as AAA, Hanover or State Farm. With a financial strength rating of "A+" from A.M. Best, the insurer is in superior financial condition.
Hanover Insurance Group represents the fifth largest home insurance presence in Michigan, and it offers insurance in the state through Citizens Insurance Company of America, its Michigan subsidiary. With Hanover, you'll get both strong customer service and extensive coverage features.
Hanover's base homeowners insurance policy includes features that normally only come as optional add-ons with other insurers. For instance, Hanover offers a “waiver of deductible” feature for customers who buy more than one policy. This means that when a loss affects more than one property (such as both your home and your car) only the highest individual deductible will apply. This is particularly useful if a major disaster damages a large portion of your property. Another unique feature is extended dwelling replacement cost up to 125% of your coverage limits. This means if the cost of rebuilding your house exceeds your dwelling coverage limit up to 25%, you'll still be covered for the entire cost, minimizing the risk and uncertainty associated with picking limits for your policy.
Hanover has a customer complaint ratio of 0.11, making it second best among the top insurers in Michigan by that metric, so you'll likely be happy with your customer service, too. It receives a financial strength rating of "A" from A.M. Best, meaning it's in excellent financial condition though not as strong as State Farm, Auto-Owners or Allstate.
Do Michigan Homeowners Need Flood Insurance?
Flood damage is almost never covered under homeowners insurance policies. Michigan homeowners looking to cover their home and personal property against flood damage will have to purchase a separate flood insurance policy. The average cost of flood insurance in Michigan is $1,008 per year.
Purchasing flood insurance will only be required if either:
- Your lender requires it, or
- You live in an area designated as a Special Flood Hazard Area (SFHA) by the federal government and you have a mortgage from a from a federally regulated or insured lender.
Homeowners or prospective buyers can research their flood zone by entering their address into the FEMA Flood Map Service Center. We generally recommend it as extra security against the potential costs of flood damage, even if not you're mandated to purchase it.
If you live in a lower-risk flood zone, and your lender doesn't require you hold flood insurance, you won't have to purchase it. In fact, a miniscule amount of Michigan homeowners are covered against flood damage. Michigan has approximately 21,000 flood insurance policies in force versus over 2.7 million owner-occupied housing units. This means less than 1% of the state's homeowners have a flood insurance policy. By contrast, about 86% of them have a home insurance policy.
|Owner-occupied housing units||Home insurance policies in force (share of housing units)||Flood insurance policies in force (share of housing units)|
|2,760,156||2,366,079 (86%)||21,072 (0.8%)|
Even for those living in lower-risk flood zones, purchasing flood insurance for extra security is still recommended. Over 20% of flood insurance claims come from properties in moderate to lower-risk zones, so homeowners in lower-risk areas can still be vulnerable. And homeowners in moderate- to low-risk zones may qualify for a Preferred Risk Policy, a cheaper policy which can be purchased for $108 per year at its lowest coverage levels.
We studied 103 cities, spread out geographically all throughout Michigan. The sample home we looked at was built in the year 2000 and had 2,000 square feet. Quotes for the $200,000 home were obtained from State Farm, Allstate, Liberty Mutual and Farmers insurance companies. The rates were then averaged to arrive at a mean value for each city. To see an alphabetical list of all the cities included in the comparison analysis, please see below. We've displayed all cities from Adrian to Ypsilanti with the average annual cost of insurance for the benchmark property and how much each city costs relative to the statewide average.
|Rank||City||Average Insurance Rate||Cost Compared to Average|
|86||Grosse Pointe Farms||1,583||12%|
|58||Sault Sainte Marie||1,385||-2%|