Updated: February 1, 2026
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Auto-Owners offers Michigan's lowest home insurance rates at $400 annually, 82% below the state average of $2,222.
Location affects premiums. Auto-Owners charges Detroit residents $577, but Ahmeek homeowners just $261.
Compare quotes from multiple insurers, ask about discounts and bundle policies to find savings on your home insurance.
Michigan homeowners pay an average of $2,195 annually for home insurance. You can save over 82% by choosing the right insurer.
Auto-Owners is the cheapest home insurance company in Michigan at $400 annually. Chubb follows at $1,808, and State Farm provides accessible policies at $1,956 through its extensive agent network.
| Auto-Owners Insurance | 5.00 | $400 | -82% |
| Chubb | 4.50 | $1,808 | -18% |
| State Farm | 4.45 | $1,956 | -11% |
| USAA | 4.44 | $1,970 | -10% |
| Farmers | 4.41 | $2,063 | -6% |
*These rates are based on a house built in 2000 with $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and a $1,000 deductible. We assumed good credit and no claims in the past five years.
Price matters when choosing home insurance, but customer service and coverage options affect your claims experience. Our separate guide to the best home insurance companies in Michigan compares insurers across multiple factors beyond cost.
Your home's value affects your insurance costs more than any other factor. A $100,000 home in Michigan costs less to insure than a $1 million property. Auto-Owners offers the lowest rates across all coverage levels. The table below shows the cheapest insurers for your dwelling coverage amount.
| Auto-Owners Insurance | $27 | $321 |
| Chubb | $62 | $749 |
| Farmers | $88 | $1,057 |
| State Farm | $88 | $1,061 |
| USAA | $96 | $1,148 |
Your city affects your home insurance rates due to local crime rates, weather risks and construction costs. Auto-Owners charges Detroit residents $577 annually, while Ahmeek homeowners pay just $261 for identical coverage. Auto-Owners offers the lowest rates in all nine cities we analyzed. Compare insurers in your area below.
| Progressive | $115 | $1,378 |
| USAA | $145 | $1,736 |
| Auto-Owners Insurance | $22 | $261 |
| Farmers | $78 | $932 |
| Allstate | $133 | $1,590 |
Your personal profile affects your home insurance rates as much as your property details. Credit score and claims history create the largest rate differences among Michigan homeowners.
Insurers use credit scores to predict claim likelihood, which affects your premium by hundreds of dollars annually. Auto-Owners offers the lowest rates across all credit tiers in Michigan.
| Auto-Owners Insurance | $104 | $1,244 |
| Farmers | $167 | $2,005 |
| USAA | $190 | $2,278 |
| State Farm | $194 | $2,326 |
| Progressive | $214 | $2,567 |
Filing claims increases your premiums, but the rate increase varies by insurer. Auto-Owners maintains the lowest rates for Michigan homeowners regardless of claims history.
| Auto-Owners Insurance | $39 | $464 |
| Chubb | $175 | $2,095 |
| State Farm | $189 | $2,268 |
| USAA | $190 | $2,283 |
| Farmers | $199 | $2,392 |
Finding affordable home insurance in Michigan takes effort, but you can lower your costs. Here's how to save on your policy.
Decide on your coverage limits before shopping to avoid buying more than you need. Understand dwelling coverage, personal property limits and liability protection to get adequate coverage without overpaying.
Compare quotes from at least three insurers for identical coverage levels. Michigan home insurance rates vary by hundreds of dollars annually between companies, even for the same home and profile. Gather quotes online, through agents and directly from insurers to find your best rate.
Save 15% to 25% by bundling your home insurance with auto coverage. Most Michigan insurers offer multi-policy discounts that reduce both premiums.
Ask agents about every discount you qualify for, as insurers won't apply them automatically. Common Michigan discounts include protective device discounts for monitored alarm systems (5% to 20% savings), claims-free discounts and new home discounts. Wind and hail-resistant roofing can lower your premium.
Michigan allows credit-based insurance scoring, so improving your credit can lower your rates. Pay bills on time and reduce credit card balances to see premium reductions at your next renewal.
Auto-Owners leads Michigan for affordable home insurance at $400 annually, but your best rate depends on your home's value, location and personal profile. Compare quotes from at least three insurers to find the best cost and coverage for your needs. Start with the companies on our list and ask about available discounts to maximize your savings.
Get answers to common questions about affordable home insurance in Michigan.
Older homes cost more to insure due to outdated electrical, plumbing and roofing systems. Lower your premium by updating these systems and providing documentation to your insurer. Replacing knob-and-tube wiring, updating your roof and installing a modern HVAC system can reduce your rates. Some insurers offer renovation discounts when you complete major updates.
Roof age affects your premium and coverage eligibility. Most Michigan insurers charge higher rates for roofs over 15 years old, and some won't cover roofs over 20 years without inspection. A new roof can lower your premium and qualify you for discounts. Insurers provide actual cash value coverage instead of replacement cost for older roofs, paying less when you file claims.
Some dog breeds increase your liability premium or disqualify you from coverage entirely. Insurers consider pit bulls, Rottweilers, German shepherds and Dobermans high-risk breeds. You'll pay more for liability coverage with these breeds, and some insurers won't cover you at all. Disclose your dog when applying, as hiding this information can lead to claim denials.
Michigan doesn't require flood insurance unless you have a federally backed mortgage in a high-risk flood zone. Standard home insurance doesn't cover flood damage, so you need separate flood insurance through the National Flood Insurance Program or private insurers.
MoneyGeek analyzed Michigan rates to identify which companies offer the lowest premiums for homeowners across the state.
We gathered quotes from major insurers through Quadrant Information Services for a standard Michigan home profile. The data shows which companies price competitively for typical homeowners.
Sample Home Profile
We gathered quotes using these specifications to represent a common Michigan homeowner:
This profile reflects a moderately valued home with a clean claims history. Newer homes (built after 1990) get better rates than older properties with outdated electrical and plumbing systems. The $1,000 deductible balances affordable premiums with reasonable out-of-pocket costs when filing claims.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
