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CheapRenters InsuranceMichiganThe Best and Cheapest Renters Insurance Companies in Michigan for 2023: Rankings, Reviews and Rates
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MoneyGeek rated the top renters insurance companies in Michigan to help you determine the best option for your needs at the lowest price. We evaluated affordability, financial strength and customer service in companies across Michigan to determine the best options.
CheapRenters InsuranceMichiganThe Cheapest Renters Insurance in Michigan
Cheap Renters Insurance Companies in Michigan
Cost is one of the most important considerations when choosing renters insurance. The two most affordable companies in Michigan besides USAA, which is only available to military members, veterans and their eligible family members for $7 per month, are Farmers and State Farm.
On average, a Farmers’ policy costs $198 per year, which is roughly $17 per month. A State Farm policy costs an average of $301 per year or $25 per month.
The average monthly premiums are based on quotes from multiple Michigan ZIP codes for a policy that covers $20,000 in personal property damage, $100,000 in liability coverage and a deductible of $500.
Personal Property Coverage:
$20,000
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Best Renters Insurance Companies in Michigan
With a MoneyGeek score of 100 out of 100, USAA is the best insurer for military families. However, earning a score of 82 out of 100, Farmers offers the best widely-available renters insurance in Michigan and provides quality service at affordable rates.
These findings were based on stability ratings from AM Best, customer service scores from J.D. Power and affordability. While some of these policies may not be cheap, their service quality ensures prompt support during times of need.
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USAA
Score:100
USAA received perfect scores in financial stability, affordability and customer service. That said, the insurer only offers renters insurance to current and former military members and their families. It offers valuable personal property insurance, which is uncommon.
More About USAA
USAA provides renters insurance to military members and their families in every state. The company offers seven add-on coverages, which equals the industry average. It also offers four discount opportunities, but this is less than the average across other insurers. The insurer offers collectibles and electronics coverage as well as a discount for having protective devices.
You can get a quick estimate on the insurer’s website, and you can use their tools to calculate how much you’ll have to pay for insurance and to manage your debt.
Read MoneyGeek's USAA renters Insurance Review2
Farmers
Score:82
Farmers received a high user satisfaction and financial stability score in Michigan, but its affordability score is relatively low. The company offers its policyholders more coverage for personal belongings of high-value with their scheduled personal property coverage.
More About Farmers
Farmers is available in 42 states across the country. Customers can get seven types of discounts from the company, which is higher than the industry average. Discount options include having multiple policies with the company, being claims-free, installing protective devices and more. Although Farmers also offers additional coverage options, it only offers three. This is less than the average offered by other insurers.
You can get instant quotes on the insurer’s website and use their app to manage your account as well. It’s even possible to pay your bill and file a claim online.
Read MoneyGeek's Farmers renters Insurance Review3
State Farm
Score:75
State Farm came in third in MoneyGeek’s analysis of the best renters insurance companies in Michigan. The insurer has high stability and user satisfaction scores but received average scores for affordability. State Farm offers its policyholders personal injury coverage, which is not commonly available.
More About State Farm
State Farm offers policies in all the states but provides limited coverage and discount options as compared to other insurers. It offers three coverage add-ons and two discount opportunities. This is lower than the industry norm. Only one of its add-ons is not common across other insurers, and all of its discounts are common.
You can apply for a policy on the insurer’s website. Additionally, once you set up your account, you can use their mobile app to set up automatic payments.
Read MoneyGeek's State Farm renters Insurance ReviewMONEYGEEK EXPERT TIP
Sometimes, choosing the best renters insurance policy means that you might pay a little extra money. Quality service is essential when it comes to dealing with stressful situations, such as when you are filing claims. Ultimately, paying more now may save you money in the long run.
Largest Renters Insurance Companies in Michigan
Choosing an insurer with a large market share can be a wise decision. Large companies are more financially stable than their smaller counterparts and are more likely to pay your claims. Typically, they also provide better customer service since they are more likely to invest in providing the best services.
Company | Market Share | |
|---|---|---|
1. | State Farm | 15.9% |
2. | Auto-Owners Insurance Co | 15.0% |
3. | AAA | 14.1% |
4. | Hanover | 8.8% |
5. | Allstate | 8.2% |
Average Cost of Renters Insurance in Michigan
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renters insurance is equal to the average.
At roughly $249 per year, the average cost of renters insurance in Michigan is $90 more than the national average.
These rates are based on a policy with a $500 deductible, property limits of $20,000 and liability limits of $100,000.
Your renters insurance premium rates depend, in part, on the value of your personal belongings. You can use MoneyGeek’s calculator to estimate your premiums based on how much your personal belongings are worth.
clothing
Total:
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It pays to compare renters insurance quotes from at least three insurers to get the best price. Our research determined that comparing quotes from multiple vendors may help you save as much as $18 every month for non-military families and up to $45 for military families.
What Factors Impact Renters Insurance Cost in Michigan
Your renters insurance rates are based on factors such as where you live, coverage type, how much you are willing to pay for your deductible and more. Remember these factors when you are looking for cheap renters insurance in Michigan.
Location
Your ZIP code influences your renters insurance rates. If your apartment is located in a neighborhood with high crime rates and severe weather, you might pay a higher rate.
Coverage Amount
Renters who want more insurance coverage pay a higher premium each month. Before purchasing insurance, assess your property and determine what it would cost to replace your possessions.
Deductible
Before an insurance company will provide you with reimbursement for a claim, you have to pay a certain amount out of your own pocket. This amount is called your deductible. Policies that require the renter to pay large deductibles often charge lower monthly premiums and vice versa.
Actual Cash Value (ACV) vs. Replacement Cost Value (RCV)
Insurance companies pay renters back using two methods. These include actual cash value (ACV) and replacement cost value (RCV). If your policy uses the ACV method, you will be reimbursed for the current value of your used items. With the RCV method, your insurance company will pay you for a similar new item of the same type and quality even if the damaged item was old. ACV policies are ideal for renters who want to save on their monthly premiums. RCV policies are more expensive but reimburse more if you make a claim.
Credit Score
Most insurance companies use your credit score to determine how likely you are to make a claim. Bad credit scores often pose a higher probability of filing claims. Michigan enacted a law in 2020 that bans insurers from using credit scores to determine premiums.
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Renters Insurance in Michigan: What You Need to Know
Purchasing renters insurance allows you to protect your property from damage at a low cost. Insurance is helpful if your assets get destroyed by fire, theft or certain severe weather conditions.
25.5% of Michigan’s population are renters and pay an average of $888 per month for rent. A standard renters policy with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500 costs an average of $249 per year. That means that renters pay $21 per month, which is 2.34% of Michigan’s average rent.
What Renters Insurance Typically Covers in Michigan
Before purchasing renters insurance, you should take the time to understand what is covered in each policy. Most providers in Michigan cover personal property, medical payments, personal liability and additional living expenses in their standard package. Some also provide additional coverage for identity theft and damage caused by severe weather conditions at an extra cost.
Renters insurance providers in Michigan may also cover damages caused by common natural disasters like hail and windstorms.
What Renters Insurance Typically Does Not Cover in Michigan
Be sure to go through the fine print of your renters insurance policy to understand what it covers. Consult your agent or customer support if you have any questions that need to be addressed.
While renters insurance providers offer coverage for many incidents, their policies do not cover all situations. Here are some events that may be excluded from your policy.
- EventDescription
Flooding
Most renters insurance companies in Michigan provide coverage for water damage caused by a water main or faulty pipes. However, they exclude floods resulting from natural disasters like hurricanes and rainstorms. Flooding is common in Michigan, so renters may want to look into a policy with the National Flood Insurance Program (NFIP).
Earthquake Damage
Earthquakes rarely occur in Michigan, but your policy likely wouldn’t protect your belongings if one were to happen.
Structural Damage
Although renters insurance covers personal property, it does not protect your rental’s structure. This is your landlord’s responsibility.
Roommate Property
If your renters insurance policy does not name your roommate as one of the policyholders, their property will not be covered.
Expensive Items
Valuable items such as gaming computers, jewelry and firearms are often left out by renters insurance companies. You may need to purchase additional coverage for them.
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If you’re still not sure whether renters insurance is the best option for you, you can learn more about what renters insurance includes. You can also check the Michigan Department of Insurance and Financial Services website to get more information about state laws on renters insurance and how you can file a claim and get timely help.
You can reach out to the state insurance department via their:
- Consumer helpline: 877-999-6442 (Mondays to Fridays between 8 a.m. and 5 p.m.)
- Fax number: 517-284-8837
- Email address: DIFSInfo@michigan.gov
- Street Address: 530 W. Allegan St., 7th Floor, Lansing, MI 48933
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FAQs About Renters Insurance in Michigan
When you are shopping for renters insurance in Michigan, it’s important to determine which insurer is right for your needs and budget. We’ve answered some of the most frequently asked questions about renters insurance in the state to help you find the best option for you.
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Renters Insurance in Michigan Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from three of the top insurance companies in Michigan that were provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across Michigan. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000; liability coverage of $100,000 and a deductible of $500.
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sources
- Michigan Department of Insurance and Financial Services. "Renters Insurance." Accessed March 30, 2022.