The Best and Cheapest Renters Insurance in Michigan for 2021: Rankings, Reviews and Rates
Renters insurance is a low-cost way to protect your property from unexpected events and damage. MoneyGeek determined that the cheapest renters insurance in Michigan costs $7 per month versus $25 for the most expensive option. Renters in Michigan may save roughly $18 each month by comparing quotes from various providers before making a purchase. The average cost of renters insurance in Michigan is $21 monthly.
MoneyGeek’s ranking system reviews factors such as financial strength, affordability and customer service when scoring renters insurance companies in Michigan. This data can help you find the best coverage for your rental insurance needs.
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:
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Best Renters Insurance Companies in Michigan
When selecting the best cheap renters insurance in Michigan, pricing is not the only factor to consider. Renters should be confident that their insurance provider will give them excellent support and service at affordable rates when an unexpected incident happens.
MoneyGeek’s scoring system utilizes customer service scores from J.D. Power and Associates, financial stability scores from AM Best and affordability when ranking renters insurance companies in Michigan. According to the data, USAA earned a score of 100 out of 100. However, USAA only offers policies to military members, veterans and their eligible family members.
Of the companies with no policyholder restrictions, Farmers takes the top spot with a score of 82. State Farm earned a score of 71, making them the third best renters insurance company in the state.
More About USAA
USAA offers the most comprehensive renters insurance policies for active and retired military personnel as well as their eligible family members.
Coverage from USAA includes options that are not provided by other companies. These include coverage for earthquakes, floods, the cost of moving and storage and more.
Customers can save money by being claims-free, having a security system and bundling policies.
More About Farmers
Standard renters coverage at Farmers Insurance includes personal property protection, personal liability, additional living expenses and medical payments.
Policyholders can get identity shield protection for identity theft coverage. If you face any fraudulent charges, Farmers helps you clear your record by working with the credit bureaus.
Farmers Insurance also provides replacement coverage for valuables such as electronics and jewelry. Talk to your local agent if you want to get this coverage at an extra monthly cost.
More About State Farm
State Farm's basic policy provides personal property coverage, personal liability, medical payments and loss of use coverage. Policyholders can add earthquake coverage, identity restoration and additional liability coverage.
Customers with multiple insurance policies or home safety devices can save money on their monthly premiums.
The company also offers additional coverage for highly-priced valuables like jewelry, firearms and silverware.
Largest Renters Insurance Companies in Michigan
Based on MoneyGeek's data, the five companies with the largest market share in Michigan are State Farm with 16%, Auto-Owners Group with 15%, Automobile Club Michigan with 14%, Hannover Insurance with 9% and Allstate Insurance with 8%. These companies alone contribute to over 61% of the total renters insurance policies in Michigan.
If you want your claims paid faster, purchasing your policy from a larger insurer is a good idea since they tend to be more financially stable than smaller companies.
Auto-Owners Insurance Co
Farm Bureau Ins of MI
Average Cost of Renters Insurance in Michigan
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The average cost of renters insurance in Michigan is $249 per year, which is $90 more than the national average. That translates to a standard monthly rate of about $21, $7 more than the national average. These rates are for a policy with $20,000 in personal property coverage, $100,000 in liability coverage and $500 as the deductible.
Michigan renters can save a significant amount of money by comparing renters insurance quotes before purchasing a policy. For example, the MoneyGeek sample renter can save $218 by choosing a USAA policy, which is the cheapest option, instead of State Farm, which is the most expensive. This is equal to roughly $18 per month in savings. For renters who don’t qualify for USAA, a policy with Farmers may help them save $103 per year.
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.
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
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.
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.
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.
FAQs About Renters Insurance in Michigan
Renters insurance is not legally required in Michigan. However, some landlords may ask you to get it if you want to rent their property.
While renters insurance is not mandatory in Michigan, having coverage can help protect your property from unexpected events and damage.
Yes, landlords can include renters insurance as a requirement for leasing their property.
According to MoneyGeek’s research, the average cost of renters insurance in Michigan is $21 per month for $20,000 of personal property coverage and $100,000 in liability coverage.
Based on MoneyGeek’s data, USAA offers policies that cost $7 per month. However, these are only available to veterans, military members and their families. For policies that anyone can sign up for, Farmers provides the most affordable average renters insurance. On average, their rates are $198 per year or $17 per month.
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.
About the Author
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