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The average cost of homeowners insurance in Michigan is $2,607, or $217 a month. That's a little below the national average of $2,777 a year.

The cheapest home insurance company in Michigan is Automobile Club MI. With an average annual cost of $1,384, its rates are well below the state average. 

Home insurance rates in Michigan vary by location, so your rates will differ from the average. All of the most expensive places for home insurance are located in Detroit, while cities like Muskegon have the cheapest rates.

Read on to compare home insurance rates in Michigan by ZIP code and by coverage level and to find out which Michigan home insurance companies have the best auto and home bundling discount for lower rates.

  • Automobile Club MI is the cheapest insurance company in Michigan with an average rate of $115 per month.
  • Bundling your insurance policies can help you save up to 20% on average in Michigan.
  • At $2,607 a year, the average cost of home insurance in Michigan is a little below the national average of $2,777.

How much is home insurance in Michigan?

Homeowners insurance in Michigan costs an average of $2,607 a year for the following coverage:

  • $300,000 in dwelling coverage
  • $300,000 in liability
  • $1,000 deductible

Home insurance rate will vary widely depending on the coverage you need and where you live in Michigan. The insurance company you choose will also impact your rates. That's why shopping around for your home insurance is so important.

Best home insurance companies in Michigan

There are a lot of ways to rank insurance companies, and the best home insurance company for one person may not be what’s right for you. However, to help you make a choice, we’ve ranked Michigan insurers based on AM Best financial stability scores, average annual home insurance rates and NAIC complaint ratios. scores are given out of five based on these three factors, with Auto-Owners coming out on top as the best home insurance company in Michigan.

Best home insurance companies in Michigan
CompanyAM BestAverage annual rateNAIC Complaint score
Auto-OwnersA++$ 3520.194.91
Frankenmuth InsuranceA$ 1,5270.114.4
USAA*A++$ 1,6370.414.34
FarmersA$ 2,7260.333.85
The HanoverA++$ 3,8680.393.79
Automobile Club MI (AAA)A$ 1,1790.913.61
State FarmA++$ 1,8721.073.56
Michigan Farm BureauA$ 5,8150.33.09

*USAA only writes insurance for military members and their families.

Cheapest homeowners insurance companies in Michigan

Automobile Club MI and Frankenmuth Insurance are the cheapest home insurance companies in Michigan on average. Automobile is the cheapest by a wide margin.

Shopping around to compare home insurance rates can save you hundreds of dollars a year, as you can see.

Below are average home insurance rates by company at several dwelling coverage levels for a policy with $300,000 in liability coverage with a $1,000 deductible.

Cheapest home insurance companies in Michigan
Automobile Club MI (AAA)$871$1,179$1,546$1,811$2,074
Frankenmuth Insurance$1,119$1,527$2,037$2,738$3,295
State Farm$1,442$1,872$2,210$2,672$3,075
The Hanover$3,047$3,868$4,683$5,506$6,349
Michigan Farm Bureau$4,188$5,815$7,235$8,391$9,089

Michigan homeowners insurance rates by ZIP code

The most expensive ZIP codes for home insurance in Michigan are all in Detroit and are about $759 more than the state average of $2,607. These include the neighborhoods in ZIP codes:

  • 48242 ($3,366)
  • 48089 ($3,246)
  • 48211($3,216)
  • 48015 ($3,203)

The least expensive ZIP codes are about $759 less than the state average and are in:

  • Muskegon(49441)
  • Saginaw (48604)
  • Muskegon (49442)

Many factors affect home insurance rates. Chief among them is where you live, which is why rates vary a great deal depending on your ZIP code. In addition to location, what you pay is also influenced by the following:

  • Your home's square footage
  • Building costs in your area, and your own home's construction, materials and features
  • Local crime rates
  • Weather and natural disasters

Michigan homeowners insurance calculator

Enter your ZIP code in the search box to see the average home insurance rate for that area, as well as the highest and lowest premium fielded from major insurers. This will give you an idea of how much you can save by comparing Michigan home insurance rates. The difference between the highest rate and the lowest rate is how much you could potentially save by switching insurance companies.


Average home insurance rates in CALIFORNIA

94404 - Foster City
Dwelling $200,000, Deductible $1,000 and Liability $100,000.



Most & least expensive zip codes for homeowners insurance in California

Most Expensive

Zip CodeCityHighest Rate
92391Twin Peaks$1,426
92321Cedar Glen$1,425
92352Lake Arrowhead$1,423

Least Expensive

Zip CodeCityLowest Rate
95051Santa Clara$743

Homeowners insurance rates in Michigan by city

Though you can see how much coverage costs for your neighborhood by using our average rates tool above, you may want to know the cost of a policy in your city, and how it compares to others. Below we provide rates for the largest cities in Michigan.

Home insurance rates in Michigan by city
CityAverage rateMonthly rate
Grand Rapids$2,556$213
Sterling Heights$2,917$243
Ann Arbor$2,459$205
Clinton township$2,727$227

Homeowners insurance rates in Michigan by coverage level

Below are the average Michigan homeowners insurance rates for 10 coverage levels, all with a $1,000 deductible, based on a 2022 rate analysis by As you can see, the difference in price between low liability limits and the recommended higher amount is less than $20 a year.

Michigan home insurance rates at 10 coverage levels
Dwelling and liability limits with $1,000 deductibleAverage annual rateAverage monthly rate
$200,000 dwelling with $100,000 liability$2,118$176
$200,000 with $300,000$2,131$178
$300,000 with $100,000$2,595$216
$300,000 with $300,000$2,607$217
$400,000 with $100,000$2,942$245
$400,000 with $300,000$2,950$246
$500,000 with $100,000$2,981$248
$500,000 with $300,000$2975$248
$600,000 with $100,000$3,275$273
$600,000 with $300,000$3,282$274

Homeowners insurance discounts in Michigan

There are several ways to reduce home insurance rates. Many insurers will lower your bill by as much as 37% if you bundle your auto and home.

You can also cut your costs by making your home more disaster-resistant.

Other possible home insurance discounts include:

  • Installing smoke detectors, a burglar alarm or dead-bolt locks -- 1% to 3%
  • Installing a sprinkler system, and a fire and burglar alarm -- 3% to 4%
  • Loyalty discounts – about 6% on average, after three to five years, and 7% for ten years or more

Home and auto bundling discount in Michigan

Michigan homeowners who buy coverage for both home and auto from the same company can save an average of $356 a year, or 19%. Below you’ll see how major carriers in Michigan compare for the home and auto multi-policy discount.

Home and auto bundle discount in Michigan
Company$ bundle average savings% bundle average savings
Michigan Farm Bureau$20011%
Pioneer State Mutual$21815%
Frankenmuth Insurance$22215%
Farmers Insurance$29120%
Automobile Club MI$29319%
State Farm$62332%
The Hanover$1,09627%

FAQ: Michigan homeowners insurance

How do I find a good Michigan insurance company?

The Michigan Department of Insurance and Financial Services (DIFS) publishes a list of insurers offering coverage in the state.

You can review insurance complaint information as well to help determine which company has the best reputation.

What if I can't get homeowners insurance in Michigan?

Michigan law does not require you to purchase homeowners insurance. However, if you have a mortgage, your lender will require it.

If you are unable to purchase a policy directly from an insurance company for any reason, contact an insurance agent and ask to apply to the Michigan Basic Property Insurance Association.

Where do I file a complaint against a Michigan insurance company?

If you have a dispute with your insurer, the Michigan Department of Insurance and Financial Services can help. The Office of Consumer Services can investigate your complaint and try to help resolve it, or at least explain your options.

The department encourages you to try to resolve any complaint with the insurance company first. If such efforts fail, visit the DFIS website and fill out an insurance complaint form.

Do I need flood insurance in Michigan?

Homeowners insurance does not cover flood damage. To be covered, you need to purchase a flood insurance policy through the National Flood Insurance Program.

Your mortgage company may require flood insurance if you live in a high-risk flood zone.

Methodology analyzed rates for all Michigan ZIP codes, fielded by Quadrant Data Services in 2022. Rates were fielded for multiple coverage levels from $200,000 to $600,000 in dwelling coverage with $100,000 and $300,000 in liability, and a $1,000 deductible and for all of the home insurance companies listed. Content is updated for 2023.

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