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Best cheap homeowners insurance in Detroit

Updated Apr 25, 2024
Chubb, Allstate, State Farm, AAA and The Hanover are some of the best home insurance options in Detroit, according to Bankrate’s analysis.
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The best home insurance companies in Detroit

To help you find home insurance in Detroit that suits your needs and budget, Bankrate’s insurance editorial team took a close look at the different home insurance companies in the area. We weighed average rates, coverage options, customer satisfaction, financial strength, discount opportunities and other metrics. Based on our findings, Chubb, Allstate, State Farm, AAA and The Hanover are some of the best home insurance companies in Detroit, Michigan.

Best for high-value homes

Bankrate Score

Rating: 4.3 stars out of 5
4.3

Avg. annual premium

$2,984

$300K dwelling coverage

JD Power

801/1,000

Why Chubb made our list: With Chubb, homeowners can access Chubb’s Risk Consulting program, where a consultant comes to your home to identify potential coverage gaps. Plus, Chubb’s Masterpiece home insurance policy comes with tons of extra coverage and services already included. For example, replacement cost coverage is included and policy liability limits extend up to $100 million. The company also offers private flood insurance, with coverage limits up to $15 million. To compare, policies from the National Flood Insurance Program (NFIP) are capped at $250,000 for dwelling coverage.

Why Chubb may be the best for high-value homes: Chubb was a 2024 Bankrate Awards winner for Best Home Insurance Company for High-Value Homes because its specialized coverage options may appeal to more expensive properties. Chubb’s A++ (Superior) financial strength rating from AM Best also signals a strong ability to pay out claims — which is especially important considering how high Chubb’s coverage limits can go.

Scores and Ratings
Bankrate Score 4.3
J.D. Power 801/1,000
AM Best score A++
Read full review
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Best for add-on coverage

Bankrate Score

Rating: 4.2 stars out of 5
4.2

Avg. annual premium

--

$300K dwelling coverage

Not available

JD Power

809/1,000

Why Allstate made our list: Allstate tied for the Best Home Insurance Company Overall in the Bankrate Awards for the second year running due in part to its user-friendly online policy management tools, competitive rates and wide discount availability. Allstate is a big name in the insurance industry with plenty of other insurance offerings outside of just home insurance. This could make it a good option for Detroit homeowners looking to house multiple policies all in one place.

Why Allstate may be the best for add-on coverage: Homeowners looking to tailor their home insurance policies to their exact needs may be interested in getting a quote from Allstate. The company offers a slew of insurance endorsements like coverage for business properties, sports equipment, yards and gardens, electronic data recovery, musical instruments and more. Plus, Allstate offers private flood insurance through Beyond Floods (with limits up to $1.5 million) or through the NFIP.

Scores and Ratings
Bankrate Score 4.2
J.D. Power 809/1,000
AM Best score A+
Read full review
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Best for local agent offices

Bankrate Score

Rating: 4.2 stars out of 5
4.2

Avg. annual premium

$2,654

$300K dwelling coverage

JD Power

829/1,000

Why State Farm made our list: State Farm earned high marks from J.D. Power in the 2024 U.S. Property Claims Satisfaction Study and in the 2023 U.S. Home Insurance Study, scoring above average in both. Information on State Farm’s coverage add-ons is a little limited, so you may need to contact an agent to get the full gist of what the company offers.

Why State Farm may be the best for local agent offices: State Farm is both the largest home insurance company in the country and in the state of Michigan. As such, it has multiple insurance offices throughout Detroit. This could be an added bonus for homeowners with multiple policies with State Farm (like auto or umbrella), as some people may prefer to have a dedicated local point of contact for all their insurance needs.

Scores and Ratings
Bankrate Score 4.2
J.D. Power 829/1,000
AM Best score A++
Read full review
Plus Collapse
Best for extra perks

Bankrate Score

Rating: 4.1 stars out of 5
4.1

Avg. annual premium

--

$300K dwelling coverage

Not available

JD Power

808/1,000

Why AAA made our list: AAA home insurance is only available to AAA members, so it is only really worth considering if you already hold a membership. AAA offers two different policy tiers, Advantage and Ultimate, each with different included coverage. Both plans can be customized with coverage endorsements like home daycare coverage, scheduled personal property, home hosting, landscaping and yard coverage and other choices.

Why AAA may be the best for extra perks: AAA home insurance and membership come with multiple other benefits like over 80,000 different discounts, identity theft protection and roadside assistance.

Scores and Ratings
Bankrate Score 4.1
J.D. Power 808/1,000
AM Best score A
Read full review
Plus Collapse
Best for pre-packaged coverage options

Bankrate Score

Rating: 3.6 stars out of 5
3.6

Avg. annual premium

$2,793

$300K dwelling coverage

JD Power

--

Not rated

Why The Hanover made our list: The Hanover writes home insurance in 27 states, one of them being Michigan. The Hanover has a lower-than-average NAIC Complaint Index for its home insurance product, which indicates that customers are generally satisfied with the company.

Why The Hanover may be the best for pre-packaged coverage options: Home insurance policies from The Hanover are available in three tiered coverage packages: Connections, Prestige and Platinum, the latter being the most comprehensive. Homeowners looking to take the guesswork out of home insurance may want to consider The Hanover.

Scores and Ratings
Bankrate Score 3.6
AM Best score A
Read full review
Plus Collapse
Bankrate logo

Bankrate's trusted insurance industry expertise

Read our full methodology

To ensure that the average rates on our pages are accurate, we update them every month with the latest information from Quadrant Information Services.

46

years of industry experience

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

The cheapest home insurance companies in Detroit

Detroit has no shortage of home insurers, but not all of them offer cheap home insurance. To come up with the best home insurance companies here, Bankrate compared the major insurers in the city based on average annual premiums provided by Quadrant Information Services. Our findings determined Auto-Owners, Meemic and USAA have the cheapest average rates for $300,000 in dwelling coverage. We’ve also compiled a list of the cheapest home insurance companies for other dwelling coverage limits for homeowners who need more coverage.

Caret Down
Company Average monthly premium* Average annual premium*
$45
$540
Meemic
$106
$1,278
$119
$1,424
$178
$2,137
*Average rates for policies with $300K in dwelling coverage
Company Average monthly premium Average annual premium
$48
$540
Meemic
$121
$1,278
$130
$1,424
$203
$2,137
Company Average monthly premium Average annual premium
$54
$647
$152
$1,830
Meemic
$165
$1,978
$254
$3,054
Company Average monthly premium Average annual premium
$65
$779
$213
$2,555
Meemic
$257
$3,082
$384
$4,605

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This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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How much is home insurance in Detroit, Michigan?

Homeowners insurance in Detroit costs $3,453 per year for $300,000 in dwelling coverage, which is 89 percent more than the average cost of home insurance in Michigan. This is due to a couple of different things, like Detroit’s higher-than-average property crime rate and frigid winter temperatures. Both could lead to a home insurance claim, which in turn makes a property a greater risk to insure. Insurance companies in Detroit tend to charge higher rates to account for the risk, which makes finding a cheap home insurance policy more of a challenge.

Detroit rates by credit tier

Although Michigan prohibits insurers from looking at an individual’s credit rating when setting auto insurance rates, they are allowed to do so for home insurance. Homeowners in good or excellent credit tiers typically secure more affordable home insurance rates. Insurance companies tend to view homeowners with bad credit as more likely to file claims, which can cost the insurance company money. Because of the added risk, most insurance companies charge higher rates to homeowners with poor or average credit.

Company Poor Credit Average Credit Good Credit Excellent Credit
N/A
$950
$540
$293
Meemic
$2,391
$1,380
$1,278
$1,097
$2,349
$1,513
$1,424
$1,268
$3,952
$2,305
$2,137
$1,967
$5,112
$2,554
$2,309
$1,868

Detroit rates by home age

Older homes usually pose a larger risk to insurers. Often, they are built with materials that are harder and more expensive to find. If that home is partially or completely destroyed, it could be an expensive rebuild. Homeowners in older dwellings may have a harder time finding cheap coverage for that reason.

Company 1959 1982 1992 2010 2020
$588
$637
$630
$577
$504
Meemic
$1,461
$1,433
$1,400
$1,423
$1,110
$2,097
$2,180
$2,086
$1,654
$1,246
$2,540
$2,540
$2,540
$2,237
$1,894
$3,511
$3,203
$3,068
$2,665
$2,028

Detroit rates by deductible amount

If you’re in shock over the home insurance quotes you’re getting, you might want to think about raising your deductible. A higher deductible home insurance policy typically results in a lower premium because you transfer some of the financial risk away from the insurer and onto you. Just make sure not to raise it too high. Your insurance deductible is the amount of money you are financially responsible for in the event of a covered claim, so make sure it is an amount you would be comfortable spending in the event of a covered loss.

Company $1,500 Deductible $2,000 Deductible $5,000 Deductible
$535
$534
$523
Meemic
$1,231
$1,194
$1,118
$1,277
$1,277
$1,082
$2,137
$1,696
$1,489
$2,165
$2,048
$1,557

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze May 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $300,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $30,000
  • Coverage C, Personal Property: $150,000
  • Coverage D, Loss of Use: $60,000
  • Coverage E, Liability: $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000, $1,500, $2,000 or $5,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.

Year built: Rates were calculated based on the following years built for homes and assigned to our homeowners: 1959, 1982, 1992, 2010, 2015 (base) and 2020.

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

5
Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%
  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Written by
Natalie Todoroff
Writer, Insurance

Natalie Todoroff is an insurance writer for Bankrate, prior to which she wrote for a popular insurance comparison shopping app. She has a Bachelor of Arts in English and has written over 800 articles about insurance throughout her career.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute