Average homeowners insurance cost in Michigan

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Home insurance in Michigan costs an average of $2,896 per year for standard coverage.

Your actual cost depends on your dwelling coverage limit and the protection level you choose. Higher coverage means higher premiums. Auto Club Group – ACG (AAA) offers competitive rates in the state, making it a strong option to consider as you compare coverage levels.

Shop around and ask about discounts. Rates vary widely between insurers, and depend on factors like your home’s location, age, construction, roof condition, and claims history-so getting quotes specific to your address and comparing several companies helps you find the best deal.

Key Takeaways

Based on our data, homeowners insurance in Michigan costs an average of $2,896 per year.
Among all ZIP codes in Michigan, 49660 has the most affordable rates, averaging around $2,176 annually.
For the lowest insurer rates in Michigan, Auto Club Group – ACG (AAA) comes in at an average annual premium of $1,679.

What is the average cost of homeowners insurance in Michigan?

The average homeowners insurance premium in Michigan is $2,896 per year. That figure is based on a policy with $300,000 in dwelling coverage, $100,000 in liability protection, and a $1,000 deductible.

How much is home insurance in Michigan? Cost by coverage level

On average, homeowners in Michigan pay $2,896 a year for insurance – a figure based on $300,000 in dwelling coverage, $100,000 in liability, and a $1,000 deductible.

Raising your dwelling coverage from $300,000 to $400,000, with the same liability and deductible, brings the average annual cost to $3,661 in Michigan.

The table below shows average homeowners insurance costs in Michigan for dwelling coverage from $200,000 to $1 million.

Coverage	Average annual rate	Average monthly rate
$200,000 with $1,000 Deductible and $200,000 Liability and None Hurricane	$2,229	$186
$200,000 with $1,000 Deductible and $300,000 Liability and None Hurricane	$2,249	$187
$300,000 with $1,000 Deductible and $200,000 Liability and None Hurricane	$2,896	$241
$300,000 with $1,000 Deductible and $300,000 Liability and None Hurricane	$2,924	$244
$400,000 with $1,000 Deductible and $200,000 Liability and None Hurricane	$3,661	$305
$400,000 with $1,000 Deductible and $300,000 Liability and None Hurricane	$3,692	$308
$600,000 with $1,000 Deductible and $200,000 Liability and None Hurricane	$4,868	$406
$600,000 with $1,000 Deductible and $300,000 Liability and None Hurricane	$4,901	$408
$1,000,000 with $2,500 Deductible and $200,000 Liability and None Hurricane	$6,927	$577
$1,000,000 with $2,500 Deductible and $300,000 Liability and None Hurricane	$6,959	$580

Average home insurance cost in Michigan by insurer

The most affordable homeowners insurance in Michigan comes from Auto Club Group – ACG (AAA), which averages $1,679 per year. Frankenmuth Insurance and Auto-Owners are also worth considering.

Shopping around can save you hundreds, or more, each year.

Below are average annual and monthly premiums for Michigan homeowners, based on a policy with $300,000 in dwelling coverage, $100,000 in liability protection, and a $1,000 deductible.

Company	Average annual rate	Average monthly rate
Auto Club Group – ACG (AAA)	$1,679	$140
Frankenmuth Insurance	$1,934	$161
Auto-Owners	$2,354	$196
Farmers	$2,852	$238
The Hanover	$4,569	$381
State Farm	$4,831	$403
Michigan Farm Bureau	$9,227	$769
USAA*	$2,140	$178

*USAA is only available to military community members and their families.

How to lower your home insurance rate

Shop around. The first quote you receive is rarely the best one. Getting estimates from at least three or four insurers gives you a clearer picture of what’s available in Michigan.
Bundle your policies. Combining home and auto insurance, or renters and auto, with the same provider is one of the most common ways to unlock multi-policy discounts.
Ask about smart home discounts. Security systems, smoke detectors, and leak sensors are the kinds of upgrades that can bring your premium down.
Check for other savings. Loyalty discounts, claims-free rewards, and home improvements like fire-resistant roofing are worth asking about at renewal.

How does your ZIP code affect home insurance rates in Michigan?

Where you live plays a major role in what you pay for home insurance. Your ZIP code signals the level of risk in your area, so places prone to crime, natural disasters, or costly rebuilds tend to come with higher premiums.

Here’s a look at the most and least affordable ZIP codes for home insurance across Michigan.

Most affordable ZIP codes for home insurance in Michigan

49660 has the lowest average home insurance rates in Michigan, with homeowners paying around $2,176 per year.

Home insurance rates aren’t uniform across Michigan. Your ZIP code, in particular, is one of the biggest reasons prices differ from one area to the next.

Below are average rates for some of the most affordable ZIP codes in Michigan.

ZIP code	Average annual rate	Average monthly rate
49660	$2,176	$181
49654	$2,184	$182
49913	$2,195	$183
49769	$2,207	$184
49648	$2,216	$185
49802	$2,219	$185
49719	$2,220	$185
49716	$2,237	$186
49686	$2,243	$187
49755	$2,244	$187

Most expensive ZIP codes for home insurance in Michigan

At the other end of the spectrum, 48238 has the highest average rates in Michigan at $5,867 per year.

Higher premiums in certain ZIP codes typically reflect greater exposure to crime, natural disasters, and elevated living and rebuilding costs.

Below are some of the most expensive ZIP codes for home insurance in Michigan.

ZIP code	Average annual rate	Average monthly rate
48238	$5,867	$489
48205	$5,671	$473
48226	$5,635	$470
48213	$5,477	$456
48234	$5,471	$456
48211	$5,443	$454
48223	$5,412	$451
48216	$5,404	$450
48208	$5,396	$450
48235	$5,293	$441

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in Michigan by city

See rates in your city

How have home insurance rates changed in Michigan?

Home insurance rates in Michigan increase by 41% from 2023 to 2025. This reflects broader trends in the state’s insurance market over the past few years.

The below data shows how much homeowners insurance rates have changed since 2022.

2022 rates	2023 rates	2025 rates
$2,192	$2,061	$2,896

What are the best homeowners insurance companies in Michigan?

Based on our data, Auto-Owners stands out as the top choice in Michigan. It earns an AM Best rating of A+ and holds one of the lowest NAIC complaint scores statewide-a strong sign of both reliability and customer satisfaction.

To pinpoint the most trustworthy insurers, we measured each company against two benchmarks:

AM Best Ratings gauge a company’s financial strength and its ability to pay claims when you need it most.
NAIC Complaint Scores compare how often a company is the subject of complaints relative to its size, with lower scores pointing to fewer problems.

Looked at together, these benchmarks give a dependable picture of an insurer’s financial footing and the experience you can expect as a customer. The table below ranks the leading companies in Michigan by annual premium, financial rating, and complaint history.

Company	Average annual premium	Am Best Rating	NAIC Complaint Index	Overall score
Auto-Owners	$2,354	A+	0.39	4.61
Auto Club Group – ACG (AAA)	$1,679	A	0.89	4.58
Frankenmuth Insurance	$1,934	A	0.23	4.58
Farmers	$2,852	A	0.89	4.42
State Farm	$4,831	A+	1.15	4.24
The Hanover	$4,569	A	0.81	4.19
Michigan Farm Bureau	$9,227	A-	0.3	3.49
USAA*	$2,140	A++	0.46	4.74

*USAA is only available to military community members and their families.

How to understand insurer ratings and complaint data

When choosing an insurer, you want to know if the company can pay your claim, and if customers are satisfied with it. Rating agencies track this data so you can make an informed decision at renewal.

Here are the two ratings that we have referred to:

AM Best: A global agency that rates insurers based on their financial strength and ability to pay claims. A higher score means the company is more financially stable.
NAIC Complaint Index: The National Association of Insurance Commissioners tracks consumer complaints. A score below 1.00 means fewer complaints than expected for a company of that size, while a score above 1.00 means more complaints than expected.

What factors affect your home insurance rate?

Home insurance is priced according to the risk an insurer associates with your property and personal profile. The factors that carry the most weight include:

Where you live. Crime levels, weather-related risks, and local claims activity all factor into your rate.
Your claims history. Having filed claims in the past generally leads to a higher premium going forward.
Your credit-based insurance score. Most states allow insurers to use credit as a pricing factor. A lower score can result in a higher rate, though states such as California and Massachusetts have restrictions on this practice.
Your coverage limits and deductible. Choosing higher coverage or a lower deductible will increase your annual cost.

Home insurance costs have also been rising nationally. S&P Global Market Intelligence’s RateWatch application found that premiums for owner-occupied homes increased by more than 11% in 2023.

Resources and Methodology

Sources:

S&P Global. “US homeowners insurance rates jump by double digits in 2023.” Accessed August 2026.

Methodology

Insure.com worked with Quadrant Information Services to compile homeowners insurance data, analyzing 37,973,840 quotes from 75 company groups (134 companies) across 34,595 ZIP codes in all 51 states.

Rates are based on a sample homeowner profile with good credit and the following coverage:

$300,000 dwelling coverage
$100,000 liability protection
$1,000 deductible

The national average annual premium (non-hurricane deductible) is $2,543.

Company rankings factor in:

AM Best rating: 30%
NAIC score: 35%
Annual premium: 35%

All quoted rates are for comparison purposes and individual premiums may vary.

Alisha Ambre

Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.