Best cheap homeowners insurance in Detroit

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.

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.

How much is home insurance in Detroit, Michigan?

Homeowners insurance in Detroit costs $3,016 per year for $300,000 in dwelling coverage, which is 67 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.

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.

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.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze July 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.

• 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.