Every year, we hear it from good, responsible families who pay their bills on time and take care of their homes:

“Mark, we did not change anything. Why did our insurance go up again?”

It is a fair question. And it leads to another question people are saying out loud more often in 2026:

“Is it cheaper to live somewhere else, at least from an insurance standpoint?”

Insurance is not the only reason to move, of course. But if you are raising a family in suburbia, you are paying for two big “must-haves” that follow you everywhere: home insurance and auto insurance. When those costs jump, it affects groceries, vacations, savings, and how much breathing room you have month to month.

So, we did the homework.

Below you will find a countdown of the 10 cheapest states for a typical household to insure a home and two vehicles, based on recent state-level average premium data. Then we will explain what these states have in common, why it matters, and what you can do even if you are not moving anytime soon.

This is educational, not legal advice. Your exact premium depends on your home, your vehicles, your driving history, your credit-based insurance score where permitted, your deductibles, your coverage choices, and your carrier.

The “Suburban Family” Assumption We Used (Plain English)

To keep this apples-to-apples, we used this simple model:

• Homeowners insurance: Average annual premium for a policy with $300,000 in dwelling coverage (and typical liability and deductible assumptions used by the data source).
• Auto insurance: Average annual premium for full coverage (commonly meaning liability plus comprehensive and collision).
• Household setup: One home policy + two cars (most two-adult suburban households have two vehicles).

Important note: Many families receive multi-car and multi-policy discounts, so your real total can be lower than a straight “times two” estimate. Our goal here is ranking and perspective, not an exact quote.

Home premium data used in this post comes from a 2026 state-by-state table of average homeowners rates at the $300,000 dwelling level.

Auto premium data used in this post comes from a 2026 state-by-state table of average annual full coverage auto premiums.

The Chart: Top 10 Cheapest States for Home + Two Cars (Countdown 10 to 1)

How to read this chart:

• “Home” is the average annual homeowners premium at $300,000 dwelling.
• “Auto” is the average annual full coverage premium for one vehicle.
• “Estimated Household Total” = Home + (Auto × 2).

These numbers are based on statewide averages, so your ZIP code can still swing meaningfully inside any state.

Now let us turn this list into something useful.

The Countdown: 10 to 1 (What Makes These States Cheaper)

#10 Wisconsin

Why it tends to land on the “affordable” list:

Wisconsin’s homeowners premium is relatively moderate, and while auto is not the very lowest, it stays competitive enough that the combined total still makes the top 10 in our household model.

What most families do not think about:

Auto rates are not only about your driving. They also reflect what claims cost in your area, such as labor rates, parts costs, medical costs, and the volume of accidents and theft. State-level differences like these are a big reason premiums vary widely.

Trailstone tip:

If you live in a state like Wisconsin where auto is “pretty good but not the best,” the win is usually in the details: higher deductibles, clean driving habits, and shopping carriers that like your profile.

#9 Alaska

Why it shows up here:

Alaska’s homeowners average is relatively low compared to many states, and that helps offset an auto premium that is not top-tier cheap.

What most families forget:

Insurance pricing is heavily influenced by how often claims happen and how expensive they are when they do happen. In some places, you see fewer claims but higher severity per claim. In others, you see lots of smaller claims. Both patterns shape rates differently.

Trailstone tip:

If you live somewhere with higher auto but lower home, do not assume bundling is always the best move. Sometimes splitting home and auto across carriers can be cheaper, depending on who is most competitive for each line.

#8 Idaho

Why it shows up here:

Idaho is one of the cheapest states for full coverage auto insurance on the table we used, and even though homeowners is not ultra-low, the combined total is still strong.

The psychological trap:

A lot of families focus only on the home premium because it feels bigger. But if you have two cars, auto can quietly become the larger slice of your “insurance budget pie.”

Trailstone tip:

If you are trying to lower auto costs, the fastest levers are usually:

• driving behavior programs (if you are comfortable with them),
• clean claims history,
• and deductibles that match your emergency fund.

#7 Virginia

Why it shows up here:

Virginia has one of the lowest full coverage auto averages in the data set, and homeowners remains in a reasonable range. That combination keeps the household total low.

What families often miss:

Rates can change dramatically between carriers because each insurer has its own “ideal customer.” Two people with similar houses and similar cars can get very different quotes simply because one carrier likes that risk profile and another does not.

Trailstone tip:

This is exactly why independent shopping matters. When we have more carrier options, we are not trying to force your family into one underwriting box.

#6 Ohio

Why it shows up here:

Ohio’s auto premium is very competitive, and even though its homeowners premium is not in the very cheapest tier, the combined total still ranks well.

What families do not think about:

Auto insurance is heavily impacted by factors like accident frequency, theft frequency, weather-related claims, and state rules about required coverage and claims handling.

If your state has a lot of uninsured drivers, higher medical costs, heavier traffic, or more theft, that can show up in rates even if you personally are careful.

Trailstone tip:

If you want your rates to behave more like a low-cost state, you want fewer claims. That means avoiding small “nuisance” claims, tightening up risk (like garaging, alarms, and safe driving habits), and keeping your coverage structured properly so you are not forced into constant changes.

#5 Oregon

Why it shows up here:

Oregon lands in the sweet spot of relatively low homeowners costs and relatively low auto costs.

The “hidden cost” most people miss:

Even in cheaper states, your ZIP code matters a lot. Two families in the same state can have very different insurance budgets based on proximity to wildfire zones, higher-theft neighborhoods, or dense traffic patterns.

Trailstone tip:

If you are shopping for a home (or even moving within the same metro), ask your agent to run insurance estimates before you close. Insurance is part of the monthly payment, just like taxes and HOA dues.

#4 Maine

Why it shows up here:

Maine is near the top for low homeowners premiums and also sits among the cheapest auto states in the data set.

What families do not think about:

A state can be cheap because it has fewer catastrophic losses and lower litigation pressure, but every property still has unique risks. Homes near water, older roofs, and certain construction types can still bring higher premiums anywhere.

Trailstone tip:

If you want a lower premium without sacrificing safety, focus on “risk-proofing” basics:

• roof condition and documentation,
• updated plumbing and electrical where needed,
• and water loss prevention (water claims are sneaky and expensive).

#3 New Hampshire

Why it shows up here:

New Hampshire is strong on both sides. It is one of the cheapest auto states and one of the cheapest homeowners states in the data set.

The “why” in plain English:

Insurance tends to be cheaper where fewer expensive losses happen, and where the cost to repair is more manageable. That is the simple version. Real pricing includes many more inputs, but that general recipe holds up.

Trailstone tip:

Even in low-cost states, loyalty does not always pay. We usually recommend shopping at renewal, even if it is just a quick check. The market changes quickly.

#2 Hawaii

Why it shows up here:

Hawaii has the lowest homeowners average in the table we used, and it is also among the cheaper auto states.

The fine print that matters:

Hawaii’s homeowners affordability comes with an important coverage reality. The data source notes that hurricane damage is not covered by a standard homeowners policy there, which affects pricing and what is included by default.

This is a perfect example of a big lesson: cheaper insurance is not always “same insurance.” Sometimes a state or region’s common exclusions, deductibles, and separate wind policies change the picture.

Trailstone tip:

Any time you see a state that is unusually cheap, ask, “What is covered differently here?” Then make sure you actually have the protection you think you have.

#1 Vermont

Why it is #1 in our household model:

Vermont is the cheapest auto state on the table we used, and it is also one of the cheapest homeowners states. That combination is hard to beat.

What families usually overlook:

When both home and auto are low, it is not usually because one company is being “nice.” It is typically because the underlying risk and claim costs are lower, and the market behaves more predictably.

Trailstone tip:

If your state is not Vermont, do not despair. You can still use the “Vermont mindset” as a strategy: lower claim frequency, fewer surprises, stronger loss prevention, and careful coverage design.

What These Cheaper States Usually Have in Common (The “Recipe”)

Even though every state has its own story, cheaper insurance states often share a few traits:

1. Fewer high-dollar catastrophes hitting lots of people at once

Homeowners rates vary a lot by state because of weather risk and the cost to rebuild, and the data source specifically points to weather, litigation, and construction costs as major drivers.

2. Lower claim costs when accidents and repairs happen

Auto rates vary by state due to differences in state laws, accident patterns, theft frequency, and weather-related claims, along with cost differences that show up in repairs and injuries.

3. Lower “system friction”

If a region has higher litigation frequency, more fraud pressure, or more severe claims, those costs do not stay with “someone else.” They show up in premiums.

4. More predictable risk profiles

Insurers price uncertainty. The more unpredictable the losses, the more cautious (and expensive) the pricing tends to become.

Quick Bonus Lists (If You Only Care About One Side)

Sometimes a family says, “We are renting, so show me auto,” or “We drive very little, but our home premium is killing us.”

Here are the top 10 cheapest by category using the same data sources.

Cheapest Homeowners Premiums (Top 10)

Hawaii, Vermont, New Hampshire, Maine, Delaware, Alaska, New Jersey, Massachusetts, Pennsylvania, Oregon.

Cheapest Full Coverage Auto Premiums (Top 10)

Vermont, New Hampshire, Maine, Hawaii, Ohio, Idaho, Virginia, Indiana, Illinois, Oregon.

Notice how a few states keep showing up on both lists. That overlap is where combined affordability usually lives.

“We Are Not Moving.” What Can We Control to Lower Our Rates Anyway?

This is the Trailstone part of the conversation.

Most families are not going to relocate because of insurance. So the practical question becomes:

How do we make our rates behave better, right where we are?

Here are 12 levers that many customers can control without turning coverage into a gamble.

1) Stop unknowingly self-insuring

If you raise deductibles or cut coverage to save money, you might be shifting the risk from the insurance company to your family.

That can be a smart strategy if you have the savings to back it up. It can also be a financial landmine if you do not.

2) Pick deductibles that match your emergency fund

A higher deductible usually lowers premium. But only choose a deductible you could pay tomorrow without a panic.

3) Avoid small claims that do not change your life

Insurance is best used for big, painful losses. Small claims can follow you for years and cost more than they helped.

4) Bundle, but only if it truly helps

Bundling home and auto can be great. It can also be a trap if one line is overpriced and the discount hides it.

5) Keep your roof and plumbing “boring”

From a claims standpoint, boring is beautiful. Roof documentation and proactive maintenance matter more now than they did ten years ago.

6) Protect against water losses

Water claims are a big reason homeowners premiums rise. Simple prevention (shutoff awareness, maintenance, leak detection) can pay off.

7) Drive like your premium depends on it, because it does

Tickets, accidents, and claim frequency matter. Even a couple of incidents can change your pricing tier.

8) Consider telematics if you are a safe driver and comfortable with it

If you are calm behind the wheel and drive fewer miles, a usage-based or monitored driving program may help. If you hate the idea, skip it.

9) Keep insurance scores healthy where used

In states where insurers use credit-based insurance scoring, improving your credit profile can improve premiums over time.

10) Re-shop at renewal, especially after life changes

New roof, new car, new teen driver, new address, paid-off mortgage, marriage, divorce, or a claim. These moments are a smart time to shop.

11) Make sure your liability limits actually match your life

Many families are underinsured on liability because they focus only on price. Being “cheap” does not matter if one lawsuit can wreck your finances.

12) Use an independent agency strategy

Different carriers have different “ideal customers.” When you have access to more carrier options, you are more likely to find a company that fits your risk profile instead of forcing your profile to fit the company.

FAQs

FAQ 1: Are these numbers what I will pay if I move?

No. These are statewide averages based on specific assumptions. Your ZIP code, home characteristics, vehicles, and driving record matter a lot. Use this as a directional guide, then get real quotes.

FAQ 2: What if I have a teen driver?

That changes everything, especially on the auto side. Teen drivers can dramatically increase premiums in every state. The ranking can still be useful, but the gap between states may widen or shift depending on underwriting rules.

FAQ 3: Why is Hawaii so cheap for homeowners insurance?

In the data source used, Hawaii’s low homeowners average is tied to differences in what is included in a standard policy, including the note that hurricane damage is not covered by a standard homeowners policy there. Always check what is covered and what requires separate coverage.

FAQ 4: Does “cheapest state” mean “best state” for families?

Not necessarily. Insurance is only one line item. Home prices, taxes, wages, schools, weather, and lifestyle matter too.

FAQ 5: What is the best first step if I want to lower my rates right now?

Start with a coverage review and a strategy conversation. The goal is not just to “make it cheaper.” The goal is to make it affordable and safe, so you do not end up self-insuring a claim that would have changed your life.

A Closing Note from Trailstone

If reading this made you think, “Okay, we are not moving, but we do need a plan,” that is a good takeaway.

At Trailstone, we try to teach first and sell second. If you want, we can look at your home and auto setup and show you, in plain English:

• what is driving your current pricing,
• what levers you can safely pull,
• and where shopping carriers can make a real difference.