The 10 Cheapest States for Home and Auto Coverage (for a Typical Suburban Family)
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
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.
- Auto insurance: Average annual premium for full coverage.
- Household setup: One home policy plus two vehicles.
Many families receive multi-car and multi-policy discounts, so your real total may be lower. The goal here is ranking and perspective, not an exact quote.
The Chart: Top 10 Cheapest States for Home + Two Cars
| Rank | State | Avg Home Premium | Avg Auto Premium (1 car) | Estimated Household Total |
|---|---|---|---|---|
| 10 | Wisconsin | $1,812 | $2,026 | $5,864 |
| 9 | Alaska | $1,397 | $2,215 | $5,827 |
| 8 | Idaho | $2,240 | $1,791 | $5,822 |
| 7 | Virginia | $2,074 | $1,837 | $5,748 |
| 6 | Ohio | $2,118 | $1,739 | $5,596 |
| 5 | Oregon | $1,572 | $1,927 | $5,426 |
| 4 | Maine | $1,335 | $1,701 | $4,737 |
| 3 | New Hampshire | $1,300 | $1,650 | $4,600 |
| 2 | Hawaii | $659 | $1,721 | $4,101 |
| 1 | Vermont | $1,063 | $1,504 | $4,071 |
These numbers are based on statewide averages, so your ZIP code can still swing meaningfully inside any state.
What These Cheaper States Usually Have in Common
Even though every state has its own story, cheaper insurance states often share a few traits.
1. Fewer high-dollar catastrophes
Weather risk and the cost to rebuild heavily influence homeowners insurance pricing.
2. Lower claim costs
Auto rates vary by accident frequency, theft, repair costs, and medical costs in the region.
3. Lower system friction
Litigation pressure, fraud levels, and severe claims affect how insurers price risk.
4. More predictable risk
The more predictable the loss patterns, the more stable insurance pricing tends to be.
Quick Bonus Lists
Cheapest Homeowners Premiums
Hawaii, Vermont, New Hampshire, Maine, Delaware, Alaska, New Jersey, Massachusetts, Pennsylvania, Oregon.
Cheapest Full Coverage Auto Premiums
Vermont, New Hampshire, Maine, Hawaii, Ohio, Idaho, Virginia, Indiana, Illinois, Oregon.
“We Are Not Moving.” What Can We Control to Lower Our Rates?
Most families are not relocating because of insurance. The real question becomes:
How do we make our rates behave better where we already live?
12 Practical Levers Families Can Control
- Stop unknowingly self-insuring
- Choose deductibles that match your emergency fund
- Avoid small nuisance claims
- Bundle policies when it truly helps
- Maintain your roof and plumbing
- Prevent water losses
- Maintain safe driving habits
- Consider telematics if comfortable
- Maintain healthy credit where used
- Re-shop at renewal or after life changes
- Match liability limits to your life
- Use an independent agency strategy
FAQs
Are these numbers what I would pay if I moved?
No. These are statewide averages used for directional insight. Your ZIP code, home, and vehicles will affect your actual premium.
What if I have a teen driver?
Teen drivers significantly increase premiums in every state and may change the ranking for your household.
Why is Hawaii so cheap for homeowners insurance?
The data source notes that hurricane damage is not covered by a standard homeowners policy there, which affects the average premium calculation.
Does “cheapest state” mean best state for families?
No. Insurance is only one factor alongside home prices, taxes, wages, schools, and lifestyle.
What is the best first step if I want to lower my rates?
Start with a coverage review and strategy conversation. The goal is not just to make insurance cheaper, but to keep it affordable without accidentally self-insuring major risks.
A Closing Note from Trailstone
If reading this made you think, “We are not moving, but we do need a plan,” that is a healthy takeaway.
At Trailstone, we teach first and sell second. If you want, we can review your home and auto setup and explain:
- What is driving your current pricing
- What levers you can safely pull
- Where shopping carriers can make a real difference
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