Car insurance rates are rising throughout the country, including states like Arizona. In the state capital, a Hands-Free ordinance recently went into effect, banning phone use while driving. Since then, almost 20,000 distracted drivers have been fined in Tuscon alone, and most of these drivers will see their insurance rates increase as a result. In any case, rates vary widely throughout the state based on the insurer, city/county, age, driving history, type of vehicle, and even credit score. This guide can help in finding the best cheap auto insurance in Arizona.
Finding Best Cheap Car Insurance in Arizona
To get a clearer idea of how auto insurance works and how to find the best car insurance companies in Arizona, let’s first take a look at how Arizona state law regulates drivers, their insurance, and their vehicles.
Car Insurance Laws for Arizona
According to the Arizona Department of Insurance, drivers must abide by the following regulations:
- Like many states, Arizona requires every registered vehicle owner to either acquire auto insurance or provide evidence of financial responsibility.
- Financial responsibility via auto insurance requires two forms of coverage: bodily injury and property damage.
- Arizona requires drivers to maintain minimum levels of coverage, specifically:
- $15,000 per person for bodily injury
- $30,000 per accident for bodily injury
- $10,000 per accident for property damage
How Auto Insurance Rates are Determined in Arizona
As of the latest data, good drivers in Arizona pay an average of $1,654 annually for auto insurance or about $138 per month. Rates vary by the insurance provider, location, insurance type, and the level of coverage. However, these rates are also highly dependent on drivers. When an insurance provider is calculating your rates, they will look at the following factors:
- Location – Generally, if you live, commute, or work in an urban area (like Pheonix, Tuscan, or Mesa), your rates will be higher, as accidents are more prevalent in densely-populated regions. However, other location-based factors are important, too, like adverse weather conditions and reports of vandalism.
- Age – Statistically, younger drivers get in more accidents. This means that the younger you are, the more you will need to pay in insurance premiums. The average age in Arizona is 38, which is on par with the national average.
- Gender – Men are more likely than women to get in accidents, so your gender could impact your auto rates as well.
- Marital Status – Typically, married couples take fewer risks than their single counterparts, and this holds true for driving. Married couples get in fewer accidents, and therefore pose a smaller risk for insurance providers.
- Driving Experience – While this metric is similar to age, it is still slightly different. Usually, the older you are, the longer you have been driving, but that is not always true. Nonetheless, people who have held a driver’s license for longer are more experienced, and therefore pay lower premiums.
- Driving Record – A driver’s record is one of the most important factors that insurance providers consider. If you have a history of frequent speeding tickets, DUIs, or other infractions, you will have to pay more.
- Claims Record – It is also important to consider how many claims you have made to insurance providers in the past (if any). At-fault claims will cause your premiums to rise, while not-at-fault collisions will generally have no impact on your rates.
- Credit History – Your credit is a good indicator of how financially responsible you are, but the research also shows that people with low credit tend to file more claims, making them a greater risk for insurance providers.
- Previous Insurance Coverage – If you have maintained auto insurance without any gaps, your new insurance provider will see this as a good sign. However, if you went for several years, months, or even days without any insurance, you will be seen as high-risk.
- Vehicle Type – Certain cars are driven differently, which means that certain cars are more prone to accidents. Some cars are also more prone to theft or vandalism.
- Use of Vehicle – When you exclusively use your vehicle for personal use, you are less likely to get in an accident. However, if you take long business trips or frequently drive for your work, you increase your chances of a collision.
- Annual Mileage – How much you drive directly impacts your chances of getting in an accident. No matter how you use your vehicle (personal or business use), if you put a lot of mileage on your car, you are more likely to file a claim with your insurance provider.
- Number of Policies – Finally, the type of insurance you want/need will help determine your rates. The more policies you have (liability, comprehensive, uninsured motorist, etc.), the more you will need to pay.
Who Are the Cheapest Car Insurance Companies for Arizona?
When looking at rates across the entire state, there are 4 major insurance companies that consistently provide low rates for good drivers. Additionally, there are several other companies that provide low rates in certain cities and counties but do not consistently provide low rates statewide.
In any case, let’s take a look at some of the lowest auto insurance rates and best car insurance companies available in the state of Arizona:
|Provider||Annual Rate||Monthly Rate|
It is important to note that the table above shows the average rates for the minimum coverage required by the state of Arizona. For standard, comprehensive, or “full coverage,” the rates are significantly higher:
|Provider||Annual Rate||Monthly Rate|
These are approximate rates based on statewide polling for 40-year-old men and women with good driving records. Naturally, individual rates will vary. Additionally, insurers like Hartford, Progressive, and Farmers provide low rates for certain areas and applicants.
So, in order to get a better picture of auto insurance rates around the state, let’s look at how rates vary by city.
Best Arizona Car Insurance Rates by City
Aside from your driving history, your location is one of the most important factors when calculating the cost of your auto insurance. Population, crime rates, weather conditions, and the cost of living can all affect the amount you pay each year. Individuals who live and work in rural areas typically have the lowest rates, however, the majority of Arizona residents live in urban or suburban areas, where rates tend to increase.
The table below shows the average yearly auto insurance rates for 40 of the most populated cities in Arizona, in alphabetical order. These are approximate rates based on statewide polling for 40-year-old men and women with good driving records.
Additionally, this data is taken from all of the best car insurance companies in Arizona. Here is what the data shows:
|City||Average Yearly Rate|
|Lake Havasu City||$1,424|
Now, let’s take a closer look at the top-5 largest cities in Arizona and compare their respective auto insurance rates:
In Phoenix, the average annual premium is $1,203 for minimum liability insurance and $2,277 for full auto coverage. Arizona’s state capital has a cost of living that is slightly higher than the national average, but it has a relatively low cost of living compared to the rest of the state.
That said, car insurance premiums are pretty high in Phoenix. Even though Phoenix does not have a lot of traffic compared to other major US cities, the city has a high rate of auto theft, which contributes to higher premiums.
In Tucson, the average annual premium is $1,158 for minimum liability insurance and $1,948 for full auto coverage. Like most cities in Tucson, poor weather conditions are not usually an issue for drivers, though temperatures can get high. However, many of Tucson’s roads are not in great condition, and this can add more wear-and-tear to vehicles over time.
Additionally, Tucson has its fair share of traffic congestion, which often leads to a higher rate of collisions.
In Mesa, the average annual premium is $1,083 for minimum liability insurance and $1,992 for full auto coverage. Though traffic in Tucson is generally worse, Mesa residents still spend more time on the road than most other Arizona drivers.
Crime is not a huge issue in Mesa, but the city averages more than 250 alcohol-related collisions per year. As a result, insurance premiums remain well above the state average in this city.
In Chandler, the average annual premium is $949 for minimum liability insurance and $1,928 for full auto coverage. Though Chandler has a population that is about 1/6th the size of Phoenix, it still has relatively high insurance premiums.
This is partially due to the cost of living, which is among the highest for major cities in the state of Arizona. To make matters worse, Chandler drivers also have to deal with long commutes and frequent traffic congestion.
In Scottsdale, the average annual premium is $977 for minimum liability insurance and $1,903 for full auto coverage. While Scottsdale is the smallest city on this list (in terms of population), it attracts a number of tourists every year thanks to its golf courses and spa resorts.
This means that traffic congestion increases drastically during certain times of the year. In any case, Scottsdale is one of the safest cities in the entire country for drivers, with local drivers averaging a collision once every 10-11 years.
Summary of Best Cheap Arizona Auto Insurance
As you can see, there are a lot of variables that affect the cost of auto insurance in the state of Arizona. Additionally, the figures provided above are averages based on adults with good driving records, so the exact rates you pay may differ. Nonetheless, we hope that this information helps you when you’re ready to obtain a new policy or upgrade your current one with one of the best cheap Arizona car insurance companies.
If you’d like to learn more about acquiring auto insurance in your state, consult our car insurance guides and resources. If you’re looking for more information about Arizona auto insurance, consult the Arizona Department of Insurance today.