Arizona Car Insurance: How to Shop for the Cheapest Rates
With the Grand Canyon being in Arizona, the state’s car insurance can be a little rocky as well when it comes to rates.
Premiums aren't expensive compared with the rest of the country, but they're also not cheap.
The average rate (with “full coverage”) is $1,356 per year.
Below is a guide in which we’ll be helping you find the right rate to match the type of coverage you'll need.
Average Car Insurance Rates in Arizona
Although the average rate may not apply to you, it can give you a better idea of what you may see with your policy.
Depending on where you live, your age, gender, and your insurance company, your rates will vary.
Statewide average premiums in Arizona for three popular car insurance coverage levels (all premium information we’ll be providing comes from our sister site, CarInsurance.com.)
- “Full coverage” –100/300/100***, with comprehensive and collision coverage, including a deductible of $500: $1,356 per year
- Liability only, with 50/100/50: $573 per year
- Liability only, using the state minimum coverage levels: $496 per year
***100/300/100 refers to liability coverage levels.
- The first number represents bodily injury or death to one person in a single at-fault accident.
- The second number represents bodily injury or death to two or more people in a single at-fault car accident.
- The third number refers to property damage caused to other vehicles in an at-fault accident.
Full coverage also includes collision and comprehensive coverage, which pays for repairs to your vehicle no matter who is at fault.
Factors that Will Affect Your Arizona Car Insurance Premium
Below are seven factors that will determine the premium you’ll pay for Arizona car insurance.
Gender
Gender is an important factor in some states. However, Arizona doesn’t offer much difference, just a few dollars. A 30-year-old male will pay $216 per month for full coverage, while a 30-year-old female will pay $219 per month for the same policy.
Your age
Drivers under the age of 25 will always pay higher rates in any state. Arizona is no exception.
Since they’re young, insurers consider them to be higher-risk drivers.
For example, an 18-year-old male driver living in Phoenix will pay $299 a month, or $3,588 per year, for state minimum coverage. A 30-year-old male also living in Phoenix with the same coverage will pay $216 a month, or $2,592 per year.
Insurance rates will usually increase once you reach the age of 65.
A 75-year-old male will pay $248 per month, or $2,976 per year, for full coverage. Meanwhile, a 30-year-old male with the same policy will pay $216 per month, or $2,592 per year. Although there’s not much of a difference, it still shows how rates start to rise after the age of 65.
Driving record
Your driving record will play the biggest role with your insurer.
Speeding no more than 10-15 miles over the limit will produce a 25% premium increase. Speeding 16 miles or more over the limit will produce a 27% premium increase.
The average increase in Arizona is 145% for a DUI/DWI first offense (subsequent offenses will be much higher and carry serious penalties).
At-fault accidents will certainly bring an increase in your premium.
A typical car insurance premium in Arizona will increase by 22% after an accident claim that’s determined to be your fault. That average is just a ballpark and may not apply to you. Bodily injury and property damage will make up the variables of that percentage. Who you choose as your insurer will also be a factor; as each company assesses risk differently.
Credit profile
Your credit score will be an important factor of your premium.
Drivers in Arizona with bad credit will pay 94% more on their premium than drivers with good credit.
With bad credit, finding the right company with coverage that will work for you is essential to being on the road.
Coverage limits
We’ve already listed the factors that will make up the statewide average premium for the most popular coverage.
As a refresher, a policy with liability limits of 100/300/100 is $1,356 per year, while liability coverage limits of 50/100/50 is $573. State coverage for minimum liability is $496 per year.
But just because the premium is lowered doesn’t mean minimum liability coverage will be enough. Your liability limits should be based on your net worth.
For example, if your net worth is less than $50,000, you might be able to take the state minimum coverage. If your net worth is between $50,000 and $100,000, choose at least 50/100/50. If it's more than $200,000, choose at least 100/300/100. You don’t want to find yourself with too little coverage. A major lawsuit or claim could force you to pay any out-of-pocket expenses if your policy limits are exceeded.
The vehicle(s) on the policy
Some vehicles cost more to ensure that others.
You can generally expect older vehicles, particularly those worth less than $3,000, to be less expensive.
If nothing else, you won’t need to carry collision and comprehensive coverage on them.
But new and more expensive vehicles will cost more. This is especially true of certain vehicles, like SUVs, pickup trucks, luxury cars and sports cars.
The insurance company
The difference in rates between companies for the same policy can cost hundreds to thousands of dollars more or less depending on which company you decide to go with.
The most important part of finding coverage will be the company you choose your premium with.
Below are the average statewide premiums for full coverage (100/300/100) by six major carriers operating in Arizona:
- Geico: $977 per year
- Progressive: $1,047 per year
- Farmers: $1,195 per year
- State Farm: $1,392 per year
- Nationwide: $1,719 per year
- Allstate: $1,807 per year
Notice that Allstate, the most expensive provider, charges premiums that are almost double those of GEICO, the cheapest provider.
Average Arizona Car Insurance Rate Based on City
Your location will be one of the variables that make up your premium.
Within the same state, there can be major variations in premium levels from one city or town to another.
With the statewide average premium at $1,356 in Arizona for 100/300/100 coverage, average premiums on a local level are as follows:
- Chandler: $1,542
- Mesa: $1,597
- Phoenix: $1,852
- Scottsdale: $1,530
- Tucson: $1,522
More populated areas such as Phoenix bring in more traffic and potential for accidents. Rural and more remote areas are considered lower risk and will have lower rates.
Auto Insurance Requirements in Arizona
Car insurance laws in Arizona require that drivers carry minimum liability coverage limits of 25/50/15 on their vehicle.
The minimum car insurance requirements in Arizona are listed below:
- Minimum bodily injury liability, one person: $25,000
- Minimum bodily injury liability, two or more people: $50,000
- Minimum property damage liability: $15,000
Basic Information on Optional Coverages in Arizona
As is the case in virtually every other state, there’s a wide range of optional coverages available to add to your policy in Arizona. The most popular include:
Collision
While the personal property damage portion of a car insurance policy covers the cost of repairs to the other driver’s vehicle when you are determined to be at fault, it will not cover the cost of repairs to your vehicle.
You can add collision coverage specifically for that purpose.
If you have a loan or a lease on your vehicle, it will be required by your lender.
Comprehensive
This provision will cover your vehicle for damage sustained while it is parked.
This includes theft, damage from falling objects, and weather-related hazards, like storm damage, or animal strikes.
Comprehensive coverage is typically included with collision, and will also be required by a lender if you have a loan or lease on the vehicle.
Guaranteed Auto Protection (GAP)
If your car is ever stolen or totaled in an accident this add-on can help you cover the loss by paying off the lease or loan.
Now:
It’s not required (except by lenders on cars with loans greater than 80% of the vehicle’s value) but it is recommended if you believe you owe more on your car than it’s worth.
Standard car insurance policies will cover only up to the value of the vehicle. But if the loan amount is higher than that value, and you have GAP coverage, the loan amount will be fully paid.
MedPay (medical payments)
MedPay offers medical and funeral expenses of covered drivers and passengers after an accident up to $25,000, no matter who's at fault.
This provides you and your passengers with coverage of medical expenses if your health insurance limits are exceeded.
Uninsured/under-insured motorist
Despite state laws to prevent it, a large number of drivers have no car insurance.
Many more have only minimal coverage. This provision will protect you if you’re involved in an accident with either type of driver.
Tips to Get the Best Rates on Arizona Car Insurance Policies
Below are the most popular strategies to get the best rates on car insurance in Arizona:
Make safe driving a habit
Keeping your record clean is essential to both your safety and your insurance premium.
Driving safe and avoiding any violations or at-fault accidents for three years or more will enable you to get the best car insurance rates available.
Shop around periodically
As we saw above, the difference between two insurance companies can easily be $1,000 (or more) for the same coverage.
Shop around and see who has the best rates.
Even if the company you’re with now had the best rates at the time you applied, the situation may have changed.
Complete a safe driver course
If you have a poor driving history, your insurance company may allow you to complete an approved safe driver course.
It could lower your premium by 10% or more.
Increase your deductible
By increasing it from, say, $500, to $1,000, you may be able to save several hundred thousand dollars on your premium each year.
Just make sure you have enough liquid cash available to cover the higher deductible if you’re involved in an accident.
Discounts
Most insurance companies provide multiple discounts on premiums.
Check with your insurer to see how many discounts they have available.
You may find that many apply to you and you’ll definitely want to take advantage of that.
Maintain clean credit
You can pay 60% more for car insurance in Arizona for having poor credit.
Keeping your credit clean for at least the last two or three years will help you secure a better rate.
Bottom Line
Wherever you live, keeping enough coverage to protect your assets is the most important thing when it comes to car insurance.
Although Arizona may not have the most expensive rates, you still owe it to yourself to do everything you can to get the lowest-cost premium for the best coverage.
