Not every insurance company offers the same benefits. One company might specialize in younger drivers while another might provide lower deductible plans.
That’s why it ’is important to obtain several quotes to find the cheapest car insurance in Arizona, the more quotes you have, the greater your negotiating power when you decide on a company.
After all, you may get the lowest quote from a new and untested insurance provider, but newer companies may not be as financially stable as established industry giants.
Best Cheap Car Insurance in Arizona
Here are the 4 best providers of cheap car insurance in AZ:
Progressive Car Insurance
Possibly best known for the Name Your Price Tool promotion, Progressive is a full-service insurance company.
Insurance packages include auto, home, life, motorcycle, and boat, along with more niche options like flood insurance or event insurance.
Liberty Mutual provides a long history of quality insurance packages dating back to 1912 when the company first started operations.
From the Boston headquarters, Liberty Mutual agents help consumers around the globe protect their valuables and other assets. This insurance company focuses on safety today and tomorrow with a dedicated investment arm that seeks out innovative technologies and startups.
American Family, a Wisconsin based insurance company, goes beyond the basics with unique offerings like farm and ranch insurance.
Its products include the standard trio of auto, home, and life, along with extras. Its focus on both rural and urban lifestyles means a variety of options like emergency roadside assistance and help with car repairs.
USAA is more than just an insurance company. This one-stop-shop for financial services includes banking and lending along with a complete line of insurance products that include disability and disaster relief.
Designed to support armed forces members, USAA often offers discounts and deals to their members.
How Much is Car Insurance in Arizona?
Finding the cheapest car insurance in Arizona may result in you paying less than the national average.
The average cost of insurance in this state is $843.92, which is less than the national average.
- Average Cost of Car Insurance in AZ: $843.92
- National Average Cost of Car Insurance: $889.01
What Factors Affect the Cost of Car Insurance in AZ?
The population density of your area, amount of vehicle theft, general traffic conditions, and disposable income levels can all impact your final premium.
A little research can tells you which demographics come with higher premiums.
Population density is directly related to your premiums. Areas with lots of people also have more vehicles on the road, leading to more accidents. In general, insuring a car in the city costs more than protecting the same vehicle in a rural area.
Phoenix is the most densely populated and largest city in the state, and according to a report by the National Association of Insurance Commissioners, it has 3,126 people per square mile.
Living in the city often means higher rates since the state population density is a mere 5.9.
Vehicle Theft Rates
Arizona reports 18,421 vehicle thefts each year. Of these, 17,457 occur in or near a major metropolitan area. If you don’t live near a city, it is likely that crime won’t dramatically affect your rates. If you do, you may want to stay away from buying one of the cars frequently stolen in Arizona.
Below is a list in order of most at risk to least, based on 2018 theft numbers compiled by the National Insurance Crime Bureau.
- 2000 Chevrolet Pickup
- 2006 Ford Pickup
- 1998 Honda Civic
- 1997 Honda Accord
- 2018 GMC Pickup
- 2001 Dodge Pickup
- 2015 Nissan Altima
- 2007 Toyota Camry
- 1996 Jeep Cherokee/Grand Cherokee
- 2018 Toyota Corolla
Insurance companies use two basic metrics to adjust rates, based on traffic conditions, congestion on the roads, and the number of fatal accidents. In Arizona, the number of deadly accidents closely mirrors the national average, with 0.14 fatal accidents per 1,000 registered vehicles versus the 0.13 nationwide.
The average number of miles traveled in this state by registered vehicles hits 11,583 annually, just below the national average of 12,010. Fewer miles traveled means less congested traffic and helps keep rates low for the geographical area.
Disposable Income Levels
Disposable income can also drive up insurance rates. The more people have to spend, the more likely they are to buy new cars or install expensive add-ons to their vehicles. When insurers must cover more valuable property, they charge higher premiums.
In Arizona, disposable income levels are below the national average of $40,859 at $34,321 according to the NAIC. Less disposable income helps keep rates competitive in this state. For comparison, California has an average disposable income of $43,978 and also pays more for car insurance.
What is Mandatory for Car Insurance in Arizona
To legally drive a vehicle in Arizona, you must register it. Part of registering a car is providing insurance information.
Arizona requires liability insurance on every vehicle that operates on the roads. This mandate includes all forms of transportation such as golf carts, mopeds, and motorcycles. Liability insurance guarantees payment for any damage you cause in an accident up to your policy maximum.
The law also places minimum coverage requirements to meet the expected financial burden of an accident. Liability-only is often the cheapest car insurance in Arizona, and the coverage minimums are:
- $15,000 minimum bodily injury per person
- $30,000 minimum bodily injury per accident
- $10,000 minimum property damage
If you don’t have insurance, it can lead to a suspended registration. To re-register your vehicle, Arizona charges a $50 fee and requires proof of insurance.
For a first offense, with no complications, that may be all you pay. If you get pulled over without insurance or have an accident, the cost can increase exponentially.
In the event of an accident, you could have to pay out-of-pocket for the entire repair bill for your vehicle and any other cars involved in the crash. If you get pulled over after an insurance lapse, it can result in a suspended license. Getting your license back is substantially more costly and may take some time.
Make sure your insurance doesn’t lapse. Arizona requires you to maintain minimum coverage before your car even starts moving.
How to Reduce the Cost of Your Car Insurance in Arizona
Car insurance can eat up a large portion of your monthly income. To keep the expense down, be sure to get every discount and weigh the pros and cons of the offered coverage.
Ask about insurance discounts: Some insurance companies may automatically apply certain discounts based on information you provide. Others may not. The only way to know for sure is to ask your agent.
- If you are a student, mention your 4.0 GPA.
- If you recently got married or reached that all-important birthday milestone of 25, change your status as quickly as possible
- If you have a spotless driving record, make sure you get a discount for it
- Having kids, finishing college, owning your own home, and dozens of other life events might net you some savings.
Bundle up on your insurance: To get the cheapest car insurance in Arizona, explore the option of bundling your auto and property insurance. The more policies you have with a single company, the less you may pay per policy. Some companies offer a flat percentage off when you bundle, while others may have a more adjustable rate plan based on how many policies you pile up.
Look into liability only coverage: If you don’t have a car loan, you might want to look at liability-only insurance policies. These are usually the least expensive and meet the bare minimum of legal requirements. If you have a car loan, your lender may require more substantial coverage.
You may also want comprehensive coverage if you have a newer or more expensive vehicle. Still, eEven with comprehensive, there are often add-ons that you may or may not want.
If your credit card company already offers roadside assistance, you can knock that fee off your comprehensive coverage. Look at all the options and choose the right package for your needs.
When you start shopping for rates, make sure you have some necessary information ready.
To get an accurate quote that is as low as possible, you’ll need:
- Make and model of your car including VIN
- Installed safety features
- Anti-theft devices
- Expected annual mileage
- Your age
- Driving record
- Any completed safe driving courses
- Where you live and park
- Desired policy limits
- Deductible amount
- Number of drivers in your household
- Any insurance you might want to bundle
The more information you provide, the more discounts for which you might be eligible, from low-mileage discounts to high-deductible policies with lower monthly premiums.
What can Increase the Cost of Your Car Insurance in Arizona?
Getting married or celebrating a birthday can bring down the cost of car insurance, but some things can also move the needle up. Here are a few items that may make a significant impact on your premium.
- Your age: Young drivers pay more for insurance, it’s just a fact of life. Inexperience behind the wheel means that new drivers are more likely to get into an accident. Even older drivers that are newly licensed pay more. To offset this, consider taking a safe driving course.
- What kind of car you drive: The replacement value of your vehicle has a direct impact on how much you pay. A driver who owns a $5,000 car pays a much lower premium than one who owns a luxury vehicle with a six-figure price tag. Keep in mind the cost of insurance when car shopping.
- What your driving record looks like: A few speeding tickets can be very costly when it comes time to renew your insurance. An at-fault accident can be even more expensive. Avoid unsafe driving habits and avoid a premium hike.
Shopping For Car Insurance in AZ
Before starting any negotiation, arm yourself with information. Most consumers do a fair amount of product research before buying a television or sound system, and it’s important to put that same mindset to work when shopping for the cheapest car insurance in Arizona.
Comparison shopping is the only way to make sure you get a great deal, and proper research is an essential negotiating tactic. Insurance companies consider many factors when offering a quote, and when you know how your age, driving record, vehicle, and location affects your auto insurance rates, you can adjust your stats to help keep those rates low.
Buying car insurance is different than buying a product in a store. Rates are negotiable. That means you can show an agent a lower quote and they just might come back with something better.
Just knowing the average cost can help you fight against high rates. Use the information above to haggle and get your prices down.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.