The Best Arizona Car Insurance Companies 2020

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6 min read

From the rock buttes of Monument Valley to the lush forests of the Salt and Verde River basins, Arizona has some of the most spectacular landscapes in the country. The best way to enjoy The Grand Canyon State is by car. Whether you live in the hustle and bustle of Phoenix or a secluded outpost in the Sonoran Desert, you need car insurance before you get behind the wheel.

In 2018, over 8.5 million registered vehicles occupied Arizona’s roads and highways, according to the Arizona Department of Transportation. More than 127,000 automobile crashes occurred the same year, resulting in 916 fatalities and 36,507 injuries. So, you can see why it is so important to protect yourself against damage, loss and injury before you hit the road.

When shopping for Arizona car insurance, follow the advice of the National Association of Insurance Commissioners and Insurance Information Institute, two of the nation’s top insurance authorities:

  • If you are in the market for a new car, research insurance rates for each make and model that interests you.
  • Research how factors such as credit and driving history affect your insurance rate.
  • Visit the Arizona Department of Insurance website to find out how much insurance the law requires.
  • Shop around and get insurance quotes from several companies.
  • When speaking with insurance agents, find out what each type of car insurance policy covers.
  • Ask agents about discounts, including premium reductions for bundling homeowners and car policies. Some insurance companies also offer group discounts for members of professional associations or alumni groups.
  • Carefully read the details of insurance quotes, paying close attention to limits and deductibles. If you own an older car, consider raising deductibles or dropping coverage such as collision and comprehensive insurance.
  • When you find a policy you like, check with the ADI to make sure the company you choose holds a current license.
  • Purchase car insurance before you drive off the lot.

Best Arizona car insurance companies

Finding the best car insurance might seem daunting, but with a little guidance, you can find just the right fit. Each year, J.D. Power and Associates conducts an exhaustive study of car insurance companies to find the best in the business. Using a 5-star rating system, J.D. Power produces regional reports that rates companies’ performance in six categories. In its 2019 U.S. Auto Insurance Study, J.D. Power’s top six Southwest region car insurance companies includes:

Company Rank Overall satisfaction Policy offerings Policy pricing Billing process/policy information Customer interaction Claims handling
The Hartford #1 5 stars 5 stars 5 stars 5 stars 3 stars 5 stars
State Farm #2 5 stars 3 stars 3 stars 3 stars 5 stars 3 stars
Allstate #3 3 stars 5 stars 3 stars 3 stars 4 stars 3 stars
American Family #4 3 stars 3 stars 3 stars 3 stars 3 stars 3 stars
Safeco #5 3 stars 3 stars 2 stars 3 stars 5 stars 3 stars
USAA Not ranked 5 stars 5 stars 5 stars 5 stars 5 stars 5 stars
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Although USAA came out on top, with 5-star ratings in all categories, it is not eligible for ranking in J.D. Power’s study, because USAA only offers insurance products to U.S. military members and their families.

A.M. Best Rating Services rates insurance companies according to their financial stability, based on financial size and outlook. An insurance company’s financial strength is a major indicator of its ability to fulfill its claims responsibilities. A.M. Best rates J.D. Power’s top six Arizona car insurance companies:

The Better Business Bureau fields consumer complaints about all types of products and services, including car insurance. The BBB rates businesses based on:

  • Company size.
  • Number of complaints against a business.
  • How a company responds to complaints.
  • The amount of time a business takes to respond to complaints.
  • The good faith effort a company expends to resolve complaints.
  • How effectively a business resolves underlying issues that cause complaints.
  • The number of current complaints.

The BBB rates J.D. Power’s top Arizona car insurance company picks:

Finding the right cheap car insurance in Arizona for you

Car insurance is not a one-size-fits-all product. Factors such as annual mileage, credit score and driving history can impact your car insurance premium rate. So, you need to shop around to find the best car insurance for you.

The Zebra is a private organization that researches the insurance industry. In its 2019 study of Arizona car insurance, The Zebra found that Arizona drivers with no traffic citations on their records paid an average annual car insurance rate of:

  • Ameriprise Group – $919
  • Farm Bureau Mutual – $1,221
  • USAA – $1,253
  • Encompass – $1,396
  • State Farm – $1,468

Some states, including Arizona, allow insurance companies to use your credit score as a factor in determining your premium rate. Arizona drivers with better than average credit scores paid an average annual premium of:

  • Ameriprise Group – $919
  • Farm Bureau Mutual – $1,221
  • USAA – $1,253
  • Encompass – $1,396
  • State Farm – $1,468

Arizona drivers with excellent credit scores paid an average annual premium of:

  • Ameriprise Group – $775
  • State Farm – $948
  • Farm Bureau Mutual – $1,089
  • USAA – $1,091
  • Progressive – $1,114

Arizona drivers with poor credit scores paid an average annual premium of:

  • Geico – $1,514
  • American Family – $2,020
  • USAA – $2,464
  • Allstate – $2,774
  • Progressive – $2,822

The number of miles you drive each year can influence the insurance rate you pay. Busy commuters often drive a lot and need to find the best insurance rate possible. The Zebra’s 2019 report found that Arizona car owners who drive more than 7,500 miles per year pay an annual car insurance premium of:

  • Ameriprise Group – $818
  • USAA – $1,079
  • Farm Bureau Mutual – $1,163
  • State Farm – $1,325
  • Encompass – $1,396

Drivers convicted of driving under the influence of alcohol or drugs typically end up paying more for car insurance. In 2018, Arizona drivers with DUIs on their records paid annual car insurance premiums of:

  • Progressive – $1,602
  • Farmers – $2,080
  • USAA – $2,212
  • American Family – $2,312
  • Allstate – $2,580

When you are involved in an accident, your insurance rates can increase, especially when you are at fault for a crash. In 2018, Arizona drivers with at-fault accidents on their records paid an annual car insurance premium of:

  • USAA – $1,515
  • Geico – $1,734
  • State Farm – $1,767
  • American Family – $2,350
  • Allstate – $2,355

Average car insurance cost in Arizona

Based on a 2016 Insurance Information Institute study, Arizona car owners paid an average of around $891 per year for full-coverage car insurance policies, including comprehensive, collision and liability coverages.

According to the 2019 The Zebra report, Arizona insurance is an average of around $1,247 per year for car insurance. But a general average does not paint a complete picture. Young drivers pay much higher premiums than middle-aged drivers do, and seniors often see a slight rate increase as they enter their golden years. The Zebra’s research found that Arizona drivers pay an annual average premium of:

  • Age 16 – $6,279
  • Age 20 – $1,580
  • Age 50 – $1,025
  • Age 70 – $1,375

Gender often plays are role in premium rates, but not so much in Arizona. On average, male drivers pay around $1,180 per year for car insurance, while female drivers pay $1,882.

Getting married and staying married can save you a few bucks on your car insurance. Single and divorced Arizonans pay an annual average of $1,180 for car insurance, while married folks pay about $100 less. Widowed drivers pay an average of around $1,158.

People with poor credit typically pay higher interest rates, but they also pay more for car insurance. In Arizona, divers with 300-579 FICO scores pay an average annual car insurance premium of $2,444, while drivers with exceptional 800-850 FICO scores pay around $1,024.

Convictions for traffic violations such as at-fault accidents, reckless driving and DUI can increase your annual insurance premiums. Arizona drivers with DUI convictions pay an average annual rate of $2,062 and people with reckless driving records pay more than $2,750. If you are at-fault for an accident in Arizona that causes less than $1,000 in damages, you can expect to pay an average premium of around $1,876, but if the accident causes more than $1,000 in damages, your rate could increase to $2,146.

Car insurance discounts in Arizona

Most insurance companies offer discounts to help you reduce your premium rates. In Arizona, The Hartford offers numerous ways to save, including:

  • Anti-theft device discounts for vehicles equipped with car alarms and tracking devices.
  • Air bag discounts for suitably equipped automobiles.
  • Fuel type discounts for electric and hybrid vehicles.

USAA rewards its military families with:

  • Family discounts for the children of military members who continue the USAA coverage their parents purchased for them.
  • Longevity discounts for policyholders who continuously renew their USAA coverage.
  • Military installation discounts for policyholders who store their vehicles on military bases.

Arizona State Farm customers can reduce their rates with:

  • Accident-free discounts when they maintain an accident-free driving record for three consecutive years.
  • Driver training discounts when all drivers in a household complete an approved driver education class.
  • Good student discounts for students under the age of 25 when they make the Honor Roll or rank in the top 20% of their classes.

State minimum insurance requirements in Arizona

Arizona law requires you to purchase certain insurance coverages before you can register your vehicle. According to the Arizona Department of Insurance all vehicles must have at least $40,000 worth of coverage, secured by a bond, certificate of deposit or certificate of insurance. Most drivers opt for insurance coverage.

You must carry $15,000 per person in bodily injury insurance, with a minimum coverage level of $30,000 per accident. Bodily injury coverage pays for the medical expenses of another driver, a pedestrian or the passengers of another driver when you are at fault for an accident. Your auto policy also must include $10,000 in property damage coverage to pay for other people’s property when you are at fault in an accident.

Frequently asked questions

What is the cheapest car insurance in Arizona?

Arizona insurance rates are based on several factors, including the driver’s age, the make and model of the insured vehicle and a policyholder’s driving history.

What information is needed in order to get car insurance in Arizona?

When you contact an insurance company for a quote, an agent will need to know your age, location, make and model of your vehicle, annual mileage and information about your driving record.

Does Arizona require car owners to have insurance?

Arizona requires car owners to carry minimal amounts of bodily injury and property damage insurance.

Does Arizona require drivers to have uninsured and underinsured motorist insurance?

Arizona does not require car owners to purchase uninsured and underinsured motorist coverage.