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Cheapest car insurance in Arizona
Arizona drivers who are looking for affordable car insurance have the option to choose from several cheap car insurance companies in the state. According to Bankrate’s research, the cheapest company for full coverage car insurance in Arizona is Geico, with an average premium of $948 per year. Geico is also the cheapest company for minimum coverage car insurance in the state, with an average premium of $294 per year.
Those rates are significantly cheaper than the average cost of car insurance in Arizona, which is $1,743 per year for full coverage and $579 per year for minimum coverage. These rates are on par with the national average cost of car insurance, which is $1,771 per year for full coverage and $545 per year for minimum coverage. Luckily for Arizona drivers, the carriers featured in this article typically offer much lower rates than average.
The cheapest car insurance companies in Arizona
To find some of the best cheap car insurance companies in Arizona, Bankrate’s research team evaluated quoted annual premium data from Quadrant Information Services and third-party sources, like J.D. Power and AM Best, to assess financial strength ratings, customer satisfaction scores and average premiums for some of the largest carriers that offer auto insurance in the Grand Canyon State.
For both minimum coverage and full coverage insurance premiums, Geico offers the cheapest auto insurance in Arizona, on average. However, Bankrate found that Travelers, USAA, Mercury and Iowa Farm Bureau also offer some of the most affordable rates for Arizona drivers, without limited eligibility restrictions. It is important to note that USAA only serves the military community and does not offer coverage to the general public.
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The cheapest companies for minimum coverage in Arizona
Drivers who want the cheapest rates might consider buying a minimum coverage policy, as it costs less than full coverage. Keep in mind, though, that a minimum coverage policy offers limited financial protection and does not include any coverage for physical damage to your vehicle. If you are considering a minimum coverage policy, here are the five cheapest insurers in Arizona we found in our study, with a breakdown of average annual and monthly premiums:
|Car insurance company||Average annual minimum coverage premium||Average monthly minimum coverage premium|
The cheapest companies for full coverage in Arizona
A full coverage car insurance policy is typically more expensive than minimum coverage, but it provides significantly greater financial protection, including coverage for damage to your vehicle with comprehensive and collision. This type of insurance is usually required if you lease or finance your car in order to protect the financial interests of the lessor or loan company. In the table below, you can compare the cheapest average annual premiums for full coverage car insurance in Arizona by company:
|Car insurance company||Average annual full coverage premium||Average monthly full coverage premium|
|Iowa Farm Bureau||$1,346||$112|
Events that can impact your cheap rates in Arizona
Certain life changes can cause your car insurance rate to fluctuate. If you have recently experienced an event, like an at-fault incident or adding a teen driver to your policy, you might find cheaper rates by shopping around based on your new situation. Here are some common events that will impact your rate:
- Adding a teen driver to your policy: Adding a teen driver to your auto insurance policy can have a big impact on your rate. Young drivers lack experience and are statistically more likely to be involved in accidents, resulting in more expensive premiums. However, qualifying for a good student discount or similar young driver discount can help reduce your premium. In addition, your premium will start to decrease as the teen driver gets older and gains experience behind the wheel.
- Getting a speeding ticket: Getting a speeding ticket might seem like a minor offense, but in reality, this type of driving behavior can cause costly collisions. Consequently, having convictions for speeding tickets on your motor vehicle record (MVR) can cause higher insurance rates. Typically, a speeding ticket conviction will negatively affect your insurance rate for three years, or for the duration the infraction is on your MVR. During this time, discounts and maintaining a clean driving record are ways in which drivers may be able to avoid subsequent increases.
- Causing an accident: If you cause a collision, your car insurance rates will typically be negatively affected for three to five years, or however long the incident stays on your MVR. You will typically see your premium increase when your policy renews following an at-fault collision. If you have accident forgiveness on your policy prior to the incident, and depending on the circumstances, you may be able to avoid a premium increase if it is your first-ever at-fault accident.
- Being a high-risk driver: If you have a serious moving violation on your record, such as a DUI conviction, or you got caught driving without insurance, your insurance company might consider you to be a high-risk driver. Not only do high-risk drivers pay higher car insurance rates, but you might find that some insurance carriers will not insure you. High-risk drivers may have to purchase coverage from a non-standard car insurance company that has less strict underwriting guidelines and much higher rates than standard auto insurers.
Cheapest cities in Arizona for minimum coverage
In most states, location is a primary factor when determining the cost of auto insurance. In order to find cheap car insurance in Arizona, it may help to live in an area that has low average premiums. If you move to a new city, you may want to shop around for a new insurance carrier — as you could end up finding a lower rate from a different insurer in another ZIP code.
The table below compares some of the cheapest cities in Arizona for minimum coverage auto insurance. For a more comprehensive look at rates by city, review our study on the average cost of car insurance in Arizona for statewide rates.
|City||Average annual minimum coverage premium||Average monthly minimum coverage premium|
Cheapest cities in Arizona for full coverage
Full coverage car insurance premiums also differ by ZIP code, which can be tied to a few factors. For example, car insurance rates may be higher in areas with more expensive costs of living or greater population density. The average cost of auto repairs may also impact the price and there are also typically higher incidents of car theft and vandalism in larger cities. Here are some of the cheapest cities in Arizona for full coverage car insurance:
|City||Average annual full coverage premium||Average monthly full coverage premium|
|Lake Havasu City||$1,302||$109|
Minimum coverage requirements for Arizona drivers
- $25,000 for bodily injury liability coverage per person
- $50,000 for bodily injury liability coverage per accident
- $15,000 for property damage liability coverage per accident
Although minimum coverage insurance may be considered the cheapest option, it may not financially protect you against a costly loss in the same way that a full coverage policy likely would. Full coverage insurance, which includes comprehensive and collision coverage, offers financial protection for physical damage to your vehicle, whether you are at fault or not for the incident. If you lease or finance your vehicle, your lender or loan company may require you to carry full coverage insurance.
While collision and comprehensive coverage generally provide greater financial protection, the right coverage for you depends on your individual needs. It may help to talk with a licensed insurance agent about what limits make sense for you.
Here is how to find (and keep) cheap car insurance in Arizona
Buying an insurance policy from one of the cheapest auto insurance companies in Arizona may help you get an affordable car insurance premium when you first purchase a policy, but you can also do a few other things to keep your rates low for years to come. Here are a few tips to find and keep cheap car insurance:
- Shop around and get multiple quotes: Before you choose an insurance policy, or each year as your circumstances change, make sure to shop around and get quotes from several insurance providers. The Insurance Information Institute (Triple-I) recommends you get a mix of quotes from national and regional insurers to compare costs and coverages. Pay attention to the discounts that each insurer offers, and which you may be eligible for, in order to get the most affordable rates. You can obtain quotes online or work with a local insurance agent during this process.
- Maintain a clean driving record: Your driving habits can have a significant impact on your car insurance premium. Vehicle owners who maintain clean driving records typically have the cheapest insurance rates. Avoiding at-fault accidents and claims can prove you are a lower risk to insure and may improve your eligibility for driving-based discounts or savings opportunities to further lower premiums.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.