Best cheap car insurance in Phoenix

1
Morey Milbradt/Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Arizona has approximately 5.4 million licensed drivers, and as the capital city, Phoenix contributes heavily to it. Although fatal car accidents in Arizona reached a three-year low in 2019, crashes in general rose by almost 2%. Not surprisingly, the cost of car insurance in Phoenix is $737 for minimum coverage and $1,904 for full coverage, according to Bankrate’s 2021 study of quoted annual premiums. Even though traffic conditions in Phoenix are slightly better than other cities, car insurance here is on the higher side. But with careful evaluation of multiple insurance providers, comparing pricing, coverage options, customer reviews and third party scores, it is possible to find the best car insurance in Phoenix, which is both adequate for your needs as well as affordable.

Best car insurance companies in Phoenix

The following top auto insurance companies offer the best cheap car insurance in Phoenix. They were evaluated and chosen based on average premiums, customer satisfaction ratings from J.D. Power and coverage options.

Insurance company J.D. Power customer satisfaction score Average annual premium for minimum coverage Average annual premium for full coverage
Geico 834 / 1,000 $417 $1,068
Mercury Not rated $471 $1,454
USAA 876 / 1,000 $531 $1,423
Nationwide 786 / 1,000 $533 $1,403
Travelers 808 / 1,000 $545 $1,365

Geico

Geico doesn’t sacrifice excellent customer service in exchange for low premiums. When we gathered average rates, Geico had the lowest prices on car insurance for Phoenix. It also has the second-highest customer ratings in J.D. Power’s customer satisfaction rankings.

Mercury

Mercury offers cheap car insurance Phoenix premiums for all drivers. Besides affordable coverage, you’ll get guaranteed repairs that are good for as long as you own the vehicle as long as the repairs were performed at an approved facility.

If your driving is limited to occasional errands within Phoenix, you can sign up for RealDrive and save on your car insurance. You’ll need to verify the number of miles you drive per year to earn the savings, but it’s worth the small effort in the long run.

USAA

USAA car insurance is designed for retired, honorably discharged or active military personnel and their families. It’s one of the few insurers to provide coverage to drivers and vehicles while overseas.

Nationwide

Phoenix drivers looking to maximize their savings should add Nationwide to their shortlist. There are plenty of ways to save on your car insurance, including discounts for being accident-free or for enrolling in a program that tracks your driving habits to determine how safe of a driver you are. In addition, Vanishing Deductible will discount $100 (up to $300) from your deductible for every year you avoid an accident or citation.

Travelers

Travelers car insurance provides affordable coverages other insurance companies may not offer. If you’re in search of full car insurance for your newer-model or financed vehicle, Travelers may be the best choice. Besides liability, collision and comprehensive insurance, rental car and gap insurance are available.

Cheapest car insurance in Phoenix

The average annual cost of car insurance in Arizona is $502 for basic and $1,587 for full insurance. In comparison, Geico and Mercury Insurance were cheaper. USAA, Nationwide and Travelers were more expensive than the average for basic coverage but were cheaper than average for full insurance.

Insurance Company Average Annual Premium for Minimum Coverage Average Annual Premium for Full Coverage
Geico $417 $1,068
Mercury $471 $1,454
USAA $531 $1,423
Nationwide $533 $1,403
Travelers $545 $1,365

Geico and Mercury are both low-cost insurance companies willing to work with drivers who may be considered high risk and hard to insure. USAA is affordable and gets rave reviews from customers. However, you’ll need to become a member first by proving you are (or were) in the military or related to personnel.

Nationwide and Travelers are both large companies providing policyholders with a selection of optional insurance add-ons such as rideshare and gap insurance.

Phoenix insurance requirements

Arizona has a minimum requirement for liability insurance of:

  • $25,000 in bodily injury per person
  • $50,000 in bodily injury for two people or more per accident
  • $15,000 in property damage coverage

Insurance companies must report policyholders who let their insurance lapse. Failing to have at least the minimum amount of car insurance could cause your license to be suspended.

Minimum coverage is the most affordable insurance but doesn’t pay for any damages to your vehicle. If you plan on leasing or financing your car, you will probably be required to have full coverage.

Car insurance discounts in Phoenix

Phoenix drivers can see the biggest savings on car insurance when they insure multiple vehicles together. Another way to get the cheapest car insurance Phoenix is by signing up for the carrier’s telematics program. Once you opt in and download the mobile app, it will track your driving to determine how safe of a driver (and how much money to give back as a discount).

Other discounts for Phoenix vehicle owners include:

  • Good student
  • Anti-theft
  • New vehicle
  • Safe driver

Frequently asked questions

What is the best car insurance company?

There are many contenders for the best car insurance company. The answer depends on your needs. For the cheapest car insurance Phoenix, consider getting quotes to compare from affordable insures including Geico, Mercury, USAA and Nationwide.

How much does car insurance in Phoenix cost?

In our findings, the cheapest car insurance Phoenix rates came from Geico. Expect to pay an average of $417 for minimum liability insurance and $1,068 for full coverage. It’s lower than the average cost of car insurance for many states.

How much car insurance do I need in Phoenix?

Arizona requires all drivers to carry a minimum amount of liability insurance. The amounts are $25,000 in bodily injury per person and $50,000 per accident, as well as $15,000 in property damage coverage.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 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 coverages that meet each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.
Edited by
Insurance Editor