Best cheap car insurance in Tempe for 2021

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Car insurance in Tempe, Arizona costs about $672 a year for minimum coverage and $1,671 for full coverage. This is a bit above the state average, and fairly in line with the national average cost of full and minimum coverage car insurance. Maricopa County has a pretty high amount of crashes compared to the rest of the state, which may contribute to slightly higher rates than other cities in the state. In 2019, the state reported a total of 97,105 crashes, which accounted for 75% of all crashes in Arizona. When it came to fatalities, this county represented 47% of all fatalities in the state.

The data may be partly influenced by Phoenix, given Tempe and Phoenix are only a few minutes away from one another. Keep this in mind while shopping for car insurance. You may be able to save money by shopping around and comparing quotes based on your specific ZIP code.

Best car insurance companies in Tempe

To determine the best providers in Tempe, Bankrate compared top providers by market share on the basis of J.D. Power scores, average cost of premiums and amount of available discounts, among other variables.

Insurance company J.D. Power score Average annual premium for minimum coverage Average annual premium for full coverage
Geico 834/1,000 $365 $913
USAA 876/1,000 $507 $1,338
Nationwide 786/1,000 $487 $1,266
State Farm 826/1,000 $585 $1,313
Progressive 803/1,000 $720 $1,502

Geico

Geico has the lowest rates based on quoted premiums and compared to other providers reviewed. It also provides its customers with a variety of discounts they can use to lower their premiums even further. Many of its discounts offer significant savings. For example, you can save up to 25% for simply insuring two cars with Geico.

USAA

If you can qualify for USAA, you may be able to save a lot of money by choosing them for your car insurance. USAA only provides insurance to either active or retired military, as well as their immediate family members. With exceptional customer satisfaction scores from J.D. Power and low premiums, USAA may be one of the best insurance companies in Tempe for drivers who qualify.

Nationwide

Nationwide offers its share of discounts, the most significant of which utilizes smartphone technology to help drivers save even more. Sign up for its SmartRide program, and you could save up to 40% on your premium. To do so, simply install the app on your phone, and it will analyze your driving habits as you travel. If you practice safe driving habits over time, you can save money on your premium.

State Farm

Like Nationwide, State Farm also has an app to analyze your driving habits. Called Drive Safe and Save, the program analyzes your:

  • Acceleration habits
  • Braking habits
  • Cornering habits
  • Speed limit habits
  • Distracted driving habits

For following the rules of the road and driving responsibly, State Farm may give you a discount of up to 30%. State Farm also ranks highly in the J.D. Power customer satisfaction study for auto insurance, with a score of 826 out of 1,000.

Progressive

Progressive also earned strong customer satisfaction scores with J.D. Power, and because of the amount of discounts it offers, its rates are made even more affordable for Tempe drivers who qualify. It also has an online tool that allows you to name your price and Progressive will match you up with a policy, then help you compare rates between other car insurance companies. Progressive also offers both small and large accident forgiveness. Depending on whether or not you meet its criteria, your rate would be unaffected by a claim if you opt for accident forgiveness.

Cheapest car insurance in Tempe

Compared to the state and national average, car insurance in Tempe is fairly similar. Tempe drivers currently pay around $672 for minimum coverage and $1,671 for full coverage. This is marginally less than the national average ($1,674 a year for full coverage), but is a bit higher than Arizona’s yearly average ($1,547 for full coverage).

The cheapest car insurance companies in Tempe, based on quoted annual premiums, are nationally-recognized providers. All of the companies reviewed have solid customer service scores from J.D. Power. While rates may vary slightly among providers as shown below, your actual quote will also likely differ. To find the cheapest car insurance for your situation, it may be necessary to obtain and compare multiple quotes from these or other providers of interest. Ultimately, you may pay more or less depending on your driver’s profile and insurance needs.

Insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Geico $365 $913
Mercury $412 $1,360
Nationwide $487 $1,266
Travelers $502 $1,204
USAA $507 $1,338

Tempe insurance requirements

Arizona’s minimum car insurance requirements are:

    • $25,000 for bodily injury for one person
    • $50,000 for bodily injury for two or more persons
    • $15,000 for property damage

In some cases;

  • $25,000 per person for underinsured/uninsured motorist bodily injury coverage
  • $50,000 per accident for underinsured/uninsured motorist bodily injury coverage

Minimum car insurance requirements are always based on state requirements— meaning Tempe drivers will need to have at least the minimum required coverage to drive legally. With uninsured/underinsured motorist bodily injury coverage, however, drivers may be able to opt out in writing.

That said, you may want to consider purchasing full protection if you can afford to. For example, Arizona’s property damage requirements fall well short of the average cost of a new car. Should you total a brand new Ford truck, it is very possible you could have $30K in damages to cover outside your insurance limits.

Also, should you plan on financing or leasing a new car, the auto dealership will likely require you to purchase full coverage (with varying limits, depending on the situation). Keep this in mind while shopping for quotes because the companies with the lowest premiums for a minimum policy are often not the lowest provider for a full coverage policy.

Car insurance discounts in Tempe

The cheapest car insurance in Tempe is often made possible by taking advantage of discounts. Discounts drivers may consider will vary in availability by provider, or in the amount of savings they provide, but can include the following:

  • Defensive Driving: Many defensive driving courses can be taken online, in the evenings or on weekends. For many national providers, this may net a discount on your premium.
  • Multi-car: Unless you have an extremely high end or valuable antique car, it is usually not critical to shop around for different policies for every car you own. This is because the amount you would save through the multi-car discount is often quite significant.
  • Bundling: In the same vein of the multi-car discount bundling commonly provides significant savings on your policies. Bundling is when you use the same provider for multiple types of policies, such as renters, condo, or homeowners insurance.
  • Good Student: Is anyone under 25 on your policy (including yourself) and in school? Many insurance providers offer a discount for getting good grades. Depending on the provider, it may stay on your account until you or your student turn 25.
  • Paid in full: If you can afford to pay your entire premium in one payment, you may save up to 10% or more with some providers on your car insurance.

Frequently asked questions

What is the best car insurance company?

Each person looks for different criteria while shopping for car insurance. Some people want the lowest premiums, others seek diverse coverage options, and some value financial stability more highly. For a deep dive on this subject, consider our review of the best car insurance companies for 2021.

How much does car insurance in Tempe cost?

No two drivers pay the same amount for car insurance, but the average annual cost of car insurance in Tempe is $1,671 for full coverage and $672 for minimum coverage. Remember, the cost of car insurance is influenced by many factors, some of which include the type of car you drive, your driving history, and where you live.

Which company is the best car insurance company in Arizona?

Arizona drivers have a lot of good options when it comes to car insurance. Luckily for Tempe residents, the best state options are pretty close to the best city options.

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
Lauren Ward
Insurance Contributor
Lauren Ward has nearly 10 years of experience in writing for insurance domains such as Bankrate, The Simple Dollar, and Reviews.com. She covers auto, homeowners, and life insurance, as well other topics in the personal finance industry.
Edited by
Insurance Editor