Average car insurance cost in Phoenix, Arizona

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Our analysis shows that drivers in Phoenix pay about $2,251 per year for car insurance. It is $439 more than the Arizona average and $356 more than the nationwide average.

Insurance rates can vary significantly depending on where you live. Factors such as population density and accident and theft rates influence premium costs, making some areas more expensive or affordable than others.

Understanding how rates in Phoenix compare to state and national averages can help you spot a good deal, or know when it’s time to shop around. Below, we’ll break down local trends, show how rates vary, and explain how to save.

Cheap car insurance companies in Phoenix

GEICO offers the cheapest full coverage car insurance in Phoenix at $1,582 per year with coverage limits of $100,000 in bodily injury per person, $300,000 total per accident and $100,000 for property damage.

The second most affordable option in Phoenix is Travelers, with an average annual premium of $1,785.

Car insurance rates differ from one company to another because each insurer has its own underwriting process to determine premiums. That’s why shopping around and comparing quotes from multiple insurance companies is key to finding affordable coverage that meets your needs.

The following table compares average yearly and monthly car insurance costs from different companies in Phoenix.

Read about the best car insurance companies.

Average car insurance cost in Phoenix by coverage limits

Here’s a breakdown of average car insurance rates in Phoenix by coverage type.

• State minimum coverage: $676 per year (limits are $25,000 bodily injury liability per person, $50,000 total bodily injury liability per accident and $25,000 property damage liability per accident).
• Liability only coverage: $1,013 per year (limits are $50,000 bodily injury liability per person, $100,000 total bodily injury liability per accident and $50,000 property damage liability per accident).
• Full coverage: $2,251 per year (limits are $100,000 bodily injury liability per person, $300,000 total bodily injury liability per accident and $100,000 property damage liability per accident).
• Non-owners coverage: $482 per year

Most states require drivers to purchase minimum liability insurance to drive legally, but the minimum required limits vary. This coverage helps pay for injuries or damage you cause to others in an accident.

However, a liability-only policy won’t cover damage to your car or medical expenses if you’re at fault. You’ll need to add collision and comprehensive coverage to your policy to protect your car.

Average car insurance rates by gender in Phoenix

In Phoenix, female drivers pay an average of $2,255 per year for car insurance. In comparison, male drivers pay $2,248 annually, which is $7 less than what female drivers pay. Most states consider gender when calculating premiums. However, states such as California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania don’t allow insurers to use gender as a rating factor to determine insurance rates.

According to the Insurance Information Institute, or Triple-I, women tend to be safer drivers than men and are less likely to be involved in severe accidents. Insurers account for this risk by charging male drivers higher premiums.

Read more on how gender affects car insurance rates.

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Average car insurance rates by age in Phoenix

Teen drivers in Phoenix experience the highest insurance rates, paying an average of $8,317 per year or $693 per month.

According to the Insurance Information Institute, teens aged 16 to 19 are considered high-risk due to their inexperience behind the wheel. On average, teen drivers pay $4,740 more than young adults for insurance.

With age and experience, young drivers often see a drop in car insurance premiums. On average, 20 to 24-year-olds pay $3,577 per year – a difference of $4,740 less than compared to teen drivers.

Drivers in Phoenix aged 25 to 55 typically pay $2,246 a year for car insurance. For senior drivers aged between 60 and 75, the average annual premium is $2,302.

Read more on auto insurance for seniors.

Below is a breakdown of average annual full coverage car insurance rates by age group.

Car insurance rate trends in Phoenix

Car insurance premiums in Phoenix showed an upward trend between 2022 and 2023, with average rates changing by 12% or about $247.

The graph below tracks insurance costs from 2016 to 2023, highlighting long-term trends that help explain today’s rate changes.

How drivers can save on insurance even with higher rates

Drivers in Phoenix pay higher than the state average for car insurance. The good news? You can often cut costs by comparing quotes from several insurers and using discounts – like bundling policies, safe driver rewards, or low-mileage savings.

Methodology

Insure.com commissioned car insurance rates in 2023 from Quadrant Information Services. To determine the average premiums, our team of data analysts and expert editors analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your rates may vary.

Shivani Gite

Contributing Writer

 

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Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.