The best, cheapest car insurance in Arizona

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Best car insurance company in Arizona

Drivers in Arizona pay an average of $1,812 a year, or $151 per month, which is the 30^th highest in the country, according to our research.

Actual car insurance rates vary by company, and Auto-Owners, GEICO, and others continue to offer some of the most competitive premiums in Arizona.

When it comes to the best cheap car insurance in Arizona, Auto-Owners is our No. 1 choice followed by GEICO and Travelers.

Auto-Owners scores well with third-party rating organizations and it has an average premium in Arizona of $1,539 a year, or $128 a month, which is roughly $273 less than the Arizona average.

The best car insurance companies in Arizona

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in Arizona

GEICO has the cheapest average rate in the state at $1,312 a year.

While GEICO is the cheapest for many drivers, the perfect insurer for you may be a different company.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age, marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The data clearly shows the range of premiums for similar drivers.

In Arizona, as mentioned earlier, the cheapest policy is GEICO with an average rate of $1,312 a year. Travelers follows with an average premium of $1,489 a year or $124 a month and Auto-Owners with premiums of $1,539 a year or $128 a month.

Farmers is the most expensive insurer with an average premium of $2,331.

Make sure you’re taking advantage of all the discounts you qualify for to ensure you’re getting the best possible rate. Ask your agent to review your policy for any available savings you might be missing.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in Arizona

Full coverage car insurance in Arizona

As noted, the rates above are for full coverage car insurance. Full coverage car insurance simply means you are carrying liability and any other state requirements as well as collision and comprehensive.

Full coverage insurance includes collision and comprehensive, which protects your own vehicle. Collision insurance will pay to repair your vehicle when it is damaged after colliding with another vehicle or object. Comprehensive covers damage that is done by perils such as fire, theft, flooding, vandalism, and more.

Shopping for car insurance in Arizona

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age, income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Arizona by age

Car insurance rates will vary by age as reams of statistics show that teen and young adult drivers, because they are inexperienced on the road, take bigger risks and are more likely to get in anaccident and file a claim, which is why they pay more for coverage than older more experienced drivers.

GEICO turned out to be the best insurer in Arizona for drivers of all ages. The numbers show the difference between young and old drivers with the lowest premium for a teen coming in at 91% more than the lowest premium for a senior driver.

Once a driver hits 25, rates will start to drop, assuming they keep their driving record clean, and will stay stable until their 70s when they will start climbing a bit.

Cheapest car insurance for senior drivers in Arizona

According to our data, senior drivers pay roughly 31% more than middle-aged drivers.

Seniors tend to pay slightly higher car insurance rates than younger drivers. In Arizona, the cheapest insurance company for senior drivers is GEICO at $1,284 a year or $107 a month. Travelers grabbed the second-place spot with premiums running $1,539 annually or $128 a month, Nationwide was third at $1,623.

Seniors pay higher rates thanks to age-related issues. They often suffer from vision and hearing issues as well as slowing reflexes and medical issues. This all leads to more accidents and claims, which pushes up the cost to insure seniors.

The chart below shows the average premium for senior drivers.

Average rates for seniors in Arizona

Car insurance for young drivers in Arizona

Young drivers (21-25) have seen their premiums drop from their teen years, but they still pay more than more experienced drivers. In Arizona, GEICO is the cheapest option for young adults with a yearly premium of $1,816 or $151 a month.

Travelers is the next most affordable with an average rate of $2,324 followed by Auto-Owners at $2,621.

Young drivers who maintain a clean driving record can expect their rates to drop even more as they reach their late 20s.

The table below shows the best insurers for young drivers in Arizona:

Average rates for young drivers in Arizona

Car insurance for teen drivers in Arizona

Although teen drivers always pay much higher premiums than other driver groups, GEICO offers teens the cheapest rate at $3,381. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

Auto-Owners has the second most affordable premium at $4,384 a year followed by Travelers at $4,793 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While GEICO was the most affordable at $3,381, CSAA Insurance (AAA) was the most expensive with an annual premium of $13,572.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive. Just keep in mind that doing so means you’ll be on the hook for any damage if they’re in a crash.

The chart below shows average premiums for teens in Arizona:

Average rates for teens in Arizona

Average cost of car insurance in Arizona

In Arizona, the average premium is $1,812, which makes Arizona the 30^th most expensive state for coverage.

All states have large metropolitan areas, which will always push up the cost of insurance as more vehicles on the road lead to more accidents and claims. A high crime rate will also impact rates.

“If a state has a higher rate of car insurance claims associated with vandalism or car theft, prices are usually higher because car insurance companies view insuring these cars as a higher risk for them,” says Chong Gao, director of product management R&D at Mercury Insurance.

The chart below is the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

Which Arizona ZIP codes are most expensive for car insurance?

Where your vehicle spends its days and nights will impact your rate. Frequent severe weather or a high crime rate will raise the cost of insurance for everyone in the area.

Our data shows that Phoenix is the most expensive area for coverage with an average premium of $2,251 a year.

Here are the most expensive ZIP codes in Arizona for car insurance:

Most expensive ZIP codes in Arizona

Which Arizona ZIP codes are the cheapest for car insurance?

Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in Arizona is in Lake Havasu City with an annual premium of $1,386.

Least expensive ZIP codes in Arizona

Cheapest car insurance for high-risk drivers in Arizona

Drivers with a speeding ticket, DUI or at-fault accident on their record are often considered high-risk drivers and end up paying more for coverage. The increase can range from reasonable for a speeding ticket to a big leap in costs for a DUI.

The data showed that a speeding ticket will result in a 42% increase, pushing the average rate to $2,359. Speeding tickets will typically impact your premium for at least three years.

An at-fault accident will raise your rates by 66% to an average of $2,765. A DUI will result in the biggest increase, sending your premium up 101% to an average of $3,336.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in Arizona after a traffic incident

Minimum car insurance requirements in Arizona

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. Arizona requires drivers to carry 25/50/15 in liability coverage, which translates into:

• $25k for bodily injury and $50,000 for death for a person involved in an accident
• $50k for bodily injury and $100,000 for death for two or more people in an accident
• $15k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Arizona.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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