insure logo

Why you can trust Insure.com

quality icon

Quality Verified

At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry.

Car insurance in Phoenix costs $2,251 per year for full coverage – $188 per month. In 2024, Geico offers the cheapest car insurance policy at $132 per month.

Phoenix, the capital city of Arizona, boasts a population of more than 1.6 million, making it the most populous city in the state. In this sprawling metro area, which includes Mesa and Chandler, drivers lose 57.2 hours per year to commuting in traffic, putting it in the top 50 longest commutes in the nation.  

As an Arizona driver, car insurance is required. Learn about Phoenix’s cheapest car insurance companies and how much car insurance you must carry.

Key Takeaways

  • Drivers in Phoenix pay an average of $188 per month for a full coverage policy, which is $30 more than the national average of $158. 
  • The cheapest car insurance company for a full coverage policy in Phoenix is Geico.
  • Compared to Western cities like Los Angeles and San Jose, Phoenix drivers pay less for car insurance.

How to find the best car insurance in Phoenix

Finding the best car insurance in Phoenix involves comparing quotes from multiple insurance companies. As you look for the best option, get quotes from at least three auto insurance companies to find the right fit. Also, don’t forget to ask about any discounts you might qualify for to keep costs low. 

The cheapest car insurance company in Phoenix

According to 2023 data, Geico offers Phoenix drivers the cheapest car insurance rates at $1,582 per year. Other insurers offering relatively cheap average rates and open to all include USAA, Travelers and Auto-Owners. USAA is only available to military members and their families. 

The table below illustrates the different average costs by insurance company for state minimum vs. full coverage policies.

Company Average annual rates for state minimumAverage annual rates for full coverage
Allstate$758$2,769
Auto-Owners$581$2,140
Farmers$914$2,972
Geico$482$1,582
Nationwide$833$2,208
Progressive$804$2,427
State Farm$874$2,831
Travelers$571$1,785
USAA$329$1,741

How much is car insurance in Phoenix per month?

Phoenix drivers pay an average of $56 per month for a car insurance policy that meets the state’s minimum requirements. Drivers seeking more protection through a full coverage policy pay an average of $188 monthly for insurance. 

The table below breaks down the average monthly car insurance rates by type of policy for Phoenix drivers.

CompanyAverage monthly rates for state minimumAverage monthly rates for full coverage
Allstate$63$231
Auto-Owners$48$178
Farmers$76$248
Geico$40$132
Nationwide$69$184
Progressive$67$202
State Farm$73$236
Travelers$48$149
USAA$27$145

How do rates in Phoenix compare to other large cities in the U.S.?

Insurers look at your location when calculating your auto insurance premiums. In general, drivers in big cities pay more for car insurance than rural or small-town drivers. That’s because bigger cities have more risk factors, including higher rates of vandalism, theft, and accidents. Insurance companies compensate for the higher risk with higher insurance premiums. 

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much drivers pay for car insurance in several major U.S. cities compared to Phoenix in the table below.

CityFull coverage cost
Chicago$1,930
Dallas$2,278
Houston$2,317
Los Angeles$3,149
New York$2,600
Philadelphia$2,782
Phoenix$2,251
San Antonio$2,181
San Diego$2,324
San Jose$2,406

Here’s what you need to know when driving in Phoenix, AZ

Driving in Phoenix isn’t always straightforward or efficient. But preparation can make for a smoother journey. Here are some tips to help you navigate the city of Phoenix:

  • Traffic can be unpredictable. Consider using a map app to get directions and avoid unnecessary traffic. 
  • Congestion peaks between 6 and 9 a.m. and 3-6 p.m. on weekdays. Try to avoid rush hour traffic if possible. 
  • Get comfortable with the complex freeway system to avoid getting lost or missing your exit. 

As you navigate the streets of Phoenix, keep these driving rules in mind:

  • If a highway is divided into two or more separate roadways and traffic is restricted to one direction upon each roadway, no one can stand or park a vehicle other than on the righthand side of such one-way roadway unless signs are erected to permit such standing or parking elsewhere.
  • No one can park or permit to be parked on any residential property a vehicle that is inoperable and is visible from beyond the boundary of the lot.
  • No person can stop, stand or park a vehicle in an alley at any time except for the loading or unloading of physically disabled persons or for the expeditious loading or unloading of goods, materials or merchandise. Loading or unloading must be accomplished without blocking the alley to the free movement of vehicular traffic and without interfering with or obstructing the use of a fire escape. 

How much car insurance do I need in Phoenix?

Phoenix drivers are required to carry a minimum amount of coverage, which is set by the state of Arizona. Below is a breakdown of the minimum coverage you’ll need to carry when driving in Phoenix:

  • $25,000 in bodily injury liability coverage per person 
  • $50,000 for bodily injury liability coverage per accident for all injured parties.
  • $15,000 in property damage coverage per accident. 

The requirements outlined above represent the bare minimum. Many drivers choose to pay for more coverage for better protection. For example, drivers who want help repairing or replacing their vehicle after an incident might choose to pay for collision and comprehensive coverage

Average cost of car insurance in Phoenix

Phoenix drivers pay an average of $676 per year for a bare-bones policy that meets the state’s minimum requirements. Drivers who opt for the protection of a full coverage car insurance policy pay an average of $2,251 per year.

Nationally, drivers pay an average of $1,895 annually for a full coverage policy. That’s about $300 per year lower than the cost Phoenix drivers face. In contrast to the rest of Arizona where drivers pay an average of $1,812 for a full coverage policy, Phoenix drivers pay higher rates.

State minimum coverage in PhoenixAnnual full coverage rates in Phoenix
$676$2,251

How much does car insurance in Phoenix cost with violations?

Traffic violations tend to increase your car insurance costs. After all, a traffic violation is a red flag to insurance companies, which they compensate for by increasing your premiums. 

Arizona drivers see car insurance costs increase by an average of 42% after a speeding ticket, by an average of 65% after an at-fault accident, and by 99% after a DUI conviction.

Violation typeRate increase percentage
Speeding ticket42%
DUI conviction99%
Bad credit143%
At-fault accident65%

Cheapest car insurance in Phoenix by age

Insurance companies take your age into account when determining insurance premiums. Younger drivers tend to face higher car insurance premiums due to a lack of experience behind the wheel, which is a risk factor. As you build your driving experience over time, you’ll see car insurance rates fall. 

The table below highlights the trend of younger drivers paying more for car insurance in Phoenix.

AgeState minimum coverageFull coverage
18$2,565$7,958
25$797$2,621
40$676$2,251
65$671$2,098

Compare auto insurance rates in Phoenix by ZIP code 

Within Phoenix, your location can have a big impact on your car insurance costs. ZIP codes associated with shorter commutes and lower crime rates tend to find cheaper car insurance premiums than those with longer commutes and higher crime rates. 

We explore both ends of the spectrum below.

Cheapest annual car insurance rates in Phoenix, by ZIP code

ZIP CodeAverage annual rates
85340$1,950
85048$1,970
85044$1,975
85331$1,980
85083$2,034
85097$2,035
85045$2,038
85085$2,046
85254$2,056
85054$2,057

Most expensive annual car insurance rates in Phoenix, by ZIP code

ZIP CodeAverage annual rates
85015$2,500
85043$2,482
85003$2,466
85019$2,460
85013$2,460
85051$2,459
85007$2,454
85017$2,454
85006$2,445
85004$2,444

Our recommendations: Car insurance for drivers in Phoenix

Car insurance is an unavoidable expense for Phoenix drivers. But the good news is that you don’t have to overpay for this necessity. Get quotes from multiple car insurance companies to find the most affordable rates for your unique situation.  

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Phoenix.

expert

What our expert says

Q. Why do insurance rates vary from city to city?

expert-image
Dr. James BrauDr. Brau teaches finance principles, entrepreneurial finance, financial planning, and corporate finance at Brigham Young University’s School of Business. His research includes issues related to initial public offerings, financial education, real estate, and entrepreneurial finance.
“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles. As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Resources & Methodology

Sources

author image
Sarah Sharkey
Contributing Researcher

 
|
  

Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.