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Arizona Car Insurance

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Here you’ll find everything you need to make smart choices when buying car insurance in Arizona. We explain how to make sure you have enough coverage, as well as provide average Arizona car insurance rates by company and ZIP code.

When setting your rate, insurance companies take into account the cost and number of claims in your neighborhood, your driving record, your credit history,  the type of car you drive and other variables. The price for the same coverage can vary significantly among insurance companies — and that’s why you should compare rates. Car insurance rates in Northern Arizona are among the cheapest in the country, but prices rise dramatically in bigger Arizona cities like Phoenix and Tucson. The average rate for Arizona, $1,356, is just $1 more than the nationwide average. The highest rate for Phoenix ZIP code 85017 among six carriers is $2,554. The lowest rate for the same policy is $1,364, so you can save over $1,100 just by shopping around.

But no matter where you live, you can pay less for coverage by comparison shopping. Use our average car insurance rates tool to see how much you can save. Enter a ZIP code to see the average premium for your neighborhood. You will also see the highest and lowest rates from the six major carriers surveyed to get an idea of what the most affordable car insurance price is in your area. 

Cheap car insurance in Arizona

Arizona car insurance requirements

Arizona state law requires the following minimum car insurance coverage:
Minimum bodily injury liability $15,000/$30,000
Minimum property damage liability $10,000

Arizona's required liability insurance limits are comparatively low. Bodily injury liability of only $15,000 per person and $30,000 for all persons harmed in one accident, plus $10,000 in property damage liability, means that your limits could be quickly exhausted without even being in a major accident.

The cheapest car insurance in Arizona that you can get will typically be the minimum limits required to drive legally. But more protection that provides a financial safety net should you get in an accident doesn’t cost that much more. You’ll see in the chart below that increasing your insurance coverage from the state minimum to 50/100/50 costs just $77 a year. Jumping up to full coverage with a $500 deductible costs, on average, $860 more, or about $72 a month.

Coverage limitsAverage annual rate
Liability Only – state minimum $496
Liability Only - 50/100/50 BI/PD $573
Full Coverage - 100/300/100 BI/PD$500 Comp/Collision deductible $1,356

*The table shows the average annual rate of nearly every ZIP code in Arizona from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for CarInsurance.com by Quadrant Information Services.

 

Recommended car insurance coverage

If you’re on board to buy more than bare-bones coverage, you may be wondering exactly how much more car insurance you need.

Use our How Much Car Insurance Do You Need? tool to get a recommendation.

AGE
STATE
VEHICLE MODEL YEAR
OWN RENT
OWNED FINANCED LEASED

Liability

We recommend you buy more insurance than is required to legally drive a car in your state, especially if you have savings and assets. The more money you have, the more likely you are to be sued following a car accident should your insurance be insufficient to cover all the expenses. If your net worth is:

  • less than $50,000, choose at least 50/100/50
  • between $50,000 and $100,000, choose at least 100/300/100
  • more than $100,000, choose at least 250/500/100

If you're leasing or financing your car, you must get coverage of 100/300/100 or higher.

Collision and comprehensive

Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and broken glass and for damages from vandalism, flooding, hail, fire and animal strikes. These optional coverages are usually quite cheap. Arizona drivers pay, on average, $269 a year for collision and $186 annually for comprehensive. If your car is:

  • less than 10 years old, you should strongly consider buying collision and comprehensive.
  • more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy.

If you buy comp and collision, check our guide to choosing a deductible amount.

Uninsured/underinsured motorist

Uninsured motorist coverage and underinsured motorist coverage are optional in Arizona. These coverages pay for damages if you’re hit by a driver with no insurance or a driver with coverage that’s insufficient to pay for your repairs and medical expenses.

Medical coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, starting at $5,000 and up to $25,000. In most states, including Arizona, it's an optional addition to your car insurance policy. MedPay does the following:

  • Covers you and your passengers’ medical expenses
  • Pays for expenses after health insurance limits are exceeded
  • Offers additional protection to insured drivers who are hit by a car while walking or biking

If you and your passengers:

  • Don’t have health insurance, or have a plan that doesn’t cover car accidents or has low limits, we recommend that you add medical coverage of at least $5,000 to your car insurance policy.

Gap insurance

If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

  • If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
  • If you’re leasing your car, it’s a good idea to buy gap insurance if you aren’t already required to in your lease agreement.
  • If you own your car outright, you don’t need gap insurance.

Arizona car insurance rates by company

Below you'll see average annual rates for Arizona, ranked cheapest to most expensive, for three coverage levels:

  • State minimum liability requirements
  • Liability limits of $50,000 per person/$100,000 per accident and $50,000 property damage
  • Liability of $100,000 per person/$300,000 per accident and $100,000 property damage, with comprehensive and collision at $500 deductible
CompanyState minimum
Geico $331
State Farm $460
Progressive $471
Allstate $550
Farmers $569
Nationwide $594
Company 50/100/50
Geico $427
Progressive $544
Allstate $563
State Farm $595
Farmers $643
Nationwide $665
Company 100/300/100
Geico $977
Progressive $1,047
Farmers $1,195
State Farm $1,392
Nationwide $1,719
Allstate $1,807

Best car insurance companies in Arizona

Scores are based on Insure.com’s “Best Insurance Companies” customer review survey of 3,700 customers. Companies not in the top 10 of market share do not qualify. All scores are out of 100.

Best customer service:

1.    USAA – 100

2.    State Farm – 92.8

3.    Geico – 92.6

Best claims service:

1.     USAA – 100

2.     American Family – 100

3.     State Farm – 96

4.     CSAA –95.2

Best value for the price:

1.     American Family -- 98

2.     USAA – 97.7

3.     Hartford -- 94

Car insurance companies by market share in Arizona

RankCompany NameDirect premiums writtenMarket share %Overall Customer Review Ranking
1 State Farm 697,409 17.4% 90.4
2 Geico 538,346 13.43% 88.1
3 Progressive 387,400 9.67% 89.6
4 Farmers 354,125 8.84% 81.1
5 Allstate 347,410 8.67% 87
6 USAA 288,486 7.2% 97.2
7 American Family 231,625 5.78% 89.2
8 Liberty Mutual 214,790 5.36% 86.5
9 Hartford 114,120 2.85% 90.2
10 CSAA 85,104 2.12% 91.3

Source: A.M. Best market share rankings are based on direct premiums written in 2015.

Customer review rankings based on Insure.com's 2016 "Best Insurance Companies" survey of 3,700 customers. Scores are out of 100.

Arizona car insurance laws

  • Arizona's required liability insurance limits are comparatively low. Bodily injury liability of only $15,000 per person and $30,000 for all persons harmed in one accident, plus $10,000 in property damage liability, means that your limits could be quickly exhausted without even being in a major accident.
  • Failure to carry auto insurance: Insurance companies must notify the state's Motor Vehicle Division when an individual starts a new auto insurance policy, cancels or non-renews. If the state finds you aren't carrying at least the minimum Arizona auto insurance limits on your vehicle, your vehicle registration and driver's license may be suspended. To reinstate these items you'll owe fees. You will also be required to file (for three years from the date of suspension) future proof of financial responsibility via a SR-22 form.
  • De-insurance: If you are taking a vehicle off of the road for a bit, apply for a De-Insured Certificate. De-insurance allows you to temporarily take the state-required insurance off a vehicle until it is ready to be driven again.
  • Electronic proof of insurance: Arizona allows drivers to show proof of insurance during a traffic stop on a smartphone. It is one of 31 states that does so.

Why comprehensive coverage is valuable in Arizona

Carrying comprehensive coverage on your automobile will be important if you are worried about damage resulting from Arizona's dust devils, monsoon rains or wildfires.

Comprehensive car insurance also covers you if your car is stolen. With Arizona's close proximity to Mexico (there are seven ports of entry along the 354-mile Arizona/Mexico border) and dry, moderate climate (that allows cars to remain rust-free and maintain higher values) the Arizona Insurance Council notes that vehicle theft can be a problem in this state.

STATE CAR INSURANCE REQUIREMENTS

To drive legally in Arizona, you must have liability insurance with at least limits of:

15 / 30 / 10

Bodily injury liability limits of $15,000 per person in an accident you cause, up to $30,000 for per accident, and property damage liability of $10,000. 

Click here for an explanation of liability requirements numbers

HOW MUCH IS CAR INSURANCE IN ARIZONA? The average car insurance rate in Arizona is:
$1,356 per year
20th most expensive state in the U.S.
DRIVING IN ARIZONA
In our independent study of the best and worst states for driving, Arizona was the
26th BEST STATE
52% percent of roads are in poor/mediocre condition
10.6% of the drivers on the roads are uninsured
11.4 % traffic-related deaths per 100,000 population
3.32% of the average annual median household income is spent on car insurance
51 hours of commuter delay per year in the state's most congested city, Phoenix

Full report: Best and worst states for driving