Best car insurance companies in Arizona
Fact-checked with HomeInsurance.com
Although many insurers today operate nationwide, some of the top car insurance companies only offer regional coverage. Researching auto insurance companies in Arizona, specifically, could give you a better idea of which carriers understand your local needs best. Car insurance in Arizona averages $1,517 per year for full coverage — just below the national average of $1,555 a year.
Factors contributing to why insurance premiums in Arizona are slightly higher on average include:
- Minimum insurance requirements: $25,000/$50,000/$15,000
- Number of auto crashes in 2019: Almost 130,000
- Percentage of uninsured motorists: 12%, #29 in the country
- Percentage of licensed drivers 65 or over: 20%
- Population density: 63 people per square mile
The average cost of car insurance was calculated by compiling rates from the top 10 auto insurance companies in Arizona for a driver with a clean record for full coverage that includes collision and comprehensive insurance. Rates can vary, depending on coverage limits and driving history, among other factors indicated below.
|Clean record||1 speeding ticket||1 accident|
Top car insurance companies in Arizona
- Allstate: Best for high-quality coverage and service
- American Family: Best for drivers under 30
- GEICO: Best for drivers on a budget
- AAA: Best for long-distance drivers
- Farmers: Best for in-person customer service
|Company||J.D. Power Score||AM Best||Discounts offered||Average rate|
|Allstate||3/5||A- (Excellent)||Early signing|
Safe driving club
|American Family||3/5||A (Excellent)||Generational|
Steer into savings
|AAA||4/5||A- (Excellent)||Alumni associations|
|Farmers||3/5||B++ (Good)||Signal by Farmers|
Alternative fuel cars
Allstate: Best for high-quality coverage and service
Allstate may have higher premiums than the other picks for best auto insurance in Arizona, but you’re getting the whole package from one company. Allstate has a variety of discounts and coverages for any type of driver. Plus, customer service is excellent, according to J.D. Power ratings. If you have questions or need to file a claim, you’ll have multiple options. You can file a claim from the mobile app, Allstate website, by calling or visiting your local agent or calling the company’s toll-free hotline.
American Family: Best for drivers under 30
American Family provides affordable car insurance, especially if you’re a younger driver. Teens and drivers up to their mid-twenties are hardest hit by high car insurance rates. But if your parents have car insurance with American Family, you can qualify for the Generational discount. If they don’t, you can still get a good reduction on your auto coverage through the Young Volunteer discount program by signing up to volunteer for 40 hours per year with your favorite non-profit.
GEICO: Best for drivers on a budget
GEICO has the best car insurance in Arizona for budget-conscious drivers. This provider manages to deliver good value for a low price. And most importantly, customers agree. GEICO scores high in the 2019 J.D. Power claims satisfaction study, with four out of five Power Circles — which is above average.
AAA: Best for long-distance drivers
Auto insurance with AAA is limited to members, but becoming a member means you’re getting more than just auto insurance. This comes with extra perks, such as industry-leading roadside assistance, offices available nationwide and travel services. If you travel periodically or make long road trips often, the discounts you receive on car and travel services and hotel stays as an AAA member could offset the otherwise mid-range price of AAA car insurance in Arizona.
Farmers: Best for in-person customer service
Farmers has a network of 48,000 agents and offices nationwide. If you prefer more in-person interactions with your car insurance and would like to build a personal relationship with a local agent, Farmers may be the best choice. The car insurance company has plenty of discounts and coverage options to make our top 10 auto insurance companies in Arizona, but outshines the rest when it comes to local, personal service.
Car insurance companies in Arizona by city
Coverage examined the average cost of car insurance in Arizona further by city, as ZIP code has a big impact on rates. Drivers in larger, more densely populated areas typically pay more for car insurance than rural residents.
|City||Full coverage annual rate||Minimum coverage annual rate|
Chandler is a suburb of Phoenix, AZ with a population of 266,057 residents. Although it is located near Phoenix — the most expensive city for insurance — Chandler’s rates are just below the national average. This may be because of the low claims and safer drivers; Allstate ranks drivers of Chandler, AZ as #26 on its list of best drivers in the country.
Living in Gilbert means you’ll pay less than the state average for car insurance rates. It’s evenly matched with Chandler in terms of pricing and population, with 248,279 residents. However, it’s not as close to Phoenix, which may contribute to slightly lower rates.
Mesa is a larger, more populated city. With just over half a million residents, there are far more cars (and chances of an accident) than in the smaller Arizona cities. Nevertheless, Mesa annual premiums average $1,568 for full coverage — fairly close to the national average for annual, full coverage premiums.
Phoenix’s annual car insurance rates average $1,803 for full coverage and $578 for minimum liability insurance. That’s well above the national and state average. There are 1.66 million residents in Phoenix and over 3,100 people per square mile, increasing the likelihood of accidents and costly car insurance claims.
Tucson’s rates and population are similar to Mesa; the city has a population of 553,871. However, Tucson ranks 40th in Allstate’s best drivers report by city, which may be the reason insurance premiums are slightly lower than the state and national average.
Arizona car insurance considerations
Arizona residents don’t have to deal with the same extreme level of natural disasters other states face each year. There are no hurricanes or ice storms, and windstorms are rare. One factor that could affect Arizona drivers, however, is the aging population.
Roughly 20% of the licensed drivers in the state are 65 or older. As you age, mobility and reflexes are affected, potentially increasing the chance of being in a car accident. The best protection against the possibility is to drive defensively and make sure your insurance is up to date. Arizona also requires all drivers to carry minimum levels of liability.
Arizona minimum liability requirements
Arizona minimum liability requirements for car insurance are listed as 25/50/15. This is the short way to indicate the minimum amount of coverage all drivers are required to have in the state:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
Although these are the legal minimums required, it is recommended to have coverage that comprehensively protects you. Liability insurance only pays for damages and injuries you cause to others if you’re at fault for the accident. Any damages to your vehicle won’t be reimbursed. You would need to buy full coverage if you want to protect your property as well.
How we chose the best car insurance providers in Arizona
Coverage chose the best auto insurance companies in Arizona by reviewing the list of providers to look for discounts offered, average premium price for Arizona by driver type and customer reviews or independent ratings about the level of service each insurance carrier provides.
Other car insurance providers in Arizona to consider
Besides the top five auto insurance companies in Arizona highlighted above, here are other honorable mentions worth considering.
If you’re active or retired military or related to someone who is, USAA may be the best choice of all auto insurance companies in Arizona. USAA ranks highest in customer satisfaction in J.D. Power customer studies and offers affordable car insurance personalized for the needs of military members and their extended family.
Arizona has a big retired community of adults over 50. Most are card-carrying members of the AARP. The Hartford has partnered with the AARP to bring exclusive car insurance deals to senior members for a competitive price.
Travelers is an innovative car insurance company and one of the few to fully embrace the needs of today’s drivers. Travelers provides affordable coverage for Tesla drivers, as well as offering rideshare insurance for Lyft or Uber drivers.
Progressive insurance should be on your shortlist of car insurance companies in Arizona. The insurer’s low prices make it worth including in quote comparisons. Customers with credit issues, or a driving history with speeding tickets or accidents, may be able to find affordable insurance through Progressive.
State Farm isn’t the cheapest car insurance in Arizona, but if you have a clean driving history and good credit you may still be able to get a competitive rate. The Steer Clear program is worth checking out; you can enroll teen drivers in the program and the app will monitor their driving and provide tips on how to improve. As their driving skills get better, you’ll receive a discount on their premiums.
|Company||J.D. Power Score||AM Best||Discounts offered||Average rate|
|The Hartford||4/5||A- (Excellent)||Defensive driver education|
Alternative fuel cars
|Progressive||3/5||A+ (Superior)||SnapshotTeen driver||$1,577|
|State Farm||4/5||A++ (Superior)||Steer Clear|
Drive Safe and Save
Student away at school
|USAA||5/5||A++ (Superior)||Driver training|
Coverage Utilizes Quadrant Information Services to analyse quoted rates from thousands of zip codes across all 50 states, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30-year-male and female with clean driving records, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.