Arizona Car Insurance [Rates + Cheap Coverage Guide]

Arizona, also known as “The Grand Canyon State,” ranks 14th in the United States in terms of total population. Recent statistics, as of 2017, show that 5,164,966 people are licensed drivers in the state of Arizona. That amounts to almost 75 percent of the state. And with 75 percent of the state licensed and driving in Arizona, it stands to reason that car insurance is a topic that you are either thinking about or that is on your mind.

But where do you begin? With so many choices out there, it may be hard to know where to start.

Look no further! We are here to help. You can trust us because we don’t try to sell you anything. A good start is to know the requirements in your state and what your options are. And you will love us because we’ve done all the heavy lifting and all the research for you!

You may already know comparing car insurance rates is a great way to save money on your insurance premium! Start today by entering your ZIP code.

Here’s what we cover in this article:

• Arizona Car Insurance Coverage and Rates
• Arizona Car Insurance Companies
• Laws in Arizona
• Facts You Need To Know

What are Arizona car insurance coverage and average rates?

If you love towns with the charm of the “How The West Was Won” culture (think the town of Tombstone, site of the O.K. Corral), and places with some of the best Mexican food, Arizona might be the best place for you to live. But as horses are no longer the preferred method of transportation in Arizona, do you know what it costs to own and operate a vehicle in Arizona?

Minimum Car Insurance Requirements in Arizona

While Arizona ranks about middle of the road for uninsured drivers — at 24th in the United States and about 12 percent of Arizona motorists uninsured — it’s important to know that you need, at the minimum, liability insurance.
We can see how the minimum costs for car insurance in Arizona compare to the rest of the U.S..

Liability insurance pays all individuals — drivers, passengers, pedestrians, bicyclists, etc. — who are owed compensation for property damage and/or injuries resulting from a car accident that you or anyone under your policy causes.

Arizona is an “at-fault” accident state. This means, if you are in an accident and it’s your fault, you are responsible for any personal injury or property claims.

The type of liability insurance required in Arizona involves both bodily injury and property damage. The minimum amount you are required to carry in Arizona if you are at-fault in an accident is as follows:

• $15,000 – to cover injury or death per person.
• $30,000 – to cover total injuries or death per person.
• $10,000 – to cover property damage per accident.

Remember, these amounts are minimum requirements. There are additional coverage options you can add to your insurance policy (which we will talk about later).

Your liability coverage kicks in no matter who is driving your car, and also if you are driving a rental vehicle.

What are the required forms of financial responsibility in Arizona?

Arizona law requires every driver and every owner of a vehicle to have proof of financial responsibility (proof of liability coverage) at all times.

Here are the four forms of acceptable proof of vehicle liability insurance coverage in Arizona:

1. Liability insurance policy
2. A bond worth $40,000.
3. Certificate of deposit worth $40,000.
4. $40,000 in cash.

Every time a motorist operates a vehicle, he or she is required to have — on hand — one of the above four forms proving financial responsibility.

Arizona can cancel your insurance for the following reasons:

• Reckless driving.
• Non-payment of your premium.
• The insurance was obtained through fraudulent misrepresentation.
• Your driver’s license is suspended or revoked.
• Permanently disabled and no certificate from a physician testifying to your ability to operate an auto.
• Convicted of criminal negligence arising out of the operation of your vehicle.
• Operating your vehicle while intoxicated under the influence of drugs.
• Leaving the scene of an accident.
• Making false statements on your driver’s license application.
• The insurer is placed in rehabilitation or receivership.
• A private passenger auto is used regularly and frequently for commercial purposes.
• If continuation of the policy is in violation of the laws of Arizona.

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How much are premiums as percentage of income in Arizona?

In 2017, the annual per capita disposable personal income in Arizona was $34,321.

Disposable personal income (DPI) is the total amount of money available for an individual to spend (or save) after their taxes have been paid.

The average annual cost of car insurance in Georgia is $961, which is about 3 percent of the average disposable personal income.

The average Arizona resident has $2,806 each month to spend on the necessities. The car insurance bill alone will deduct close to $100 out of that — and even more than that with a less-than-perfect driving record.

American Consumer Credit Counseling suggests saving 20 percent of every paycheck. With Arizona’s DPI, that’s a whopping $561 each month!

How much are you putting aside for savings? You can calculate the percentage of income to set aside using the calculator below.

CalculatorPro

How much are the average annual car insurance rates in AZ (liability, collision, comprehensive)?

The above table illustrates the most recent data provided by the leading source on the matter, the National Association of Insurance Commissioners. Expect car insurance rates in Arizona to be significantly higher for 2019 and on.

Below, we can see how rates compare for Arizona car owners versus other states.

Don’t forget: Arizona has minimum requirements for liability coverage, but experts suggest drivers purchase more than what state law requires, especially when the state is an “at-fault” state like Arizona.

The attorneys at Begam, Marks, and Traulsen talk about why you should consider getting more than the minimum amount of coverage:

“Now, consider the average cost of an MRI is up to $3,000 alone. If you must visit an emergency room following a car accident, you could easily exceed these policy limits, even for a minor injury. We recommend carrying underinsured and uninsured policies above the minimum required amounts of coverage.”
Let’s dig into some of the most popular coverage options to add to a basic auto insurance policy.

Additional Liability Coverage in Arizona

Med Pay, Uninsured, and Underinsured Motorist coverage are all optional in Arizona, but they’re still important to have. Why? In 2015, 13 percent of motorists in the US were uninsured, and 12 percent of motorists in Arizona are also uninsured — these drivers would likely go bankrupt before they could pay off bills for damage and injuries they caused in a car accident.

Arizona ranked 24th in the nation in 2015 for uninsured or underinsured drivers.

Arizona has been on a downward decline as far as loss ratio is concerned, but Arizona is still on the higher end of how much is covered.

Add-Ons, Endorsements, and Riders

We know getting the complete coverage you need for an affordable price is your goal.

Good news: there are lots of powerful but cheap extras you can add to your policy.

Here’s a list of useful coverage available to you in Arizona:

• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Rental Reimbursement
• Emergency Roadside Assistance
• Mechanical Breakdown Insurance
• Non-Owner Car Insurance
• Modified Car Insurance Coverage
• Classic Car Insurance
• Pay-as-You-Drive or Usage-Based Insurance

Male Versus Female Annual Car Insurance Rates in Arizona

Popular myth: men pay more for car insurance. In Arizona, however, it seems like it mainly depends on your age, instead of your gender.

If you are a 17-year-old, look to pay less for car insurance if you are a female.

One thing to remember: your coverage limits and your driving record will play a major role in your costs.

Cheapest Arizona Car Insurance Rates by ZIP Code

Don’t see your ZIP code on the list above? See if it’s on the list of most expensive ZIP codes below.

Cheapest Arizona Car Insurance Rates by City

Desert Hills has the cheapest car insurance rates in Arizona.

Those of you who live in Phoenix, depending on your ZIP code, you will end up paying $4,000 – $5,000 a year on car insurance!

Arizona Car Insurance Companies

With the hundreds of car insurance providers out there, it’s nearly impossible to know who you can trust or when is the right time to switch (if ever!).

Let us help you figure that out!

Keep reading to get the inside scoop on who the best providers are (and why) across the Grand Canyon State.

Arizona’s Car Insurance Rates by Company

How do Arizona car insurance companies compare on ratings?

Let’s dive right in with financial ratings and a look at the top ten Insurance providers in Arizona…

The 10 Largest Arizona Car Insurance Companies’ Financial Ratings

Sometimes it’s more important to know what people are saying about these companies than it is to know the financial data. You’re the customer, after all, and you need to be treated well! Read on to find out what other customer experiences have been like.

Arizona’s Car Insurance Companies With the Best Customer Ratings

J.D. Power and Associates in 2018 ranked CSAA the highest for customer satisfaction in the Southwest! Though The Hartford is not too far behind; there is only one point separating them from CSAA.

J.D. Power Business Consultant says, “Cost is not the sole indicator of customer satisfaction in the auto insurance industry. Low prices may attract new customers, but it’s service that keeps them.”

Here’s the total breakdown for 2018:

Arizona’s Car Insurance Companies With the MOST Customer Complaints

A bad review and complaint every now and again is par for the course for any business. But when there are multiple bad reviews and complaints, the time has come to start paying attention!

Here are the companies in Arizona with the most customer complaints:

Sometimes complaints are balanced by overall customer satisfaction. Be sure to account for all factors as you’re shopping around.

Commute Rates in Arizona

Companies such as Farmers and Allstate, and most other companies on this list, the cost is the same no matter the length of the commute.

However, commute times are just one of the factors that can affect your rates.

Coverage Rates in Arizona

Interestingly enough, State Farm does not offer a high level of coverage. The company that offers a high level of coverage at the most reasonable price is Geico.

Credit History Rates in Arizona

Your credit score can work for you or against you when it comes to the cost of your car insurance in Arizona. Let’s see which companies have the best rates, no matter your credit history:

Looks like Geico wins out again, having the best rates no matter your credit history.

Driving Record Rates in Arizona

Much like credit history, your driving record can work for you, or against you, when it comes to the cost of your car insurance in Arizona. Take a look at how annual rates differ based on your driving record.

Geico’s rates are the same regardless of your record. USAA offers the lowest rates when it comes to having a clean driving record.

Largest Car Insurance Companies in Arizona

Number of Insurers in Arizona – Domestic Versus Foreign

• Domestic – 40
• Foreign – 943

What laws in Arizona should you know?

In order to keep your car insurance rates low, you need to know the laws in your state so you don’t get a fine. Don’t worry! We’re here to help.

Keep reading to learn about the laws specific to the state of Arizona.

What are Arizona’s car insurance laws?

Arizona has a number of specific laws unique to their state, so be aware (especially if you’re a new resident or just passing through!).

No Uninsured Motorist Coverage – If you live in Arizona, there is no uninsured motorist coverage available unless you purchase additional liability protection from an insurer other than Allstate. This means that even though you may not own any vehicles registered in another state, you could still face financial ruin due to an injury caused by someone who does not carry auto insurance.

Uninsured/Underinsured Motorists Coverage – In addition to having no UM coverage, residents living in Arizona also do not receive benefits under this.

You can read up on the specifics of some of their laws and fining procedures here to avoid incurring fees and possible insurance rate increases.

High-Risk Insurance in Arizona

Sometimes, bad things happen to you on the road and your record ends up being less-than-stellar. In Arizona, a high-risk driver must have a type of filing with their insurance called an SR-22.

Here are some reasons Arizona drivers need an SR-22 once they’re driving privileges are reinstated:

• Failing to have the minimum liability coverage required.
• An alcohol or drug violation, e.g., DUI.

If you’re a high-risk driver and unable to find coverage through the free market, Arizona has a provision for you called Arizona Automobile Insurance Plan.

Arizona’s Windshield and Glass Repair Laws

So, maybe a rock hits your windshield. Or some strange occurrence happens to where you get a crack in your windshield. Bummer!

Is it required for insurers in Arizona to pay for windshield repairs? Only if you purchase optional “full glass” or “safety equipment coverage.”

In Arizona, insurance companies have the option of offering to repair your windshield with aftermarket and used parts — as long as you agree. If you decline, you then agree to pay the difference in the cost of repairs to your windshield.

The Statute of Limitations in Arizona

If you get into an accident and your claim to what happened is disputed, it is important that you be informed as to what the statute of limitations laws are in your state. What does this mean?

“Plaintiffs have time limits in which to file a civil claim, collectively called ‘statutes of limitations.’ The purpose of these laws is to ensure that claims are made while evidence is still relatively vital, and to prevent the constant ‘threat’ of a lawsuit long after the disputed event has occurred.”

Automobile Insurance Fraud in Arizona

Arizona takes insurance fraud very seriously. So seriously, in fact, that they have an entire division devoted to it called the Arizona Department of Insurance Fraud Unit.

Insurance fraud, according to the Arizona Department of Insurance Fraud, is divided up into hard fraud and soft fraud.

1. “Hard Fraud – Someone deliberately fakes an accident, injury, theft, arson or other loss to collect money illegally from insurance companies. Crooks often act alone, but increasingly, organized crime rings stage large schemes that steal millions of dollars.
2. Soft Fraud – Normally honest people often tell so-called “little white lies” to their insurance company. Many people think it’s just harmless fudging. But soft fraud is a crime, and raises everyone’s insurance costs.”

Arizona’s Vehicle Licensing Laws

To drive a car, you have to have a license! Keep reading to find out what Arizona’s mandatory licensing laws are…

Penalties for Driving Without Insurance

The penalties for driving without insurance in Arizona have different levels of penalty for each number of times the offense is committed.

• First offense – Fine of $500 (or more); license/registration/license plate suspension for three months
• Second offense – Fine of $750 (or more within 36 months); license/registration/license plate suspension for six months

Vehicle owners or leasees are required by state law to “Arizona requires that every motor vehicle operated on roadways be covered by one of the statutory forms of financial responsibility, more commonly called liability insurance, through a company that is authorized to do business in Arizona.”

Teen Driver Laws in Arizona

Not all teen driving regulations are the same from state to state! Here’s what you need to know in Arizona:

Any restrictions are lifted after six months or after age 18, whatever comes first.

License Renewal Procedures and Older Drivers in Arizona

Arizona’s license renewal procedures for the general population and older drivers are pretty straightforward.

• Older Population License Renewal – Five years for people 65 years and older
• Proof of Vision Required – Every renewal
• Mail or Online Renewal Permitted – No

New to Arizona? Here are a few of the things unique to The Grand Canyon State:

New Residents or People Visiting Arizona

• If you are moving to Arizona, it is very important to register your car and get car insurance as soon as possible. If your car was insured in your previous state, the same levels of coverage may not be acceptable to the state of Arizona.
• No handheld phone or texting ban exists in the state of Arizona.
• There are no keep right laws in the state of Arizona, but it is advised to keep right if you are driving slower than the traffic around you.

Whether you’re a resident or just passing through, it’s important to know the rules of the road! Take a peek at this basic rundown to make sure you are following the law…

Fault Versus No-Fault

Arizona is an at-fault state. This means you’ll be held liable for damages in an accident where you are the at-fault driver. Make sure you have a good liability policy in place to protect yourself against risks!

Impaired-Driving Laws in Arizona

You should never make the decision to drink and drive, but if you do, know that Arizona has some strict laws and penalties against that behavior.

In 2017, there were 278 deaths due to alcohol-impaired driving on Arizona’s roadways. Arizona also ranks 31st in the nation for the most dangerous state for drunk driving. Below are the top 15 counties for fatalities involving an alcohol-impaired driver.

You should also know that Arizona is a zero-tolerance state for THC and metabolites while driving.

Keep-Right Laws in Arizona

Arizona does not have keep-right laws. There are no keep right laws in the state of Arizona, but it is advised to keep right if you are driving slower than the traffic around you.

Speed Limits in Arizona

The maximum speed limit on rural interstates is 75 mph. On all other roads, it is 65 mph.

Child Safety Laws in Arizona

Be sure to restrain your children — their safety should be your first priority, but you should also be aware that Arizona imposes fines up to $50 for a first offense (increasing on repeat offenses). All children age 4 and under — or children ages 5–7 who are 57 inches tall or less — must be in a child restraint in the state of Arizona while riding in a moving vehicle. Eight years old and over 57 inches tall, they may wear an adult safety belt. There is no preference for the rear seat.

Also, you should know that Arizona does not have any laws for people riding in the cargo area of trucks.

Ridesharing in Arizona

Ridesharing services such as Lyft are now statewide in the state of Arizona.

But what about insurance? What happens if your ridesharing driver gets into an accident while you’re in the vehicle?

Ridesharing companies are required to carry a minimum of $1 million in coverage for liability and collision. So don’t worry — should the worst happen while taking an Uber or a Lyft, you’re covered!

Automation on the Roads in Arizona

What is automation on the roads? “Automation is the use of a machine or technology to perform a task or function that was previously carried out by a human.” In other words, self-driving or autonomous vehicles (or autonomous functions in vehicles).

Obviously, this sort of technology requires careful testing and regulation, but laws will vary state-to-state. Arizona does allow for the deployment of autonomous vehicles on their roadways. Here’s what else you need to know about what is currently allowed on the roads in Arizona:

• “Arizona does not require a licensed operator for a ‘fully autonomous vehicle’ when the ‘automated driving system’ is engaged.”
• Depending on the level of vehicle automation, Arizona may or may not require an operator.
• Autonomous vehicles in Arizona do require liability insurance.

We’re not through yet…

Safety Laws

Driving is a responsibility. It is your responsibility to stay safe behind the wheel and to do your best to help keep others safe.

Let’s talk about the safety laws in Arizona.

DUI Laws

Driving under the influence of alcohol is illegal in Arizona, and DUI laws are as strict as everywhere else in the country.

For your first offense, it is a Class 1 misdemeanor, with your license taken away for a period between 90 to 360 days. In addition, you will be in prison for a minimum of one to ten days and will pay a fine of $250.

For your second offense, it is a Class 1 misdemeanor, with your license taken away for one year. In addition, you will be in prison for a minimum of 30 to 90 days, have your license revoked for one year, and will pay a fine of $500.

Subsequent offenses are felonies and will have you paying more fines, and doing more prison time.

Marijuana-Impaired Driving Laws

There is a zero-tolerance law for marijuana use in Arizona. It is legal for medical use, but you have to have it prescribed by a doctor.

If you possess less than two pounds of marijuana, it is a Class 6 felony. You will be punished with six to eighteen months in prison and pay up to $150,000 in fines.

Distracted Driving Laws

Effective as of January 1, 2021, it will be illegal to use a cellular phone while driving or text while driving in the state of Arizona.

As of now (July 2020), whether it is illegal or not is left up to the city. For instance, Flagstaff, Phoenix, and Tucson made it illegal to text while driving.

There are no distracted driving laws or formal consequences in Arizona at this time.

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Facts You Need to Know

Have you wondered how safe Arizona is?

Safety is high on your list of priorities, so it is high on our list of priorities as well.

Here’s what you need to know about Arizona.

Vehicle Theft in Arizona

Here are the top 10 stolen cars in the state of Arizona:

Watch out, those of you who own Hondas. You take over the top two spots in your state.

Road Danger in Arizona

The best way to stay out of danger on the roads is to drive defensively and be aware of common issues in your state.

Traffic Fatalities from 2017

Here are statistics on traffic fatalities in Arizona from 2017.

Fatality Traffic Rates by City

Traffic Fatalities – Rural Versus Urban

• Rural (in 2017) – 352
• Urban (in 2017) – 347

Fatalities by Person Type

Fatalities by Crash Type

Five-Year Trend for the Top 10 Counties in Arizona

Fatalities in Crashes Involving Speeding by County

Fatalities in Crashes Involving Alcohol-Impaired Driving by County

Teens and Drunk Driving

Teens drunk driving is a serious problem in a lot of states, and one that each parent must take seriously.

EMS Response Time – Rural Versus Urban

Rural

Urban

Transportation

If you live in Arizona, chances are you live in a two-car (or more!) household, drive alone to work, and spend a hefty amount of your day commuting!

With an average commute time of 23.7 minutes, Arizona ranks above the national average, and with 76.5 percent of the population driving alone, that commute doesn’t rank Arizona as the greenest option when it comes to carbon emissions.

Car Ownership

Most of the households, 40.7 percent, in Arizona own two cars. This is on par with the national average of 40.3 percent.

Commute Time

Arizona workers spend an average of 27.3 minutes driving to work, which is a little longer than the 25.7 minutes Americans commute. Some Arizonians even suffer through a “super commute” — spending in excess of 90 minutes in the car!

Commuter Transportation

A little more than 76 percent of Arizonians drive alone on their way to work. Carpoolers make up 11 percent of commuters, while 6.76 percent of Arizonians work from home.

Top Five Cities for Traffic Congestion

If you don’t like traffic, you might want to avoid living in Phoenix. In 2017, a study found Phoenix to be the 15th highest city in the nation for traffic congestion and in the top 100 list of worst traffic cities n 2017, sitting at number 96.

For more information about traffic around the U.S., check out your city/state’s traffic index.

But if traffic doesn’t bother you, there’s plenty of reasons to live in Phoenix — both as a travel and living destination.

Don’t waste another minute. Start comparison shopping car insurance rates today!