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Car insurance is an unavoidable expense for vehicle owners. According to the law, every state has a minimum liability automobile insurance requirement that drivers must carry. Failure to maintain the minimum amount of insurance can result in fines or suspension of your driver’s license, so it’s not worth the risk. Whether you’re looking at purchasing a new or used vehicle or are just shopping around to replace your current policy, here’s where to find cheap car insurance in Arizona.
What Are the Various Types of Insurance Coverage?
Knowing the various types of insurance coverage can help you determine what you need to get an adequate quote from an insurance provider. There are six main types of insurance coverage for you to understand. These include:
Liability insurance is required by most, if not all, states with varying minimum coverage. There are two components to liability coverage, bodily injury and property damage. Bodily injury liability pays for costs associated with another person’s injuries if you are the driver at fault in an accident. Property damage liability will cover the repairs and damage to another person’s property if you cause an accident.
Uninsured and Underinsured Motorist Coverage
This type of coverage will pay for damages if you’re hit by another driver who either doesn’t have any insurance or doesn’t have adequate insurance to cover all the expenses associated with the accident. It may help pay for any medical bills you incur, and in some states, it will pay for your vehicle damage. Uninsured and underinsured coverage is required in many states and optional in others.
Collision coverage is usually optional unless you have a lien on your vehicle. Your bank or lending institution may require you to carry enough collision insurance to cover the loan cost. Collision insurance covers damage caused by an accident with another vehicle or if you hit an object such as a pole or fence. Collision coverage typically has a deductible, meaning you’d pay for some of the cost of repairing the damage. You can set the deductible, and a higher deductible usually means a lower insurance premium.
Another optional insurance coverage, unless you have a lien against your vehicle, is comprehensive. This type of insurance covers damage to your vehicle caused by hail, fire, theft, or vandalism. Comprehensive also has a deductible that you get to pick, causing your rates to be lower if you go with a higher deductible.
Personal Injury Protection
Personal injury protection is not available in all states. PIP can be used to help cover your medical bills after an accident. It may also cover additional expenses, such as travel to appointments, lost income, or child care needed for appointments. PIP is required in some states.
Medical Payments Coverage
If anyone in your vehicle suffers injuries in an accident in your vehicle, medical payments coverage may cover any expenses caused by the injuries. These costs can include X-rays, surgery, hospital visits, and more. Medical payments coverage is required in some states.
What Is the Minimum Automobile Liability Insurance Coverage in Arizona?
The Arizona Department of Transportation requires all drivers to carry a bare minimum of liability insurance in order to operate their vehicle on the roads in the state. Any vehicle includes commercial vehicles, trucks, trailers, cars, and even golf carts, mopeds, and motorcycles. The minimum requirement for Arizona drivers is as follows:
- Bodily injury liability of $25,000 per person or $50,000 per accident
- Property damage liability of $15,000 per accident
What Are the Penalties for Driving Without Adequate Insurance in Arizona?
Proof of insurance is required in Arizona, and officers can ask you to provide proof at any traffic stop. Officers can issue a citation if you cannot provide proof of insurance on the spot. If you forgot your insurance card at home, you might be able to have the citation dismissed as long as you had coverage at the time of your traffic stop. Penalties for driving without adequate insurance in Arizona are:
- First offense. $500 fine and license plates, registration, and driver’s license suspended for three months.
- Second offense. $750 fine and license plates, registration, and driver’s license suspended for six months.
- Third and subsequent offenses. $1000 fine and license plates, registration, and driver’s license suspended for one year.
In addition to these fines and suspensions, you’ll need to carry SR-22 insurance for two years once your driver’s license is reinstated. It will cost you $35 to reinstate your driver’s license. SR-22 is a proof of insurance certificate for at-risk drivers that ultimately increases your insurance premiums for the duration you’re required to have it.
Where Can You Get Cheap Car Insurance in AZ?
According to NerdWallet, the cheapest insurance coverage for 2022 in Arizona is Geico. Geico came out on top as the cheapest car insurance company overall, for minimum coverage, for young drivers, and for drivers with poor credit. For the comparison, NerdWallet used a 2019 Toyota Camry L using drivers in several age brackets and driving histories, changing only one variable for each comparison. They used Arizona’s minimum requirement for bodily injury and property damage liability for the minimum coverage comparison. For the full coverage comparison, NerdWallet used the following limits:
- Bodily injury liability of $100,000 per person or $300,000 per accident
- Property damage liability of $50,000 per accident
- Uninsured motorist of $100,000 per person or $300,000 per accident
- Collision coverage with a $1,000 deductible
- Comprehensive coverage with a $1,000 deductible
The top five cheap car insurance in AZ for full coverage is rounded out by QBE Insurance Group, Travelers, ACCC Insurance, and Farm Bureau Financial Services. Geico came in at $1,712 per year, while Farm Bureau Financial Services was $2,489. Same coverage, same driver, same driving history, but substantially different rates. You can see why shopping around for insurance can make a huge difference in the amount you pay every month.
The five insurance companies with cheap minimum coverage in Arizona per year were Geico at $570, QBE at $677, Travelers at $724, Allstate at $919, and ACCC Insurance at $993. Once again, you can see the vast difference in insurance premiums across different insurance providers. When you need automobile insurance, whether for a vehicle you’re purchasing or it’s time to renew your policy, and you want to compare rates, it’s essential to get several quotes.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.