Car insurance is required by law in Arizona, and many drivers want to maximize their coverage while minimizing their financial burden. If you’re looking for affordable coverage in your area, understanding how insurers calculate quotes and where you can find low rates could help keep you covered while maintaining your budget. Read on to learn more about finding cheap car insurance in Phoenix, Arizona.
Average Cost of Car Insurance in Phoenix
Phoenix drivers spend between $897 and $1,810 on car insurance each year on average. For comparison, according to U.S. News and World Report, the average annual cost for car insurance across the United States is about $1,321. Rates in Phoenix are typically a little more expensive than in other areas of Arizona due to population density and local risk factors. Factors like crime rates, weather, and traffic conditions can influence insurance costs in a particular region. Here are other factors that can influence your personal insurance costs:
- Age: Teenage drivers, drivers under 25, and drivers over 70 might pay higher insurance premiums.
- Driving record: People with fewer tickets and accident reports typically pay less.
- ZIP code: Neighborhoods with more crashes and higher crime may lead to higher premiums.
- Gender: Insurers may consider demographics like gender to learn which groups file more claims.
- Make and model: The car you drive and its safety ratings could help determine your quote.
- Credit history: Some insurers weigh financial information to understand your driver profile.
Cheap Car Insurance in Phoenix for Minimum Coverage
Minimum coverage is a type of car insurance plan that meets the basic requirements for coverage in the state of Arizona. In Arizona, motorists have to pay for coverage that offers $25,000 for injury or fatality, $50,000 for injury or fatality for two or more people, and $15,000 for property damages. Some insurers offer simple plans tailored to help you meet your legal obligation without paying for additional coverage.
Minimum coverage is typically the cheapest option for insurance, but it can present financial risks, as these plans might not cover all collisions and damages. Research your policy carefully before committing to it to be certain that you’re comfortable with the conditions. Here are some of the cheapest providers for minimum coverage insurance in the Phoenix area:
- GEICO
- Progressive
- USAA
- State Farm
Your personal rate may vary depending on the factors discussed above. However, many drivers report paying between $400 and $1,000 per year for minimum coverage with some of these providers. USAA is the most affordable option for many drivers, but they only insure military members and veterans and their families, so it may not be appropriate for everyone.
Cheap Car Insurance in Phoenix for Full Coverage
If you want a policy that will ease the financial burden if you experience an unexpected incident, you might consider purchasing a full-coverage plan. Full-coverage car insurance plans can differ between providers, but they typically cover drivers for the most common claims. Here are some of the elements these policies often provide:
- Collision insurance: If you get into a crash, collision insurance pays for repairs on your car.
- Liability insurance: Liability insurance helps you pay for damages and injuries from a crash if you’re found to be the responsible party.
- Comprehensive insurance: With comprehensive insurance, the insurance company pays for damages from incidents other than accidents, like vandalism or natural disasters.
- Personal injury protection (PIP): Policies including PIP cover medical bills from injuries sustained from an accident.
- Uninsured motorist coverage: If another driver causes a crash but they don’t have coverage, your policy might pay for the damages.
While the monthly cost might be higher, some people find it relaxing to know they would have financial assistance if an emergency occurred. If you want to purchase full coverage insurance in Phoenix, here are some of the cheapest providers:
- USAA
- GEICO
- Progressive
- State Farm
Cheap Car Insurance in Phoenix for Imperfect Records
Mistakes happen. Speeding tickets can raise the average driver’s insurance costs substantially, and if you’re found liable for a recent car accident, your rates could go up by 44%. After an unexpected incident on the road, it can be important to find an insurance provider who can cover your vehicle without breaking your budget. If you have infractions on your record, you can still find cheap car insurance in the Phoenix area. Phoenix-based individuals with prior speeding tickets or accidents might consider GEICO or State Farm, which both offer comparatively low rates for insurance for drivers with infractions.
Your credit history can also influence your insurance bill. Drivers with poor credit might pay over $500 more each year than average for car insurance. Insurers often use credit scores to understand how responsible a driver is overall and how likely they might be to file claims. GEICO may be your best option if you’re hoping to minimize the impact a low credit score has on your rates. Behind GEICO, Progressive and Farmers Insurance both offer competitive rates for customers with subpar credit. You can learn more about how Geico uses credit ratings to calculate insurance rates on their website.
Ways To Lower Your Car Insurance Rates
Here are some tips that may help you find the best price for car insurance in the Phoenix, Arizona, area:
- Prioritize safety: Obeying posted speed limits, traffic signs, and local laws could help you avoid a ticket or accident. Even if you have prior infractions, driving carefully could help you improve your record and protect your rates from going up.
- Seek a personalized quote: Contact insurers in the area and ask for a customized quote that’s tailored to your unique personal information and history. Speaking directly with any agent might help you get the lowest price available.
- Research discounts: Many insurance companies offer special discounts for qualified customers, so it can be helpful to research these programs. For example, you may be able to save if you’re a federal employee, an alum of a particular school or organization, or a hybrid or electric vehicle owner.
It’s vital to have car insurance that meets your needs so you can protect yourself and others on the road. While insurance quotes can differ greatly between any two drivers based on their personal circumstances, it’s possible to maximize your savings with a little research. Follow these suggestions and explore the aforementioned providers to find the best insurance rates in Phoenix.
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.
