Car Insurance in Phoenix, AZ: Costs, Coverage, and Savings Tips
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With its busy roadways and growing population, Phoenix, Arizona, calls for adequate insurance to protect your assets. In fact, it's state law that all residents who own vehicles have at least the state minimum car insurance in Phoenix, AZ.
You want to remain legal, but searching for car insurance can be difficult with all the options and prices available. Our guide aims to help you make an informed car insurance buying decision by offering you all the information you need, from the average cost of car insurance in Phoenix to tips for lowering your premiums.
Average Car Insurance Costs in Phoenix, AZ
Across Arizona, the average cost of car insurance is $2,754 annually for full coverage and $817 per year for state minimum coverage. As a larger city with more traffic and risk, Phoenix has higher average car insurance rates of $3,575 annually.
These are purely averages. Your actual rates will vary based on a wide range of factors, such as age, vehicle type, location, and driving history.
Factors Influencing Car Insurance Quotes in Phoenix, AZ
A range of variables affect insurance rates in Phoenix and across Arizona, such as:
- Arizona’s minimum liability coverage requirements: Arizona’s minimum liability coverage limits aren’t overly high relative to other states but are the baseline for insurance policy costs. If you only want cheap car insurance that meets state requirements, you’ll pay less now, but you may run into high out-of-pocket costs if you’re in an accident.
- High accident rates: Phoenix has the highest accident rate in Arizona by a wide margin. With more accidents comes more risk for the insurer and higher premiums for you.
- Weather-related risks: Phoenix may not get snow and ice, but it does deal with extreme heat, which can wreak havoc on vehicles. The heat can lead to mechanical issues and tire blowouts, which can cause serious accidents. Plus, Phoenix’s desert climate is prone to dust storms, increasing the likelihood of accidents and damage.
- Urban Density: Phoenix is heavily populated, with over 1.6 million people calling it home. This heavy population leads to dense traffic, which results in congestion and a greater risk of fender benders.
Minimum Coverage Requirements in Phoenix, AZ
Arizona law requires drivers to carry at least the state minimum insurance coverage. The minimum coverages are:
- Bodily injury liability: Covers medical bills and related expenses for other people injured if you are at fault in an accident
- $25,000 per person
- $50,000 total per accident if more than one person suffers an injury
- Property damage liability: Covers the cost to repair or replace someone else’s property (such as their vehicle) if you cause an accident
- $15,000 per accident
Optional Coverages
The liability coverages are just the legal minimums and do not cover injuries to yourself or damage to your own property. With Phoenix's heavy traffic and extreme weather events, having additional coverage is generally recommended. Some optional coverages to consider include:
- Uninsured motorist protection: This covers your injuries and property damages if you’re hit by a driver with insufficient insurance coverage.
- Collision coverage: This covers your vehicle repairs or replacement and injuries from a collision, regardless of fault.
- Comprehensive coverage: This covers your vehicle losses from anything other than a collision, such as a flood, a rock breaking your windshield, or theft.
These optional coverages can give you extra peace of mind knowing you’re covered in virtually all cases. Also keep in mind that if you leased or financed your vehicle, your finance company may require these optional coverages.
Discounts and Savings Tips
Drivers have plenty of options for reducing their premiums when searching for the best car insurance in Phoenix, AZ. Let’s review some common insurance discounts:
- Multi-policy bundling: Insurers may offer a discount for combining your car insurance with other policies the company offers, such as homeowners or renters insurance.
- Safe driver discounts: Maintaining a clean driving record can lead to great discounts with many car insurance companies in Phoenix, AZ.
- Good student discounts: Full-time students with high GPAs may qualify for reduced insurance rates.
- Raise your deductible: Increasing your deductible — the amount you pay out of pocket before insurance kicks in — can help lower your insurance premiums. Use care when choosing a higher deductible, as you want to make sure you can still afford to use your coverage.
- Shop around and compare: Every insurance policy has a different structure, and premiums can vary dramatically between insurers. You should regularly get new quotes from at least three Phoenix car insurance companies to verify you have the most affordable rates.
Get a Free Custom Comparison and Drive Insured
Finding cheap car insurance doesn’t mean you have to sacrifice coverage. You can find great rates on useful plans by comparing coverage options and insurance companies. EverQuote and our online car insurance comparison tool can help. Get a free custom comparison from EverQuote and quickly find great coverage at an excellent price.
FAQs
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Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on public filings for policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Estimated rates are based on a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We partner with Quadrant Information Services to source our data and assume no unique benefits or discounts are applied for these rates (unless otherwise stated). Your own rates may be different.