Cheapest and Best Car Insurance in Tempe, AZ (July 2024)

In Tempe, Arizona, Mercury offers the cheapest minimum coverage, but for full coverage, Root Insurance Company leads, differing from minimum coverage leaders. For families with teen drivers, Travelers is the most cost-effective option.

Auto-Owners is rated the best in service and overall for its value in balancing price with service, highlighting that the ideal insurer depends on individual preferences and coverage needs.

Mercury is the cheapest car insurance option in Tempe, providing significant savings on minimum coverage car insurance.

• Mercury: $445 per year
• Root Insurance Company: $510 per year

The most expensive minimum coverage policy comes from The General, at $1,634 per year, $1,189 higher than Mercury's rate. This highlights the importance of comparing rates to ensure you're getting the best deal on your car insurance.

State Minimum Liability Requirements

Across all Arizona cities, including Tempe, the minimum car insurance coverage is set by state law. Here's a rundown of what's required:

• $25,000 bodily injury per person
  
• $50,000 bodily injury per accident
  
• $15,000 property damage liability per accident
  

Imagine you're involved in an accident and liable for another person's injuries. Your minimal coverage policy would cover up to $25,000 for one person. If multiple people are injured, it provides a total of $50,000 per accident. Should the costs exceed these limits, you'd be responsible for paying the difference out-of-pocket.

Root Insurance Company offers the cheapest full coverage car insurance in Tempe, providing an affordable option for drivers seeking comprehensive protection.

• Root Insurance Company: $794 per year
• GEICO: $940 per year

The General offers the most expensive full coverage policy in Tempe at $3,063 annually, exemplifying that comparing insurance options can lead to substantial savings. Comprehensive policies are typically pricier than minimum coverage due to additional protections included, such as coverage for vehicle damages from non-collision incidents.

Do You Need Full Coverage in Arizona?

A full coverage policy in Tempe includes coverage for damage to your own vehicle in the form of comprehensive and collision coverages. It usually also includes increased liability limits.

• Collision Insurance: This provides coverage for your vehicle in the event of a collision, whether with another vehicle or or a stationary object like a tree or light pole. It also covers rollover accidents and pothole damage.

• Comprehensive Insurance: This coverage insures your vehicle against various types of damage not caused by collisions, including theft, vandalism, fires, natural disasters and being struck by an animal like a deer.

If you have a new vehicle, it's wise to opt for full coverage insurance for more robust financial protection. If you're leasing or have a car loan, you are typically required to carry full coverage insurance.

On the other hand, owners of older vehicles may find that the extra cost — which can amount to several hundred dollars more per year — is not justified by the value of the vehicle. When deciding how much car insurance coverage you need, consider your ideal balance: more extensive coverage comes with higher premiums, but getting less coverage means you may pay more out of pocket if you need to file a claim.

Root Insurance Company is the most affordable option in Tempe for drivers with a poor driving record requiring full coverage. The cheapest providers for each specific offense are:

• Speeding ticket: Root Insurance Company ($976 per year)
• At-fault accident: Root Insurance Company ($999 per year)
• DUI: Root Insurance Company ($878 per year)

The General tends to have the most expensive rates for these offenses in Tempe. The difference in annual rates between Root Insurance Company after a speeding ticket and after a DUI is $98, highlighting that the nature of the violation can significantly impact car insurance premiums.

Insurance rates in cities like Tempe are higher for more serious infractions because they indicate greater risk to insurers. In Tempe, drivers with a speeding ticket pay an average annual premium of $3,480, while those with a DUI pay significantly more at $4,453.

People with driving offenses on their record are recommended to compare insurance rates to find the most affordable policy because these offenses can substantially increase insurance costs.

Travelers is the most budget-friendly option for full coverage car insurance for families with teen drivers in Tempe.

• Travelers: $1,671 per year for female teens and $1,995 per year for male teens
• GEICO: $2,522 per year for female teens and the same for male teens

These premiums reflect the combined annual rate for a policy that includes two parents and a teenage driver. Allstate holds the most expensive teen family policy at $5,455 for male teens.

Comparing Travelers and Allstate, there's an annual difference of $3,784 for covering a male teen. This contrast underscores the importance of doing thorough research and comparing quotes, specifically when adding high-risk teen drivers to insurance policies.

In Tempe, as in many cities across the U.S., teenage drivers face steep premiums for car insurance. An average individual annual premium can cost a teenager $6,608, whereas adding a teen to a family plan averages to $3,211 per year. This disparity of $3,397 is largely due to the higher risk insurers associate with teenage drivers, who are statistically more likely to be involved in accidents.

Teens may also find it challenging to secure an individual policy due to their limited credit history and driving experience. Parents and guardians are thus encouraged to include teens in family insurance policies to capitalize on the lower rates and increase the likelihood of approval.

Root Insurance Company is the cheapest option for full coverage car insurance for military backgrounds in Tempe, Arizona.

• Root Insurance Company: $794 per year
• GEICO: $939 per year

Although USAA was not the most affordable in the list, it still offers competitive rates at $1,229 annually, ranking fifth in affordability. USAA specializes in catering to the unique requirements of active duty military members. If you're eligible for its services, USAA might be worthwhile despite the slightly higher rate due to its tailored coverage options and industry-leading customer satisfaction.

In Tempe, comparing car insurance rates is a key strategy for cost savings. However, the process is often cumbersome, potentially requiring over an hour to examine rates from three or more companies.

MoneyGeek's car insurance calculator can help you streamline this process. By inputting details like age, driving history, credit score and preferred coverage, you can instantly receive rate estimates.

Selecting the best auto insurance depends on your priorities, whether it's service quality, cost, coverage, or other factors, and differs for each individual. MoneyGeek used unique scoring systems to evaluate these aspects. Here are Tempe's top car insurance providers for different needs:

• Best overall: Auto-Owners (MoneyGeek score 86 out of 100)
• Best for service: Auto-Owners (MoneyGeek score 86 out of 100)
• Best cheap: Auto-Owners (MoneyGeek score 90 out of 100)

Auto-Owners emerges as the best in the city for overall value, service and affordability. This carrier demonstrates strong performance across service excellence and value.

Auto-Owners offers the best car insurance in Tempe, securing the highest MoneyGeek score.

• Auto-Owners: MoneyGeek score of 86 out of 100 ($1,145 per year)
• State Farm: MoneyGeek score of 80 out of 100 ($1,282 per year)

Auto-Owners stands out for its exceptional blend of customer satisfaction and affordability, making it a prime choice for a full coverage policy. These factors are the most significant contributors to its leading MoneyGeek score, reflecting superb policyholder experience and competitive pricing.

Auto-Owners is the best option in Tempe for those prioritizing customer service in their car insurance choice. The ranking is based on general satisfaction, claims handling and coverages offered, without a primary focus on the rates.

• Auto-Owners: MoneyGeek score of 86 out of 100 ($1,145 per year)
• Mercury: MoneyGeek score of 79 out of 100 ($1,493 per year)

Auto-Owners stands out in Tempe for its superior balance of claims handling, customer satisfaction and coverage options. These factors combined contribute heavily to its high MoneyGeek score, positioning it as a leading provider for quality car insurance services.

Auto-Owners is the best option in Tempe for affordable, high-quality car insurance. This accolade is based on its impressive balance of cost-effectiveness and customer satisfaction.

• Auto-Owners: MoneyGeek score of 90 out of 100 ($535 per year)
• Mercury: MoneyGeek score of 87 out of 100 ($445 per year)

Auto-Owners distinguishes itself with the top rank for the all-around value reflected in its MoneyGeek score. Notably, its stability in the market and consummate coverage offerings majorly contribute to their superior score. This score pertains to a minimum coverage policy, signifying how even the most basic plan with Auto-Owners does not compromise on quality or service.

In Tempe, Arizona, the average car insurance cost is $1,539. This figure is moderately higher than the average state cost in Arizona, which stands at $1,511. When compared to the national average car insurance cost of $1,781, Arizona's state average is lower by $270.

Car insurance premiums vary depending on several factors, with location being a particularly influential one. Rates are impacted by the local cost of living, frequency of vehicle incidents and traffic density. For example, Phoenix has the most expensive city premium at $1,712, while Tucson offers the cheapest at $1,382. The sizable difference of $330 between the two cities highlights the impact of location on insurance rates. In less urban areas with lower traffic density, insurance rates may be even lower.