Your personal needs will determine which car insurance company is right for you. Travelers offers the cheapest minimum and full coverage policies and is the best choice for teens. Those with speeding tickets may fare better with Auto-Owners Insurance, while those with at-fault accidents and DUIs may find Root Insurance Company a good alternative. For the military community, USAA is the cheapest.
Cheapest and Best Car Insurance in Tempe, AZ
Cheapest Minimum Liability Car Insurance in Tempe
Tempe's cheapest auto insurance providers for a minimum coverage policy are:
- Travelers: $349 per year
- Mercury: $350 per year
While Travelers and Mercury are just $1 apart, Travelers has a higher coverage score. Meanwhile, The General provides a minimum coverage insurance for $1,476 per year — the most expensive in the city. Mercury is the cheapest minimum car insurance throughout Arizona, offering a bare-bones policy for about $324 a year as of October 2022. Location may play a role in determining these prices.
According to Arizona law, a minimum coverage vehicle insurance policy must cover bodily injuries as well as property damage with the following limits:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
Your insurance company will cover up to $25,000 worth of bodily injuries per person involved in an accident, with a cap of $50,000 per accident. So if two people are involved, and each incurs injuries worth $25,000, you've already maxed out your liability coverage for bodily injuries. The same goes for property damage: your insurance company will only cover up to $15,000 per accident.
Cheapest Full Coverage Car Insurance in Tempe
The cheapest companies for full coverage car insurance in Tempe are:
- Travelers: $719 per year
- Root Insurance Company: $749 per year
The General has the most expensive rate for a full coverage car insurance policy at $2,898 per year. However, Root Insurance Company takes the spot as the company that offers the cheapest full coverage insurance in Arizona, costing about $715 per year in most of the state as of October 2022. Again, location may explain the difference between the Root and Travelers pricing in Tempe.
A full coverage car insurance policy includes comprehensive and collision insurance.
- Collision Insurance: Covers the cost to repair or replace your car if you're at fault for an accident with another vehicle or object.
- Comprehensive Insurance: Covers damage caused by events other than accidents, including weather-related occurrences, vandalism and theft.
Full coverage policy may not be worth it for older vehicles, as the policy’s cost could exceed the vehicle’s value.
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Cheapest Car Insurance in Tempe After a Driving Offense
The cheapest car insurance companies if you have driving violations in Tempe are:
- Speeding ticket: Auto-Owners Insurance ($799 per year)
- At-fault accident: Root Insurance Company ($940 per year)
- DUI: Root Insurance Company ($828 per year)
The General offers the most expensive annual rate for speeding violations at $3,476, accidents at $4,113 and DUI offenses at $3,780. These prices are nearly quadruple the costs of the cheapest policies.
If you have a poor driving record, you'll pay more for auto insurance than someone with a clean record. Even the cheapest policies may cost more for drivers with violations.
Insurance rates after an offense increase relative to the severity of the offense. In Tempe, you will pay an average of $804 more after a DUI but $383 more after a speeding ticket. You can still find the cheapest car insurance if you have a poor driving record.
Cheapest Car Insurance in Tempe for Teens and Their Families
In Tempe, the cheapest auto insurance providers for teenagers on a family policy are:
- Travelers: $1,995 per year for male teens and $1,671 per year for female teens
- GEICO: $2,522 per year for male and female teens
When comparing the cost of car insurance for teens on a family policy in Tempe, Allstate offers the most expensive rates for female teens at $3,934 per year and male teens at $5,455 per year. Insurers consider male teens a higher risk on the road than female teens. However, this gap closes off in early adulthood.
Adding a teen to a family policy is more cost-effective than purchasing a separate policy. For example, an individual policy for a 16-year-old male teen can average $5,905 — $1,686 more than adding him to a family policy. If your top priority is savings, you can research the cheapest car insurance for teens.
Cheapest Car Insurance in Tempe for Military Drivers
The most affordable car insurance companies for active or veteran military families offering full coverage policies in Tempe are:
- USAA: $711 per year
- Travelers: $719 per year
If you are looking for a minimum coverage car insurance policy, USAA and Travelers are also the cheapest options in Tempe. USAA's minimum coverage plan costs $245 per year, while Travelers' is $349 annually.
How to Compare Cheap Tempe Car Insurance Quotes Online
It can take 15 minutes or longer to get an online car insurance quote because you’ll have to enter a lot of personal information. But if you use MoneyGeek's free car insurance calculator, you can get an approximate idea of how much coverage costs with just your age, vehicle type and coverage level.
Auto Insurance Calculator
See how the Average Annual Auto Insurance Rates vary with the options chosen.
Best Car Insurance in Tempe: Summary
The best car insurance company in Tempe will depend on what you value most. Some people may choose cost over coverage, while others may consider service and claims management more important. Here are our top picks for the best insurance company in the city, based on specific criteria:
- Best overall: Auto-Owners Insurance (MoneyGeek score of 81 out of 100)
- Best for service: Auto-Owners Insurance (MoneyGeek score of 66 out of 100)
- Best cheap: Auto-Owners Insurance (MoneyGeek score of 83 out of 100)
A company’s MoneyGeek score varies depending on the category and how factors are weighted in those categories. Auto-Owners Insurance takes the top spot as the best car insurance in Arizona, with an 85 out of 100 in our scoring system. USAA is also a great option for vets or military personnel, scoring 82 out of 100.
Best Overall Car Insurance in Tempe
The best companies for car insurance in Tempe are:
- Auto-Owners Insurance: MoneyGeek score of 81 out of 100 ($799 per year)
- Travelers: MoneyGeek score of 78 out of 100 ($719 per year)
Auto-Owners Insurance scores well in affordability and coverage, so although its prices are cheap, the company doesn't skimp on its coverages. USAA is another great option for military personnel or veterans in Tempe, with a MoneyGeek score of 85 out of 100.
How was this MoneyGeek score calculated?
Provides adequate coverage for a fair price
Offers diminished value coverage and gap insurance
Average scores for claims handling and customer happiness
No original equipment manufacturer (OEM) coverage
Auto-Owners Insurance’s high scores in coverage and affordability suggest that it offers a variety of coverages to meet customer needs — at prices most can likely afford. You can rest assured knowing that you can mitigate financial losses if your car gets damaged or totaled in an accident. For instance, the company’s diminished value coverage ensures that you are compensated for any reduction in the value of your car after it is damaged in an accident.
Gap insurance is another feature that may be attractive to people who finance their cars. If you are involved in an accident, you're liable for the difference between the current value of your vehicle and the amount still owed on your lease or loan. Auto-Owners Insurance’s gap insurance covers this difference.
Best Car Insurance in Tempe for Customer Service
If you exclude cost from the equation, these are the best companies for customer service in Tempe:
- Auto-Owners Insurance: MoneyGeek score of 66 out of 100 ($799 per year)
- Country Financial: MoneyGeek score of 65 out of 100 ($1,425 per year)
Auto-Owners Insurance has above-average scores in coverage and overall satisfaction. The company's rates are also affordable, making it a good choice for customers trying to keep costs low without sacrificing too much coverage.
How was this MoneyGeek score calculated?
Satisfaction and coverage scores are above average
Offers rental car coverage and accident forgiveness
Claims handling could be improved
Doesn’t offer custom parts coverage
Auto-Owners Insurance has a strong reputation for providing comprehensive policies and decent customer service, which is good news for drivers who want to protect their vehicles and themselves from financial losses in the event of a crash. For instance, traveling costs can quickly accumulate if you are involved in a car accident, and your vehicle is destroyed or rendered unusable. The insurer's rental car coverage helps pay for car rental costs and covers food, accommodations and other additional expenditures if you are stranded away from home.
Auto-Owners Insurance may also waive the accident surcharge fee for your first at-fault accident during the first 36 months after you purchase your policy, provided the accident is not due to a significant infraction, such as driving under the influence.
Best Cheap Car Insurance in Tempe
Based on an analysis of affordability and service quality for policies that only meet Arizona’s minimum coverage requirements, the best companies in Tempe are:
- Auto-Owners Insurance: MoneyGeek score of 83 out of 100 ($373 per year)
- Travelers: MoneyGeek score of 80 out of 100 ($349 per year)
While minimal coverage auto insurance plans in Tempe have the cheapest premiums, they provide the least protection against liability costs and do not cover damage to your vehicle.
How was this MoneyGeek score calculated?
An affordable minimum coverage policy costs $373 per year
Has bundling, safe driving and early signing discounts
Low premiums and fair coverage
Doesn’t offer driver’s education and automatic payment discounts
Satisfaction and claims management can be strengthened
People who want quality coverage at a fair price may find Auto-Owners Insurance's car insurance policies to be a good value. The provider has various discounts to help you save money on your policy, including bundling, safe driving and early signing discounts.
The bundling discount takes effect if you have other qualifying policies with Auto-Owners, while the safe driving discount is available to people who maintain an accident-free record. The early signing discount is a rare one and available to new customers who request a premium quote before the policy’s effective date.
Customers who pay in full can save money, as can those who don’t miss a payment for 36 consecutive months. Going paperless also qualifies you for a discount.
Average Cost of Car Insurance in Tempe
In Tempe, the average cost of full vehicle insurance is $1,214 per year as of October 2022. This cost includes $100,000 per person for bodily injury liability, $300,000 per accident for bodily injury liability and $100,000 per accident for property damage liability. The average cost of vehicle insurance in Arizona is just $21 less than Tempe's average. Meanwhile, the national average costs $51 more, indicating that geography can have a considerable influence on premiums.
About Mark Fitzpatrick