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The Best Cheap Car Insurance Companies for Arizona Drivers in 2020

Folks who are shopping for the best and cheapest car insurance in Arizona can choose from Arizona car insurance companies like State Farm, Berkshire Hathaway, Progressive and Farmers, as well as USAA, which offers insurance to members of the military and veterans and their families.

The table below lists various insurance companies and the approximate monthly premium cost for an average driver. However, these numbers are rough estimates and may vary greatly from any individual quote that would pertain to your unique driving history and situation.

Company
Amount
1. American Family
In 2020 American Family ranked #1 in Arizona for the cheapest car insurance on average.
$1,929
per year
2. GEICO
In 2020 GEICO ranked #2 in Arizona for the cheapest car insurance on average.
$2,212
per year
3. State Farm
In 2020 State Farm ranked #3 in Arizona for the cheapest car insurance on average.
$2,557
per year
4. Farmers
In 2020 Farmers ranked #4 in Arizona for the cheapest car insurance on average.
$3,209
per year
5. Progressive
In 2020 Progressive ranked #5 in Arizona for the cheapest car insurance on average.
$3,314
per year

Estimates give you an idea of which companies to contact for car insurance quotes, but make sure to shop around when you’re looking for Arizona car insurance companies and ask about multi-policy discounts and other discounts for safe driving, long tenure with the company and more.

The Best Car Insurance Companies in Arizona for 2020

MoneyGeek’s unique rating system, based on a combination of rating metrics from JD Power and AM Best, includes financial stability, customer satisfaction, claims, and affordability. Scores are out of 100, with each factor weighted equally. Our goal is that these ratings can help you make the best decision for your needs.

Expand all Rankings +

1

USAAScore: 100
+

5/5

User Satisfaction

5/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

2

GEICOScore: 90
+

3/5

User Satisfaction

3/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

3

State FarmScore: 85
+

5/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A

Financial Stability

4

AllstateScore: 82.5
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

5

CSAAScore: 82.5
+

3/5

User Satisfaction

2/5

Claims Ratings

5/5

Affordability

A

Financial Stability

6

Liberty MutualScore: 82.5
+

3/5

User Satisfaction

4/5

Claims Ratings

3/5

Affordability

A

Financial Stability

7

American FamilyScore: 80
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A

Financial Stability

8

TravelersScore: 80
+

2/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A++

Financial Stability

9

SafecoScore: 77.5
+

3/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A

Financial Stability

10

FarmersScore: 77.5
+

3/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A

Financial Stability


Market Share by Company

According to 2018 data from the National Association of Insurance Commissioners, the top-rated auto insurance companies in Arizona are Berkshire Hathaway, State Farm, Progressive, Farmers, USAA, Allstate, American Family, Liberty Mutual, AARP Auto Insurance Program underwritten by Hartford Fire Insurance Company and CSAA Insurance Exchange.

The top four companies comprise around 50% of the market share: Berkshire Hathaway at 15.70%, State Farm at 15.47%, Progressive at 11.97% and USAA at 7.96%.

Company
Market Share
1. GEICO
15.70%
2. State Farm
15.47%
3. Progressive
11.97%
4. USAA
7.96%
5. Farmers
7.77%
6. Allstate
7.58%
7. American Family
5.67%
8. Liberty Mutual
5.50%
9. Hartford
2.03%
10. CSAA
1.98%

Cheapest Car Insurance for Drivers With a DUI in Arizona

According to the Centers for Disease Control and Prevention, 2,912 people were killed in crashes involving a drunk driver in Arizona from 2003 to 2012. Additionally, the percentage of adults who reported driving after drinking too much (in the 30 days prior to being surveyed) was 1.7%.

The financial repercussions of getting a DUI are costly and can range from court and legal fees to alcohol education treatment programs. Your insurance rate will also see a spike in cost, in addition to the legal fees. You also may have to secure new insurance because your company could fail to renew your policy. Consider the following auto insurance rates for drivers who receive a DUI in Arizona.

Company
Amount
1. State Farm
In 2020 State Farm ranked #1 in Arizona for the cheapest car insurance for dui.
$2,517
per year
2. Progressive
In 2020 Progressive ranked #2 in Arizona for the cheapest car insurance for dui.
$4,390
per year
3. Farmers
In 2020 Farmers ranked #3 in Arizona for the cheapest car insurance for dui.
$4,402
per year
4. American Family
In 2020 American Family ranked #4 in Arizona for the cheapest car insurance for dui.
$4,889
per year
5. GEICO
In 2020 GEICO ranked #5 in Arizona for the cheapest car insurance for dui.
$4,989
per year

While each insurance company calculates premiums differently, you can expect to pay an additional $40,000 over the course of 13 years in increased auto insurance premiums. Exactly how much your rate would go up depends on your insurance company, your location and your driving record. With a DUI you’ll likely pay higher rates for up to a decade.

Cheapest Car Insurance for AZ Speeding or Distracted Driving Tickets

According to the National Highway Traffic Safety Administration’s (NHTSA) 2018 Fatality Analysis Reporting System (FARS), 916 crashes in Arizona were caused by distracted driving. Driving while distracted can cause accidents. Arizona’s state laws prohibit all handheld cellular device use, according to the Governors Highway Safety Association.

Consider the following estimates that Arizona drivers may see if they receive a ticket for speeding or distracted driving.

Company
Amount
1. GEICO
In 2020 GEICO ranked #1 in Arizona for the cheapest car insurance for distracted drivers.
$2,662
per year
2. State Farm
In 2020 State Farm ranked #2 in Arizona for the cheapest car insurance for distracted drivers.
$2,716
per year
3. American Family
In 2020 American Family ranked #3 in Arizona for the cheapest car insurance for distracted drivers.
$2,862
per year
4. Farmers
In 2020 Farmers ranked #4 in Arizona for the cheapest car insurance for distracted drivers.
$4,169
per year
5. Progressive
In 2020 Progressive ranked #5 in Arizona for the cheapest car insurance for distracted drivers.
$4,949
per year

Your auto insurance rate is likely to go up if you get a ticket for speeding or for distracted driving. According to the Insurance Information Association, your driving record is taken into account when you secure your auto policy, so being riskier to insure means paying higher premiums. Your insurer can also re-evaluate your rate if you get a moving violation (i.e., a speeding ticket).

Cheapest Car Insurance Companies in AZ for Drivers With Bad Credit

According to Experian, the average FICO Score in the United States hit a record high of 703 in 2019, which is higher than the Arizona average FICO Score of 696. Nationwide Insurance uses credit scores to determine premiums as studies show that using a credit score helps companies better predict insurance losses. If you have subprime credit (credit scores below 670), you’ll likely have to shop around to secure affordable car insurance in Arizona. Consider the following table for an estimate of Arizona auto insurance for people with low credit scores.

To improve your credit score, check out our guide on how to improve your credit score.

Company
Amount
1. American Family
In 2020 American Family ranked #1 in Arizona for the cheapest car insurance for poor credit history drivers.
$1,838
per year
2. GEICO
In 2020 GEICO ranked #2 in Arizona for the cheapest car insurance for poor credit history drivers.
$2,219
per year
3. State Farm
In 2020 State Farm ranked #3 in Arizona for the cheapest car insurance for poor credit history drivers.
$2,517
per year
4. Farmers
In 2020 Farmers ranked #4 in Arizona for the cheapest car insurance for poor credit history drivers.
$3,205
per year
5. Progressive
In 2020 Progressive ranked #5 in Arizona for the cheapest car insurance for poor credit history drivers.
$3,465
per year

Cheapest Car Insurance Companies in Arizona for Seniors

According to the National Highway Traffic Safety Administration data, in 2017 there were 6,784 people ages 65 and older who were killed in motor vehicle traffic crashes. That age group was responsible for 18% of all traffic fatalities during the same year. When shopping for car insurance, seniors in Arizona should ask for discounts for completing driver safety courses, discounts for driving infrequently and discounts for choosing a vehicle that has good safety features. There are other options that seniors can consider when it comes to choosing auto insurance in Arizona.

The following table is a general guideline of what seniors in Arizona can expect when they go looking for the most affordable car insurance in Arizona.

Company
Amount
1. American Family
In 2020 American Family ranked #1 in Arizona for the cheapest car insurance for seniors.
$1,823
per year
2. GEICO
In 2020 GEICO ranked #2 in Arizona for the cheapest car insurance for seniors.
$2,528
per year
3. State Farm
In 2020 State Farm ranked #3 in Arizona for the cheapest car insurance for seniors.
$2,553
per year
4. Farmers
In 2020 Farmers ranked #4 in Arizona for the cheapest car insurance for seniors.
$3,449
per year
5. Progressive
In 2020 Progressive ranked #5 in Arizona for the cheapest car insurance for seniors.
$4,323
per year

In Arizona, driver’s licenses are valid until age 65, though drivers younger than 65 may be requested to renew their license photo or take a vision test every 12 years. The renewal process for older adults includes the following condition: People ages 65 and older are required to renew their driver’s licenses in person and pass a vision test every five years.

Cheapest Car Insurance for Students

Arizona Car Insurance: How Much a Teen Driver Will Cost You

Median annual price change for families with a teen driver on their policy:

$2,084 INCREASE

This is a difference of 161%.

Arizona teens using a graduated instruction permit to drive with adult supervision do not need to be added to an insurance policy. But once they're driving on their own, they will need to be insured. Keep costs in check by increasing your deductible, asking about a good student discount, enrolling your teen in a defensive driving class and letting him or her drive only a mid-sized sedan with advanced crash protection.

In Arizona, teens may secure a graduated instruction permit at age 15, but the teen must have a licensed driver who is at least 21 years of age seated in the front passenger seat at all times. To operate any vehicle that does not require a motorcycle or commercial driver license, the teen must have completed 20 hours of supervised, daytime driving practice and 10 hours of supervised, nighttime driving practice — a total of 30 hours — before applying for a graduated driver license. Additionally, Instruction Permit holders may not use a wireless communication device for any reason except during an emergency in which stopping the vehicle is impossible or could create an additional emergency or safety hazard.

If a student drives but is moving to another state for college, parents have to notify the insurer about the move (even if the student is leaving the car with their parents). Students may want to stay on their parent’s policy to save money. If students are planning to drive at college in another state, be aware that the policy matches that state's minimum requirements for insurance.

The following table illustrates an estimation of what parents in Arizona can expect to pay for their teen or college-aged student drivers.

Company
Amount
1. GEICO
In 2020 GEICO ranked #1 in Arizona for the cheapest car insurance for students.
$3,973
per year
2. American Family
In 2020 American Family ranked #2 in Arizona for the cheapest car insurance for students.
$4,870
per year
3. Farmers
In 2020 Farmers ranked #3 in Arizona for the cheapest car insurance for students.
$7,342
per year
4. State Farm
In 2020 State Farm ranked #4 in Arizona for the cheapest car insurance for students.
$7,542
per year
5. Progressive
In 2020 Progressive ranked #5 in Arizona for the cheapest car insurance for students.
$7,787
per year


Premium Comparison by Student Type

PREMIUM COMPARISON FOR TWO ADULTS + 16-YEAR-OLD

car
Average premium for two 2014

Mustang GTs

$4,432
car
Average premium for two 2008

Town and Country Limiteds

$3,227
Annual benefits of minivans:$1,205 saved

This is 27% less expensive.

Cheaper premium for college vs. high school drivers

Median premium change with a college student vs. high school driver:

$1,004 DECREASE

This is a savings of 28%.

Potential discounts for teens in Arizona

Impact on annual premium with good student and defensive driving discounts:

coins
$373 SAVED

Arizona students: a long-distance discount

You may pay a smaller annual family premium if your child lives 150 miles or more away from home.

male
Average premium for a 19-year-old male
car

$3,105 at home

graduation

$2,289 at school

$816 IN SAVINGS

female
Average premium for a 19-year-old female
car

$2,691 at home

graduation

$2,125 at school

$566 IN SAVINGS

Insurance Rate Information for Military Drivers and Veterans

More than 18,000 active-duty military personnel and more than half a million veterans live in Arizona. Veterans there are exempt from paying vehicle registration fees, but only if they are processed in person or by mail; active-duty military who must apply or renew their registration online likely won't receive the same benefit.

Many insurance companies offer discounts to Arizona veterans and active-duty military on their car insurance, with some selling policies exclusively to veterans, their spouses and family members. Legacy, Armed Forces Insurance and USAA are among the companies licensed in Arizona that cater to military personnel and veterans. Discounts are not automatic, though, as veterans still need to show a clean driving record for the best savings.

Comparing quotes is always a good idea, but active enlisted personnel will also want to check if an insurance company will pause your policy if a vehicle is garaged during deployment. In addition, the local VFW will have information on insurance companies catering to veterans.

Age savings for Arizona service members

male
25 years$1,123
50 years$903
female
25 years$1,068
50 years$915

$220 Saved
$153 Saved

Median auto insurance for service members: $965

Who Needs Car Insurance in Arizona?

Arizona law requires that every motor vehicle operated on roads in the state be covered by liability insurance through a company that is authorized to do business in Arizona, including golf carts, motorcycles and mopeds.

If you plan to take the car out of circulation to fix or restore it, you can file a de-insurance certificate, which keeps the registration from being suspended.

Proof of Insurance in Arizona

Arizona law mandates that drivers must carry evidence of "financial responsibility" within their vehicle, which typically comes in the form of an insurance card, car insurance policy or another method of proof (see "Alternatives to Insurance" below). There are two times that drivers may need to show proof of insurance: when a law enforcement officer requests to see it or after an accident.

If you've misplaced your card or policy, though, don't worry: the state allows proof of financial responsibility to be shown to an officer via a wireless device, such as a smartphone.

Minimum Liability Insurance Requirements in Arizona

In 1972, Arizona began requiring all drivers to carry $15,000 in liability insurance to pay for injuries during an accident. Unsurprisingly, experts think this number is much too low to truly cover the cost of an accident (See "How Much Vehicle Insurance Do You Need?" below).

Minimum levels of financial responsibility are:

  • $15,000 bodily injury liability for one person and $30,000 for two or more persons
  • $10,000 property damage liability

High-Risk Auto Insurance Program in Arizona

Arizona does not have a low-cost insurance program for drivers. If you are considered a high-risk driver because of your age or blemishes on your record, though, you can get insurance through the Arizona Automobile Insurance Plan (AAIP), which insures high-risk drivers. Try to find other insurance first, because these plans tend to be more expensive.

Alternatives to Insurance in Arizona

Arizona drivers don't have to carry insurance — they just need proof of "financial responsibility." For those drivers who eschew insurance, they can instead deposit $40,000 with the state treasurer, who will provide them with a certificate of deposit that must be carried in the vehicle.

Of course, given that only one state has lower minimum requirements than Arizona, neither a basic insurance policy nor the alternative — a $40,000 cash deposit — fully protects drivers in the case of an accident.

Car Insurance Requirements in Arizona: How Much Coverage Do You Need?

What percentage of drivers in Arizona lack vehicle insurance?

10.6%

National average: 12.6%

Source:

Insurance Information Institute.

Arizona's liability law was written in 1972. The standard industry recommendation is $100,000 for personal injury and $300,000 for accident coverage, but that wouldn't include collision and comprehensive insurance, which pays for the cost of repairs in case of a collision or damage caused by theft, break-ins or natural disasters. Both collision and comprehensive coverage are optional, meaning they won't be found on cheap car insurance plans. Insurers recommend them for cars with a value higher than the deductible and several years' worth of premiums.

Finally, even though only 10.6% of Arizona drivers are uninsured, getting into an accident with one of them can be costly. Uninsured motorist coverage is always a good idea since it protects you from underinsured drivers.


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Sources