At $1,284 per year, the average cost of car insurance in Arizona is lower than the national average. Rates are partly based on the state's highway density, urban population and vehicle theft rate. Your premiums may vary based on your unique characteristics, such as your location, age, driving record, credit score, car model and insurance provider.
Why Is Car Insurance So Expensive in Arizona?
Updated: May 20, 2024
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Key Takeaways
Drivers in Arizona pay an annual average of $1,284 for car insurance, less than the national average.
Because premiums in the state are lower than the national average, your coverage is likely expensive because of individual factors, like your age, driving record and ZIP code.
You can save on car insurance in Arizona by comparing quotes from various providers and bundling your multiple policies.
Why Arizona Car Insurance Rates Can Be High
Compared to the national average, Arizona is slightly cheaper at an average of $1,284 per year. Your rates may vary due to several state-specific and personal factors. MoneyGeek explores these factors to show how they can affect your car insurance premiums in Arizona.
Higher-Than-Average Highway Density
From an insurer’s perspective, more drivers on the road raise the potential for accidents. Insurance companies consider the highway traffic density of an area when setting car insurance rates. In Arizona, there are 10.3 million miles driven per highway mile. Insurance carriers increase premiums relative to these numbers.
High Urban Population Density
90% of Arizona’s population lives in urban areas, which can increase premiums for the state. Densely populated neighborhoods tend to have higher numbers of accidents, theft and vandalism, leading to more insurance claims.
High-Than-Average Vehicle Theft Rate
Drivers who live in areas where car theft is more frequent may pay more for auto insurance. This is because the likelihood of filing claims is higher there. Arizona has an average rate of 249.4 motor vehicle thefts per 100,000 residents in the most recent year where data was available; if you live in an area of Arizona with more car thefts, this could explain why your rates are higher.
Why Car Insurance in Arizona Might Be Expensive for You
The factors mentioned above affect the entire state’s car insurance rates. But there are other characteristics taken into account by insurers when determining prices. Some are difficult or impossible to change, like your location and age. Your credit score, driving record, car model and insurance provider also affect your premiums.
Where You Live
Where you live in Arizona can affect your premiums. The state may be slightly cheaper than the national average, but you may pay more if the Zip code where you live has higher rates. Drivers who live in Phoenix pay an average of $1,430 for auto insurance, $263 more than residents of Tucson.
Average Car Insurance Rates in Arizona: State & Cities
Location | Annual Premium |
|---|---|
Arizona’s State Average | $1,284 |
Chandler | $1,195 |
Gilbert | $1,195 |
Glendale | $1,412 |
Mesa | $1,219 |
Peoria | $1,283 |
Phoenix | $1,430 |
Scottsdale | $1,184 |
Surprise | $1,174 |
Tempe | $1,259 |
Tucson | $1,167 |
Insurance Company
Car insurance rates vary among insurers because they calculate premiums differently. That’s why it’s wise to shop around to find the cheapest auto insurance in Arizona or the best car insurance in Arizona. You can also use MoneyGeek’s Arizona car insurance calculator to get a ballpark figure for your insurance costs.
Age
Your age plays a significant role in the cost of your annual premiums. Typically, rates are higher for people younger than 25 because providers consider them riskier to insure. Drivers age 65 and older face higher premiums than their 40-year-old counterparts.
Average Car Insurance Rates by Age in Arizona
State | Average Driver (40-Year-Old) | 16-Year-Old | 25-Year-Old |
|---|---|---|---|
Arizona | $1,284 | $3,231 | $1,207 |
Driving Record
Car insurance rates are usually lower for drivers with clean records than those with driving violations on their records. The cost of your premiums can also change depending on the severity of your offense. In Arizona, if you have a speeding ticket, you may pay $1,583 per year for car insurance, but if you have a DUI, you might pay $1,898 per year for the same policy.
Average Car Insurance Rates by Driving Record in Arizona
State | No Violation | Speeding Ticket | Accident | DUI |
|---|---|---|---|---|
Arizona | $1,284 | $1,583 | $1,869 | $1,898 |
Credit Score
In Arizona, car insurance providers consider your credit score when calculating your rates. Having a poor credit score can lead to higher insurance premiums. If you have poor credit, you may pay roughly $2,495 per year for coverage, whereas you might only pay $988 per year with excellent credit.
Average Car Insurance Rates by Credit Score in Arizona
State | Excellent Credit Score | Fair Credit Score | Poor Credit Score |
|---|---|---|---|
Arizona | $988 | $1,545 | $2,495 |
Car’s Make and Build
The car you drive can affect your insurance costs. When determining rates, insurance providers consider several factors like the possible costs of repairs and the likelihood of theft. Driving a sports car or other high-value car means more expensive premiums. You can use MoneyGeek’s auto insurance calculator to see how your insurance rate can change depending on your car model.
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Rates updated:
Jul 26, 2024
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How to Save on Car Insurance in Arizona
While Arizona’s car insurance rate is cheaper than the national average, there are ways to make it even more affordable. These include bundling multiple policies and increasing your deductibles. MoneyGeek outlined some actionable steps to get lower premiums on your auto insurance.
Shop around for the best rates.
Every car insurance company calculates rates differently. Gathering quotes from at least three insurers can help you find the cheapest premiums for you.
Bundle multiple policies.
You can usually get a sizable discount if you bundle your homeowners and auto insurance policies from the same provider.
Take advantage of available discounts.
Car insurance providers offer several car insurance discounts to stay competitive. You can save on your policy by being a good driver, remaining accident-free or installing anti-theft devices in your vehicle. Contact your chosen insurer to see which savings opportunities you qualify for.
Increase your deductible.
Your car insurance deductible is the amount you pay out of pocket if you file a claim. Raising your deductible can significantly lower your premiums, but you will pay more after an accident.
Consider pay-per-mile insurance.
Arizona drivers who rarely drive may benefit from pay-per-mile coverage. This policy charges rates based on the number of miles you drive.
Drop unnecessary coverage.
Dropping comprehensive and collision coverage can be an excellent way to save on car insurance rates. It’s a smart move if your premiums are worth more than 10% of your vehicle’s cash value.
Frequently Asked Questions
MoneyGeek answered some frequently asked questions to help you better understand why car insurance in Arizona can be expensive.
Why is Arizona car insurance so expensive?
Car insurance rates in Arizona are actually lower than the national average. However, if your insurance premiums in Arizona are costly, this could be due to personal factors like your age, driving record, credit score and location.
What is the average cost of car insurance in Arizona?
The average cost of car insurance in Arizona is $1,284 per year.
What is the cheapest car insurance in Arizona?
GEICO offers the cheapest car insurance in Arizona, with an average annual rate of $366 for minimum coverage and $770 for full coverage.
What is the best car insurance in Arizona?
GEICO also offers the best car insurance in Arizona, with its policies costing an average of $770 yearly.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.