Why Is Car Insurance So Expensive in Arizona?

Arizona drivers pay an average of $1,284 per year for auto insurance, cheaper than the national average of $1,424 per year. The state’s rates are partly determined by factors like its highway density, urban population density and vehicle theft rate. However, you may pay more or less depending on your unique situation.

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Last Updated: 7/7/2022
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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.

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Key Takeaways

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Drivers in Arizona pay an annual average of $1,284 for car insurance, less than the national average.

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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.

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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

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  • 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.

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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

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  • 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

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  • 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

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  • 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.

Auto Insurance Calculator

State

Arizona

Age

30-65

Driving Record

Clean

Credit Score

Excellent

Vehicle Type

Compact

Vehicle Year

2020

Liability Coverage

State Min

Comprehensive and Collision Insurance

None

Gender

Female
Average Annual Auto Insurance Rates

Click the section of the wheel in your price range to see options.

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on average

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Click your preferred price range to see company options.

Click an insurer below to visit their review page or continue to your personalized quote.

Company

Average Annual Rates

1.

USAA

$395

2.

GEICO

$413

3.

CSAA

$516

5.

Hartford

$576

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.

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    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.

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    Bundle multiple policies.

    You can usually get a sizable discount if you bundle your homeowners and auto insurance policies from the same provider.

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    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.

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    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.

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    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.

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    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.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.