How to Find Cheap Auto Insurance in Phoenix, Arizona

Phoenix may best be known for world-class golf and year-round sun, but the Grand Canyon State is also a mecca for highways, traffic, and car accidents. The Arizona Department of Transportation (ADOT) reported over 30,000 accidents in 2023 in Phoenix alone. These circumstances have played a role in the necessity of higher auto liability insurance coverage in Arizona. However, obtaining cheap car insurance in Phoenix AZ doesn’t need to be a desert dream.  

Access Insurance Agency of Arizona, LLC has the local knowledge and experience to make finding quality and affordable auto insurance possible.

How much is car insurance in Arizona?

Curious how much car insurance will cost you in Arizona? Insurance rates can vary depending on several factors including but not limited to garaging location, vehicle type, credit history, age, and driving history. 

According to a Bankrate study of September 2024 rates featuring information sourced from Quadrant Information Services, on average Arizona drivers pay:

$2,585 for full coverage insurance annually
$764 for minimum coverage annually

These rates are not too far off from the national average, of $2,348 and $639 for full and minimum coverage respectively. Still, drivers in Phoenix tend to pay rates that are 18% higher than their fellow Arizona drivers.

Is car insurance in Phoenix expensive?

Phoenix car insurance may seem pricey, but Arizona is ranked #33 out of 50 states for true cost rankings of coverage. True cost auto insurance rankings are determined by the average total percentage of income spent on car insurance, rather than average premiums. 

Just like auto insurance rates can vary from state to state, they can also fluctuate depending on your city of residence within Arizona. According to the Bankrate study, drivers in Phoenix will likely pay more for insurance than in less populated areas such as Littlefield or Lake Havasu City. As per data from Bankrate, Phoenix drivers pay an average of $3,055 per year for a full coverage policy. Arizona’s cheapest city for an annual full coverage policy is Lake Havasu City which averages $1,927. 

There are several reasons why Phoenix drivers might pay more for insurance coverage:

Number of Drivers - Phoenix is Arizona’s largest and most populous city. A rising population means more cars on the road which can lead to congestion and a greater number of accidents. More auto accidents can lead to higher insurance rates. 
Weather Risk - according to the National Centers for Environmental Information (NCEI) Arizona is experiencing a spike in severe weather activity with events such as wildfires, droughts, storms, and floods becoming more common. Weather events generally cause insurers to pay out a greater number of claims which can lead to increased rates. 
Uninsured Drivers - due to the rising costs of insurance many drivers make the potentially illegal and dangerous decision to forgo insurance. According to Bankrate, nearly 12% of Arizona drivers are uninsured. This can cause rates to increase as companies need to offset the cost of covering accidents involving uninsured drivers.
Rising Costs - as the cost of living in Phoenix has risen, so have healthcare costs. Pricier medical bills and expenses have forced insurance companies to raise their rates to cover higher claim amounts.

Other factors that impact car insurance costs

Catastrophic weather events are not the only thing that can impact your insurance costs. Insurance companies will also consider:

Age of the driver - younger and less experienced drivers will usually pay higher rates.
Driving history - drivers with a clean history tend to pay less for insurance.
Yearly mileage - the more miles you drive the higher your rates tend to be.
Marital status - sometimes insurance companies see married couples as more stable than singles so they may obtain lower insurance rates. 
Vehicle type and model - different vehicle types and models (sport, luxury, classic) will be charged different insurance rates. 
Credit history - in Arizona, insurance companies are allowed to use credit information to evaluate customers. Often individuals with good credit history will receive lower insurance rates. 
Location/zip code - generally more populated and metropolitan areas will be charged higher insurance rates.

Ways to save on car insurance

Thankfully affordable insurance coverage in the Phoenix area is possible. One of the best ways to uncover cheap auto insurance in Phoenix AZ is to shop around. Access Insurance Agency of Arizona, LLC can assess multiple carriers, so we can help deliver you the best possible rate for your auto insurance needs. 

Other effective ways to save money on your car insurance can include:

Opting for an increased deductible
Taking a defensive driving class
Bundling your insurance with other policies
Avoiding accidents

Work with one of our qualified agents to review your coverage and help you discover other potentially available discounts by calling us at 855-292-4010.

Arizona car insurance laws

As per ADOT, every motor vehicle that operates in the state must be covered by liability insurance through a company authorized to do business in Arizona. The minimum levels of financial responsibility are as follows:

$25,000 bodily injury liability for one person
$50,000 bodily injury liability for two or more persons
$15,000 property damage liability

This is often written as a split limit of 25/50/15. Please note that this is simply the minimum insurance required, and it is suggested to obtain higher limits if necessary. Ready to find an auto insurance policy that won't break the bank? Visit one of Access Insurance Agency of Arizona, LLC’s eight locations to speak to a qualified agent in person or give us a call at 855-292-4010 for a free estimate today!