PHOENIX AUTO INSURANCE: Coverage, Cost & Cheapest Options

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Phoenix car insurance is a special type of insurance designed particularly for drivers in the Phoenix, Arizona, area. The fact that all drivers in Arizona are obliged to carry liability insurance, which pays for other people’s medical bills and property damage if you cause an accident, is vital to keep in mind. Phoenix auto insurance coverage and costs depend on a range of factors, ranging from your location, driving history, the type of vehicle you drive, and the specific insurance company you choose. All this information and details affect Phoenix car insurance rates for each individual. To find cheap Phoenix car insurance, you will have to compare rates from different providers before settling for your desired policy, which should provide maximum coverage in the case of an accident.


The average yearly cost of auto insurance in Arizona is $1,810 for full coverage and $587 for minimal coverage, according to a 2023 assessment of rates by Bankrate using data from Quadrant Information Services. Both premiums are roughly equal to the national average yearly cost of auto insurance, which is $622 for minimal coverage and $2,014 for full coverage.

Phoenix Car Insurance Minimum Requirements

Every motor vehicle operated within the state of Arizona must have auto insurance. The following minimum levels of coverage must be met or exceeded by all drivers in Arizona:

  • Minimum coverage for bodily injury liability of $25,000 per person and $50,000 per accident.
  • Minimum $15,000 in property damage liability insurance
  • Bodily injury coverage for uninsured drivers: $25,000 per person and $50,000 per accident.
  • Minimum $25,000 per person and $50,000 per accident for underinsured motorist bodily injury coverage.

These insurance coverage requirements must be maintained as long as the vehicle remains roadworthy and stays in use.

Phoenix Car Insurance Coverage Types

#1. Bodily Injury Liability

In the event that you were to cause an accident and be judged to be at fault or “liable,” this is the main coverage that would protect you. This coverage aids in paying for costs associated with the harm or death of a pedestrian or another driver when you are at fault. For instance, you might be entirely at fault for all of the other driver’s or passengers’ damages if you hit another automobile while talking on your phone and he or she sustained a brain injury.

#2. Property damage Liability

When an accident is your fault, this coverage assists in paying for costs associated with the damage to another person’s property, such as cars, homes, buildings, and other structures. For instance, your property damage coverage would cover any damage to the house if you drove into it without injuring anyone. It will also cover any harm you cause to another person’s car. If you are the cause of the collision, it does not apply to damage to your car.

#3. Uninsured Motorist

This covers medical costs in the event of an accident if you are not at fault and the at-fault party is uninsured at the time of the incident. As this may or may not often occur, it is very important to add this coverage to your insurance policy.

#4. Underinsured Motorist

This helps pay for your medical costs if you are injured in an accident and the party at fault has insufficient liability insurance. That way, you aren’t left with extra unplanned hospital bills, as this part of your insurance policy steps in to cover the bills.

Some additional coverage types include:

a.  Collision Coverage

This coverage aids in defraying costs associated with replacing or repairing an accident-damaged car, irrespective of whether you are the cause of the accident or not. If the other driver is at fault for the collision, they will probably be responsible for covering the cost of the damage to your car (via their policy’s property damage coverage). However, your insurance provider will not compensate you for a loss if you cause an accident without collision coverage.

b.  Comprehensive Coverage

This aids in paying for the costs of replacing or repairing a car that has been stolen or damaged by vandalism or other events, including road accidents. Your insurance provider won’t reimburse you for the loss if you don’t have comprehensive coverage and your car is stolen. In most situations, to safeguard their investment in your car, many lenders and leasing firms insist that you keep comprehensive insurance.

How to Get Cheap Phoenix Car Insurance

Finding cheap auto/car insurance in Phoenix depends on a number of things, such as your driving record, age, insurance score based on your credit, ZIP code, and the type of coverage you require. Some things you can do to lower your auto insurance cost, even if many are out of your control, include:

#1. Maintain a spotless driving record

Drive cautiously, and attempt to steer clear of traffic infractions and speeding tickets to be eligible for lower auto insurance premiums.

#2. Boost your credit rating

The risk that you’ll make an insurance claim can be estimated by car insurance providers in Arizona by looking at your credit history and generating a credit-based insurance score. A better credit score makes you more appealing to insurance companies, who may then reduce your premiums. Arizona insurers cannot include medical collections, obsolete bankruptcy filings, or liens (older than seven years) when computing your insurance score.

#3. Ask about Discounts

To help you reduce premium costs, insurers provide a range of discounts. Bundling auto insurance with renters or homeowners insurance, operating a vehicle with specific safety features, avoiding accidents, and finishing a driver safety course are some of the ways to get discounts. Additionally, you can inquire about discounted prices for those who drive less often, are more careful drivers, are good students, and even for those in certain professions like firefighters and nurses.

Be specific when asking about savings because certain insurers may not give discounts in every state.

#4. Compare Quotes

To ensure you’re getting the best deal, make sure to compare prices from at least three different insurance providers. You can compare all the top choices side by side by shopping around because each insurer has its own rules for calculating premiums. Phoenix’s Auto-Owners offers the most affordable liability-only auto insurance.

Phoenix Auto Insurance Cost

Phoenix has a $42 higher average auto insurance rate than Arizona, at $184 per month or $1,105 per six months. According to research, in Phoenix, Travelers has the lowest rates for minimum-liability auto insurance, starting at just $46 per month. The next-best choice, State Farm, is 45% less expensive than the city average, which is 24% less.

In Phoenix, basic coverage costs, on average, $83 per month. However, with little liability coverage, you only receive the most basic level of protection. That implies that not all of your expenses following an accident may be covered. To safeguard an expensive automobile, it is advisable that you purchase the most insurance coverage policy that you can.

Cheapest Minimum Phoenix Car Insurance

The table below shows the different insurance companies in descending order from the cheapest to the most expensive.

CompanyMonthly Rate
State farm$60
The Hartford Auto Insurance Review$101

It is important to note that USAA is only available to current and former military members and their families.

#1. Cheapest Liability: Only Car Insurance

The other driver’s vehicle damage and subsequent medical costs are covered under liability-only auto insurance. Since liability insurance doesn’t cover any of your damages, it is frequently the less expensive alternative for coverage.

If you want the most minimal protection or drive a paid-off vehicle, liability coverage can be an option to consider. Liability insurance might not be necessary if you have the financial means to cover any car damage out of your pocket.

The average monthly cost of liability-only insurance in Phoenix is $120, with auto owners charging $57.

#2. Cheapest full coverage car insurance in Phoenix

Liability protection is a component of full coverage insurance, but it also includes coverage for vehicle damage and any accident-related medical costs. Due to the additional protection, full coverage usually comes at a higher price than liability.

Your lender will need you to carry full coverage as long as you have a car loan or lease. Full coverage may be a smart idea even if you don’t have a car loan because auto repairs are expensive. You just need to pay your collision and comprehensive deductibles if your insurance coverage is sufficient; after that, insurance will pay for the damages (up to the amount of your policy limit).

Phoenix drivers spend $242 monthly on average for comprehensive insurance. The cheapest full-coverage Phoenix car insurance is available from Auto Owners at an average monthly quote of $42, with State Farm coming behind with an average monthly quote of  $124.

#3. Cheap Phoenix car insurance for Teens

Your auto insurance rate depends on your age and location. Due to their inexperience, younger drivers pay more than older drivers with similar driving records and credit ratings.

While teen drivers frequently pay higher rates for auto insurance, they may also be able to save money by taking advantage of discounts for good grades or finishing a driver safety program. It is usually smart to browse around because discount chances vary per insurance.

By continuing to be covered by their parent’s insurance policy, young drivers may also be able to get a better cost. In Phoenix, the average monthly premium for full coverage for a teen driver is $476, with the cheapest policy provided by Travelers at $1,943 per year for female teens and $2,325 per year for male teens.

#4. Cheapest Car insurance for Seniors

The cost of automobile insurance often decreases once you turn 25 but may increase once more as you approach 70. Insurance companies don’t want to cover older drivers or teens because they are more likely to be in accidents. Seniors may not always experience this, especially if you maintain a spotless driving record. Even with the surge in premiums after age 70, older drivers generally pay the lowest auto insurance rates of any age group.

Some insurance providers may offer elderly drivers a mileage discount if they drive fewer miles annually.

Phoenix seniors who want comprehensive coverage pay $162 a month, with Root being the cheapest at $786 per year. A married man who is 60 years old pays $1,452 on average each year. Root has the lowest average rate at $841 a year, while General costs $2,058 on average for senior female drivers and $2,586 on average for senior male drivers, making it the most expensive option.

#5. Cheapest Car insurance for drivers with an incident

Your rate for auto insurance is strongly impacted by your driving history. Because the insurance company now views you as a high-risk driver, offenses like speeding tickets, DUIs, and at-fault accidents can raise your premiums for three to five years on your auto insurance policy.

In Phoenix, if you have an at-fault accident on your record, your premiums go up approximately 30% with insurance companies such as Hugo, State Farm, and Auto-Owners.

After an accident, if you keep up a spotless driving record in the months and years that follow, your rates might gradually decrease again.

Receiving a speeding ticket can reflect negatively on your driving history and raise the cost of your auto insurance. The seriousness of your traffic infractions will affect how much your auto insurance will cost. In Phoenix, a DUI can add $853 to premiums, while a speeding violation would add $388 at Root’s cheapest rate. Because of this, a DUI costs about $465 more than a speeding ticket. In contrast, for drivers with a violation, The General, which specializes in high-risk auto insurance, offers the highest rates:

  • Speeding ticket: The General ($4,135 per year)
  • At-fault accident: The General ($4,888 per year)
  • DUI: The General ($4,495 per year)

#6. Cheapest Car insurance for drivers with poor credit

Like most states, Phoenix Arizona permits insurance companies to base prices on credit-based insurance scores. Credit data is used by insurers to estimate a driver’s degree of risk. Lower-credit-score drivers pay significantly more for auto insurance than those with even mild incidents like speeding tickets. Based on this credit score, insurance predicts the likelihood that you will file an insurance claim in the future.

A positive credit score range is anything above 720, with scores below 720 regarded as negative or poor ratings. Root insurance in this case provides the cheapest insurance for people with poor credit, with an annual rate of $1,375.

Is auto insurance cheaper in AZ than CA?

Auto insurance is generally cheaper in California than in Arizona.

Can I have out-of-state car insurance in Arizona?

No. All vehicles registered in Arizona must be insured by a company licensed to do business in this state.

Why is car insurance so expensive in Phoenix?

Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims.

How much car insurance should I have in Arizona?

Arizona’s financial responsibility law requires drivers to carry insurance in the minimum amounts of 25/50/15.

What city has the highest car insurance rate?

Roosevelt, New York, has the highest rates in the state, with an average of $3,549 for full coverage.

In Summary,

An essential component of driving in the Phoenix region is having Phoenix car insurance coverage. In the event of an accident, you can safeguard your finances by selecting the appropriate insurance policy. As these auto insurance policy costs and coverage can vary depending on several factors, including your location, driving history, the type of vehicle you drive, your age grade, and the specific insurance company you choose, there are ways for drivers to reduce insurance premiums and save money on auto insurance policies.

It’s critical to periodically check that your Phoenix auto insurance coverage still suits your needs. If your circumstances change, such as if you move to a new region or buy a new automobile, you might need to make adjustments to your coverage.

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