Best Car Insurance in Arizona

The #1 car insurance company is State Farm because it is the largest auto insurer in the U.S., with a market share of 16%. State Farm insures over 80 million people and offers coverage in all 50 states.

Largest Auto Insurance Companies in America

The top 10 car insurance companies - State Farm, Geico, Progressive, Allstate, USAA, Liberty Mutual, Farmers, Nationwide, American Family and Travelers - own more than 70% of the auto insurance market share in the U.S. As a result, it shouldn't come as a surprise that these companies tend to be the best options for most types of drivers.

Best Car Insurance Companies by Category

To learn more, check out WalletHub's guides to the best car insurance and the largest auto insurers.

Drivers in Arizona need $25,000 of bodily injury liability insurance per person (up to $50,000 per accident) and $15,000 of property damage liability insurance. Collision, comprehensive and gap insurance may also be required by a lender or lessor if your vehicle is financed.

In addition, an optional but recommended type of coverage in Arizona is uninsured/underinsured motorist insurance. It replaces the liability coverage an at-fault driver should've had and pays for your costs up to your policy limits.

Here's How Much Car Insurance Drivers Need in Arizona:

If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Arizona law. Lenders or lessors usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. Lenders may also require gap insurance, which covers the difference between

Even if you're not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in Arizona to make sure you're paying for the coverage you need.

The average cost of car insurance in Arizona is 12% lower than the national average auto insurance premium. There are several factors that affect how much you'll pay for car insurance in Arizona, including your driving record, age and location, the amount of coverage you purchase, and the insurance company you buy it from.

Average Cost of Car Insurance in Arizona by Category

• After an at-fault accident: $262 per month      
• Driver with poor credit: $109 per month
• Teen driver: $346 per month      
• After a DUI: $106 per month          

Average Cost of Car Insurance in Arizona by Company

Note: Rates are an approximation based on a 45-year-old man in Arizona with a clean driving record. Actual rates will vary.

Average Cost of Car Insurance in Arizona by Age

Note: Rates are an approximation based on a driver in Arizona with minimum coverage and a clean driving record. Actual rates will vary.

How to Lower the Cost of Car Insurance in Arizona

1. Shop around and compare quotes. We recommend comparing quotes from at least three different insurance companies to make sure you are getting the best rate.
2. Choose a higher deductible. Your deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums but means you will have to pay more out-of-pocket when you file a claim.
3. Consider lowering your coverage. Consider purchasing only the minimum amount of coverage required by your state, rather than purchasing higher limits or a full coverage policy.
4. Look for discounts you may be eligible for. For instance, most insurance companies offer a good-driver discount for customers with a clean driving record, a good-student discount, or a discount for paying your premiums in full up front.

To learn more, check out our guide to how much car insurance you need in Arizona as well as our picks for the cheapest car insurance companies in Arizona.

Key Things to Know About Liability Car Insurance in Arizona

• Some communities are exempt. Per Alaska state legislature, if you live in certain communities, you are exempt from vehicle registration, the Mandatory Insurance Law, and CDL road testing. In this case, you are not required to purchase liability insurance.
• It covers others' expenses. Liability insurance pays for others' medical expenses and property damage after an accident you were responsible for.
  

• There are penalties for driving without the required coverage. If Arizona drivers do not satisfy Arizona's minimum liability requirements, they can face penalties for driving without insurance.

• Drivers should consider purchasing higher limits. Drivers should consider buying more than the minimum amount of liability coverage required by Arizona law if they can afford it. If you cause an accident that results in damage beyond your policy limits, you will be personally responsible for paying the difference.
• Liability insurance will not cover all events. Arizona drivers can also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder's own injuries or property. For instance, both collision insurance and comprehensive insurance cover damage to the policyholder's car. You will likely need these types of insurance if your vehicle is financed.

To learn more, check out WalletHub's guides on how much car insurance you need and cheap car insurance in Arizona.

Full coverage insurance in Arizona costs an average of $390 per month. A full coverage policy usually includes collision and comprehensive insurance, plus the types of coverage required by Arizona law. In Arizona, liability insurance is mandatory for all drivers.

Average Cost of Full Coverage Insurance in Arizona

Note: Premiums are average rates for a good driver in Arizona; individual premiums will vary.

How to Get Cheaper Full Coverage Insurance in Arizona

1. Compare quotes from several companies to make sure you're getting the best deal.
2. Increase your deductible. Higher deductibles lead to lower premiums, but remember to only pick a deductible you'd be able to afford in an emergency.
3. Don't forget to make sure you're getting all the discounts you can.

To learn more, check out WalletHub's guide to full coverage car insurance.