INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Arizona for 2024

Updated Sept. 26, 2023
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State Farm is generally the cheapest car insurance in Arizona for full coverage policies.

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Although Arizona’s population has grown by over one million since 2010, car insurance premiums are still relatively affordable. The average cost of car insurance in Arizona is $1,414, compared to the national average of $1,582.

However, how much you’ll pay for car insurance in the Grand Canyon State varies based on factors including your location, credit score, age, and driving history.

In this article

Key takeaways

  • The average cost of car insurance in Arizona is $1,414 per year for full coverage policies.
  • State-minimum coverage costs an average of $682 per year.
  • Young drivers pay an average of $3,954 per year for car insurance.

How much does car insurance cost in Arizona?

In Arizona, drivers pay an average of $1,414 per year for full coverage policies, which include comprehensive, collision, and liability protection. Drivers that opt for state-minimum insurance spend an average of $682 per year.

Teens and young adults will pay significantly more; the average premium for young drivers is nearly three times the state average.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,414/year $682/year State Farm
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$3,954/year $1,741/year $2,223/year

Average cost of car insurance in Arizona by provider

Rates can be very different between car insurance providers. A number of companies sell auto coverage in Arizona, including well-known companies like Allstate and Progressive. 

For drivers looking to cut their costs, we found that State Farm offered the cheapest premiums for full coverage insurance, and USAA had the lowest rates for state minimum policies.

Provider Full coverage Minimum liability coverage
Allstate $1,692/year $841/year
GEICO $1,194/year $633/year
Travelers $1,262/year $549/year
Progressive $1,474/year $703/year
State Farm $1,093/year $561/year
USAA $1,169/year $335/year
AAA
$1,932/year $936/year

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How does credit score affect car insurance rates in Arizona?

In Arizona, your credit can affect how much you pay for car insurance. However, when calculating rates in Arizona, insurers cannot consider a lack of or inability to determine a credit history, collections identified with medical bills, or bankruptcies older than seven years.

Having excellent credit can help you save a significant amount of money. Those with poor credit paid thousands more for car insurance than those with credit scores of 750 or higher.

Credit health Avg. annual premium
Poor (550-649) $3,783/year
Average (650-699) $2,061/year
Good (700-749) $1,708/year
Excellent (750+) $1,518/year

Average car insurance rates for high-risk drivers in Arizona

Speeding, driving under the influence (DUI), or being at fault in an accident are costly mistakes in Arizona. DUI convictions can cause your premiums to nearly double, and a speeding ticket increases premiums by an average of $926 per year.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,414/year $2,535/year $1,121
DUI $1,414/year $2,924/year $1,510
Speeding ticket $1,414/year $2,340/year $926

*Assumes clean driving record with good credit

How does age affect car insurance rates in Arizona?

Age is one of the factors insurance companies consider when setting rates. Statistically, younger drivers are more likely to be involved in accidents.

Unsurprisingly, teens in Arizona will pay substantially more for car insurance than other age groups. For example, the average premium for 18-year-olds is $4,215 per year — nearly three times the state average.

Age Avg. annual premium
18 $4,215/year
25 $1,582/year
30 $1,542/year
40 $1,641/year
60 $1,540/year

Arizona car insurance rates by city

If you live in a city rather than a suburb or rural area, you can expect to pay much more for car insurance. That result is because cities statistically have higher incidence rates of accidents and theft than other areas.

Phoenix is the city with the highest average premium in Arizona; drivers pay an average of $2,132 per year. According to NeighborhoodScout, Phoenix has a crime rating index of four. This means that 96% of cities in the U.S. are safer, so the higher cost is understandable.

City Avg. annual full-coverage premium
Phoenix$2,132/year
Tucson $1,728/year
Scottsdale $1,836/year
Mesa $1,824/year
Chandler $1,810/year
Glendale $2,119/year

AZ’s minimum car insurance requirements

Like the majority of the states in the U.S., Arizona requires drivers to have car insurance. Arizona residents must meet the following requirements before they get behind the wheel:

  • $25,000 in bodily injury insurance for one person
  • $50,000 in bodily injury insurance for two or more people
  • $15,000 in property damage protection

How to save money on car insurance in Arizona

To save money on car insurance in the Grand Canyon State, follow these tips:

  • Consider usage-based insurance (UBI): With UBI policies, also known as pay-per-mile insurance, your premiums are based on the miles you drive and your driving habits. If you’re a safe driver with a short commute, you could save between 10% and 40% with UBI coverage.
  • Ask about discounts: Contact your insurance agent or customer support if your premiums seem high. You may be eligible for discounts you didn’t know about, such as multi-policy discounts or a discount for installing an anti-theft device.
  • Adjust your deductible: Raising your deductible increases how much you have to pay for repairs or injuries before your insurance kicks in, but it will cause your premiums to go down.
  • Shop around: Car insurance premiums can vary significantly between companies. You may find that another insurer offers much lower rates for the same coverage, so it’s a good idea to shop around every year by requesting quotes from the best car insurance companies.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in AZ

Is car insurance expensive in AZ?

Car insurance in Arizona is relatively inexpensive, with full coverage insurance costing $1,414, compared to a national average of $1,582.

How much is car insurance per year in AZ?

The average cost of car insurance in Arizona is $1,414 per year for full coverage policies. For state-minimum insurance, the average price is $682 per year.

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.