Car Insurance in Arizona
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Introduction: Car Insurance in Arizona
Arizona has over 5 million licensed drivers, making it one of the fastest-growing states for auto insurance. Whether you’re commuting through Phoenix’s busy streets, driving through Tucson’s desert highways, or exploring the Grand Canyon State, car insurance in Arizona is essential for financial protection and legal compliance.
Arizona offers moderate car insurance rates compared to the national average. According to the National Association of Insurance Commissioners (NAIC), the average annual cost of full coverage in Arizona is $1,810, slightly above the national average of $1,674.
Arizona Car Insurance Requirements (State Laws & Minimum Coverage)
Minimum Liability Coverage (25/50/15 Rule)
According to the Arizona Department of Transportation (ADOT), drivers must carry at least:
✔ $25,000 for bodily injury per person
✔ $50,000 for bodily injury per accident
✔ $15,000 for property damage per accident
Why Minimum Coverage May Not Be Enough:
- Medical bills from an accident can easily exceed $25,000 per person.
- Vehicle repair costs often surpass $15,000, especially for newer models.
- Arizona has a high number of uninsured drivers, making Uninsured/Underinsured Motorist (UM/UIM) coverage essential.
Recommended Full Coverage for Better Protection
For better financial security, most Arizona drivers opt for full coverage, which includes:
| Coverage Type | What It Covers | Recommended For |
|---|---|---|
| Collision Coverage | Pays for damage to your car in an accident | Drivers with new or financed vehicles |
| Comprehensive Coverage | Covers theft, vandalism, and weather damage | Important due to Arizona’s dust storms and wildfires |
| Uninsured/Underinsured Motorist (UM/UIM) | Covers injuries from uninsured drivers | Crucial since many Arizona drivers lack insurance |
| Medical Payments Coverage (MedPay) | Covers medical expenses regardless of fault | Helpful for drivers without health insurance |
Average Cost of Car Insurance in Arizona
Car insurance rates in Arizona vary based on location, driving history, and vehicle type. Below is an average cost breakdown:
Arizona Car Insurance Cost by Coverage Type
| Coverage Type | Average Annual Cost |
|---|---|
| Minimum Liability | $751 |
| Full Coverage | $1810 |
Car Insurance Costs by Major Arizona Cities
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Phoenix | $1,200 | $2,500 |
| Tucson | $900 | $2,000 |
| Mesa | $950 | $2,100 |
| Chandler | $920 | $2,050 |
| Scottsdale | $1,000 | $2,300 |
| Glendale | $980 | $2,200 |
| Gilbert | $940 | $2,100 |
| Tempe | $960 | $2,150 |
| Peoria | $930 | $2,080 |
| Surprise | $910 | $2,050 |
Car Insurance Costs by Age Group
| Age Group | Minimum Coverage | Full Coverage |
|---|---|---|
| 16-19 Years | $3,800 – $5,800 | $6,500 – $8,500 |
| 20-24 Years | $1,900 – $2,800 | $3,800 – $5,200 |
| 25-34 Years | $1,200 – $1,900 | $2,800 – $3,800 |
| 35-44 Years | $1,000 – $1,700 | $2,500 – $3,500 |
| 45-54 Years | $950 – $1,500 | $2,300 – $3,200 |
| 55+ Years | $900 – $1,400 | $2,000 – $3,000 |
✔ Teen Drivers (16-19 Years): Pay the highest premiums due to inexperience and higher accident risks. Many insurers offer good student discounts to help lower costs.
✔ Young Adults (20-24 Years): Rates decrease as driving experience improves but remain higher than mid-age drivers.
✔ Mid-Age Drivers (25-49 Years): Experience the lowest insurance premiums due to lower accident risks and a longer driving history.
✔ Senior Drivers (70+ Years): Rates increase again as older drivers face higher accident risks due to slower reaction times and medical conditions.
Factors Affecting Car Insurance Rates in Arizona
Several factors influence car insurance rates in Arizona, including:
- Driving Record: Accidents, DUIs, and speeding tickets impact premiums significantly.
- Location: Urban areas like Phoenix and Tucson have higher rates due to traffic congestion and theft.
- Credit Score: Arizona insurers use credit history when determining premiums.
- Annual Mileage: More miles driven increases accident risk.
- Vehicle Type: High-performance and luxury vehicles cost more to insure.
- Weather Conditions: Arizona’s extreme heat, dust storms, and wildfires contribute to insurance claims.
- Coverage Level: Full coverage is more expensive but offers better protection.
Best Car Insurance Companies in Arizona (2025)
Finding the right insurer depends on affordability, coverage, and customer satisfaction. Here are some top options:
| Company | Best For | Average Annual Cost (Full Coverage) |
|---|---|---|
| GEICO | Cheapest Rates | $1,700 |
| State Farm | Best for Customer Service | $1,800 |
| Progressive | Best for High-Risk Drivers | $2,000 |
| Allstate | Best Full Coverage Options | $2,200 |
| USAA (Military Families) | Lowest Rates for Military | $1,600 |
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FAQs
Arizona law requires 25/50/15 liability coverage: $25,000 per person for injuries, $50,000 per accident, and $15,000 for property damage.
The average minimum coverage costs around $63 per month, while full coverage averages $151 per month.
Smaller cities like Peoria and Surprise tend to have lower rates compared to Phoenix and Tucson.
No, Arizona does not require uninsured motorist coverage, but it is highly recommended.
Yes, but high-risk drivers may face higher premiums. Defensive driving courses and shopping around can help lower costs.
About the Author
Alex Huber is a content writer for Atoz Insurances and he is a very experienced and well-rounded freelance content writer who specializes in the insurance and finance niches. His writing is engaging and informative, and he has a strong understanding of the industries he writes about.