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Best 4 Car Insurance Companies in Arizona 2021
Our Top 4 Picks for the Best Cheap Car Insurance in Arizona
For the lowest possible premiums and the best car insurance out there, here are four different companies that have excellent customer service ratings and are financially secure.
When you do your research, you may discover that Geico has the best yearly average rate for annual coverage for $1,336. Liberty Mutual comes close to that rate. Geico and Liberty Mutual might be the lowest for you, too, but it’s worth it to compare quotes nonetheless since everyone’s situation is different.
Insurance companies analyze a ton of factors when calculating your rate, like your age, your vehicle’s make and model, your driving history, and even your ZIP code. What’s more, each insurer weighs those factors differently. That’s why, even though it would be nice to recommend one provider that’s always the cheapest option, the only way to find out which one offers the cheapest car insurance for you is to get the quotes. It’s a good idea to get at least five.
As long as you know your vehicle’s basic information (make, model, configuration, etc.), quotes are easy to apply for and only take about 10 minutes each. You can even apply online instead of waiting on hold for a phone representative. Quote requests don’t affect your credit, so dive in and don’t be shy about compiling as many as you can. It can take less than an hour to research all of your options, and that can be worth it since you may be able to save more than $75 a month.
How we found the best car insurance in Arizona
Since J.D. Power is an authority in customer satisfaction — and you really do want the customer service for your car insurance to be great — start your search with its rankings for auto insurance agencies in the Southwest. This region has fewer well-ranked companies to choose from than most, so you should add all agencies ranked three stars or more to your list. Then cross-reference your list with A.M. Best Rating Services, a site that grades the financial solvency of insurance providers. If all of the companies on the list score well, then you can request quotes from these four national brands.
Why does financial solvency matter? When it comes time to pay your claim, you want a company that has the financial strength to pay. Otherwise, you’re likely in for a headache trying to get your funds. There’s no way a cheaper premium would be worth the trade-off in this instance.
Quotes for the minimum required auto insurance from State Farm and Geico are nearly identical, but it’s a little surprising how expensive the Geico and American Family quotes are — a $1,510 difference. If you have the budget to spend a bit more, it’s smart to upgrade cheap car insurance with a less expensive company rather than spending more to get the exact same coverage from a different insurance brand.
Some insurance providers still require you to speak to a live agent on the phone, but all four of the above companies have online quote tools. It’s not only more convenient to request a quote online, but it makes it even easier to check and uncheck boxes for any additional coverage that you might need or be considering. You’ll have a much better idea of what your insurance covers if you’re able to go through these options at your own pace, rather than listening to an agent list them out over the phone.
Requesting a quote online takes only about 10 minutes, so you should dedicate an hour to comparing as many online as you can. If you have questions or need advice, you can always call an agent at any of these insurance providers, even those with online quote tools.
Arizona’s Minimum Coverage Requirements for 2021
To be in compliance with Arizona state law, you must be insured for $15,000 for the injury or death of one person in an accident, $30,000 for more than one person, and $10,000 for the damage of another person’s property. This is often referred to as a 15/30/10 plan. That’s one of the lowest state-minimum car insurance requirements in the nation.
Although Arizona law requires you to have liability insurance of only $15,000, the average cost of a disabling injury caused by a car accident is $93,800. And that doesn’t include the cost of a damaged car. With state-minimum insurance, you’d be covered for only $10,000 worth of someone else’s property damage and $0 of your own. Even if you don’t own a car, if you are driving frequently you should get a liability policy or non-owner car insurance.
Consider a full coverage policy
You should also look into upgraded coverage that includes up to $50,000 for the injury/death of one person in an accident, $100,000 for more than one person, and $50,000 for the damage of another person’s property (a 50/100/50 plan). This is a good place to start for more comprehensive insurance, although you can look into 100/300/100 premiums, too.
This additional coverage insures you at more than triple the rate of the state’s cheapest car insurance, but it costs only $36 to $140 more a year, depending on the carrier. It’s an easy decision to pay slightly more for peace of mind. On average, a driver has an accident about every 18 years. In that time, you would be pay between $648 and $2,520 extra to make sure you’re not on the hook for more money than you’ve got in your savings account. Run the numbers and see which option makes the most sense for you.
If you’re caught driving without auto insurance in Arizona, your vehicle registration and driver’s license may be revoked. And you don’t have to get pulled over to be caught. The Arizona Department of Transportation receives automatic notification if your insurance lapses. You’ll have 10 days to correct the problem if your insurance was suspended in error.
Shop around for a new car insurance policy every year
You know how your cable company jacks up your rates when you’re not looking, and then magically lowers your bill as soon as you threaten to cancel? Car insurance companies have a habit of doing the same thing. “Price optimization” is the euphemism for this unfair practice, and if you don’t stay on top of your rates, you could be punished for your loyalty and complacency. Insurers analyze your online data and personal information to predict your tolerance to a price increase. One of the ways they do that is by checking to see if you’ve been shopping around. Luckily, there’s an easy way to put a stop to this.
If you shop around for a new policy once every year or two, you’ll show up on their radar as someone who might change insurance providers. Considering other cheap car insurance companies should keep your bill from increasing. And if you find a lower rate for a similar policy, but would like to keep your current company, give the insurer a call — it’s likely to lower your premium.
Robert Hunter, director of insurance for the Consumer Federation of America, said, “Shopping around will foil price optimization because if you shop around, the insurance company’s going to say, ‘This guy’s going to leave if I raise the price, so let’s hold it down.’”
Fifteen states have spoken out against price optimization over the past few years, and some have even made the practice illegal. Unfortunately, Arizona has yet to take a stand. Until that happens, it’s up to you to make sure you don’t fall prey to this practice.
Ways you could get cheaper car insurance rates
Besides price optimization, you should shop for a new policy if your circumstances change. Here are some examples:
- Good Driver – If you have had a clean record for three years or more, it’s time to shop for a new insurance policy. Why? You’ll get a lower rate if you do. There are two kinds of discounts to look for. One is an accident-free discount and the other is a safe-driver discount.
- Low Credit Driver – If you have been good about paying off your credit card debts, student loans or mortgages, you should shop around to see what new quotes you’ll get. Good credit should lower your insurance premiums, as drivers with bad credit do pay more for their insurance policies.
- Older Age Bracket – Unfortunately, younger drivers have higher premiums because they are a greater risk on the road. As you age out of high-risk age brackets, shop for a new policy. When you hit your 30s, shop for a new policy. When you hit your 40s, shop again.