Car insurance is mandatory in Arizona and serves as an important safety net for drivers in case of accidents or unexpected events. While the average cost of car insurance in Arizona tends to be higher than the national average, it varies significantly based on factors such as your location, age, driving history, and the type of coverage you choose. Understanding these factors can help you make smarter decisions when selecting a policy.
This article provides a detailed look at the average cost of car insurance in Arizona and breaks down the key elements that influence your premium rates. Whether you’re a new driver or looking to update your current coverage, this guide aims to help Arizona residents find the best insurance policy that fits both their needs and budget.
How Much Is the Average Cost of Car Insurance in Arizona?
Arizona ranks 11th in the high average annual premium of $2,543 for full coverage auto insurance in the year 2024, and the related but slightly lower national average is $2,299. The median yearly cost for the least expensive plan is $758, significantly higher than the average national cost of $637. These data show that vehicle insurance has a multi-factor approach regarding the price it sets for its services based on individual data and geographical location.
Average Cost of Car Insurance Per Month
By breaking down the annual expenses, we can see that the average monthly car insurance rate in Arizona is $212 for full coverage and $63 for basic coverage. This knowledge can be a powerful motivator, as it shows how understanding your insurance costs can help you manage your budget more effectively. By taking control of your insurance expenses, you can potentially save a significant amount of money each year.
What Companies in Arizona Have the Most Affordable Auto Insurance?
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Average Cost of Minimum Liability Coverage in Arizona
Minimum liability coverage in Arizona is designed to meet the state’s legal requirements while offering the most economical option for drivers. The average annual cost for this type of coverage in Arizona is $758. It’s important to note that this cost is influenced by a variety of factors, including the state’s economic climate, the number of drivers on the road, and the frequency of accidents. This form of coverage includes bodily injury and property damage liability, providing a minimum level of financial protection in the event of an accident.
Average Cost of Full Coverage Car Insurance in Arizona
Full-coverage auto insurance in Arizona costs an average of $2,543 per year. It often includes liability, collision, and comprehensive insurance, which provides more protection against a wide range of hazards, such as accidents, theft, and natural disasters. While more expensive, complete coverage offers peace of mind and financial security.
Factors That Influence Car Insurance Costs in Arizona
Several essential factors influence vehicle insurance prices in Arizona. Understanding these indicators can help drivers predict premiums and find strategies to reduce insurance costs. Here are the main factors:
- Location:Â
- Cities such as Phoenix, Glendale, and Tucson typically have higher vehicle insurance costs. Several variables contribute to this.
- Higher traffic volumes increase the chance of accidents.
- Car theft and vandalism are common in urban locations, increasing the risk for insurance.
- Car repairs and medical services are often more expensive in urban regions, which can lead to increased insurance claims.
- Locations like Aguila and Cave Creek typically have lower premiums:
- In rural locations, Having fewer vehicles on the road reduces the likelihood of an accident, and theft and vandalism are less common.
- Repair and medical services in rural areas are more affordable.
- Due to weather-related concerns, areas like Flagstaff may see different rates than southern Arizona (e.g., snow and ice can cause accidents).
- Premiums in areas like Tucson may be more significant due to larger populations and urbanization.
- Driving History:Â
- Insurers consider drivers with no history of accidents, speeding tickets, or other traffic violations less risky, which leads to cheaper premiums.
- One speeding ticket can raise rates by an average of 24%. Insurers regard speeding as an indicator of risky behavior.
- At-fault accidents can increase premiums by an average of 44%. Insurers demand higher premiums due to the increased risk of future claims.
- DUI convictions can more than double rates, resulting in an average rise of 109%. DUIs imply a high level of risk, forcing insurers to increase premiums drastically.
- Credit history:
- It also highlights that drivers with poor credit scores must budget up to 77% more toward auto insurance. They used credit rating to predict the chance of a claim starting so that an insurer can predict the likelihood of a claim starting. Specifically, drivers with good credit ratings would have their premiums expected to be around 16% lower than an average premium. Predictive models that reflected drivers’ credit scores showed that those who scored low were prone to submit claims.
- Consequently, good credit scores often translate to responsible financial management, a scenario that insurers consider less risky.
- Safety Features and Crash Data:
- Autonomous features like automatic emergency braking, lane departure intervention, and blind-spot detection also generally lower premiums because the cars are less likely to get into accidents.
- It may help to get vehicles with better safety ratings from organizations like the IIHS (Insurance Institute for Highway Safety), as insurance is often cheaper for cars with high safety ratings.
- More frequent car models tend to attract higher insurance premiums because there are likely to be more theft cases.
Varieties of Auto Insurance in Arizona by City
Arizona state car insurance premiums differ with traffic congestion, criminal activity, and population size. Here’s an overview of the average annual premiums for full coverage in five major cities:
- Phoenix:
Phoenix drivers pay an average of $3,001 a year for auto insurance, which is 17 percent higher than the state’s mean. These rates are high due to numerous factors, such as population pressures and high traffic density.
- Glendale:
The average cost for car owners in Glendale was approximately $2,941 per year, with an impressive percentage of 14% higher than in the state. As can be observed in Phoenix and other elements of this research, Glendale’s rates are affected by the characteristics of the metropolitan area.
- Aguila:Â
In contrast, Aguila inhabitants pay lesser rates, with an average yearly cost of $2,325, 9% less than the state average. These decreased rates are due to reduced population density and transportation.
- Cave Creek:
The proprietors who have their car insured in this city pay an average of $2,516 on the premium annually; this demonstrates the urban-rural combination of this city with a middle-bulge average.
- Peoria:
The above survey showed that drivers in Peoria spend about $2,688 yearly on car insurance, a 6% increase compared to other parts of Illinois. This is because Peoria is more of a suburban city with low crime rates.
Arizona Car Insurance Costs by Age and Gender
Insurance premiums in Arizona vary significantly by age and gender. Here’s a brief breakdown of the average annual premium:
Teen Drivers (16-20 Years Old)
The average annual premium for sixteen-year-olds is $5,840. These young drivers are typically added to their parents’ policies, which may entail savings; nonetheless, rates are high due to their inexperience. At age 18, male drivers suffer the highest expenses, averaging $7,804 annually, reflecting the significant risk that insurers associate with young, inexperienced drivers. As drivers acquire experience, their average premium reduces to $5,719 by age twenty.
Young Adults (21-25 years old)
At the age of 25, insurance premiums have remarkably reduced to an average of $3,244. This decline shows a lowered refined risk factor as drivers progress and become more experienced.
Adults (26–35 Years Old)
The average annual premium is the cost of insuring drivers whose ages are extended downward to around $2,790. Drivers this age are considered financially secure, making them reliable and attracting low insurance quotes.
Middle-Aged Drivers (36-60 Years Old)
Other ages that are considered to cost little to insure are middle-aged drivers between the ages of 36 and 60. Their annual rates sometimes seem to be less than $2,543, which shows that this group includes the most experienced and, hence, the least risky.
Senior Drivers (Over 60 Years Old)
Insurance prices for elderly drivers may stabilize or increase somewhat after age 65 due to probable age-related variables such as weaker reflexes. Although premiums remain lower than those for younger drivers, there may be a minor increase due to the increasing risk associated with aging.
Males often pay more significant premiums, significantly when younger. As an example, men spend much more than girls when they are 18 years old. Insurers believe males are at higher risk due to statistical evidence indicating a higher incidence of mishaps. Conversely, females tend to pay cheaper rates, especially in younger age groups, due to their lower risk profile.
Car Insurance Rates in Arizona by Credit Score
Credit-based insurance ratings are essential in setting Arizona vehicle insurance costs. Drivers with higher credit scores often pay reduced rates. Here is a comparison.
– Poor Credit: $4,505 per year, 77% more than the norm.
– Standard Credit: $2,830 annually, an 11% increase above the norm.
– Good Credit: The baseline average rate is $2,543 annually.
– Excellent Credit: $2,143 annually, 16% less than the norm.
Arizona Car Insurance Rates by Vehicle Type
The type of vehicle driven has a considerable impact on insurance premiums. Here is an overview of Arizona’s typical annual premiums for many popular vehicle models.
Economy Cars:
Vehicles such as the Toyota Camry offer moderate premiums, averaging roughly $2,543 annually. They are less expensive to fix and replace and frequently have helpful safety measures.
Luxury cars:
Luxury car brands such as BMW 330i are slightly more expensive, with an average annual premium price of $3,178. They are also costly to maintain and renew, as are their various components.
Family Vehicles:
Some models include minivans with lower annual rates of $2,229, the current average for the Honda Odyssey. They are thought to be less aggressive and safer, thereby categorizing them as safer vehicles.
Trucks and SUVs:
Some of the consumer unit pile included vehicles averaging $2,382 per year, as specified in the Ford F-150. These are usually much stronger and can have lower repair costs if the need arises, but they are generally larger and can, at times, cause more damage in accidents.
Hybrids and Electric Cars:
Some models, like the Toyota Prius, are slightly higher at $2,620 to account for the extra expenses associated with the different parts used to manufacture hybrid cars.
How to Save Money on Car Insurance in Arizona
While vehicle insurance in Arizona can be expensive, there are some techniques to help lower premiums:
- Defensive Driving Course:
Insurers also offer rebates for successful and recognized driving classes or programs, which can be taken online or in class.
- Telematics Programs:Â
Usage-based insurance programs can promote safe driving practices by offering lower premiums.
- Higher Deductibles:Â
Choosing a greater deductible will reduce premium expenses, but it’s critical to verify the deductible is reasonable.
- Discounts:Â
Look for discounts based on student status, professional affiliations, or combining numerous plans.
- Shopping Around:Â
Regularly comparing quotes from multiple insurers will help you get the best deals.
Conclusion
For drivers in Arizona, understanding the factors that influence auto insurance costs is key to making informed decisions and saving money. Whether you’re a young driver facing higher rates or an experienced motorist with a solid credit history, there are always opportunities to lower your premiums. Beem offers personalized car insurance quotes from top providers, helping you find the best rates quickly and easily. With Beem’s fast quote process and competitive pricing, Arizona drivers can confidently secure coverage that fits their budget without compromising on protection. Download the app here.
