Arizona has relatively low mandatory limits, but overall rates that fall above average when compared to rates nationwide. Shopping around can help drivers in Arizona get auto insurance that provides above average coverage for below average prices.
The Basics of Auto Insurance in Arizona
Arizona law requires that all drivers carry a minimum amount of insurance in order to be financially responsible for an accident in which they are found at fault.
The legal minimum in Arizona is among the lowest in the country, with bodily injury liability limits required at $15,000 per person and $30,000 per incident, and property damage liability required at $10,000.
There is no requirement for any other coverage, although drivers that have a loan on their vehicle will be required to meet the lender’s guidelines for insurance, which usually includes comprehensive coverage and collision coverage and may also put limits on the deductible amount.
As mentioned, the required limits in Arizona are very low and unlikely to be adequate in the event of an accident. Experts recommend carrying more than the legal minimum in order to be properly protected, as a serious accident can cost a lot more.
Specifics of Arizona Auto Insurance
Other than the required minimums, there is not really anything specific to know about Arizona car insurance.
The law does allow lawsuits for damages, injuries, death, and pain & suffering as well, so drivers should be aware that failing to carry car insurance or not having enough coverage can result in being held responsible for the financial fallout of an accident.
It is also important to note that, as a state that borders Mexico, Arizona car insurance will not protect you if you cross the border. Car insurance policies sold in the United States will cover drivers in any state as well as in Canada, but not in Mexico. If you plan a visit over the border for any reason, even a short one, you should purchase a temporary Mexican car insurance policy to protect you and your car.
Our first goal was to find companies that offer good rates on policies meeting more than just the legal minimum. While getting an inexpensive policy is great, it is not worth it if you find you do not actually have enough coverage when you need it. Our goal is to find companies whose rates are good even with higher limits, rather than just the cheapest.
In addition to good rates, we looked for insurance companies with a great reputation. All of our top picks are highly rated for customer satisfaction including during handling of claims so that you can be sure you’re purchasing a policy from a company that will be there for you when you need it.
We selected companies that offer coverage across the state and are available to all Arizonans, regardless of where they live in the state and without any eligibility requirements for coverage. As always, we looked for options to suit all types of drivers as well, not just those with the best records, and those with lots of opportunities for discounts.
Our Top Picks
These three companies provide great coverage at great rates, and there is a good choice for any Arizona driver among them.
Geico is the second largest car insurance company in the nation and has been steadily growing over the years, and it is for good reason. Their direct buy approach and easy online access to policies mean lower rates and simplicity in the purchasing process. Arizona drivers across the board can get great rates from Geico.
They can also get great service from a company that has been working on its reputation along with its low rates. Geico rates well for customer satisfaction and claims handling as well.
The largest car insurance company in the country, State Farm often surprises drivers with its reasonable rates. The company ranks in the top five for the Southwest region in J.D. Power’s rankings for 2018, meaning they have a good reputation, too.
State Farm is a good pick for anyone who likes the personal service of an agent, and they also have a great auto/home discount, making them a good choice for bundling your insurance as well.
Also in the top five for the region in J.D. Power’s rankings is American Family Insurance; they have a solid reputation for customer service and claims handling. And although they do not always rank as the lowest priced nationwide, in Arizona they consistently offer some of the most affordable car insurance rates.
American Family is a good pick for just about any driver, and they too have a solid discount program for bundling, along with other discounts.
Shopping for Car Insurance in Arizona
Rates in Arizona can vary widely, so shopping around is very important to get the best deal on your car insurance. Be sure you are comparing rates from more than just one or two companies because the difference can be incredible when you find the company that has the best rates for you.
As a general rule, it really does not cost that much to carry higher liability limits, and we strongly recommend that Arizona drivers choose limits that are well above the legal minimum. Arizona’s financial responsibility law makes sure everyone is insured, but that does not mean everyone is insured properly. The best way to protect yourself from the cost of a serious accident is to carry much higher liability limits than what is required.
When shopping around, make sure you know what coverage limits you want, and ask each company to provide quotes at those same levels. That way you will know that the rates you’re comparing are all for the same coverage, and all are a fair comparison.
It is also a good idea to get quotes for both auto insurance and home insurance at the same time; bundling can save you a lot of money on both policies so it’s well worth getting the extra quote since you’re contacting insurance companies anyway.
The Bottom Line
Arizona’s rates are just a little above the national average, but the rates each individual receives differ greatly from company to company. Any driver in the state can get a better rate and better coverage at the same time simply by taking the time to shop around. Any of our top picks are a great place to start, but it is always worth the extra research to find the company that is right for you.
For a list of companies that we recommend, visit our Best Insurance Companies page.