Is It Possible to Find Cheap Car Insurance in Phoenix?
Last Updated on January 21, 2022
Finding cheap car insurance in Phoenix can seem challenging. Fortunately, with the right strategies, you can easily find cheap car insurance in Phoenix – including plans for as little as $300 to $500 per year.
Phoenix has similar car insurance premiums to other major cities in the United States. Compared to the rest of Arizona, however, drivers in Phoenix pay some of the highest rates in the state.
Yes, it’s possible to find cheap car insurance in Phoenix. Keep reading to discover the best tips for finding cheap car insurance in Phoenix.
Table of Contents:
- Average Car Insurance Cost in Phoenix, Arizona
- Why Is Car Insurance More Expensive in Phoenix?
- How to Get Cheap Car Insurance in Phoenix
- Other Factors that Impact Car Insurance in Phoenix
Average Car Insurance Cost in Phoenix, Arizona
The average driver in Phoenix pays around $1,697 per year for full coverage car insurance, according to our research.
Our research took an average price across multiple driver profiles, including drivers with average, good, and poor driving records across multiple age groups. Some drivers paid as little as $1,200 per year for full coverage car insurance, while others paid as much as $2,800 per year.
For comparison, the average American pays around $1,500 per year for full coverage car insurance. That means drivers in Phoenix pay nearly $200 more than the nationwide average. In Arizona, the average driver pays around $1,425 per year, which means car insurance is even more expensive in Phoenix relative to surrounding areas.
Why Is Car Insurance More Expensive in Phoenix?
There’s a reason car insurance is more expensive in Phoenix: Phoenix is the largest metro area in the state (and one of the largest in the country).
Metro areas tend to have higher insurance premiums than rural areas. When compared to other major cities in the United States, in fact, Phoenix may be less expensive than expected. Phoenix is a sprawling urban area instead of a densely-packed city. That means you’ll pay slightly higher rates for car insurance in Phoenix – but you’ll still pay less than you would if living in another major city.
Some of the reasons car insurance is more expensive in Phoenix include:
Higher Population Density: Higher population density tends to increase insurance rates. A higher population density means more auto thefts and more crime. It means higher accident rates and more traffic.
More Traffic and Accidents: Cities tend to have more accidents than rural areas. There are more people and more cars. While rural areas may have more accidents per capita, cities tend to have more accidents overall, which can lead to higher insurance premiums.
Higher Crime Rates: Cities of all sizes tend to have higher crime rates and more incidents of vehicle theft, and Phoenix is no exception. Although Phoenix may be safer than many other big cities in the United States, it still has vehicle theft, and that means higher insurance premiums.
Higher Cost of Living: It costs more to live in Phoenix than it does to live in rural areas of the state. The cost of living is higher in Phoenix, and insurers pass these higher costs onto policyholders. When you repair your car in Phoenix, you’ll generally pay more for repairs than you would in rural areas. Or, when an insurer pays medical bills and other expenses, these costs tend to be higher in Phoenix than in rural areas.
Because of these factors, Phoenix and other major cities tend to have costlier car insurance premiums than smaller cities or rural areas.
How to Get Cheap Car Insurance in Phoenix
Yes, car insurance can seem expensive in Phoenix. However, there are plenty of ways to lower the price of car insurance in Phoenix.
Some of the best ways to get cheap car insurance in Phoenix include:
- Compare quotes online. Some insurers charge cheaper rates to Phoenix drivers than others. Some insurers welcome urban drivers to their insurance pool, while others charge higher rates to deter them. Compare quotes to find the best insurer for your unique demographics in Phoenix, AZ.
- Take advantage of discounts. All insurers offer discounts. You can save by bundling multiple policies together, being a homeowner, or driving safely. Some insurers apply these discounts automatically. Others require you to do your own research.
- Drive a safer car. Some cars have notoriously high insurance premiums. Some cars have poor accident performance, for example, which leads to higher insurance premiums. By driving a safer car (like a minivan), you could lower car insurance costs substantially.
- Drop collision and comprehensive coverage. The state of Arizona only requires drivers to carry liability coverage. You do not need to carry collision and comprehensive coverage. Dropping collision and comprehensive coverage from your policy can help you save hundreds per year on car insurance (although it limits compensation for damage to your own vehicle).
- Improve your credit score. Arizona, like most states, allows insurers to charge different premiums to drivers based on their credit score. Drivers with a low credit score could pay thousands more for car insurance than drivers with a good credit score. Improve your credit to save money on car insurance.
By implementing all of these tips, you could save hundreds per year on car insurance in Phoenix.
Other Factors that Impact Car Insurance in Phoenix
Car insurance companies in Phoenix consider hundreds of factors to calculate premiums. Other factors that impact car insurance in Phoenix include:
Your ZIP Code: Some ZIP codes in Phoenix have higher crime rates, accident rates, and population density than others. If you live in one such ZIP code, then your insurer could charge higher rates. Every insurer considers your ZIP code when calculating rates.
Your Age & Gender: Insurers consider your demographic information to calculate premiums. Your age and gender impact insurance rates. Older, experienced drivers pay less than younger drivers, and men tend to pay cheaper rates than women (aside from young men, who pay higher rates than young women).
Your Driving Habits: Phoenix is a car-intensive city. Most drivers spend hours on the road every week commuting, driving for groceries, and running other errands. The average driver in Phoenix drives around 14,000 miles per year, which is similar to the US average. If you drive significantly more or fewer miles than this amount, then it could impact car insurance premiums.
Your Driving History: Do you have multiple DUIs or at-fault accidents? Or do you have a squeaky clean driving record in Phoenix? Every insurer considers your driving history when calculating premiums. Drivers with a good driving history will pay less for car insurance than drivers with a bad history.
Coverage Options & Deductibles: Do you have a car insurance policy with high limits and low deductibles? You’ll pay more than someone with low limits and high deductibles. Arizona requires drivers to carry a policy with 25/50/15 coverage ($25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability coverage per accident, and $15,000 of property damage liability coverage per accident). Some drivers in Phoenix meet the minimum liability requirements to save money, while others spend more for added peace of mind.
Other Factors: Insurers also consider your credit score, marital status, and other factors when calculating car insurance premiums in Phoenix. Depending on all of these factors, you could pay anywhere from $900 to $4,000 per year for full coverage car insurance in Phoenix.
Final Word: Compare Quotes Today to Save Money on Car Insurance in Phoenix
Although car insurance may seem more expensive in Phoenix, it’s similar to what drivers pay in other major cities.
By comparing quotes online today and checking rates from multiple providers, you can pay the lowest possible amount for car insurance in Phoenix, Arizona.