Cheap car insurance AZ is easy to find, especially as the state has some of the lowest minimum requirements for insured drivers.
Known for hugely popular tourist attractions, such as the Grand Canyon, Arizona is by far one of the most popular southwestern states. Home to the University of Arizona, Saguaro National Park, and the beautiful town of Flagstaff, there’s plenty to experience when you visit this state.
As a driver, you’ll be pleased to know that you can find a ton of cheap insurance options that are likely to give you every type of coverage you’re seeking. Compared to other states, such as California, insurance is far less expensive in Arizona.
Arizona Minimum Coverage
There are two main types of minimum coverage you’ll be responsible for getting in Arizona: bodily injury liability and property damage liability.
Contrary to popular belief, there aren’t any mandatory requirements for uninsured and underinsured motorist insurance, as well as medical expenses, collision coverage, or comprehensive coverage. You will only be required to sign up for bodily injury liability and property damage liability.
Bodily Injury Liability
The first requirement for all insured drivers is bodily injury liability. This type of coverage protects you in the event that you are responsible for expenses related to the health of another driver or pedestrian in an accident.
In Arizona, you will be required to have a minimum of $15,000 limit per person in an accident and a $30,000 limit per accident.
Property Damage Liability
Property damage is most likely yet another outcome of an accident. If you are found at fault, it can be quite costly to repair not only your vehicle but also the other party’s vehicle as well.
Property damage liability will give you coverage for the other party’s vehicle as well as homes, buildings, or any other structures that are damaged from an accident. The minimum requirement for property damage liability in Arizona is $10,000 per accident.
Although the minimums for insurance are low, it’s a far wiser decision to opt for packages that are well above the state minimum. Otherwise, you may be in a position where you are paying out-of-pocket for accident-related expenses, which is a burdening up-front cost.
Arizona Car Insurance Average Premiums
There are plenty of factors that go into determining the cost of your insurance ranging from your driving history to the amount of mileage on your vehicle. When looking for cheap car insurance, all of these factors will be considered to determine your premiums.
Car insurance isn’t a one-size-fits-all approach, as each driver has unique specifications that create the cost of their premiums.
On average, drivers pay around $973 annually for car insurance in Arizona. Compared to the national average, which fluctuates around $1,000 per year or more, it’s slightly more affordable. However, what makes car insurance in this state more affordable is their minimum requirements, which are lower than many other states.
Additional Insurance Coverage Options
Apart from needing to have bodily injury and property damage coverage, there are plenty of other options open to you when you sign up for insurance. You can add on these elements to your policy so that it is well-rounded, and you are fully protected while on the road.
It’s important to note that the additional insurance coverage options will vary from provider to provider. Some of the most popular additional coverage options in Arizona include:
- Uninsured Motorist
This is designed for covering medical expenses in an accident where the other driver doesn’t have insurance and is found at fault. It helps to ensure that you don’t have to worry about paying for your medical costs on your own.
- Underinsured Motorist
Similar to uninsured, underinsured motorist coverage covers medical expenses if another driver is at fault and has a lacking amount of liability insurance.
If you’re in an accident, the other party’s vehicle isn’t the only property that will be damaged. It’s to be expected that your car will require repairs as well, which is where collision coverage becomes important.
This add-on covers the costs of repairing or replacing your vehicle if it has been damaged in an accident.
You can’t always predict when your vehicle will be damaged from vandalism, storms, or even theft. Comprehensive coverage helps to repair or replace your vehicle that has been affected by things that are out of your control.
There are typically limits to comprehensive coverage, so make sure that you inquire about what is covered.
Cheap Car Insurance AZ: The Determining Factors
As with any other state, there is a variety of determining factors that go into adjusting your insurance premiums. Some of the most notable factors include:
The younger you are, the higher your insurance will be. This is because you won’t have as much experience driving as someone of older age, causing you to be more at risk for accidents.
If you’re someone who drives a lot, you’re likely to have higher insurance rates. This is because the more you’re on the road, the more at risk you are for being in an accident.
- Vehicle Type
Cars that aren’t as safe as others will immediately have a higher insurance rate.
- Zip Code
Many areas of the state are more accident prone than others. If you live in a populated city, your insurance rates will be higher.
The Best Insurance Companies in Arizona
The four best insurance companies in Arizona for cheap car insurance are State Farm, Allstate, Progressive, and Farmers. This is based on ratings from A.M. Best Financial Strength, Consumer Reports Reader Score, and J.D. Power Overall Customer Satisfaction Score surveys.
All four of these insurance lenders have received an above “A” rating for financial strength, reliability, customer service, and policy options.
Car Insurance Laws in Arizona
The car insurance laws in Arizona are incredibly important to consider, especially as a new driver. Knowing the laws can help you to be a better driver and, in turn, receive lower insurance premiums.
Full-Time Resident Insurance
If you live in Arizona for more than seven months out of a year, you will be required to have Arizona-based insurance for your vehicle. This also applies to anyone who works a non-seasonal job or is attending school and not paying non-resident tuition.
Driving Without Insurance
The first time you are caught without insurance, you will likely be charged a fine, unless there are secondary charges such as speeding. In that case, you are likely to receive a fine as well as demerit points.
For second and third offenses, you may have your license revoked as well as your vehicle’s registration.
Opting Out of Insurance
Drivers in Arizona may also have the ability to avoid having to pay for insurance entirely. However, this is very unlikely for most residents.
If you are able to provide proof of financial responsibility for $40,000, you may be able to opt out of insurance. Then again, you have to keep in mind that if you are found to be at-fault in an accident, you may be responsible for paying much more than $40,000.
When looking for cheap car insurance AZ, you will find that there are plenty of options available because the state has some of the lowest minimum requirements in the United States. Though it’s not recommended that you select minimum coverage, it helps to make your insurance more affordable.
To protect yourself and any other party in an accident, it’s important that you find the perfect amount of coverage for a price that you can agree with your provider.