Skip to main content

Car Insurance in Phoenix

Illustration of van driving by Freeway Insurance headquarters

Phoenix is one of the busiest and most populated cities in Arizona. It’s also one of the riskiest cities to drive in throughout the state. Having affordable car insurance in Phoenix offers plenty of benefits, such as a balanced budget and peace of mind while on the road. Since Phoenix has some of the highest insurance rates in the state, finding the cheapest insurance matters all the more. Keep reading to find out more about car insurance in Arizona, such as average rates, where to find discounts and more. 

The Importance of Car Insurance in Phoenix

Car insurance plays a vital role in ensuring financial security and protection for drivers in Phoenix, Arizona. With the bustling traffic and potential risks on the roads, having adequate car insurance coverage is not just a legal requirement but also a smart decision. Accidents can happen unexpectedly, and the costs associated with vehicle repairs, medical expenses, and legal liabilities can be substantial. 

A comprehensive car insurance policy in Phoenix can provide coverage for these unforeseen events, giving driver’s peace of mind on the road. Whether it’s a collision with another vehicle, damage caused by natural disasters like dust storms or hail, or theft of the vehicle, having the right insurance coverage safeguards drivers from significant financial burdens. Additionally, car insurance in Phoenix typically includes coverage for uninsured or underinsured motorists, which is crucial given the number of drivers who might not carry adequate insurance. Overall, this is not just a legal obligation but a responsible measure to protect oneself and others on the road.

Basics of Car Insurance in Phoenix

Car insurance in Phoenix follows a typical structure comprising several essential components. Liability coverage is mandatory in Arizona, including Phoenix, and it covers bodily injury and property damage liability for the other party involved in an accident if the policyholder is at fault. 

In addition to liability coverage, drivers in Phoenix can choose from various optional coverages to enhance their protection. Collision coverage pays for damage to the insured vehicle resulting from a collision with another vehicle or object, regardless of fault. Comprehensive coverage, on the other hand, protects against non-collision incidents such as theft, vandalism, natural disasters, or animal collisions. Personal injury protection (PIP) and medical payments coverage (MedPay) can provide compensation for medical expenses and lost wages for the policyholder and passengers in case of an accident. 

Uninsured/underinsured motorist coverage ensures that the driver is protected if involved in an accident with a driver who lacks adequate insurance coverage. By understanding these basics of car insurance in Phoenix, drivers can make informed decisions when selecting policies that best suit their needs and offer the necessary protection on the city’s busy and unpredictable roads. 

Understanding Phoenix Car Insurance Laws

Minimum Auto Insurance Requirements

In Phoenix, like most places in the United States, drivers are required to carry a minimum amount of auto insurance coverage to legally operate a vehicle on the roads. As of September 2021, the minimum auto insurance requirements in Phoenix typically include liability coverage. This coverage is designed to protect others in the event of an accident you cause. 

The minimum car insurance requirements in Phoenix are the same that apply to the rest of the state. According to ADOT, every vehicle should be covered by liability insurance with at least the minimum 25/50/10 limits. This means there is $25,000 toward bodily injury for one person, $50,000 for two or more people in an accident, and up to $15,000 toward property damage per incident.

The minimum liability coverage usually consists of two components: bodily injury liability and property damage liability. Bodily injury liability helps cover the medical expenses, rehabilitation costs, and potential legal fees for injuries sustained by other people in an accident where you are at fault. Property damage liability, on the other hand, helps pay for the repair or replacement of other people’s property, such as their vehicles or structures, that you may damage in an accident. It’s essential for drivers in Phoenix to be aware of these minimum requirements and ensure they have adequate coverage before hitting the road.

Penalties for Driving Without Insurance

Driving without insurance in Phoenix, or anywhere else in Arizona, is a serious offense with severe consequences. If caught driving without the mandatory auto insurance coverage, you may face various penalties, which can range from fines to the suspension of your driver’s license and vehicle registration. Repeated offenses or instances of driving with a suspended license can escalate the penalties and may lead to more significant legal repercussions. 

Additionally, if you are involved in an accident without insurance, you could be held personally liable for all the damages, medical expenses, and property repair costs incurred by the other parties involved. Not only is driving without insurance a financial risk, but it can also negatively impact your driving record and make it challenging to obtain insurance coverage in the future at affordable rates. 

As such, it is crucial for all drivers in Phoenix to comply with the mandatory auto insurance laws to ensure their safety, protect others on the road, and avoid potential legal and financial hardships.

Get Low-Cost Arizona Auto Insurance

Types of Car Insurance Coverage in Phoenix

Car insurance coverage is essential for all drivers in Phoenix, Arizona, to protect themselves and others on the road. There are various types of car insurance coverage available to meet different needs and circumstances. Understanding the options can help drivers make informed decisions about their insurance policies.

Liability Coverage

Liability coverage is a fundamental component of car insurance and is legally required in most states, including Arizona. It provides financial protection in case you are at fault in an accident that causes injury to someone else or damage to their property. 

There are two main aspects of liability coverage: bodily injury liability and property damage liability. Bodily injury liability helps pay for medical expenses, lost wages, and other damages resulting from injuries to others in an accident you caused. Property damage liability covers the costs of repairing or replacing the other party’s property that was damaged in the accident. It’s crucial to have sufficient liability coverage to safeguard your assets and avoid potential financial hardships in case of a serious accident.

Comprehensive and Collision Coverage

Comprehensive and collision coverage are optional types of car insurance in Phoenix, but they offer valuable protection for your vehicle. Collision coverage pays for repairs or replacement of your car if it is damaged in a collision with another vehicle or object, regardless of who is at fault. On the other hand, comprehensive coverage provides compensation for damages caused by non-collision events, such as theft, vandalism, natural disasters, and animal collisions. These coverages are especially important if you have a new or valuable car, as they can help you recover the substantial costs associated with repairing or replacing your vehicle.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage is designed to protect you and your passengers in the unfortunate event of an accident caused by a driver who lacks insurance or has insufficient coverage. Despite mandatory insurance laws, some drivers may still operate their vehicles without proper coverage. In such cases, if you’re involved in an accident with an uninsured or underinsured driver, this type of coverage will step in to cover your medical expenses, lost wages, and other damages that the at-fault driver would have been responsible for if they were adequately insured. Having uninsured and underinsured motorist coverage ensures that you are not left financially burdened due to someone else’s lack of insurance responsibility.

How Much Does Car Insurance Cost?

Car insurance in Phoenix costs $1,743 a year on average for full coverage. This figure can be lower or higher depending on your driving history, number of claims filed, credit score, zip code, and other factors that the insurance company weighs to determine coverage costs. Car insurance rates differ per zip code due to the varied rates of accidents and risk levels. On the lower end, the state-required minimum liability insurance is $579 annually. For perspective, these are the average premiums in other major cities in Arizona.

City Yearly Car Insurance Premium
Phoenix $1,660
Tucson $1,315
Scottsdale $1,427
Sedona $973
Flagstaff $1,016
Mesa $1,467
Chandler $1,461
Tempe $1,521
Gilbert $1,420
Prescott $1,018
Glendale $1,618
Kingman $1,046
Surprise $1,364
Goodyear $1,271
Sierra Vista $965
Buckeye $1,263

Phoenix Car Insurance Rates by Zip Code

Phoenix car insurance rates are also affected by your zip code within the city. Insurance companies take your specific location as a factor for setting a rate. These are the average premiums in Phoenix’s top 10 zip codes.

Phoenix Zip Code Annual Insurance Premium
85031 $1,800
85019 $1,797
85017 $1,833
85016 $1,545
85015 $1,742
85014 $1,574
85013 $1,662
85012 $1,648
85007 $1,661
85006 $1,675

Phoenix Car Insurance Rates by Age

The average Phoenix car insurance rates by age follow the national trends of being high for teens and the early 20s and tapering off to lower rates after the late 20s. Rates also increase again after age 70 but can possibly be decreased after taking senior driving courses. These are the state average premiums by age. Phoenix car insurance rates are around 41% higher than the state average.

Age State Average Premium (per year)
16 $8,852
17 $7,997
18 $6,963
19 $4,116
20-29 $2,226
30-39 $1,660
40-49 $1,563
50-59 $1,445
60-69 $1,517
70-79+ $1,937

Discounts for Car Insurance in Phoenix

There are many types of car insurance discounts in Phoenix that are based on the insurance company’s standards. Discounts may apply to this list but are not limited to:

Why Do I Need a Car Insurance Living in Phoenix AZ

  • If you have a loan on your vehicle – If you have a car loan, the lender will likely require you to have full coverage insurance to protect their investment in the vehicle.
  • If you own a high-end vehicle – If you own a luxury or high-end vehicle, it may be worth having full coverage insurance to protect your investment.
  • If you have a high risk of accidents or theft – If you live in an area with a high risk of accidents or theft, it may be wise to have full coverage insurance to protect your vehicle and your finances.
  • If you have multiple vehicles – If you have multiple vehicles, it may be more cost-effective to have one policy on all of them rather than separate policies for each vehicle.
  • If you have a history of accidents – If you have a history of accidents, having full coverage insurance may help protect you from costly out-of-pocket expenses in the event of another accident.

Best Auto Insurance Companies in Phoenix, Arizona

Picture of a highway crossroad in Phoenix, Arizona, showing bridges in different heights and a busy main road.

Find a Phoenix car insurance quote today that works with your budget and coverage needs. Whether you need standard, non-standard, comprehensive, or just liability coverage, a Freeway Insurance agent can match you with a policy that gets you on the road.

Get started with a quote online, visit us at a Phoenix office near you, or call us at (800) 777-5620 for a quote today!