Top 10 Auto Insurance Companies In Arizona

Best Cheap Car Insurance in Arizona for 2018

If you’re looking for cheap car insurance quotes in Arizona, shopping around is key. Rates fluctuate from one company to the next, based in part on personal factors such as age, ZIP code and credit history.

It’s a lot to keep track of, but NerdWallet has done the hard part for you. We looked at rates from the eight largest insurers in the state and found the cheapest options for these categories:

Also in this article:

Cheapest for good drivers

For drivers with no at-fault accidents, DUIs or moving violations.

The average for good drivers with good credit among the three cheapest companies was $1,250 a year. Geico was the least expensive option in our analysis, at $1,089 per year, with American Family and State Farm rounding out the top three.

Drivers with no tickets, moving violations or at-fault accidents should look into companies offering discounts that reward them for safe driving habits.

Cheapest for young drivers

For drivers in their early 20s.

Young drivers can often get by with less coverage than many others on the road, since those in their early 20s usually don’t have fancy cars, pricey assets or large families to protect. For that reason, we looked at quotes for young drivers with the minimum required insurance levels in Arizona.

Geico delivered the cheapest rate at $578, which is a whopping $511 per year cheaper than its rate for drivers in their 30s with full coverage insurance .

Cheapest for drivers with one at-fault crash

Causing a car accident generally leads to higher insurance prices, either when you renew with your current company or find a new one. State Farm was the cheapest in this group, coming in at $1,718, which is about $143 per month.

American Family and Allstate came in second- and third-cheapest, respectively. Estimates in our analysis exceeded $3,000, showing it’s always best to shop around to know you’re getting the best rate possible.

Cheapest for drivers with poor credit

For drivers placed in the “poor credit” tier

Insurers see your credit as a useful indicator of future claims and may charge more from those with poor credit in Arizona. The cheapest company in this category, Geico, charged $595 a year more than it did for good drivers with no credit issues.

Rates exceeded $5,600 in our analysis for drivers with poor credit, showing it’s always smart to shop around for the best rate.

Cheapest for retired drivers

For drivers in their mid- to late 60s who no longer use their car for commuting.

Retired drivers can bank savings thanks to their reduced time behind the wheel compared to younger folks who commute. We looked at rates for drivers in their 60s who drive half as much as those who commute.

Geico was the cheapest for drivers in this group, coming in at about $69 per month. American Family and State Farm rounded out the cheapest three, at $87 and $95 per month, respectively.

Cheapest for drivers with a military connection

If you’re an active member of the military or a veteran — or have an immediate family member who is — chances are good you’ll get a cheaper-than-average rate with USAA, an option that isn’t available to the general public. USAA offered the cheapest sample quote for every driver type listed above — often by a significant amount.

Minimum car insurance requirements in Arizona

Arizona drivers must carry liability insurance, which kicks in if you’re at fault in a crash to help cover others’ property damage and injury treatment.

The minimum limits you must select are:

  • $15,000 bodily injury liability per person
  • $30,000 bodily injury liability per accident
  • $10,000 property damage liability per accident

Keep in mind, a severe accident could easily leave you owing more than, say, $10,000 in repairs to another driver’s car. In that case, the remaining amount would have to come out of your hard-earned savings. For that reason, experts recommend getting more than the bare minimum, as well as common optional features such as collision, comprehensive and uninsured motorist coverage.

Check out NerdWallet’s guide to state car insurance requirements for help understanding and improving your Arizona policy.

Alternative car insurance in Arizona

Arizona is one of several states that form the Western Association of Automobile Insurance Plans (WAAIP). High-risk drivers who are denied coverage through the open market can seek car insurance through WAAIP’s network of insurers.

Try our handy comparison tool to view rates from top companies side by side and possibly save hundreds on your premium.

Here’s a summary of where you’ll find the cheapest insurance, by category:

Top 10 Arizona Car Insurance Companies

  • Arizona residents must have car insurance to drive legally
  • When analyzing the highly rated insurance companies in Arizona, it is advisable to consider the market share
  • Certain factors affect the amount of premium that one would have to pay for car insurance

Arizona has a good number of companies that provide clients with car insurance policies. Based on their performance and customer satisfaction levels, these companies are critically scrutinized in a bid to rate them.

Usually, there are certain factors that are considered when car insurance firms are being rated.

These car insurance rating factors include the average complaint ratio, customer satisfaction levels over some period of time, and financial stability.

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1. The Complaint Ratio

If the complaint ratio is low, it implies that the company has received fewer complaints as compared to one that has a high complaint ratio.

The complaint ratio provides very important information about a company and its service.

This figure is drawn from the number of complaints that are filed at the Department of Insurance in Arizona.

In most cases, the bigger insurance firms normally receive more complaints as compared to the smaller companies. This can be attributed to the huge clientele base that such companies deal with.

Some examples of the use of the complaint ratio in some states are described as follows:

  • In Texas, the complaint index is 1(one) which is an average. Less than one means less complaints and more than one means more complaints as compared to the original.
  • In Massachusetts, the figure is calculated as the total number of complaints made for every $ ten million in the number of premiums.
  • For New York, the complaint ratio is the total number of complaints divided by an average number of car insurance premiums that have been written in the State.

As much as the complaint ratio is an important factor to look at when selecting the best car insurance firm in Arizona, it is also advisable to consider other factors such as the market share and the company’s financial strength in a bid to make the best choice.

It is vital to select an insurance company that has an impressive track record when it comes to repaying claims.

2. Customer Satisfaction

For a car insurance company to receive good ratings, it must provide exemplary services to its clients. Unsatisfied clients are very dangerous to the future performance of the business.

This is because of the negative reviews that can easily be sent out when the client is discontent.

However, it is worth noting that the competition in the car insurance industry is very stiff.

This has made it necessary for the insurance companies to strive and provide clients with excellent services with the aim of customer retention and attraction.

The level of customer satisfaction is clearly brought forth from the complaint ratio.

f the ratio is very high, then many clients are unhappy with the services that are being provided by the insurance company.

3. Market Share

When analyzing the highly rated insurance companies in Arizona, it is advisable to consider the market share.

The bigger the share, the more clients the company has. This is an indication of good performance.

Poorly-rated car insurance firms usually occupy a small market share.

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4. Financial Stability

An insurance company that is not financially stable is risky to select. This is because such companies can easily go into liquidation.

It would also be very unfortunate for one to deal with a company that has a very poor record of paying claims.

The rate at which the car insurance firm pays up its claims is a clear indication of the company’s financial muscle.

One should carry out some research before making the ultimate decision.

Top Ten Car Insurance Companies in Arizona

Below is a detailed list of the top ten car insurance firms that operate in Arizona:

  • Progressive Preferred Insurance Company
  • Western General Insurance Company
  • Milbank Insurance Company
  • Mendota Insurance Company
  • Topa Insurance Company
  • Arizona Automobile Insurance Company
  • Infinity Insurance Company
  • Electric Insurance Company
  • Universal North America Insurance Company
  • Safeway Insurance Company

This listing is based on the complaint ratio of each company that was computed in the year 2010.

Below are the figures of the complaint ratio for the above-mentioned car insurance companies:

  • Progressive Preferred Insurance Company had a complaint ratio/index of 0.095
  • Western General Insurance Company had a 7.634 complaint index/ratio
  • Milbank Insurance Company had a 0.0 complaint ratio/index
  • Mendota Insurance Company had a complaint index of 0.256
  • Topa Insurance Company had a complaint ratio/index of 0.0
  • Arizona Automobile Insurance Company had a complaint index/ratio of 0.136
  • Infinity Insurance Company had a complaint index/ratio of 0.484
  • Electric Insurance Company had a complaint index of 0.09
  • Universal North America Insurance Company had a 0.0 complaint ratio/index
  • Safeway Insurance Company had a complaint index of 0.039

It is essential to point out that States such as Maine, Missouri, Oregon and Indiana compute a complaint index instead of calculating the complaint ratio.

Making Quotation Comparisons

Notably, there is no standard charge for car insurance in Arizona and hence different companies have different car insurance rates.

Certain factors affect the amount of premium that one would have to pay.

It is simple to compare the prices from different car insurance companies in Arizona by using the web.

It is worth mentioning that the car insurance industry in Arizona is very competitive and hence the companies are working tirelessly to retain clients and attract new ones.

Get all the information you need to know on Arizona car insurance by entering your zip code below into our FREE search!

Best Car Insurance Companies in Arizona

As is the case in all other states, the state of Arizona approves individual auto insurance companies to operate within the state and provide citizens of Arizona with the car insurance that the state requires.

The state of Arizona has approved more than 120 auto insurance companies. The benefit to the consumer is that the car insurance business in Arizona is highly competitive, ensuring that consumers have a wide array of choices.

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What companies operate in Arizona?

All of the major companies operate in Arizona, but many smaller companies operate there as well. Virtually everyone has heard about Geico, Allstate, Nationwide and State Farm, all of which operate within Arizona.

However, many fewer individuals are familiar with companies such as Warner, American Sterling, Automobile Insurance Company of Hartford, Security Insurance Company and American Home Assurance.

All of these five companies also offer auto insurance in Arizona, along with approximately 100 others that are not well-known national companies.

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How much does it cost?

The good news is that all of these companies compete for Arizona consumers’ business. That means that their rates need to be competitive.

With a cursory investigation into price comparisons, the consumer can find the lowest car insurance rates that suit the individual consumer’s needs.

Statewide, car insurance rates are slightly higher than the national average of $1,440. Car insurance rates also fluctuate in various areas of Arizona.

The average annual car insurance rate in Yuma is $1,360, but the average in Peoria is $1,827. Average annual rates in other Arizona cities are between those two figures. As

What are the best companies?

What constitutes the “best” company is different for different people. Some want local agents that will come to their location in the event of a problem that leads to a claim.

Some want a local agent they can speak to face to face, while others are content with having only online or telephone contact with their insurance company. Some consumers want highly personalized service, but others want as little individual contact as possible.

There are many variations that affect the rates that Arizona car insurance companies charge. Major, national companies operating in Arizona include:

Most of these “major” companies have large advertising budgets and high operating costs because they have higher numbers of customers. They also have more customers and greater revenues.

Because of their greater revenues, some are willing to negotiate with customers who find lower rates elsewhere. Spending some time making online price comparisons can gain customers lower rates with only a phone call.

Smaller companies also may be willing to deal and to match lower car insurance quotes as well. Smaller companies almost always seek to grow and to do that they need greater numbers of customers.

As all car insurance companies approved by the state of Arizona to operate within the state have to provide the levels of coverage required by state law, the products they offer are similar.

Some of the smaller companies operating in Arizona are:

  • American Fire & Casualty
  • California Casualty
  • Colorado Casualty
  • Firemans Fund
  • Insurance Company of the State of Pennsylvania
  • National Interstate
  • Phoenix Indemnity
  • Security Insurance Company
  • Union Insurance Company of Providence
  • Western Agricultural

Deciding What is Best

Every customer has to decide what is most important. Personal preference defines to some extent what constitutes “best.” However, virtually everyone wants to save money.

Quick and easy online price comparisons can highlight which companies offer the greatest value about what an individual customer wants from a car insurance company.

Every Arizona car insurance customer needs to define what he or she wants from an insurance company and then interview companies to see if they can meet those wants.

The “best” company for any individual customer is one that offers all of the services that the customer wants at prices that are acceptable to the customer.

Making online price comparisons can provide the customer with an idea of what is reasonable within the state of Arizona.

Car insurance companies cannot remain open if they do not meet the needs of the customer while it also meets the requirements of the state of Arizona. Consumers who take the time to conduct online price comparisons will reap the benefits of their detective work.

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Who are the biggest car insurance companies in Arizona?

According to statistics published by the Arizona Department of Insurance in 2010, State Farm is by far the largest car insurance provider in that state. In terms of market share, State Farm controls nearly 14.5%.

Rounding out the top three companies, Farmers Insurance Company and American Family Mutual have market shares of 8.41% and 6.45% respectively. Although the top 25 car insurance companies in Arizona are all doing well, these three command almost one-third of the state’s business.

Arizona is a great state for car insurance companies to do business because they are limited in regulation, taxes, and artificial market influences. In fact, according to several surveys Arizona ranked number 43 among all 50 states in terms of the cost of annual premiums. It is a good environment for both insurance companies and drivers alike. It’s important to note that Arizona is not listed among the 12 states operating under no-fault laws, which is something that goes a long way in keeping insurance prices down.

Car Insurance Requirements in Arizona

Arizona’s car insurance laws are similar to other states in some respects but different in others. In terms of the similarities, Arizona requires all drivers carry minimal amounts of coverage for bodily injury and property damage.

For bodily injury, the limits are $15,000 for single person and $30,000 for multiple persons. The minimum requirement for property damage is $10,000. Arizona suggests that drivers go above these limits, if they can at all afford it, given the cost of today’s medical care.

Furthermore, insurance mandates apply not only to four-wheeled motor vehicles; they apply to motorcycles, scooters, and mopeds as well. Golf carts that will be used anywhere other than on golf courses or private property must also be insured. That means if you live in a retirement community and plan to use a golf cart or moped to travel down the street to a friend’s house, that vehicle needs to be insured under this same state minimums.

Purchasing Car Insurance after Registration

One of the more unusual aspects of Arizona traffic law is in regards to when insurance is required. In most states, you must provide proof of insurance at the time of registration. In Arizona, that’s not the case. You may register your vehicle first and then procure insurance later, if you prefer.

The only catch is that you may not drive the vehicle until you have valid insurance coverage. On its website, the Arizona Department of Transportation suggests you avoid any complications by purchasing your insurance immediately after registration.

Arizona De-Insurance

Along those same lines, Arizona also has an interesting option to accommodate vehicles taken off the road on a temporary basis. It is known as de-insuring your vehicle.

Under this option, you can temporarily terminate your insurance coverage without surrendering your registration and license plates if you are not permanently taking your car off the road. Drivers who would exercise this option, might be taking their cars off the road for extensive rebuilding or customization, or may be leaving the state for work or leisure purposes.

In order to exercise this option, an individual would simply fill out the appropriate form and submit it to the Department of Transportation. While it is in force, no one is allowed to drive the vehicle in question on Arizona roads. If anyone is caught doing so, the registration and plates are automatically suspended and fines imposed. To lift this restriction when the driver is ready to return the vehicle to the road; he simply fills out a new form and provides proof of insurance.

Shopping for a New Policy

Shopping for a new car insurance policy in Arizona is no different from doing so in any other state. It’s always a wise idea to get a number of quotes from several different companies so they can be compared side-by-side. Of course, you’ll probably start with big-name insurance providers first, but don’t forget smaller insurance companies. Sometimes the smaller companies that only work a handful of states can provide you a better deal.

One of the best ways to get quotes quickly is to use an online search engine. These types of websites work out agreements with insurance companies willing to post rate information in a central database. When you fill out online forms, the search engine will compare quotes from multiple providers based on your profile. Keep in mind that these quotes are not going to be 100% accurate in most cases. They will be close, but they are just estimates designed to give you a reference point. From these quotes, you can develop a short list of companies you want to look into further.

How to get precise car insurance quotes?

When you have multiple quotes, you can then contact individual companies to get quotes that are more precise. They will ask you for much more information that is detailed including:

  • How often you drive your vehicle
  • Where it’s stored overnight
  • Information about any other licensed drivers in your home

They will also check your driver history through DMV records to ensure that the information you gave them is accurate. Once all of that is done, you’ll be given a final price for your annual premiums. Remember that your rates can always go up if you are prone to traffic violations or accidents.

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