Are you looking at auto insurance policies in Arizona? Here is everything that you need to know about the car insurance requirements, the average cost of insurance, how it compares to other states, the factors that go into your rate, and other vital information.

Required Auto Insurance in Arizona

Arizona's legal requirements for car insurance are relatively low compared to other states. You need $15,000 to cover medical expenses for people who get injured in the accident, $30,000 maximum coverage for the total cost of medical expenses for that one accident, and $10,000 coverage for addressing property damage that occurred to the car or personal property. This is called liability insurance.

This coverage protects you from being personally liable for paying those amounts in an accident that you're at fault in, although if the expenses exceed the above amounts, you would be responsible for the overage.

Optional Auto Insurance in Arizona

You can purchase coverage that exceeds the minimum liability coverage in Arizona. This protects you in the event that severe injuries or death resulted from the crash, totaling expensive cars or causing significant property damage.

One thing to keep in mind is that liability coverage only covers the costs associated with the other party's vehicle and injuries. It doesn't protect your own car. You can also run into problems when someone else is at-fault but they don't carry car insurance. Arizona has an uninsured driver's rate of approximately 20 percent, which makes it a significant risk of driving around without additional auto insurance.

Uninsured motorist policies will keep you covered in these types of accidents. You won't end up getting anything from the uninsured driver directly, but your insurance company pays out based on this policy. Your insurer will attempt to recover the money directly from the uninsured driver through the court system, but you won't have to go through that lengthy process yourself.

Medical payments coverage is another useful insurance add-on for Arizona drivers. Even if you're at-fault in an accident, you can use this option to have your medical bills covered. Car accidents can result in serious injuries, especially when they occur at high speeds. You don't want to face large medical bills on top of being the at-fault party in an accident, or if the other motorist fails to have enough coverage for your hospital stay.

Collision and comprehensive policies are also quite useful to have. Collision coverage helps repair damage to your vehicle following an accident. Even minor crashes can lead to expensive problems with your car, so it's great when you don't need to pay it out of pocket. Comprehensive coverage includes all of the damages that can happen to the vehicle outside of a car accident. For example, if someone steals your car or a severe weather event happens, comprehensive coverage can handle those costs.

Arizona Car Insurance Premiums

Due to the low minimum liability in Arizona, it's close to the bottom of the list of auto insurance costs in the United States. Typical rates can range from $500 to $1,000 annually, depending on whether you choose the bare minimum or upgrade to other coverage.

You also have the opportunity to lower your rates in several ways. The AARP often has discounts available with auto insurance providers. Many companies also offer safe driving discounts for people who have gone a long time without a wreck, or who have never gotten into an accident. Touch base with potential auto insurance companies to find out whether they offer more discounts than they advertise.

Arizona Rate Factors

When you request an auto insurance quote from the companies, they look at a comprehensive set of factors before providing a price. Here are some of the most common factors and how they play into the final cost of car insurance.

  • Age: Younger drivers statistically get into more accidents than people who are more experienced on the road. Their rates reflect this higher risk, since they are more likely to end up making a claim.
  • Driving history: The insurance company looks into whether you have driving violations. Offenses such as driving under the influence can make your rate significantly higher due to the risk it represents.
  • Zip code: The location plays a major factor into your coverage cost. The companies look at your zip code and compare that to the crime, claim rates and weather threats in that area.
  • Gender: Women typically have lower rates than men when they're younger, as they're less likely to be involved in reckless driving, street racing and other dangerous activities.
  • Continuous coverage: Have you always maintained auto insurance while you have a car? The insurance company gets concerned if they see coverage gaps. They might assume that the applicant previously drove uninsured.
  • Mileage: When you're on the road a lot, you face a greater risk of getting into an accident. On the flip side, if you are only a Sunday driver, then you can enjoy lower rates in comparison.
  • Claims: How many auto insurance claims have you made in the past? If you have a lot of claims, especially if they're all at-fault accidents, the insurer will charge you more to cover that risk.

Get Covered in Arizona

Ready to get started? Get a quote for Arizona auto insurance and to find the lowest rates. A little comparison shopping and you'll be on the road in no time.