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The Best Auto Insurance in Arizona

An overview of the best rates, coverage options, and providers in Arizona

Best Overall
State Farm Logo

State Farm wrote the highest number of property and casualty policies in Arizona and is one of the country’s most recognized car insurance providers. Its low costs, flexible coverage, and solid third-party ratings put it at the top of our list of best auto insurance providers in Arizona.

Best for Active Military and Veterans
USAA Logo 2023

If you’re looking for cheap car insurance companies in Arizona, look no further than USAA. USAA is our top pick for military members, veterans, and spouses/children of military members or veterans.

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Most drivers in Arizona pay about $1,042 a year for car insurance, which is right around the national annual average of $1,047. If you’re one of Arizona’s 5.7 million drivers, you don’t need more than liability insurance (bodily injury and property damage) to drive legally. Arizona’s minimum driving requirements give you a lot of flexibility to curate an affordable plan that covers your unique needs.

Below, we’ll give you an overview of the best providers in the Grand Canyon State based on their discounts, coverage options, specializations, and more.

Summary of the Best Auto Insurance in Arizona

  1. 1.

    Best Auto Insurance in Arizona Overall: State Farm

  2. 2.

    Best Auto Insurance for Active Military and Veterans in Arizona: USAA

  3. 3.

    Best Auto Insurance for Bundling in Arizona: Allstate

  4. 4.

    Best Auto Insurance for High-Risk Drivers in Arizona: Acceptance Insurance

Comparison of the Best Auto Insurance in Arizona

Insurance company Average annual rate Bundling discount Senior discount Good student discount Safe driver discount Low mileage discount J.D. Power auto claims customer satisfaction study

(out of 1,000)1

Review
State Farm $1,419 Yes No Yes Yes Yes 882 State Farm review
USAA $1,151 Yes No Yes Yes Yes 890 USAA review
Allstate $1,673 Yes No Yes Yes Yes 889 Allstate review
Acceptance Insurance N/A Yes No Yes Yes No N/A N/A

Detailed List of the Best Auto Insurance in Arizona

1. Best Auto Insurance in Arizona Overall - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

With hundreds of agents in over 60 Arizona cities, State Farm is the largest auto insurance provider in the Grand Canyon State.2 State Farm’s average annual rate of $1,419 is the third cheapest among the large providers and the second cheapest on our list. There’s a good chance you’ll benefit from its wide range of coverage options, safe driver programs, and a long list of discounts.

ProsWho It's Best For
ConsWho It's Not Best For
  • con
    Unsafe drivers
  • con
    People with bad credit

Big Savings

Whether you’re a young driver, safe driver, low-mileage driver, or new-car owner, State Farm probably has a discount for you. Here’s a look at some of State Farm’s largest discount opportunities. Be sure to ask your local agent about what other discounts you might be eligible for.

You can earn a State Farm discount by:

  • Signing up for the Drive Safe & Save app (up to 30 percent off)
  • Maintaining an accident-free record
  • Insuring multiple cars
  • Bundling your auto insurance with homeowners, renters, condo, or life insurance
  • Completing a defensive driving course (5 percent off)
  • Installing an anti-theft system
  • Completing the Steer Clear Safe Driver program
  • Driving a 1993 or older vehicle with factory-installed airbags (up to 40 percent off)
  • Being a student with a GPA of 3.0 or higher

Best for Classic Car Owners

Arizona has low fee requirements and minimal restrictions for classic car owners, which is great news if you want to show off your car in a state that is sunny for most of the year. Here’s what you’ll need to do to get your classic car approved.

Fee Cost
Application fee $25
Annual renewal fee $10
Emissions test Required for vehicles made since 19753

Because the value of a classic car increases over time instead of depreciating, you and your agent have to agree to a valuation for the vehicle. State Farm employs a fair insurance payout process that takes into account any modifications you’ve made to your classic car. If you have made any modifications to your vehicle, it’s good to know that State Farm will cover those modifications as well.

DID YOU KNOW?

Arizona offers special plates that are reserved for cars recognized by the Classic Car Club of America. Arizona’s Historic Vehicles plate is for vehicles that are at least 25 years old, the Street Rod plate is for vehicles made in 1948 or earlier, and the Horseless Carriage plate is for cars made in 1915 or earlier.4

Excellent Third-Party Ratings

State Farm’s third-party ratings rank among the highest in the country. These ratings are a good way to assess insurance providers’ financial security and customer service quality. Here’s how State Farm scored among some of the largest rating agencies.

  • AM Best: AM Best awarded State Farm an A++ (Superior) rating, the highest financial strength score it offers. AM Best assigns financial strength ratings that reflect a company’s creditworthiness, indicating that providers are likely to fulfill their financial duties and obligations to their customers, like paying claims.
  • J.D. Power: State Farm is tied for sixth place with Farmers (882 out of 100) for the highest auto insurance claims satisfaction score. Insurance providers with the highest scores in J.D Power’s study had excellent communication with customers and provided accurate timelines for when damaged vehicles would be returned.
  • S&P Global: For its automobile insurance companies assessment, S&P Global affirmed an AA insurer financial and issuer credit rating for State Farm, which is the second-highest S&P Global rating.
2. Best Auto Insurance for Active Military and Veterans in Arizona - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

Arizona is among the top 15 states for active military members serving in post-9/11 wars. The state is home to nearly 500,000 veterans and 100,000 active duty members, National Guard members, and spouses/children of service members.56 If you’re one of the hundreds of thousands of military members, family members, or veterans, we strongly recommend USAA for auto insurance.

ProsWho It's Best For
  • pro
    Military members, veterans, and their families
  • pro
    People stationed abroad
  • pro
    Low-mileage drivers
  • pro
    Safe drivers
ConsWho It's Not Best For
  • con
    Non-USAA members
  • con
    Owners of electric or hybrid vehicles

USAA Storage Savings

If you’re out of state because of deployment or a duty station, you can keep your vehicle in Arizona and save with a USAA storage discount. Here are the three main saving opportunities USAA offers for military members on duty station or deployment.

Discount type Maximum savings Eligibility
Storage discount 60% Place your vehicle in storage while you’re deployed to be eligible for the storage discount.
Low-mileage discount Varies based on how much you drive Keep your mileage at or below 7,500 miles per year to earn this saving (good for members coming in and out of Arizona between deployments).
Garage storage discount 15% You can earn this discount by storing your vehicle on a military base (must have comprehensive insurance).

Excellent for Low-Mileage Drivers

Available in only 15 states (including Arizona), USAA’s pay-per-mile insurance can earn you a large premium discount if you don’t drive often (7,500 or fewer miles per year). The low-mileage discount is a part of USAA’s Pay As You Drive app, and the savings opportunity is fairly straightforward: The less you drive, the less you should expect to pay for car insurance.

On average, Arizonians drive 10,288 miles per year, which is slightly higher than the national average of 9,405. If you drive less than 7,500 miles per year, reach out to your local USAA agent to see if you’re eligible for savings.7

International Availability

If you’re stationed overseas and get approval for your family to join you (or want to drive while you’re away), you can extend your car insurance to select international locations. Here’s a full list of USAA’s approved international locations and territories to extend your car insurance:

  • Azores
  • Belgium
  • Cuba
  • France
  • Germany
  • Greece
  • Guam
  • Italy
  • Netherlands
  • Portugal
  • Puerto Rico
  • South Korea
  • Spain
  • United States Virgin Islands
  • United Kingdom
3. Best Auto Insurance for Bundling in Arizona - Allstate

What We Like Most:

  • Three ways to earn a student discount
  • Pay-per-mile option for drivers with low mileage
  • No waiting period to purchase accident forgiveness

Allstate is the fourth-largest auto insurance provider and third-largest homeowners insurance provider in Arizona. It also happens to offer one of the largest auto and home bundling discounts (25 percent) in the insurance industry. With other great discounts, incentives for safe drivers, and a teen safety program, Allstate is our top pick for bundlers in Arizona.

ProsWho It's Best For
  • pro
    Homeowners
  • pro
  • pro
    Safe drivers
  • pro
    People who want roadside assistance
ConsWho It's Not Best For
  • con
    People who want the cheapest option
  • con
    People with a DUI

Sizable Bundling Discount

Bundling is a great way to save money, time, and effort with your Allstate policies. If you have multiple properties you need to insure, like a car and home, you can save time by managing your policies under the same account, and earn a discount while you’re at it. With Allstate, you can earn up to 25 percent off your premium by bundling auto and home, which also applies to auto and condo/renters insurance.

Here are all the ways you can bundle with Allstate:

  • Auto and home insurance
  • Auto and renters insurance
  • Auto and condo insurance
  • Auto and motorcycle insurance
  • Renters and motorcycle insurance

Benefits for Safe Drivers

If you’re a safe driver, you can earn up to 40 percent off your car insurance with Allstate’s Drivewise app. Drivewise is a safe driver program that tracks your driving habits and rewards you with discounts. If you exhibit safe driving habits (like not speeding, hard braking, driving at night, or driving excessively), you could save on your car insurance. However, if you don’t drive safely, your premium could increase.

FYI:

Drivewise is not its own app; it’s a part of the Allstate app. It has a 3.9 rating on Google Play and 4.8 on the App Store.

Great for Teens

If you’re a teen or the parent of a teen, you should expect your insurance premium to be higher than that of other age groups. Teens get into accidents at a higher rate than drivers from other age groups on average, which makes them high-risk drivers in the eyes of insurers. One way to help mitigate those costs and ensure your teen is driving safely is through Allstate’s teenSMART program.

TeenSMART is a driver education program that aims to improve driving habits and increase awareness of teens on the road.

According to teenSMART, teens who complete the program reduce their chance for collisions by an average of 28 percent. TeenSMART drivers have 51% fewer bodily injury claims than teens who have not taken the program.

The retail price for the teenSMART program is $120, but with Allstate, you can get $50 off. Teens who enroll in and complete the program are eligible for Allstate’s smart student discount as long as they are under the age of 25 and unmarried.

4. Best Auto Insurance for High-Risk Drivers in Arizona - Acceptance Insurance
acceptance insurance logo

What We Like Most:

  • Accepts high-risk drivers
  • Bundle with renters', homeowners', or pet insurance
  • Good for those with bad credit

If you have a low credit score, a history of traffic violations or claims, or several points on your license, it might be difficult to find affordable insurance. In some cases, insurers will be unwilling to offer you any coverage as a high-risk driver. Acceptance Insurance, unlike most providers, specializes in high-risk coverage for Arizonian drivers. As both a provider and an insurance broker, Acceptance can curate policies that combine its own coverage along with protection from other providers.

ProsWho It's Best For
ConsWho It's Not Best For
  • con
    People who want to manage their accounts from their phones
  • con
    Safe drivers

Plans for High-Risk Drivers

Acceptance Insurance specializes in insurance for high-risk drivers. High-risk drivers include individuals with a DUI/DWI on their record, new drivers, teens, seniors, people with bad credit, and people with a history of traffic violations and claims. Here’s how Arizonians compare to the rest of the country when it comes to driver safety and credit scores.

Category Arizona average National average
Percentage of fatalities from alcohol-impaired drivers 32% 30%
Motor vehicle fatality rate (per 100,000 population) 15 12
Percentage of people who always wear their seat belts 68% 90%
Credit score 712 714

Great for Non-Owners

Because Acceptance works with a handful of other providers, including The General and Progressive, it has access to a variety of niche auto insurance services, including non-owner insurance. Non-owner policies are designed for people who don’t own cars or drive regularly but still need insurance when they do drive. Acceptance can offer you a quick quote for non-owner coverage and walk you through the details of your plan.

Non-owner insurance is a good option for Arizonians who:

  • Do not intend on owning a vehicle in the next six to 12 months
  • Regularly drive outside of the state, as other non-owner coverage options like bonds will not extend out of the state
  • Rent or borrow cars regularly
  • Need a non-owner SR-22 to get their license reinstated after a DUI

Roadside Assistance

You can drive at ease with Acceptance Insurance’s roadside assistance service. Whether you have a flat tire, dead battery, no fuel, or another issue, a roadside emergency service member is only a call away. Here are some of Acceptance’s main roadside assistance features:

  • Up to 25 miles of towing, with no hidden fees
  • 10 days of rental car reimbursement
  • Lockout car services with no dollar limits (some providers offer services only up to $50 before they charge you)
  • Up to five calls per year
  • Reimbursements for legal fees related to traffic violations, traffic school, and traffic tickets

Methodology

Here is our methodology for determining the best car insurance companies in Arizona:

  • Proprietary data: AutoInsurance.com has collected millions of data points on car insurance companies for over 20 years. Our proprietary data provides us with key insights into which providers have the most success insuring drivers across each state, including Arizona. We’ve analyzed that data to narrow down the best service providers in Arizona based on insurance rates, discounts, and more.
  • Government data: We look at only the most credible state and federal entities for our facts, figures, and research, including Arizona-specific data from the National Highway Traffic Safety Administration, U.S Census, local Departments of Motor Vehicles, and other government sources.
  • Public studies: Third-party ratings and studies help customers and industry leaders keep track of providers’ credit ratings, customer service scores, and financial strength. We look at third-party studies from organizations like J.D. Power, Moody’s, the Better Business Bureau, AM Best, the National Association of Insurance Commissioners, and S&P Global to find the most accurate ratings on insurance providers in each state.
  • Expert institutional guidance: Last but not least, AutoInsurance.com is backed by an insurance industry expert and president of insurance services at Centerfield, Paul Ford. Paul’s decades of insurance-related experience informs our guides and research, providing us with the expert guidance we need to improve our recommendations, data, and assessments of car insurance companies.

Frequently Asked Questions

How much coverage do I need in Arizona?

According to the Department of Insurance and Financial Institutions, drivers in Arizona are required to have at least the following coverages to drive legally:

  • $25,000 for bodily injury for one person
  • $50,000 for bodily injury for two or more persons
  • $15,000 for property damage liability

Which company offers the cheapest insurance rates in Arizona?

On average, USAA, Travelers, and State Farm are the cheapest car insurance companies in Arizona. The cost of car insurance for minimum liability can be as low as $25 per month with USAA, $37 per month with Travelers, and $40 per month with State Farm. However, auto insurance rates vary based on your ZIP code; driving record, including any at-fault car accidents; and other factors, so your premium will vary.

What happens if I get a DUI in Arizona?

According to the Arizona Department of Public Safety, here are the penalties for being convicted of a DUI:

Penalty First offense Second offense Third offense
Jail time 24 hours-10 days 30-90 days Minimum 4 months
Fine $250 $500 $750
License suspension 90 days-1 year 1 year 1 year
Ignition interlock requirement Yes Yes Yes

Should I get uninsured motorist insurance in Arizona?

Although the state does not require you to have uninsured motorist insurance to drive legally in Arizona, we recommend you tack on the optional coverage to protect you in the event of a hit-and-run accident and from drivers who have no insurance.

Citations

  1. Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase, J.D. Power Finds. J.D. Power. (2022, Oct 27).
    https://www.jdpower.com/business/press-releases/2022-us-auto-claims-satisfaction-study

  2. 2021/2022 Annual Report. Arizona Department of Insurance and Financial Institutions DIVISION OF INSURANCE. (2022).
    https://difi.az.gov/sites/default/files/2022%20Annual%20Report.pdf

  3. 1 Plate Issued. ADOT Motor Vehicle Division. (2023).
    https://azdot.gov/historic-vehicle

  4. How classic car-friendly is your state? Hagerty Media. (2019, Jul 18).
    https://www.hagerty.com/media/archived/how-classic-car-friendly-is-your-state/

  5. QuickFacts Arizona; United States. United States Census. (2022, Jul 1).
    https://www.census.gov/quickfacts/fact/table/AZ,US/PST045222

  6. Arizona. Military State Policy Source. (2022, Dec 31).
    https://statepolicy.militaryonesource.mil/state/AZ

  7. Highway Statistics 2020. Office of highway Policy Information. (2021, Oct).
    https://www.fhwa.dot.gov/policyinformation/statistics/2020/ps1.cfm

  8. Traffic Safety Facts, 2020 Data: Alcohol-Impaired Driving. National Highway Traffic Safety Administration. (2022, Apr).
    https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/813294

  9. What Is the Average Credit Score in the U.S.? Experian. (2023, Feb 24).
    https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/