The Best Auto Insurance in Arizona

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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