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Last updated: August 20, 2025Best Cheap Car Insurance in Phoenix
State Farm offers the cheapest full coverage auto insurance in Phoenix, and USAA has the cheapest minimum coverage.
Best for Military and Veterans
Editor's Rating: 5/5
Average Cost in Phoenix
- Full Coverage Monthly: $146
- Minimum Coverage Monthly: $64
Cheapest
Editor's Rating: 4.9/5
Average Cost in Phoenix
- Full Coverage Monthly: $146
- Minimum Coverage Monthly: $72
Best for High-Risk
Editor's Rating: 4.1/5
Average Cost in Phoenix
- Full Coverage Monthly: $172
- Minimum Coverage Monthly: $85
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Key takeaways
- Phoenix drivers can expect some of the highest car insurance rates in Arizona. On average, full coverage costs $2,649 annually, and minimum coverage costs $1,254 annually.
- State Farm and USAA offer the lowest average rates in Phoenix for both full and minimum coverage. They also have higher-than-average third-party customer satisfaction ratings. Travelers also has average rates below the city average.
- The cost of auto insurance varies depending on your driving history, coverage type and vehicle. To find the lowest possible rates, we recommend comparing at least three quotes.
Our Top Picks for the Best Cheap Auto Insurance in Phoenix
- Best for Military and Veterans: USAA
- Cheapest: State Farm
- Best for High-Risk Drivers: Travelers
- Best for Customer Satisfaction: AAA
- Best for Rideshare: Progressive
Compare the Best Cheap Auto Insurance in Phoenix
| Company | Full Coverage Annual Average | Minimum Coverage Annual Average |
|---|---|---|
| USAA | $1,799 | $769 |
| State Farm | $1,749 | $867 |
| Travelers | $2,066 | $1,026 |
| CSAA (AAA) | Data unavailable | Data unavailable |
| Progressive | $2,212 | $1,087 |
| Phoenix | $2,649 | $1,254 |
Detailed List of the Best Cheap Providers in Phoenix
1. Best for Military and Veterans - USAA
What We Like Most:
- Cheapest liability rates
- Highest customer satisfaction in Southwest
- Military-specific coverages
Why we chose it
USAA offers the cheapest minimum coverage auto insurance in Phoenix and the second-cheapest full coverage after State Farm. It also has the highest customer satisfaction scores from J.D. Power, suggesting USAA successfully balances low rates with a high quality of service.
Who it’s best for
USAA is best for military members, veterans and their families who are looking for the most affordable rates and strong customer service. USAA is limited to current and former military members and their families, so those without a military affiliation will need to look elsewhere.
Phoenix Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $150 | $64 |
| Annually | $1,799 | $769 |
| Difference from Phoenix average | -32% | -39% |
2. Cheapest - State Farm
What We Like Most:
- Lowest full coverage rates
- Local Phoenix agents
- Robust safe driving incentives
Why we chose it
State Farm offers the cheapest full coverage in Phoenix and the second-cheapest minimum coverage after USAA. It also fares well in both the J.D. Power Customer and Claims Satisfaction studies, with third-party ratings above the national and regional averages. Unlike USAA, it’s widely available and has no eligibility restrictions.
Who it’s best for
State Farm is a good choice for drivers with clean records and good credit scores. It also has competitive rates in Arizona for drivers with an at-fault accident. While you can start a quote online, note that you’ll have to complete your purchase with an agent by phone.
<<RELATED: Learn more about how USAA and State Farm compare in our USAA vs. State Farm in-depth review.
Phoenix Pricing
| State Farm | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $146 | $72 |
| Annually | $1,749 | $867 |
| Difference from Phoenix average | -34% | -31% |
3. Best for High-Risk Drivers - Travelers
What We Like Most:
- Cheapest rates for high-risk
- Solid claims process
- High bundling savings
Why we chose it
Travelers is known for maintaining reasonable rates for drivers with a speeding ticket, low credit, or DUI, making it one of the best auto insurance providers for drivers with a bad record. This is true in Arizona, where Phoenix has some of the cheapest rates for drivers in these categories. In Phoenix, both its full and minimum coverage rates with a clean record are lower than the citywide average.
Who it’s best for
Travelers is best for those considered high-risk drivers, including those with an at-fault accident, speeding ticket, DUI, or poor credit. It’s also ideal for families with a teen driver and people on a budget due to its affordable premiums across the board. While the company’s customer and claims satisfaction scores are acceptable, they’re not stellar — customers who prioritize exceptional service over price will likely want to get quotes elsewhere.
Phoenix Pricing
| Travelers | Full coverage | Minimum coverage |
| Monthly | $172 | $85 |
| Annually | $2,066 | $1,026 |
| Difference from Phoenix average | -22% | -18% |
FYI:
Travelers rideshare insurance is available only in Illinois and Colorado, meaning Phoenix rideshare drivers will need to look elsewhere for their cheap coverage. Learn more about what rideshare drivers should know about insurance.
4. Best for Customer Satisfaction - AAA
What We Like Most:
- #1 in the Southwest region according to J.D. Power
- Excellent roadside assistance
- Multiple branches in Phoenix
Why we chose it
CSAA, a regional club of AAA serving Phoenix and other parts of Arizona, took the top spot in the Southwest in J.D. Power’s most recent customer satisfaction study. It also received a B grade regionally on the CRASH Network Insurer Report Card — the highest rating of all of our best cheap providers in Phoenix — indicating the company doesn’t skimp when it comes to claims handling.
Who it’s best for
CSAA (AAA) is a good choice for drivers prioritizing customer service. Its Phoenix branches also offer DMV and vehicle maintenance services. Data on average pricing in Phoenix aren’t available, so get a quote to see how much you’ll pay. AAA members get a discount.
5. Best for Rideshare - Progressive
What We Like Most:
- Great rideshare insurance
- Extensive add-on coverage options
- Affordable rates for drivers with a DUI
Why we chose it
Progressive stands out for its coverage for rideshare and delivery drivers. When you add an endorsement to your policy, Progressive covers you during periods when your app is on but you haven’t yet accepted a ride — a coverage gap that’s not fully protected by Uber, Lyft, or food delivery company policies. Progressive also offers valuable perks like deductible reimbursement — if the rideshare company’s insurance has a higher deductible than your own, Progressive will pay you the difference.
Along with Travelers, Progressive has the cheapest rates in Arizona for drivers with a DUI. For drivers with a clean record, its average rates for full and minimum coverage in Phoenix still fall below the citywide average. Its unique Name Your Price tool allows you to set a budget, and see the best coverage you can afford.
Who it’s best for
Progressive is ideal for rideshare and delivery drivers—including those working for Uber, Lyft, DoorDash, and similar platforms. It’s also a solid choice for drivers who want extensive add-on options like roadside assistance, rental reimbursement, and deductible gap coverage. It’s also a good choice for budget-conscious drivers, including those with a DUI.
Phoenix Pricing
| Progressive | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $184 | $91 |
| Annually | $2,212 | $1,087 |
| Difference from Phoenix average | -16% | -13% |
Phoenix Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Southwest1 | CRASH Network Report Card2 | J.D. Power Claims Satisfaction3 | NAIC Complaint Index4 |
|---|---|---|---|---|
| USAA | 720* | D+ | 726 | 1.31 |
| State Farm | 648 | C- | 710 | 2.13 |
| Travelers | 626 | C | 684 | 1.97 |
| CSAA (AAA) | 676 | B (regional; B- nationally) | 704 | 0.95 |
| Progressive | 616 | C | 672 | 2.54 |
| Average | 636 (out of 1,000) | C+ | 697 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share. The lower the score, the better |
*Note that due to its eligibility restrictions, USAA is not technically eligible for the J.D. Power customer surveys.
Cheapest Full Coverage Car Insurance in Phoenix
State Farm has the cheapest full coverage auto insurance in Phoenix, with an average annual rate of $1,749, about 34 percent lower than the city average. USAA is close behind, with an average annual rate of $1,799.
| Company | Phoenix annual average | Phoenix monthly average |
|---|---|---|
| State Farm | $1,749 | $146 |
| USAA | $1,799 | $150 |
| Travelers | $2,066 | $172 |
| Progressive | $2,212 | $184 |
| GEICO | $2,337 | $195 |
| American Family | $2,638 | $220 |
| The Hartford | $3,077 | $256 |
| Allstate | $3,304 | $275 |
| Farmers | $3,637 | $303 |
| Phoenix average | $2,649 | $221 |
| Arizona average | $2,398 | $200 |
| National average | $2,399 | $200 |
Cheapest Minimum Coverage Car Insurance in Phoenix
USAA offers the cheapest minimum coverage auto insurance in Phoenix, with an average annual rate of $769 — 39 percent lower than the citywide average. State Farm and Travelers offer the second- and third-lowest rates in Phoenix, respectively.
| Company | Phoenix annual average | Phoenix monthly average |
|---|---|---|
| USAA | $769 | $64 |
| State Farm | $867 | $72 |
| Travelers | $1,026 | $86 |
| Progressive | $1,087 | $91 |
| GEICO | $1,152 | $96 |
| American Family | $1,289 | $107 |
| The Hartford | $1,601 | $133 |
| Allstate | $1,631 | $136 |
| Farmers | $1,631 | $136 |
| Phoenix average | $1,254 | $105 |
| Arizona average | $814 | $68 |
| National average | $635 | $53 |
How many car accidents happen in Phoenix?
Phoenix is the largest city in Arizona by population, so it has a higher likelihood of car accidents. In 2023, Maricopa County (where Phoenix is located) accounted for over 71 percent of all collisions in the state. In 2023, Phoenix had a total of 36,927 road accidents, including 298 fatal collisions.5 However, this number is down slightly from the previous year, when 38,311 car accidents were reported in Phoenix.6
DID YOU KNOW?
A speeding ticket in Arizona will raise your auto insurance rate by about 28 percent, on average. Learn more about how a speeding ticket impacts auto insurance in Arizona.
Minimum Auto Insurance Requirements in Arizona
Arizona is an at-fault state. This means the driver who was determined to be at fault in the accident is responsible for paying for injuries and damages. To legally operate a vehicle, all Arizona drivers must carry the following auto insurance limits:
- Bodily injury: $25,000 per person/$50,000 per accident
- Property damage liability: $15,000 per accident7
Arizona’s requirements are relatively minimal compared to other states’, especially for property damage liability. It’s wise to increase your limits above the state-required minimum. Experts recommend liability of limits of 100/300/100 — $100,000 per person/$300,000 per accident for bodily injury and $100,000 for property damage.
DID YOU KNOW?
Arizona applies a pure comparative negligence rule: if multiple parties share blame, each person’s compensation is reduced in proportion to their share of fault—but even if you’re mostly to blame, you can still recover something.
FAQS
Who has the cheapest car insurance rates in Arizona?
In Arizona, Travelers offers the cheapest full coverage auto insurance, with an average annual cost of $1,520. USAA offers the cheapest minimum coverage auto insurance in the state, at just $592 per year, on average.
What is the average cost of car insurance in Phoenix, Arizona?
In Phoenix, the average cost of full coverage auto insurance is $2,649 annually, or $221 per month. The average cost of minimum coverage is $1,254 annually, or $105 per month. In both cases, the cost of auto insurance in Phoenix is higher than the state and national averages.
Why is Arizona insurance so high?
The average cost of full coverage auto insurance in Arizona is $2,398, which is right around the national average ($2,399). Auto insurance rates have risen in recent years due to inflation, increased repair costs and other factors. Your individual driving history and vehicle type also have a significant impact on the overall cost of your insurance.
What is the best car insurance in Phoenix?
The best car insurance in Phoenix depends on multiple factors, including your vehicle, age, driving history and credit score. On average, USAA, State Farm and Travelers offer the cheapest auto insurance in Phoenix. State Farm and USAA have some of the strongest third-party customer satisfaction ratings of our cheapest providers in Phoenix.
Methodology
At AutoInsurance.com, we assess auto insurance providers based on four key areas:
- Price (40%): We evaluated average insurance rates for full and minimum coverage in Phoenix, Arizona, for clean driving profiles with good credit. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Medical payments: $5,000
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25%): An ideal claims handling process from an auto insurer is timely, transparent, and streamlined, with clear communication throughout, just damage assessments, and prompt payment or resolution. We look at claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report.
- Customer Experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies and the NAIC complaint index.
- Coverage Options (10%): We review each company’s coverage offerings and value providers with options beyond the state-mandated minimums, including rideshare coverage, gap insurance, and more.
Learn more about our ratings and methodology.
Staff Writer
Kate Romain combines her dedication to research with her love for writing and communications to deliver informative, comprehensive articles for those exploring insurance options. Her years of professional experience in writing and communications have well-equipped her to assist customers get the information they need to make smart insurance choices. Kate has also written for GigWolf, Boston Medical Center, and non-profit Writers Without Margins. She holds a BA in History and Politics and an MA in Creative Writing, both from the University of East Anglia.
Citations
It’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds. J.D. Power. (2025, June 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2025. Crash Network. (2025).
https://www.crashnetwork.com/irc/Auto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, J.D. Power Finds. J.D. Power. (2024, Oct 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-studyConsumer Insurance Search Results. NAIC. (2025).
https://content.naic.org/cis_refined_results.htmLatest Arizona Crash Statistics Updated for 2025. Esquire Law. (2025, July 25).
https://esquirelaw.com/blog/arizona-car-accident-statistics/Phoenix Car Accident Statistics. Bleaman Law Firm. (2024, March 02).
https://www.bleamanlawfirm.com/blog/phoenix-car-accident-statistics/Vehicle Insurance Information. Arizona Department of Transportation. (2025).
https://azdot.gov/mvd/services/vehicle-services/vehicle-insurance-information
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