Best Cheap Car Insurance in Phoenix, Arizona

• 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.

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.

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.

State Farm, USAA and Travelers offer some of the cheapest auto insurance in Phoenix. State Farm and USAA also earned some of the highest third-party customer satisfaction ratings on our cheap providers list. We named these providers as some of the best car insurance companies in Arizona.

USAA 

• 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, which indicates that 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.  

State Farm

• 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 well above the national average. 
• Who it’s best for: State Farm is a good choice for anyone looking for the lowest possible full coverage rates or those who want cheap minimum coverage but do not qualify for USAA. Given its extensive network of local agents, State Farm is also a great choice for those who prefer to shop for their policies in person. 

*Note that due to its eligibility restrictions, USAA is not technically eligible for the J.D. Power customer surveys. 

Auto-Owners

Phoenix pricing data is not available for Auto-Owners, but on average, it offers some of the cheapest full and minimum coverage nationwide ($1,547 annually for full coverage and $451 annually for minimum coverage). It also has a B+ rating on the CRASH Network Insurer Report Card — the highest rating of all of our best cheap providers in Phoenix — suggesting the company offers a straightforward and satisfactory claims handling process.

Progressive

Progressive has the cheapest average car insurance rates in Phoenix after USAA, State Farm, and Travelers. Its average rates for full and minimum coverage fall well below the citywide average. Along with Travelers, it has the cheapest rates in Arizona for drivers with a DUI.

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

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.

We analyzed full and minimum coverage averages for drivers with a clean record and good credit in Phoenix. 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
• Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
• Comprehensive and collision: $500 deductible

We assess customer satisfaction and claims practices through third-party sources such as J.D. Power, CRASH Network, and the National Association of Insurance Commissioners (NAIC).