The car, truck, or SUV requiring insurance is one of the largest considerations that determines whether or not you can buy cheap coverage for young drivers. Vehicles with economical engines, excellent safety ratings, or low incidents of liability claims will cost significantly less to insure than higher performance models.
The information below presents car insurance premiums for a handful of the cheaper vehicles to insure in Arizona.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $6,193 |
| Honda CR-V EX-L 2WD | $6,250 |
| Jeep Wrangler Sport 4WD 2-Dr | $6,536 |
| Toyota Prius | $6,683 |
| Dodge Grand Caravan SE | $6,970 |
| Toyota Tacoma 4WD | $6,977 |
| Chevrolet Impala LS | $7,290 |
| Ford Focus SE 4-Dr Sedan | $7,298 |
| Toyota RAV4 Sport 4WD | $7,346 |
| Chevrolet Malibu Hybrid | $7,354 |
| Ford Explorer Eddie Bauer 4WD | $7,403 |
| Ford Edge Sport AWD | $7,723 |
| Toyota Corolla S | $7,728 |
| Toyota Camry XLE | $7,723 |
| Hyundai Elantra SE 4-Dr Sedan | $7,729 |
| GMC Sierra SLE Crew Cab 4WD | $7,780 |
| Chevrolet Equinox LTZ 2WD | $7,786 |
| Nissan Altima Hybrid 4-Dr Sedan | $7,780 |
| Jeep Grand Cherokee SRT-8 4WD | $7,786 |
| Ford Fusion Sport 4-Dr Sedan | $7,780 |
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Table data represents single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in zip code location which can raise or lower coverage rates considerably.
Looking at the rates, we can conclude that vehicles like the Ford Escape, Honda CR-V, and Jeep Wrangler are most likely going to be the most budget-friendly vehicles to insure for youthful drivers. The cost of auto insurance will be more costly just because there is more claim risk for young drivers, but generally speaking those specific models will have the least expensive rates compared to all other vehicles.
Comparing rates for reasonably-priced auto insurance is easier said than done, and determining which company quotes the best car insurance rates for young drivers will take even more work. Each auto insurance company has a different formula to determine premium rates, so let’s rank the car insurance companies with the overall cheapest rates in Phoenix.
We do need to point out that Arizona car insurance rates are impacted by many things that can increase the policy price. Simply turning a year older, adding a teenager to your policy, or getting into an accident can trigger changes in premium that may make certain companies more affordable than before.
Find the Cheapest Auto Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $811 |
| 2 | Auto-Owners | $897 |
| 3 | Safeco | $932 |
| 4 | Travelers | $1,108 |
| 5 | USAA | $1,124 |
| 6 | Progressive | $1,130 |
| 7 | GEICO | $1,142 |
| 8 | Allied | $1,209 |
| 9 | Ameriprise Group | $1,220 |
| 10 | CSAA | $1,225 |
| 11 | Farm Bureau Mutual | $1,247 |
| 12 | Safe Auto | $1,336 |
| 13 | Unitrin | $1,357 |
| 14 | State Farm | $1,364 |
| 15 | Farmers | $1,391 |
| 16 | Titan | $1,418 |
| 17 | American Family | $1,435 |
| 18 | Amica | $1,473 |
| 19 | MetLife | $1,505 |
| 20 | Safeway | $1,554 |
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The Hartford generally has some of the best car insurance rates in Phoenix at around $811 a year. This is $617 less than the average policy premium paid by Arizona drivers of $1,428. Auto-Owners, Safeco, Travelers, and USAA are also some of the lowest-priced Phoenix, AZ insurance companies.
In the above example, if you currently buy coverage from Travelers and switched to Auto-Owners, you might achieve a yearly price reduction of upwards of $211. Arizona drivers with USAA might save as much as $227 a year, and Progressive insureds might cut rates by $233 a year.
To find the cheapest rates for your vehicle, click here to start your custom quote or click several companies below for low rates.
It’s important to note that these premiums are averages for all types of insureds and vehicles and and are not figured with a specific zip code for young drivers. So the insurer that fits your age and vehicle best may not even be in the top 28 companies shown above. That’s why you need to compare rates from multiple companies using your own personalized driver profile and vehicle information.
For youthful drivers, one of the largest components that aid in calculating auto insurance rates is where you keep your car. More densely populated places are more likely to have higher rates, whereas areas with lower crime rates and fewer weather claims have the luxury of cheap car insurance rates.
The illustration below rates the most expensive areas in Arizona for young drivers to buy an auto insurance policy in. Phoenix shows up at #1 with the yearly price of $1,255 for the average policyholder, which is about $105 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Phoenix | $1,255 |
| 2 | Glendale | $1,190 |
| 3 | Avondale | $1,186 |
| 4 | San Tan Valley | $1,161 |
| 5 | Mesa | $1,159 |
| 6 | Gilbert | $1,142 |
| 7 | Tempe | $1,140 |
| 8 | Peoria | $1,137 |
| 9 | Goodyear | $1,131 |
| 10 | Buckeye | $1,122 |
| 11 | Scottsdale | $1,117 |
| 12 | Maricopa | $1,107 |
| 13 | Tucson | $1,094 |
| 14 | Chandler | $1,093 |
| 15 | Casa Grande | $1,079 |
| 16 | Catalina Foothills | $1,050 |
| 17 | Surprise | $1,048 |
| 18 | Casas Adobes | $1,040 |
| 19 | Oro Valley | $1,020 |
| 20 | Yuma | $992 |
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Rates are comparative as the garaging address in Phoenix can lower or raise prices considerably.
Full coverage versus liability only rates
Lowering the price of car insurance is important to most vehicle owners, and a good way to buy cheaper insurance for young drivers is to not buy full coverage. The illustration below shows the difference between insurance prices when comparing full coverage to liability only. The premiums are based on no tickets, no at-fault accidents, $1,000 deductibles, drivers are single, and no discounts are applied.
If the expense is averaged for all age categories, full coverage on your policy costs $1,263 per year more than just buying liability insurance. At some point, every insured wonders if you should buy full coverage. There is no definitive formula for eliminating full coverage on your policy, but there is a guideline you can use. If the annual cost of your full coverage insurance is more than 10% of any settlement you would receive from your insurance company, then it might be time to buy liability only.
For example, let’s say your vehicle’s replacement cost is $9,500 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $8,500 after paying your policy deductible. If you are paying in excess of $850 a year for physical damage coverage, then it might be time to buy liability only.
The example below demonstrates how deductibles can increase or decrease premium costs when researching cheap insurance for young drivers. The rates are based on a married female driver, comprehensive and collision coverage, and no discounts are applied.
In the chart above, a 50-year-old driver could cut expenses by $206 a year by increasing from a $100 deductible up to a $500 deductible, or save $310 by changing to a $1,000 deductible. Younger drivers, like the Age 20 chart data, could shave up to $508 each year by choosing a larger deductible amount.
When choosing a higher deductible, it is a good idea to have additional funds squirreled away to satisfy the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Why it’s important to shop around
Arizona car insurance rates are influenced by many factors that can increase the price of coverage. Improving your credit rating, having a teen driver, or getting a ticket for running a stop sign can trigger price changes resulting in some companies being cheaper than competitors. Additionally, insurance companies file new Arizona auto insurance rates at least once a year in order to maintain liquidity for claims. A period of increased losses may cause increased policy costs, while less frequent claims may cause cheaper Phoenix car insurance rates.
To illustrate this example, the chart below shows the cheapest car insurance in Phoenix, AZ for a 30-year-old female driver with no prior claims, no tickets, and solid credit. If we estimate prices based on her current rating profile, The Hartford might quote the most affordable car insurance rates in Phoenix at $1,196 annually. This is $232 less than the average premium paid by Arizona drivers of $1,428. Auto-Owners, Safeco, USAA, and Travelers are the rest of the best Phoenix, AZ auto insurance companies.
In this example, we will give the driver in the first chart an accident surcharge, a little lower credit rating, and a few blemishes on her driving record. Since each auto insurer has their own unique process for determining rates, comparing prices may now result in a new list of companies as shown below.
GEICO now has the best price on car insurance in Phoenix with Ameriprise Group, Auto-Owners, CSAA, and Allied also being competitive. This example illustrates why it is important to compare many different companies when trying to get cheap insurance quotes for young drivers. Insurance prices can be altered by many different factors and can decrease or increase without notice, so the cheapest option three years ago may now cost much more than other companies.
If you have questions and prefer to get some guidance when shopping around for cheaper insurance for young drivers, the agents shown below are willing to provide answers to your questions and help you determine which is the best policy. To find a Phoenix insurance agency by location nearest to you, click the button below the list or click here to compare price quotes now.
- Nichole Schaffer – State Farm Insurance Agent
2612 N 7th St – Phoenix, AZ 85006 – (602) 439-7000 - American Family Insurance – Luke Shafer
1717 E Bell Rd #7 – Phoenix, AZ 85022 – (602) 788-5359 - Severiano Torres III – State Farm Insurance Agent
1820 N 75th Ave #106 – Phoenix, AZ 85035 – (623) 846-0240 - Jim Nork – State Farm Insurance Agent
1600 W Camelback Rd #1a – Phoenix, AZ 85015 – (602) 222-9400