You have most likely watched the captivating ads from car insurance companies like Liberty Mutual and Allstate that make promises of dirt cheap rates. So drivers just need to pick the one with the best commercial, right?
It’s not that easy, however, as there are a lot of unknown factors such as whether or not you are currently insured, if you own or rent your home, and whether you are a man or a woman. Car insurance is kind of a dry topic, but this article will explain the best ways to maintain low rates and should give you a good start to your coverage search.
For new drivers, one of the more important components that are looked at to help calculate auto insurance rates is where you keep your vehicle in Phoenix. Regions with larger populations or more claims are more likely to pay higher prices, whereas areas with lower vehicle theft rates and fewer weather claims can boast about having cheaper rates.
The next table sorts the most expensive areas in Arizona for first-time drivers to buy car insurance in. Phoenix is ranked at #1 with an annual cost of $1,218 for the average policy, which is about $102 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Phoenix | $1,218 |
| 2 | Glendale | $1,214 |
| 3 | San Tan Valley | $1,185 |
| 4 | Avondale | $1,174 |
| 5 | Buckeye | $1,156 |
| 6 | Peoria | $1,126 |
| 7 | Mesa | $1,125 |
| 8 | Tempe | $1,118 |
| 9 | Scottsdale | $1,117 |
| 10 | Gilbert | $1,108 |
| 11 | Tucson | $1,105 |
| 12 | Casa Grande | $1,089 |
| 13 | Goodyear | $1,087 |
| 14 | Chandler | $1,082 |
| 15 | Catalina Foothills | $1,082 |
| 16 | Maricopa | $1,074 |
| 17 | Oro Valley | $1,062 |
| 18 | Surprise | $1,058 |
| 19 | Casas Adobes | $1,040 |
| 20 | Flagstaff | $960 |
| 21 | Yuma | $954 |
| 22 | Prescott | $924 |
| 23 | Bullhead City | $905 |
| 24 | Sierra Vista | $890 |
| 25 | Lake Havasu City | $870 |
| Compare Rates Now Go | ||
Premium amounts are comparative as specific Phoenix zip code can affect rates significantly.
Finding out which companies have the cheapest insurance rates for first-time drivers requires a tad more effort than just comparing rates from one or two companies.
Each insurer uses a little different formula to determine premium rates, so let’s take a look at the most competitive insurance companies in Phoenix, AZ.
Best Car Insurance Prices for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $845 |
| 2 | Safeco | $896 |
| 3 | Auto-Owners | $897 |
| 4 | Travelers | $1,119 |
| 5 | USAA | $1,124 |
| 6 | Progressive | $1,164 |
| 7 | GEICO | $1,166 |
| 8 | CSAA | $1,189 |
| 9 | Allied | $1,197 |
| 10 | Ameriprise Group | $1,220 |
| 11 | Farm Bureau Mutual | $1,297 |
| 12 | Safe Auto | $1,297 |
| 13 | Unitrin | $1,303 |
| 14 | State Farm | $1,323 |
| 15 | Farmers | $1,391 |
| 16 | Amica | $1,443 |
| 17 | Titan | $1,461 |
| 18 | American Family | $1,463 |
| 19 | MetLife | $1,567 |
| 20 | California Casualty | $1,568 |
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The Hartford has some of the lowest car insurance rates in Phoenix at around $845 annually. This is $583 less than the average premium paid by Arizona drivers of $1,428. Safeco, Auto-Owners, Travelers, and USAA would also be considered some of the most economical Phoenix, AZ insurance companies.
As illustrated above, if you currently have a policy with Travelers and switched to The Hartford, you may see savings of around $274. Policyholders with USAA could save as much as $279 a year, and Progressive customers might lower prices by up to $319 a year.
To find out how much you can save, click here or quote prices from the following companies.
Bear in mind that those rates are averaged across all insureds and vehicles and do not factor in a specific vehicle garaging location for first-time drivers. So the company that fits you best may not even be in the top 28 companies in the list above. That illustrates why you need to get auto insurance quotes using your own specific driver and vehicle information.
Picking a highly-rated auto insurance provider can be rather challenging considering how many companies sell coverage in Arizona. The information shown next could help you select which car insurance providers you want to consider when comparing rates. The rankings below are only comprised of companies that insure vehicles nationwide, so smaller companies that only insure vehicles in Arizona will not be included in this list.
Top 10 Major Car Insurance Companies in Phoenix Ranked by Value
- USAA
- American Family
- The Hartford
- Titan Insurance
- The General
- Mercury Insurance
- AAA Insurance
- State Farm
- Nationwide
- Safeco
Top 10 Major Car Insurance Companies in Phoenix Ranked by Customer Service
- State Farm
- GEICO
- The Hartford
- Mercury Insurance
- Progressive
- The General
- Allstate
- AAA Insurance
- American Family
- Nationwide
How accidents and tickets impact rates in Phoenix
The easiest method to earn cheap insurance rates for new drivers is to be a careful driver and avoid accidents and violations. The illustration below shows how violations and at-fault fender-benders can influence car insurance costs for each age group. The data assumes a married male driver, comp and collision included, $100 deductibles, and no discounts are applied.
In the previous chart, the average cost of an auto insurance policy in Phoenix per year with no accidents and a clean driving record is $1,640. Receive two speeding tickets and the average cost surges to $2,272, an increase of $631 each year. Now add in one accident along with the two speeding tickets and the 12-month cost of insurance for first-time drivers jumps again to an average of $2,906. That’s an increase of $1,265, or $105 per month, just for being a less-than-perfect driver!
The importance of shopping around
Phoenix, AZ insurance rates are based on many factors that may substantially change the cost of having a policy. Simply having a birthday, adding a teenager to your policy, or getting into an accident can trigger changes in premium that can now make some companies cheaper than others.
Additionally, companies modify pricing every year to help ensure profitability. Larger than normal claims can result in rate increases, while lower claim expenses may produce lower-priced Phoenix car insurance rates.
For instance, the graph below compares the cheapest car insurance in Phoenix, AZ for a 45-year-old male driver with no prior claims, no tickets, and a good credit history. Based on his current risk factors, The Hartford might offer the lowest car insurance rates in Phoenix at $1,208 each year. This is $220 less than the average rate paid by Arizona drivers of $1,428. Safeco, Auto-Owners, USAA, and Travelers are the remainder of the cheapest Phoenix, AZ auto insurance companies.
Now let’s give the driver from above an accident claim, a lower credit score, and a speeding ticket. Due to the fact that every auto insurer uses their own method for filing rates in each state, analyzing rate quotes may now present a completely different list of cheap Phoenix auto insurance companies as shown below.
GEICO now has the best price in Phoenix, AZ with Ameriprise Group, Allied, CSAA, and Auto-Owners now being in the top five. This shows why it is critical to perform an extensive rate comparison when trying to get the most budget-friendly insurance quotes for first-time drivers.
Rates can be altered by many risk factors and change frequently, so the most affordable company six months ago may now be wasting a lot of money.
Ideas to find cheaper auto insurance for first-time drivers
Here are some money-saving suggestions that can help you buy cheaper coverage.
- Pay less by remaining claim-free
- Increase your policy deductibles
- Insure your home and auto with the same company
- Do not get into accidents
- Keep your driving record clean
- Improve your credit rating
- Check for cheaper rates once a year
The last tip is extremely important, as we discussed in the article above. Prices charged by companies in Phoenix can change considerably based on profitability, so don’t be afraid to buy a policy from a new company if a better rate can be found. Having brand loyalty is commendable, but it’s not recommended if your bullheadedness ends up costing you a lot of money. In just a few minutes you could shop around to find cheaper insurance for first-time drivers.
The agents shown below can help you determine which coverage meets your needs best, since some drivers wish to have a professional recommendation when shopping for cheaper insurance for first-time drivers. It can be difficult to find the cheapest auto insurance company, and professional agents can bring peace of mind knowing your policy gives you enough coverage when you need it.
To find an auto insurance agency close to where you live, click the button link following the list or click here to compare price quotes now.
- Rodriguez Insurance
5720 N 27th Ave – Phoenix, AZ 85017 – (602) 242-5303 - Lupita Fernandez – State Farm Insurance Agent
2610 W Baseline Rd Ste 116 – Phoenix, AZ 85041 – (602) 633-2088 - Jacob Rosell – State Farm Insurance Agent
2218 N 24th St – Phoenix, AZ 85008 – (602) 267-8200