The Best Auto Insurance for Arizona in 2024

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.

Excellent Third-Party Ratings

State Farm’s national third-party ratings rank among the highest in the country. In the Southwest region, State Farm scores 11 points above the regional average in the J.D. Power Auto Insurance Study. The only provider on our list that scored higher was USAA, which is technically ineligible to rank due to its limited availability. State Farm scored 13 points ahead of next-highest rated Allstate.

One of the reasons State Farm scores so highly for customer service is its large network of local agents. Local agents work solely for one company (rather than independent agents, who sell policies for multiple companies). That means State Farm agents are deeply familiar with the company’s discounts and can offer guidance on what coverages you need. State Farm is a good choice for drivers looking for the personalized assistance an agent can offer. There are State Farm agents in dozens of Arizona cities, from Anthem to Yuma.

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 other discounts you might be eligible for.

You can earn a State Farm discount in Arizona by:

• Signing up for Drive Safe & Save (up to 30 percent off)
• Maintaining an accident- and violations-free record for three years
• Insuring multiple cars
• Bundling your auto insurance with homeowners, renters, condo, or life insurance
• Completing a defensive driving course (5 percent off)
• Taking a driver education course (under age 21)
• 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. Learn more about why we named State Farm one of the best for classic car insurance.

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 Like State Farm, USAA is known nationally for its high standard of customer service, and has received consistently high scores from J.D. Power. 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 13,017 miles per year, which is slightly lower than the national average of 13,596. 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.

Travelers is one of the top ten largest providers in the United States, and it offers the lowest rates for multiple driver categories among our top picks in Arizona. Along with its cheap rates in Arizona, Travelers offers numerous discounts including for bundling, good student, and hybrid/electric vehicles. Its safe driving program IntelliDrive can help customers lower their rates even further.

Cheap Rates in Arizona

Travelers customers in Arizona can look forward to paying some of the lowest rates on the market. On average, a full coverage policy from Traveler’s will cost you $535 less than the statewide average of $1,845, and $930 less than Allstate, our most expensive provider.

On average, GEICO is the second cheapest provider on the market in Arizona. Its average cost for a full coverage premium is $510 less a year than the national average.

Travelers rates aren’t only competitive for drivers with clean records — drivers with speeding tickets, DUIs, and at-fault accidents will also pay less.

Travelers’ rates for drivers with speeding tickets in Arizona are the lowest among our top picks at $334 below the statewide average and $139 below next-cheapest State Farm. Its rates for at-fault accidents are also the lowest among our top picks, and for drivers with DUIs, only State Farm is less expensive on average.

Save with IntelliDrive

Like Allstate’s DriveWise program, Travelers’ IntelliDrive rewards its customers for their safe driving by lowering their premiums. Travelers advertises that customers can save up to 30 percent by enrolling in the program.

It’s important to note that riskier driving behaviors recorded by IntelliDrive may lead to higher premiums. Speak to a Travelers representative to learn more.

IntelliDrive monitors the following driving habits:

• Time of day: Avoiding late night drives can help improve your overall safe driving score.
• Braking: IntelliDrive favors drivers who do not brake aggressively. Avoid following too closely behind the driver in front of you to minimize your chances of hard braking.
• Speed: Slowing your speed (within safe limits) to improve your chances of quickly reacting to road hazards will improve your safe driving score.
• Distraction: Avoid the dangers of distracted driving: don’t text, make calls, or physically interact with your phone while driving to improve your score.
• Acceleration: Keep accelerations as smooth as possible to receive a higher score.

Gap Coverage

Along with Allstate, Travelers offers gap insurance, which not every provider does. Among our top picks, GEICO does not sell gap insurance, and State Farm and USAA only offer it if you financed your car with one of their loans. We named Travelers one of the best companies for GAP insurance.

Gap coverage (or loan/lease insurance) can help cover the gap in cost between the current value of your vehicle and what is still owed. For example, if your car is worth $7,000 and it gets totaled, but you still owe $10,000 on your loan or lease, gap insurance can cover the extra $3000 so you don’t have to.

The cost of gap insurance with Travelers starts around $3 monthly but will vary, so we recommend getting a quote from a Travelers agent or online.

Because of its comparatively lower cost of living, warm weather, and outdoor activities, Arizona is a popular retirement destination for seniors in the US. In 2021, the number of retirees over 60 increased by 25,090.⁹ If you’re one of the many seniors who made the move to retire in Arizona, GEICO may be a good choice for you. In addition to its discount for seniors, GEICO offers some of the most reasonable rates in Arizona, as well as comprehensive online tools.

Prime Time Senior Discount

Looking to cut down on costs, many insurance companies are becoming stricter on policy renewals, and in some cases are not renewing policies with little warning.

People who are over 50 and live in Arizona don’t have to worry about non renewals with GEICO’s Prime Time offering. A Prime Time contract guarantees the renewal of your policy. It can be added to your policy when you first purchase it, or during renewal.

Prime Time is available to those who:

• Are over 50
• Have no operators under 25
• Are violation free for the past three years
• Do not use their vehicle for business purposes

Prime Time is only available in 30 states, including Arizona.

Discounts for Seniors

GEICO also offers the following discounts, which seniors can benefit from:

Comprehensive Online Tools

Unlike State Farm and Allstate, GEICO focuses mostly on its online tools rather than employing many agents. In Phoenix, for example, GEICO lists only five online agents. Because of this, GEICO would likely be best for someone who prefers to manage their policy online.

GEICO’s mobile apps and online shopping experience are highly-rated. GEICO’s app allows its customers to access their insurance ID card, call for 24/7 roadside assistance,, use GEICO’s virtual assistant to answer any questions about their policy, and track their vehicle history.

Along with State Farm, GEICO’s app has the highest customer ratings of all our providers.