Arizona Car Insurance Rates
Every company licensed to sell auto insurance in the state of Arizona have their own unique set of car insurance rates. Because of rate regulation laws, each of these insurers will file their rates through the Department of Transportation for approval to ensure that they are fair and that they are competitive for a specific market niche.
If you are in the process of buying insurance, it is very important to compare the rates available through all of the most respected Arizona insurers. You also need to understand how various factors can affect your rates regardless of which insurer you choose to purchase insurance from.
Here is your guide to Arizona car insurance rates so that you understand why your quotes are higher or lower than other drivers that you know so that you can choose an affordable policy.
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Rates Based on the Limits That You Choose
Many people who are buying insurance assume that cheapest rates are rates for mandatory insurance. In the state of Arizona, mandatory financial responsibility insurance laws state that all motor vehicles operated on public roadways must have coverage of: $15,000 per person and $30,000 per accident in Bodily Injury, and $10,000 in Property Damage.
While these are state minimums, you can purchase higher limits which come at a higher overall cost but a lower cost per $1,000 of coverage. It is important to compare the rates for different limits of liability so that you can compare the rating brackets with a specific company.
Some companies are pushing low-cost insurance with minimum limits and others are pushing high limit plans. Knowing which target market a company is aiming for can help you select the company that is right for you.
Rates Based on Gender and Age
Two factors that you cannot change that will affect your rates include your age and your gender, and many times these two individual factors can work together to either raise or lower the premiums that you pay. All companies in Arizona have a rating system that considers an applicants age and their gender when calculating personalized rates.
Based on statistics that have been collected by multiple sources, males have more accidents than females, especially males in younger age groups. If you are comparing young drivers and mature drivers, young drivers often file more claims resulting in higher auto insurance premiums.
It is important to understand that drivers with less than 9 years of driving experience, male or female, will pay more than an experienced driver with the same driving history.
While some have argued that this is gender and age discrimination, insurers have the statistics to prove that their rating guidelines are justified. This is why it is important to take advantage of discounts if you find yourself in a highly rated age group or gender group.
Your Driving Record
Claim frequency has the greatest influence on your rates when you are buying a new policy or when you are renewing an existing policy. While this is true, many are surprised that violations that do not result in claims are capable of raising car insurance rates almost as much as an accident.
When an insurer checks your driving record, they will look at both moving violations and accidents reported to the DMV on to other insurers.
Violations can raise your premiums by 50% depending on the seriousness of the violation and the number of violations on your record. Insurance can raise your rates for violations because you are a higher risk than those without violations.
It is important to acknowledge that violations are not equal to companies. A speeding violation will not affect your rates as much as a reckless driving conviction. Be aware that a combination of violations and accidents can not only raise your rates, but also disqualify you for coverage because you are considered too much of a risk.
Rates Based on Marital Status
Many drivers are not aware that their marital status can actually benefit them in the form of lower rates. Based on claims statistics, married policyholders tend to be more responsible drivers. With more responsibility comes less claims.
This means that the insurer is less likely to pay for a liability or property damage claim when the drivers on the policy are married because marital status is a human factor that is researched by the National Highway Traffic Safety Administration that positively impacts claims statistics.
If you are single, you will pay more for auto insurance than someone who is married. For example, a single 20-year-old female pays about 28 percent more for coverage than a married 20-year-old.
Rates Based on Usage and Mileage
The average person drives about 15,000 miles per year in the nation, but driving less than this average in the state of Arizona can help you save money. Low-mileage drivers can save money off of their auto insurance rates because they are considered lower risks.
The premise behind this is that the less you drive, the less likely you will be to file a claim. It is important to compare different mileage rating bands to see which bracket that you fall into.
In addition to mileage, usage is another factor that will affect your personal rates. Insurance companies have three different rating categories: pleasure, commute or business. Pleasure usage means that you will only drive to run errands or personal use.
Commute means that you will drive to and from work or school. Business use is for professionals who drive to multiple locations to conduct business. If you drive for pleasure, you will pay the lowest rates based on the other information that you have provided.
Year, Make and Model of Vehicle
Many drivers assume that a vehicle will only affect their auto insurance rates if it is expensive to repair or if you are buying full coverage.
In actuality, an older low-priced vehicle that has only liability coverage can be expensive to cover if it has high claims ratings. Vehicles have classification codes that are based on how much damage they cause in accidents and how much they cost to repair.
If you choose a vehicle that is in a lot of accidents, there is a good chance their class will be high which will result in higher premiums. This is why you should always price the premiums for different cars when you are car shopping. You should are comparison shop with multiple companies to see the rate trends.
Rates Based on Your Territory
In some zip codes in Arizona, a lot of claims are filed on a daily basis. In other zip codes, the claims filed based on the population are lower than average.
If your vehicle is primarily parked in a highly populated territory where the number of claims filed is high, you will pay higher premiums than you would if the number of claims filed was low. Arizona is home to four of the lowest priced cities in the US.
Discounts for Prior Auto Insurance Coverage
Your history of auto insurance can also affect your rates. If you do not have prior insurance, you may actually be penalized in the form of higher rates. If you do have prior insurance, you may receive a credit from your insurer for each month that you carried continuous auto insurance cover.
One of the main reasons that insurers offer these discounts is because they can more thoroughly underwrite your application when you carry insurance because your claims will be reported to a national exchange database system referred to as the CLUE system.
Years of Driving Experience
Age and years of driving experience are two very different rating factors that are used to calculate Arizona car insurance rates. Someone who is licensed at 20 will have less years of driving experience at age 25 than someone licensed at the age of 16.
Because of this, there is a special category where underwriters assign credits to drivers based on how long they have held a license.
If you are new to the state of Arizona, be sure to keep your old license information so that you can receive credits for being licensed in another state or country.
This can lower your premiums significantly because you will not automatically be considered an inexperienced operator just because you were recently issued an Arizona Driver License. If you have only 1 to 2 years of driving experience, you will be considered a youthful or inexperienced operator.
These are just a handful of different rating factors that will affect all drivers' car insurance rates in Arizona. If your rates are high based on your personal information, be sure to take advantage of one or several of the discounts offered by insurers.
By setting aside time to compare the premiums for Arizona car insurance cover and analyzing the plans thoroughly, you can buy the best policy that meets your needs and still fits within your budget.
Enter your ZIP code into the FREE comparison tool located at the top of this page!