See Arizona car insurance cost for both new and used cars. Also see what coverage you need, how your car’s value and credit score affect your rate, and where you can cut costs without leaving yourself in trouble.
Arizona drivers pay rates close to the national average — full coverage runs $1,628-$2,644 per year depending on the source, while minimum coverage averages $662-$849 annually. The state ranks around 38th-39th for affordability, putting it in the more expensive tier nationwide.
Curious about car financing? See real Arizona car loan rates shared by our community.
Arizona’s 25/50/15 Liability Minimums
Arizona requires:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident.
- Property Damage Liability: $15,000 per accident.
These minimums apply to all registered vehicles including cars, trucks, motorcycles, mopeds, and even golf carts driven on public roads.
Arizona increased its minimums on July 1, 2020 — the previous limits were 15/30/10. If you had a policy before that date that auto-renewed without updating, you may still be carrying the old, now-illegal minimums. Check your declarations page.
UM/UIM: Optional But Offered
Uninsured/Underinsured Motorist coverage is not required in Arizona. Insurers must offer it to you, and you must reject it in writing if you don’t want it.
About 12% of Arizona drivers are uninsured. If an uninsured driver hits you and you don’t have UM/UIM, you’re stuck paying your own medical bills and vehicle repairs. You can sue the uninsured driver, but collecting from someone who couldn’t afford insurance is often impossible.
MFP Tip: Don’t waive UM/UIM without understanding what you’re giving up. Arizona has an at-fault system, meaning you can only recover from the at-fault driver’s insurance. If they have none, UM/UIM is your only protection.
Alternatives to Traditional Insurance
Instead of a liability policy, Arizona allows you to deposit $40,000 in cash or certificates with the state. This is impractical for most drivers but exists as an option for those who prefer self-insurance.
Arizona New Car Insurance Costs
Arizona new car rates are close to national averages.
| Car Value | Coverage | 750+ (Excellent) |
700–749 (Good) |
650–699 (Fair) |
600–649 (Below Fair) |
|---|---|---|---|---|---|
| Under $30K | Full | $202 | $237 | $259 | $437 |
| Standard | $146 | $172 | $188 | $317 | |
| Liability only | $99 | $116 | $127 | $213 | |
| $30K–$60K | Full | $238 | $279 | $306 | $516 |
| Standard | $174 | $204 | $223 | $376 | |
| Liability only | $107 | $126 | $138 | $233 | |
| Over $60K | Full | $294 | $344 | $377 | $636 |
| Standard | $211 | $248 | $271 | $457 | |
| Liability only | $116 | $137 | $150 | $252 |
Arizona Used Car Insurance Costs
| Car Value | Coverage | 750+ (Excellent) |
700–749 (Good) |
650–699 (Fair) |
600–649 (Below Fair) |
|---|---|---|---|---|---|
| Under $15K | Full | $117 | $138 | $151 | $254 |
| Standard | $99 | $116 | $127 | $213 | |
| Liability only | $68 | $80 | $87 | $147 | |
| $15K–$25K | Full | $141 | $165 | $181 | $305 |
| Standard | $117 | $138 | $151 | $254 | |
| Liability only | $79 | $92 | $101 | $171 | |
| $25K–$40K | Full | $160 | $187 | $205 | $345 |
| Standard | $133 | $156 | $171 | $289 | |
| Liability only | $85 | $100 | $109 | $184 | |
| Over $40K | Full | $183 | $215 | $235 | $396 |
| Standard | $152 | $178 | $195 | $329 | |
| Liability only | $94 | $110 | $121 | $204 |
What Each Coverage Level Means
Full Coverage: Includes collision, comprehensive, and liability beyond state minimums. Typical limits are 100/300/100. This pays to repair or replace your car after accidents, theft, vandalism, or weather damage. Required if you finance or lease.
Minimum Coverage: Arizona’s 25/50/15 liability only. Protects others if you cause an accident. Does not cover your medical bills, your vehicle, or accidents caused by uninsured drivers.
MFP Tip: GEICO offers the cheapest minimum coverage in Arizona at around $369/year. Travelers offers the cheapest full coverage at around $1,707/year. Get at least three quotes — rates vary widely.
Location Matters
Phoenix drivers pay about 16% more than the state average due to higher traffic density and accident rates. Rural areas like Lake Havasu City pay roughly $85/month less for full coverage than Phoenix. Tucson falls somewhere in between.
Credit Scores Affect Your Rate in Arizona
Arizona allows insurers to use credit-based insurance scores when setting premiums. Drivers with poor credit pay much more — in some cases 67% or more — than drivers with excellent credit for identical coverage.
Arizona law does place some restrictions on credit use. Insurers cannot factor in:
- Lack of credit history or inability to determine a credit history.
- Collections identified as medical bills.
- Bankruptcies older than seven years.
Your premium is influenced by:
- Credit-based insurance score: Poor credit can mean 67%+ higher premiums.
- Driving record: A DUI increases rates by about 101% in Arizona. A speeding ticket or at-fault accident also raises rates.
- Age: 18-year-old males pay an average of $8,089/year for full coverage vs. roughly $1,600 for drivers in their 50s.
- Location: Phoenix costs more than rural areas. Lake Havasu City has the cheapest rates.
- Vehicle type: Newer, more expensive vehicles cost more to insure.
MFP Tip: Improving your credit is one of the best ways to lower your Arizona premium. Check your credit report for errors and pay down balances if possible.
How to Choose the Right Coverage
Buying a New Car
If you’re financing or leasing, your lender will require full coverage including collision and comprehensive. You don’t have a choice — it protects their investment until you own the car outright.
Beyond lender requirements, gap insurance is worth looking into. New cars depreciate 20-30% in the first year. If your car is totaled, insurance pays the actual cash value (what it’s worth today), not what you owe. Gap insurance covers the difference.
Arizona requires you to apply for a title within 15 days of purchase. Proof of Arizona insurance is required before registration.
Buying a Used Car
With a used car you own outright, you have more flexibility. The key question: does it make financial sense to pay for collision and comprehensive coverage?
The 10% Rule: Add up your annual collision and comprehensive premiums. If that total exceeds 10% of your car’s current market value, you might save money by dropping those coverages and setting aside funds for repairs or a replacement.
Example: Your 2018 Honda CR-V is worth $18,000. If collision and comprehensive cost $1,500/year (8.3%), keeping those coverages makes sense. If your 2010 Toyota Camry is worth $7,000 and collision plus comprehensive runs $800/year (11.4%), you might be better off banking the premium savings.
Arizona Exception — Windshield and Weather: Arizona’s desert conditions cause frequent windshield damage from rocks, sand, and construction debris. Comprehensive coverage often makes sense even on older vehicles because it covers windshield replacement, and Arizona law requires insurers to offer $0 deductible glass coverage.
$15,000 Property Damage and No UM/UIM: Arizona’s Coverage Gaps
$15,000 Won’t Cover Most Vehicles
The average new car costs over $48,000. Even used cars routinely exceed $25,000. Arizona’s $15,000 property damage minimum is dangerously low.
If you cause an accident and damage someone’s $40,000 truck, your insurance pays $15,000. You’re personally liable for the remaining $25,000. The other driver can sue you, and your wages and assets could be garnished.
Raising your property damage limit to at least $25,000 or $50,000 makes sense. The premium difference is usually modest — often just $50-$100/year — compared to the protection it provides.
12% of Drivers Are Uninsured
Arizona’s uninsured motorist rate hovers around 12% — roughly one in eight drivers. Some estimates suggest 35-40% of Arizona drivers carry only the bare minimum coverage, which won’t go far in a serious accident.
UM/UIM coverage is not required in Arizona. If an uninsured driver hits you and you don’t have UM/UIM, you’re stuck with your own bills. You can sue the uninsured driver, but collecting from someone who couldn’t afford insurance is often impossible.
MFP Tip: Match your UM/UIM limits to your liability limits. If you carry 100/300 liability, carry 100/300 UM/UIM. Note: In Arizona, UM/UIM limits cannot exceed your liability limits.
What Shapes Arizona Rates
Arizona is an At-Fault State with Pure Comparative Negligence
Arizona uses a traditional at-fault (tort) system. The driver who causes an accident is responsible for paying for the other party’s damages through their liability insurance.
Arizona also uses pure comparative negligence. If you’re partially at fault, your damages are reduced by your percentage of fault — but you can still recover. If you’re 40% at fault and have $100,000 in damages, you can recover $60,000. Even if you’re 99% at fault, you can still recover 1% of your damages. This is more favorable than states that bar recovery if you’re 50% or 51% at fault.
Free Windshield Replacement
Arizona law (ARS 20-264) requires insurers to offer an optional $0 deductible for windshield repair and replacement on comprehensive policies. If you select this option, you can get your windshield replaced at no out-of-pocket cost.
Why does this matter? Arizona accounts for roughly 10% of all auto glass claims filed in the United States despite having about 2% of the population. Desert roads, construction zones, gravel, and dust storms cause constant windshield damage. Filing a glass claim won’t raise your rates in Arizona (it’s considered a “no-fault” claim under state law).
If you’re moving to Arizona or buying a new policy, make sure you select the $0 glass deductible option. The small premium increase is almost always worth it.
Monsoons, Haboobs, and 115°F Summers
Arizona’s monsoon season (June-September) brings flash floods, hail, and haboob dust storms that can reduce visibility to zero in seconds. In August 2025, a massive haboob hit Phoenix, leaving over 60,000 people without power and grounding flights.
Comprehensive coverage protects against:
- Flood damage from flash floods and monsoon rains.
- Hail damage.
- Dust storm damage to exterior, paint, and windows.
- Sun damage to interiors, paint fading, and tire blowouts from intense heat.
Without comprehensive, weather-related damage comes out of your pocket. In a state with 100+ days above 100°F and regular dust storms, this coverage is more valuable than in milder climates.
How to Lower Your Arizona Car Insurance Costs
Shop around aggressively. Travelers averages $1,707/year for full coverage while other carriers charge $2,300+. GEICO offers the cheapest minimum coverage at $369/year. Get at least three quotes.
Select $0 glass deductible. The small premium increase is almost always worth it given Arizona’s high windshield damage rates. You’ll avoid paying $300-$500+ out of pocket for an inevitable windshield replacement.
Bundle your policies. Combining auto and homeowners or renters insurance often saves 10-30%.
Improve your credit. With poor-credit drivers paying 67%+ more in Arizona, improving your credit score can cut your premium by hundreds of dollars.
Raise your deductible (except glass). Increasing your deductible from $500 to $1,000 can cut collision and comprehensive premiums by 15-25%. But keep your glass deductible at $0.
Ask about discounts. Common Arizona discounts include good driver, multi-vehicle, homeowner, military/veteran, low mileage, and paying your premium in full.
Maintain continuous coverage. Gaps in coverage can increase your premium when you restart. Even if you’re not driving, keeping a minimal policy active avoids this penalty.
MFP Tip: Arizona rates have been increasing 8%+ annually. Shop at every renewal to make sure you’re getting competitive rates as the market shifts.
Buying a Car in Arizona? Here’s What to Do
Get Insurance First
Arizona requires proof of insurance before you can register a vehicle. You must carry liability insurance from a company authorized to do business in Arizona.
Penalties for driving without insurance include fines, license suspension, registration suspension, and an SR-22 requirement for three years.
Title and Register Within 15 Days (Purchases) or 30 Days (New Residents)
If you purchase a vehicle in Arizona, you have 15 days to apply for a title and complete registration.
New residents have 30 days after establishing residency to register their out-of-state vehicle. Residency is established when you:
- Accept employment or start a business in Arizona.
- Enroll children in Arizona schools.
- Remain in Arizona for 7+ months in a calendar year.
- Obtain an Arizona driver’s license.
After registering, you have 30 days to submit proof of Arizona insurance to ADOT. Your insurance company automatically reports your coverage to the state.
Emissions Testing Required in Phoenix and Tucson
Vehicles in Maricopa County (Phoenix area) and Pima County (Tucson area) must pass emissions testing. Testing is required for vehicles model year 1967 and newer that are more than 5 years old.
Out-of-state vehicles also need a VIN inspection before registration.
Mexico Coverage
If you drive from Arizona into Mexico, your U.S. auto insurance policy does not apply. You must purchase separate Mexico-issued liability insurance before crossing the border. Many Arizona insurers offer Mexico coverage as an add-on, or you can buy it at the border.
End Note
Arizona’s 25/50/15 minimums are low, and the state’s unique conditions — desert heat, monsoons, haboobs, and constant windshield damage — create real risks that liability-only coverage won’t address. About 12% of drivers are uninsured, and UM/UIM coverage is optional.
The good news: Arizona is one of only six states requiring insurers to offer $0 deductible windshield coverage. Given that Arizona accounts for 10% of national auto glass claims, this is a valuable benefit you should always select.
Key recommendations for Arizona drivers:
- Raise your property damage limit above the $15,000 minimum — $50,000+ is safer.
- Add UM/UIM coverage to protect against uninsured drivers.
- Select $0 glass deductible — windshield damage is nearly inevitable.
- Keep comprehensive coverage for monsoon, hail, and dust storm protection.
- Shop rates aggressively — prices vary widely between insurers.
- Buy Mexico coverage if you ever cross the border.
Use the rate tables above to estimate your costs, then get quotes from at least three insurers. Arizona’s desert conditions and low minimums mean you should build coverage that goes beyond the legal floor.