Insurance in Arizona: A Guide to Auto & Home Coverage
Between desert heat, rapid urbanization, and legal requirements, Arizonans need insurance. However, finding insurance coverages that give you peace of mind without stretching your budget can be a challenge. To help you figure out what insurance in Arizona you need, we've broken down the minimum coverages and recommended add-ons.
Types of Insurance Coverage Available in Arizona
As in every state, Arizona has a range of insurance types available to residents. From Arizona auto insurance to business insurance, it's important to understand what you need to make sure you have followed the law and are protected.
Auto Insurance in Arizona
Arizona is a no-fault state, which means all drivers must have insurance that covers medical expenses for themselves and their passengers, regardless of who is at fault in an accident. Arizona car insurance minimum requirements are similar to those in other states.
Arizona also requires uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage to help pay for medical expenses and property damage if you're in an accident with a non-compliant, uninsured driver.
Although further insurance is not required, most drivers nationwide also opt for additional coverages like collision coverage and comprehensive coverage to help pay for damages from collisions as well as theft, vandalism, and environmental hazards.
Home Insurance in Arizona
Arizona insurance regulations do not require homeowners insurance, but most mortgage lenders do. If you're buying a house with a mortgage, you'll likely need a homeowners insurance policy.
When exploring home insurance, make sure your policy offers coverages for issues particular to Arizona, such as extreme heat and wildfires. In some areas, you may want to get flood insurance, which is typically separate from a standard homeowners insurance policy.
Average Cost of Insurance in Arizona
Determining average insurance costs is difficult because they depend on many varying factors. We've gathered these estimates from a range of sources to give you an idea of insurance rates in Arizona:
- Car insurance in Arizona: $864 to $2,737 per year
- Home insurance: $1,667 to $2,163 per year
Note that minimum coverage will always cost less than full coverage with all of these types of Arizona insurance.
Factors Affecting Insurance Rates in Arizona
An insurance company uses many factors to determine coverage costs depending on the coverage type. The most common factors include:
- Car insurance: Driving record and history, driver age, vehicle type, location (urban vs. rural), credit score
- Home insurance: Home location, home type
- Across the board, plans with higher coverage limits and higher deductibles cost more. Additionally, you'll probably pay more if you live in one of the rapidly urbanizing parts of the state, such as Phoenix or Scottsdale, as opposed to rural areas. That's because with more drivers on the road and people around, there's a greater risk for property damage. However, if you live in an area prone to wildfires or with dangerously severe heat, you may pay more for home and health insurance.
Finally, teen drivers will likely have to pay more for car insurance premiums, while people over the age of 65 will face higher health and life insurance premiums due to advanced age.
Useful Arizona Insurance Resources
To find out more about Arizona insurance requirements and answer questions about state regulations, visit the Arizona Department of Insurance's website.
If you're looking for cheap car insurance in Arizona, thinking about switching policies, or need help finding the right plan for you and your family, use EverQuote's comparison tools to compare coverage options and get real-time quotes to make an informed decision.