When it comes to car insurance, Arizona rests firmly in the middle of the pack on price. If you’re in the market for auto insurance in the Grand Canyon state, you’ll need to know how insurers calculate your premiums – read on to find out how choose Arizona Car Insurance.
1. Income
For many consumers, price tops the list of car insurance concerns. Perhaps you’re looking for the cheapest car insurance in Arizona. For the less price-sensitive consumer, you might be looking for a policy that balances monthly premiums with coverage.
Fortunately, a large variety of policies exist to meet the need of every consumer. The bare minimum that every driver has to meet to legally drive in Arizona is bodily injury liability coverage of $25,000 for one person going up to $50,000 for two or more, plus $15,000 in property-damage liability per Arizona state law. This averages to $56 per month, roughly 5% more expensive than the national average.
2. Arizona Car Insurance Area
The area in which you live can cause your monthly insurance bill to fluctuate slightly. Individuals living in rural areas typically pay less than those in urban areas due to the decreased possibility of an accident and/or vehicle theft.
Researching auto crime rates in your area might give you a good idea of whether you need to look for an insurer that offers lower premiums in high-risk areas.
3. Age
Insurers consider numerous variables when setting auto rates. Though it may seem unfair, rates are set according to complex statistical models. This is why younger drivers tend to pay more than older drivers.
For example, people under 25 are more likely to be involved in accidents than middle-aged drivers. However, after a certain point, age becomes a detriment. That is why rates increase for the elderly as well.
4. Gender
Men constitute a greater risk class than women when it comes to auto accidents. Men are more likely to be involved in costly auto accidents and to receive infractions such as speeding violations. This is reflected in the higher average monthly premiums charged to male drivers.
5. Deductible
Finally, a variable that is firmly in your control. A deductible is how much you’ll pay out of pocket if there’s an accident before your coverage starts. The higher the deductible, the lower your insurance premiums.
While it may be tempting to go for the highest deductible your insurance carrier offers, be warned this can be a costly strategy if you are ever faced with an accident.
6. Credit History
Somewhat controversially, your credit history is also used when calculating your auto insurance rate. Insurers draw a correlation between creditworthiness and low-risk drivers – this remains a contentious issue in the industry.
7. Insurance Carrier
Actuaries are the specialists who determine insurance rates using complex mathematical models to assess risk. However, if you’ve taken the time to shop around, you’ll quickly find that different insurance companies will quote you different prices for the same policies with the same information.
That’s because each company has its own formula, not to mention different administrative costs. The latter factor is a double-edged sword. Leaner companies may be able to provide a superior price point due to a stripped-down support structure. However, they may also be more difficult to reach and work with if there’s an accident.
Final Thoughts: Keep it Clean
Speeding tickets, DUIs, and accidents can raise your monthly rates, sometimes by significant amounts. A clean driving record not only keeps the roads safe, but it’ll keep your premiums down.
Keep it clean, shop around, and find the best Arizona Car Insurance for your needs!
