Phoenix is the largest city in Arizona State. Buying auto insurance in Phoenix AZ is quite expensive. Residents of Phoenix pay premiums almost 30 percent above Arizona’s average. Regardless of the high auto insurance in Phoenix AZ, the residents have to buy insurance to drive in Phoenix. It is mandatory for all drivers to buy at least minimum liability insurance to cover damages such as bodily injury or damage of property if they get into an accident. Buying insurance always protects you during unforeseen circumstances. Your insurance company will bear your expenses till your liability limit if you happen to be in an accident. It is always advisable to purchase auto insurance with good coverage.
Every individual gets a different quote from different insurance companies. The quote that you receive is based on different factors considered by the insurance company. That is why it makes sense for you to check the best car insurance companies when you start your research on the best car insurance in Phoenix Arizona.
Factors that Determine Auto Insurance in Phoenix AZ
Age is a factor that most insurance companies consider when selling insurance. Drivers in the age group of 50 are considered safe drivers. Hence, they receive the cheapest insurance rates than other age groups. The highest premium payers are teenagers as they considered inexperienced and risky drivers. A teenager, once they turn 20, their premium amount reduces. The premium gradually reduces from the age bracket of 20 until the age group of 50. From the age group of 60 onwards, the premium again starts to rise.
Insurance companies look very closely into your driving history. If you’re a repeat offender who breaks laws or gets into accidents, you are a liability to the insurance company. You will be offered a very high insurance charge by the insurance companies. It is essential to maintain a good record to get a reasonable or even cheaper insurance quote. A driver with DUI or at-fault accidents in his record, his insurance premium will be quite expensive as compared to someone with a clean record.
Other Factors that Determine Car Insurance in Phoenix Arizona
Credit rating is a factor that insurance companies consider when giving an insurance quote. They have found a correlation that an individual with a poor credit score will file more claims than an individual with an exceptional credit rating. Hence, the insurance premium is quite high for someone with a poor credit score. If the credit rating starts to improve, the premium amount will also be reduced by the insurance company. If you don’t have a good credit rating, it’s time to improve it if you are looking for a good insurance premium amount.
Marital status, as well as gender, is a factor insurance companies consider when selling insurance. Male drivers pay higher premiums than females. Also, single status drivers pay much more than married drivers. Widowed drivers pay lesser premium than divorced drivers.
Your location plays an important role in your insurance premium amount. Uninsured motorist, theft, and crime rate differ from one location to another. If you’re a resident of an area with high vehicle theft or crime, you will be paying a high premium amount. A resident from a neighborhood with less crime or vehicle theft will pay lesser insurance than a neighborhood with a very high crime rate. This is because the number of claims filed is less in a good neighborhood.
The minimum insurance required in Phoenix are as follows:
- Bodily injury: 15,000 per person
- Bodily injury: 30, 0000 per accident
- Property damage: $10, 000
All drivers must carry this minimum insurance amount to be legal when driving in Phoenix. It is also good to have additional coverage like collision and comprehensive coverage. If you’re considering to buy insurance, check NAIC ratings. The ratings will help you to decide from which company you want to buy insurance. It is advisable to buy insurance from reputed companies that you can trust. You can also check the best car insurance companies in the United States.