Is Your Phoenix Arizona Car Insurance Too High? Learn How to Lower Your Rates

Finding cheap Phoenix car insurance on the internet is problematic for consumers new to comparison shopping online. With so many online companies available, how can consumers possibly compare every one to find the best pricing?

It’s a good idea to get comparison quotes once or twice a year because insurance rates change regularly. Even if you think you had the best rates a couple years back you will most likely find a better rate today. Forget anything you know (or think you know) about car insurance because you’re about to find out the things you must know in order to reduce your cost while improving coverage.

If you have a policy now or need new coverage, you can use these techniques to get lower rates while maximizing coverage. The purpose of this post is to help educate you on how to effectively get price quotes and some tips to save money. Arizona drivers just need to learn the tricks to shop their coverage around online.

Automobile Insurance Quotes in Phoenix

Finding lower car insurance rates isn’t really that difficult. All that’s required is to take time comparing price quotes from different insurance companies. This can be done using a couple different methods.

  1. The recommended way consumers can analyze rates would be an industry-wide quote request form like this one (opens in new window). This method prevents you from having to do separate forms for each company. One form submission gets rate comparisons from many national carriers. Recommended for those who want to invest the least amount of time.
  2. A less efficient way to compare rate quotes consists of visiting each company website to complete a price quote. For instance, let’s say you want comparison quotes from Progressive, Allstate and American Family. To find out each rate you need to go to every website to input your insurance information, which is why the first method is more popular.For a handy list of car insurance company links in Phoenix, click here.
  3. The hardest way of getting rate comparisons is to spend your day driving to different Phoenix agent offices. The internet makes this process obsolete unless you want the professional advice of a licensed agent. It is possible to price shop online and get advice from an agent in your area.

It’s your choice how you get your quotes, but make absolute certain that you use identical information on every quote you get. If the quotes have unequal deductibles or liability limits it will be very difficult to decipher which rate is best in Phoenix.

More discounts equal less premium

Companies offering auto insurance don’t always advertise all available discounts in an easy-to-find place, so we took the time to find some of the more common and the more hidden savings tricks you should be using. If they aren’t giving you every credit possible, you are throwing money away.

  • Auto/Home Discount – If you insure your home and vehicles with one company you may save 10% to 20% off each policy.
  • Passive Restraints – Cars that have air bags can qualify for discounts of up to 25% or more.
  • Theft Prevention System – Anti-theft and alarm systems are stolen less frequently and qualify for as much as a 10% discount.
  • Good Student Discount – This discount can save 20 to 25%. The discount lasts up until you turn 25.
  • Club Memberships – Belonging to a qualifying organization could qualify you for a break on car insurance.

Consumers should know that most of the big mark downs will not be given the the whole policy. Most only reduce the cost of specific coverages such as liability and collision coverage. Just because it seems like it’s possible to get free car insurance, car insurance companies aren’t that generous.

How insurance companies determine rates

It’s important that you understand the rating factors that go into determining the rates you pay for car insurance. Understanding what determines base rates enables informed choices that could result in lower car insurance prices.

Listed below are a few of the “ingredients” car insurance companies consider when setting premiums.

  • Extra add-on coverages are wasting money – There are a ton of additional coverages that can waste your money on your policy. Insurance for vanishing deductibles, accident forgiveness and membership fees may be wasting your money. These may sound like a good investment when talking to your agent, but your needs may have changed so eliminate the coverages to reduce your premium.
  • Theft deterrents lower rates – Purchasing a vehicle that has an advanced theft prevention system can save you a little every year. Anti-theft devices like tamper alarm systems, vehicle immobilizer technology and General Motors OnStar all aid in stopping car theft.
  • Lower miles equals lower premium – The more you drive each year the higher your rates will be. The majority of insurers price each vehicle’s coverage based upon how you use the vehicle. Cars left parked in the garage get more affordable rates than those used for commuting. Make sure your car insurance policy shows the correct driver usage.
  • Never let your coverage lapse – Driving your car without having proper coverage can get your license suspended and as a result your rates will increase for letting your coverage have a gap. And not only will your rates increase, failure to provide proof of insurance may earn you a hefty fine and possibly a revoked license.
  • High crash test scores lower rates – Vehicles with good safety scores can get you lower premiums. Safe vehicles protect occupants better and any reduction in injury severity means lower claim amounts passed on to you as lower rates.
  • How your age affects price – Older insureds are more cautious drivers, statistically cause fewer accidents and tend to be better behind the wheel. Teen drivers tend to get distracted easily when behind the wheel and because of this, their car insurance rates are much higher.

But I want to work with a local agent

Certain consumers would rather buy from a licensed agent. Agents can point out coverage gaps and help file insurance claims. One of the best bonuses of comparing rates online is the fact that you can find the lowest rates but also keep your business local.

After completing this short form, your coverage information is submitted to local insurance agents who will battle for your business. You never need to leave your computer since price quotes are sent directly to your email. Now that’s easy!

Deciding on an provider requires more thought than just the bottom line cost. Some important questions to ask are:

  • Are claims handled at the agent’s location?
  • Which company do they place the most coverage with?
  • How much will you save each year by using a higher deductible?
  • Do they assist clients in filing claims?
  • Are they full-time agents?
  • Will your rates increase after a single accident?

Do you need an independent or captive auto insurance agent?

When looking for an insurance agent, there are a couple of types of agencies to choose from. Agents are classified as either captive or independent. While both can properly insure your vehicles, but it’s worth learning how they are different because it can impact your agent selection.

Captive Insurance Agents

Captive agencies work for only one company and examples are Liberty Mutual, State Farm, Allstate and AAA. Captives cannot place coverage with different providers so they are skilled at selling on more than just price. Captives are usually quite knowledgeable in insurance sales which helps them compete with independent agents. Consumers sometimes choose to use a captive agent mostly because of high brand loyalty and the convenience of having a single billing for all their coverages.

Listed below are Phoenix captive insurance agents willing to provide rate quotes.

  • Allstate Insurance Co – 13601 S 44th St – Phoenix, AZ 85044 – (480) 753-4272
  • Liberty Mutual Insurance – 3636 N Central Ave – Phoenix, AZ 85012 – (602) 265-3336
  • State Farm Insurance – 42104 N Venture Dr # C118 – Phoenix, AZ 85086 – (623) 742-6866
  • Farmers Insurance Group – 10214 N Tatum Blvd # A700 – Phoenix, AZ 85028 – (480) 922-0000
  • Farm Bureau Insurance – 4045 E Union Hills Dr – Phoenix, AZ 85050 – (602) 971-2050
  • American Family Insurance – 4001 E Bell Rd # 122 – Phoenix, AZ 85032 – (602) 485-0500
Independent Agencies or Brokers

These agents are not locked into one company but instead can place your coverage with lots of companies and possibly get better coverage at lower prices. If your agent finds better pricing, they simply move the coverage in-house and you won’t have to switch agencies.

When searching for an agent, it’s a good idea to include price quotes from at a minimum one independent agency to ensure the widest selection of prices. They also have the ability to place coverage with smaller regional carriers who may have lower rates.

Listed below are Phoenix independent agencies willing to provide comparison quotes.

  • Garland Insurance and Financial – 4530 E Shea Blvd # 130 – Phoenix, AZ 85028 – (480) 483-9405
  • Dan Firth Agency – 2737 E Greenway Rd # 2 – Phoenix, AZ 85032 – (602) 494-2660
  • Regina Ausloos Agency – 350 E Bell Rd # 201 – Phoenix, AZ 85022 – (602) 866-5800
  • Citywide Insurance – 7815 N 19th Ave – Phoenix, AZ 85021 – (602) 288-9621
  • Jim Bonham Agency – 10640 N 28th Dr # A109 – Phoenix, AZ 85029 – (602) 993-1234

For a complete listing of insurance agents in Phoenix, go to this page.

After getting positive feedback to your questions in addition to an acceptable price estimate, you’ve probably found an insurance agent that meets your needs to adequately provide car insurance.

Which insurance is the “right” coverage?

When it comes to buying coverage, there is no “best” method to buy coverage. Coverage needs to be tailored to your specific needs.

Here are some questions about coverages that can aid in determining if you could use an agent’s help.

  • What is the difference between comprehensive and collision coverage?
  • What is the minimum liability in Arizona?
  • Can I rate high risk drivers on liability-only vehicles?
  • Do I need special endorsements for business use of my vehicle?
  • Can I afford to pay high deductible claims out of pocket?
  • Do I need roadside assistance coverage?

If it’s difficult to answer those questions, you might consider talking to a licensed agent. If you want to speak to an agent in your area, simply complete this short form. It only takes a few minutes and can help protect your family.

More detailed Arizona car insurance information is available at the Arizona Department of Insurance website. Visitors are able to read state legal mandates and laws, find out which companies have the most complaints, and find disaster information.

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How can State Farm and Allstate save drivers who switch?

Arizona consumers constantly see and hear ads for cheaper car insurance from companies such as State Farm and Allstate. They all seem to make an identical promise of big savings if you move your policy.

Arizona insurance cheap

How can each company make almost identical claims?

All companies can use profiling for the type of customer that earns them a profit. For example, a profitable customer might be profiled as between 30 and 50, a clean driving record, and has a short commute. A driver that hits that “sweet spot” gets the lowest rates and as a result will probably save when they switch companies.

Potential customers who don’t meet the “perfect” profile must pay higher premiums which leads to the customer not buying. The ads say “drivers who switch” not “everybody who quotes” save that much. This is how insurance companies can confidently advertise the way they do. This illustrates why it is so important to compare as many rates as you can. It’s not possible to predict which insurance companies will provide you with the cheapest rates.

Keep this in mind

When you buy insurance online, it’s not a good idea to sacrifice coverage to reduce premiums. There have been many cases where someone sacrificed full coverage only to regret at claim time that their decision to reduce coverage ended up costing them more. Your aim should be to find the BEST coverage for the lowest price.

Budget-conscious car insurance can be found on the web as well as from independent agents in Phoenix, and you should be comparing both in order to have the best chance of saving money. A few companies don’t offer online price quotes and usually these regional insurance providers provide coverage only through local independent agents.

Consumers leave their current company for any number of reasons including denial of a claim, high prices, unfair underwriting practices or even policy non-renewal. No matter why you want to switch, finding a new company can be pretty painless.