Residents of Arizona can expect to receive insurance rates that are often directly correlated with their driving record. Typically, those with the least risk – such as drivers who have perfect records and no previous drug or alcohol convictions – will receive the lowest auto insurance rates in Arizona. Those with a few driving incidents on their record, whether it is traffic accidents or speeding tickets, will receive slightly higher insurance rates. Finally, those with a chronically poor driving record and drug or alcohol-related charges will receive the highest insurance rates because they are the most risky to insure. However, insurance companies also factor in other things when determining your rate, such as the ones outlined below.

Know Your Rates

Auto insurance rates are determined after carefully reviewing all of the licensed drivers in the household. This includes those who are not related by blood, such as roommates and spouses. After calculating a base rate, insurance companies will adjust that base rate depending on several things, including:

• Driving record and claims history. The more past accidents and violations you have had, the riskier driver you are to insure. That means that unless you have a perfectly clean driving record, you will receive higher rates.
• Daily commute figures. Those who spend more time on the road invariably increase their chances of becoming involved in an accident. Insurance companies will want to know how much time you spend driving each day, as those who drive less will receive lower rates for the lowered risk, whereas those who drive more will receive higher rates for the heightened risk.
• Location of driver and car. Cars kept in a part of town that is has a high rate of vehicle theft and/or traffic collisions are riskier to insure, so drivers of those vehicles will likely receive higher insurance rates
• Make, model, and year of the vehicle. Pricier vehicles will receive higher rates because they are more likely to be stolen or otherwise damaged. In addition, those driving vehicles prone to breakage may also see their insurance rates increase.

Lower Your Rates

There are some aspects of insurance rates that consumers cannot control. After all, insurance companies essentially determine their customer premiums based on the statewide pool of losses that the company experiences, according to the Arizona Department of Insurance. But while you cannot help some factors that determine your insurance rates, there are some things that you can control to ensure that you at least receive low cost car insurance in Arizona.

Meet with an insurance agent and talk about exactly what you need for your insurance plan to cover. Discuss the price you are paying now for those services and coverage so that your agent can determine whether or not you are receiving the most benefits for what you are willing to pay.

Shop around and compare different rates and packages offered by various insurance companies. Compare auto insurance rates in Arizona by looking at what different companies offer. To find out if a company or agent is properly licensed, you can call the Arizona Department of Insurance at 1-800-325-2548. Understand exactly what you need and determine which companies offer those types of coverage for the least amount of money. Do not forget to take customer complaints into account – learning from past customer experiences can help you avoid signing up for a difficult insurance carrier.

Ask about discounts, as most insurance companies offer lower rates for those with multiple vehicles, anti-theft devices, a good driving record, and/or with low mileage on their car. In addition, young drivers can take advantage of “good student” discounts, as well as driver’s education discounts for those who completed a formal driver’s education program. If you plan to bundle your insurance plan with other types of insurance, such as home insurance, you may receive a discount from the company as well, which can all lead you to affordable auto insurance in Arizona.

Picking an Insurance Agent/Broker

The difference between an insurance agent and an insurance broker is simple – agents work with specific insurance companies to sell policies for commission, whereas brokers work with individual clients to sell policies for commission. Both are great resources for auto insurance information. Your agent or broker will consider your insurance needs and your budget to help you pick the best insurance package

However, before you settle with a particular agent, ensure that he or she is credentialed and licensed with Arizona’s Department of Insurance. You can contact the Department of Insurance directly for information, or use the department’s “License Search” tool to look up the agent or broker online. In addition, if after you work with an agent, broker, or insurance company and have had an unsatisfactory experience, you can choose to file a complaint online or call it in. This way, the Department of Insurance can look into your complaint and pursue any disciplinary actions necessary.

After an Accident

Whether it was your fault or not, accidents happen and you must take the correct steps afterwards to ensure that you have all of the documentation and information you need to inform your insurance company about it. Sometimes, the procedure you should follow after an accident is printed on your insurance card. However, if not, then the general rule is that after any collision – particularly one involving another vehicle or person – you should notify the police. In the event that someone is injured, you should also request emergency medical services.

Stay at the scene of the accident until the police arrive. In the meantime, swap information with the other driver. You should take down his or her name, address, telephone number, and license plate number, even if the driver has no car insurance in Arizona. If there are witnesses to the accident, get their information as well.

It is important that you do not admit fault at the scene of the accident, or to even discuss the details of what happened except to police and your insurance company. Be courteous, but do not let the other driver persuade you into admitting fault when you do not yet have the full details about what occurred.

Notify your insurance company and cooperate in answering all of their questions to the best of your ability. Keep a record of who you officially talk to regarding the accident, such as insurance agents or the police. Make a note of any decisions they may tell you.

After your case has been reviewed, your insurance company will likely provide you with a list of several vehicle repair shops you may visit to get your car fixed. However, if you choose to go to another shop where the price to fix your car is significantly higher than most of the other shops around you, then you may be required to pay the difference in costs yourself.

Insurance for High-Risk Drivers

Those who have decidedly less-than-sterling driving records may find themselves with few options for insurance. High-risk drivers, meaning those with a history of traffic collisions, tickets, or driving under the influence, can be turned away from many typical insurance companies. However, there are some insurers that specialize in covering high-risk drivers:

The premiums for high-risk drivers will undoubtedly be much higher, so if you fall into that category, be aware of this as you shop around. If you cannot find an insurer that will cover you, you can contact the Arizona Department of Insurance at 1-800-544-9208. They may be able to help you find insurance.

Additional Help

The Arizona Department of Insurance is a great resource for anyone looking to learn more about auto insurance. They will answer any questions you may have about auto insurance laws and procedures, investigate complaints about insurance companies, agents, or brokers, and even enforce insurance law on your behalf if necessary. You can call them at 1-800-544-9208.

Online resources include:

• Arizona Department of Insurance – Insurance Laws and Rules
• Arizona Department of Insurance – License Search
• Arizona Department of Insurance – Consumer Forms, Publications, and Links
• Arizona Department of Insurance – Fraud Unit