Today, I am going to talk about Arizona auto insurance company (ies), the challenges faced with insurance in Arizona and things you should bear in mind when you want to consider auto insurance companies in Arizona.
firstly, in Arizona, it’s not required by law to get auto insurance but it has many advantages. it’s very fortunate that Arizona auto insurance has some of the lowest minimum requirements for auto insurance in the country (only four states require less), but that doesn’t mean you should neglect it. If you ignore it, you might be at a higher risk of paying so much for damages ranging from paying for damaged property if you are involved in an accident, paying for someone else’s medical bills if you cause any form of accident in any way or you get hit by an uninsured driver; according to report(12 percent of Arizona drivers are uninsured). Arizona also had the 10th most motor vehicle thefts of any state in 2016, making comprehensive insurance a wise choice, even though it’s not required by law.
Arizona auto insurance companies
the top reason where state farm is chosen by people most is that of its competitive pricing and its elite financial strength accompanied by their extensive coverage options.
these are all good reasons why State Farm has the largest share of the Arizona auto insurance market (17.4 percent), but the company’s record of claims satisfaction is what separated it as our top pick. it wasn’t only rated higher in J.D. Power’s claims scoring than any other insurer in the top five, but Consumer Reports’ readers gave it and GEICO the highest overall marks, including for “Simplicity of Process” and “Timely Payment.” Arizona insurance holders filed very few complaints against State Farm in 2016 too (their rate was about half that of GEICO’s), sealing its reputation for outstanding claims-handling.
When it comes to rating it according to premium costs, data from the Arizona Dept. of Insurance shows that State Farm was topping among the cheapest providers in the state in 2017 across a range of coverage levels and drivers (only GEICO was cheaper). Coverage options are thorough with one minor exception: no “gap” coverage for new cars. (This coverage helps pay off your auto loan in the event that your car is totaled and the depreciated value is less than what you owe.) And while State Farm’s online quote process is straightforward enough, we would’ve liked a Live Chat feature, something only GEICO and Progressive have.
In two important areas — financial strength and premium cost — GEICO actually came in first, but it slipped below State Farm in our rankings because of a less-than-stellar claims reputation. Compared to the other big five Arizona providers, GEICO had the highest rate of customer complaints in 2016, and according to J.D. Power at least, its customers weren’t thrilled with how their claims were handled. But the differences weren’t big enough to weigh too heavily, and Consumer Reports readers rated their GEICO claims satisfaction on par with State Farm.
The big selling point for GEICO is its affordable pricing. Last year, it was consistently the cheapest of the top five Arizona providers, sometimes quoting 50 percent less than the others for the same coverage (according to the Arizona Department of Insurance). We found its quote tool easy to use, and its coverage options are clearly outlined on the website, although once again there’s no “gap” coverage for new cars. The bottom line seems to be that if you’re confident wrangling a claim, GEICO’s pricing and financial stability make it a really attractive choice.
At 8.7 percent, Allstate’s market share is the smallest among Arizona top five providers, but its claims reputation is second only to State Farm’s. Both J.D. Power and Consumer Reports readers reported hassle-free filings and quick payments from Allstate, and their 2016 complaint ratio was in line with other top providers in the state. The company’s website is easy to navigate and does a good job explaining various coverages, including their “gap” protection for new cars (something State Farm, GEICO, and Farmers don’t offer).
As for pricing, Allstate’s 2017 Arizona premiums were on the high side among the state’s five biggest providers, particularly for married couples. It seems you can count on solid coverage and smooth claims-handling, but you pay more for it than you probably would with State Farm. Still, Allstate seems like a safe and reliable choice to insure your ride.
Progressive is another solid option for Arizona auto insurance, but it lags slightly behind our top picks in both financial strength and claims satisfaction ratings. The differences are small enough that they likely have no impact on most customer’s experiences, but they nonetheless make it hard to justify Progressive over State Farm, GEICO, or Allstate on the basis of anything except price. Still, we liked how easy it was to get a quote through Progressive’s website.
Progressive has a slew of available discounts — more than any provider we reviewed, except GEICO. There’s even one for adding a newly licensed teen driver to your existing auto policy (surprising given that teenage drivers are among the riskiest to insure). But a policy loaded with discounts isn’t necessarily cheaper than a non-discounted policy, and last year’s data on premiums show that Progressive is, on average, significantly more expensive than GEICO, State Farm, and Allstate in Arizona.
Farmers have the fourth-largest market share in Arizona (8.8 percent), and a Consumer Reports overall score of 89 (above average and tied with GEICO and State Farm). It also had the lowest complaint ratio of Arizona auto insurance company top five insurers in 2016, which speaks well for its customer service. Still, there’s a bit of rust on the hubcaps. J.D. Power respondents rated Farmers below average for claims satisfaction, and the company’s financial strength is a couple notches lower than the others on this list. That doesn’t mean they’re about to go bankrupt anytime soon; it’s just the difference between “quite stable” and “completely rock-solid.”
The bigger drawback for Farmers, at least in Arizona, is its high premium prices. It was the most expensive provider on our list in 6 out of 8 driver profiles spanning a range of ages and coverage levels (a notable exception was the profile of an 81-year-old woman, suggesting that Farmers may be cheaper for older drivers). It’s still worth getting a quote from Farmers since every person’s insurance profile is different, and they also offer the second-most discounts behind GEICO.
READ ALSO: Insurance companies in Texas
problem with Arizona auto insurance company
Arizona now ranks 10th out of all 50 states in motor vehicle thefts, an improvement from the early 2000s when it was consistently in the top three. The state’s border with Mexico, along with its proximity to international shipping ports in California, means that it’s easier for thieves to get rid of stolen cars before law enforcement catches up with them. While it’s a nightmare to imagine your car getting stolen, it would be even worse if you were uninsured. Just because Arizona doesn’t require drivers to have comprehensive insurance against theft doesn’t mean it’s not a smart idea. Unfortunately, a brand new car — the kind most attractive to thieves — also carries a higher comprehensive insurance premium, but you can lessen the cost by selecting a high deductible (like $2,000). It’s still no fun to pay, but it sure beats starting from scratch purchasing a replacement car.
what you should Beware of about Arizona auto insurance company about exclusions on your policy’s liability coverage.
Some auto policies contain an exclusion (commonly called a “Household,” “Family,” or “Intra-Family” Exclusion) which limits the bodily injury coverage available to your family members in the event of an accident. Arizona law lets insurers use it to limit such coverage to the state’s minimum liabilities of $15,000 per person and $30,000 per accident, regardless of whether you have higher liability limits on your policy. This means that if you cause an accident that injures your family members, your policy might not pay up to the full limits you’ve set for their medical care. Make sure they’re covered by asking your insurer whether your policy contains this exclusion. If it does, you might want to purchase additional umbrella coverage.
Why is Auto Insurance in Arizona So Expensive?
No matter where you are located in Arizona, or anywhere else in the country, for many people their auto insurance bill is one of the most expensive bills they have. Why is it so much?
We mentioned earlier that insurance companies set their rates based on ZIP codes. This is true, but they don’t operate just in that narrow window either. Insurance companies look at the entire state for each state that they operate in, to see how profitable it is and to set rates.
They can also be affected nationally if a natural disaster strikes or they have a particularly bad year in some states. This can affect how they set their rates in other states.
Insurance companies are for-profit businesses, meaning their goal is to make money. However, insurance is also heavily regulated. This means that they have strong oversight from each states’ department of insurance.
Similar to the banking industry, insurance companies can’t just set whatever rates they want, they have to follow many guidelines and get approval from the state’s government.
With all of that in mind, most insurance companies in many states are actually losing money each year, or at best just breaking even.
They are paying out more money in claims than they are bringing in with premiums. The reason for this is basically two things: more expensive cars to fix, and more distracted driving.
Cars are much nicer and more technologically advanced today than they used to be, which makes them more expensive to repair or replace. Even minor fender benders can end up costing thousands of dollars if the car has damaged sensors or video cameras.
People are also getting into more accidents than they used to. Part of this is down to more people living in congested cities, but a large part of it is also due to distracted driving.