Following Bankrate research, the average family in metro Phoenix spends approximately $2,770 annually for auto insurance, which is approximately $226 above the national average.
According to Bankrate, the median price of full-coverage auto insurance in the country rose by 26% in 2024 to $2,543, a rise of $529 from the previous year. According to USA TODAY, that’s greater than any supermarket item and 6 times quicker than the rate of inflation overall.
Arizona has the fifth-highest “true cost” for auto insurance in the US, based on Bankrate, despite still being just under the national average, as the study also reveals. Specialists at Bankrate compute the “true cost” by calculating the typical percentage of a family’s income that is allocated to auto insurance in a given area.
What is the typical price of auto insurance in Arizona?
Annual premium costs for Phoenix residents are higher than the $2,535 statewide average. Nonetheless, an online map utilizing information from all fifty states and the top 25 metro regions in the United States indicates that the average family in Arizona spends a larger amount of their income.
According to the map, families in metro Phoenix spend roughly 3.34% of their income on auto insurance, compared to 3.40% for Arizonans. Both fall short of the national average of 3.41%.
In contrast to the rest of the country, Arizona’s percentage of revenue spent on auto insurance increased by 1.28%, whereas the national average only increased by 0.48%. Nonetheless, the state’s proportion increased significantly since the previous year.
Why are the costs of auto insurance so high?
Your location, years of age, driving history, credit score, and car type all affect your quote for auto insurance. Because of their high tag and repair costs, electric cars are typically more expensive to insure.
According to Shannon Martin, a researcher at financial products comparison website Bankrate, other variables that have led to growing premiums include the “severe increase” in car crash deaths, vehicle parts and labor expenses, and severe weather claims throughout the past five years.
Moreover, thefts are increasing and will exceed one million in 2022.