"Ridiculous!" That's how one Let ABC15 Know viewer describes the increasing cost of auto insurance. They're likely not the only consumer who feels that way.
According to data by Insurify, the national average cost of car insurance trended up through 2023 and 2024. However, the national average only fluctuated slightly in the last few months. In Arizona, the annual cost for full coverage also increased over the last few years. The average cost was just more than $1,400 at the start of 2023 and rose to more than $1,900 at the end of 2024.
The higher cost of repair parts, supply chain disruptions, climate disasters - like flooding and wildfires, and expensive technology integrating into vehicles all cause claims to become more expensive for insurance companies to pay out.
To offset the higher costs of claims, companies can raise insurance rates.
In Arizona, only liability insurance is required. It pays for damage and injuries for the other driver if you cause an accident.
The minimum coverage is 25/50/15. That means $25,000 bodily injury per person, $50,000 per accident, and $15,000 for property damage.
If you're driving a lot, you may need to increase those levels since your exposure is great.
The real costs come when trying to protect your own car.
Collision insurance covers damage from accidents and comprehensive insurance covers mostly non-driving issues, such as damage from theft or weather.
The Let ABC15 Know team compared coverage options with two popular insurers - State Farm and Progressive - using as close to the same coverage as we could find.
We compared full coverage for a 2024 Ford F-150.
State Farm's online quote was $1,090 for six months.
The Progressive online quote was $511.
When comparing minimal liability coverage, State Farm's quote was again higher - $591 compared to Progressive at $368 for six months.
We also compared coverage for a 2024 Honda Civic.
When comparing full coverage, the State Farm online quote was $1,140 compared to the Progressive quote of $543 for six months.
Comparing minimal coverage, the State Farm quote was $591 to Progressive's $359 for six months.
Prices may have changed since we completed the comparison process, but the difference at times was nearly $600.
Many factors go into determining insurance rates - age, gender, location, car make and model, and even credit history can all play a role in determining what you pay.
The number one rule to save on auto insurance is to shop around, but focusing on a clean driving record and picking the right vehicle is also helpful.
Consider raising your deductible.
It's what you pay before comprehensive or collision insurance kicks in. Higher deductibles mean lower policy costs. If you do not have any accidents, raising a $500 deductible to $1,000 could be worth it.
Don't miss out on discounts.
Safety features you already have in your car may apply. Ask if you can take a defensive driving class to save or add a 'good student' discount if there is a student on your policy.
