Cheapest Auto Insurance in Tempe, Arizona (2025)

Tempe drivers pay an overall average of $144 per month for car insurance, which exceeds the Grand Canyon State’s average of $127 per month. The Arizona city borders the east side of Phoenix, which has a population of more than 1.6 million. Tempe’s close proximity to the largest city in the state might have something to do with its above-average car insurance premiums.

However, you can still find ways to earn lower rates than the city’s overall average by deciding how much coverage you need and comparing quotes from multiple insurers at once. Here’s what you need to know about finding cheap coverage in Tempe.

Cheapest car insurance companies in Tempe

Every driver in Tempe has a unique set of factors that affect car insurance premiums. Comparing quotes across multiple auto insurance companies will help you find the best rates for your coverage needs.

Because every insurance company has a different method of determining rates, some companies consistently offer cheaper rates than others. Consider the information below about three of the top insurance companies in Tempe to start your search for cheap car insurance.

Best insurer for cheap rates: Auto-Owners

Best insurer for infrequent drivers: Mile Auto

Best insurer for families: State Farm

How to get the cheapest car insurance in Tempe

Insurers look at multiple factors when determining your car insurance premiums, including your driving record, age, location, marital status, and credit history.

You can use the strategies below to find the best rates for your insurance needs:

• Shop around. Every insurer has a slightly different approach to determining premiums. Getting quotes from multiple insurance companies is the best way to discover the lowest rates for your situation.

• Ask for discounts. Many insurance companies offer a suite of discount opportunities. Don’t hesitate to ask if you qualify for any of them.

• Increase your deductible. A higher deductible usually comes with a lower premium. If you have the money to cover a higher deductible, consider making this switch.

Cheapest liability-only car insurance in Tempe: Mile Auto

Liability-only car insurance is usually the most affordable coverage option. This type of policy includes bodily injury and property damage liability coverage. If you cause an accident, a liability policy can help you pay for the damages or injuries you cause to others. This might include the other party’s vehicle repairs or medical bills.1

Mile Auto offers the cheapest liability-only policies to Tempe drivers, with rates of $68 per month. The table below includes average quotes from other insurance companies.

Cheapest full-coverage car insurance in Tempe: Mile Auto

Full-coverage car insurance policies offer more financial protection than liability-only policies. In addition to liability coverage, a full-coverage policy includes comprehensive and collision coverages. If you have an incident, a full-coverage policy can help you pay to repair or replace your own vehicle.

Auto lenders typically require drivers to purchase this coverage. But even if you don’t need to carry this coverage, it’s a good idea to buy it if you’d struggle to pay for repairs on your own after a car accident.

Full-coverage car insurance in Tempe costs an average of $180 per month.

In the table below, you can find the cheapest average quotes for full-coverage insurance policies in Tempe.

Car insurance requirements in Arizona

The state of Arizona requires drivers to have proof of financial responsibility to operate a vehicle on public roads. You prove this responsibility by purchasing the state’s minimum required insurance, which must meet the following requirements for bodily injury and property damage liability coverage:2

It’s a good idea to consider purchasing coverage beyond the state’s minimum requirements to provide more vehicle protection. Here are two of the most common optional coverages to consider:

Cheapest car insurance for drivers with an incident

Even the best driver can make mistakes on the road. But having a violation on your driving record can affect your car insurance premiums. Common incidents — like speeding tickets, driving under the influence, and at-fault accidents — often lead to higher car insurance premiums.

In 2022, 660 traffic fatalities occurred in Maricopa County, which includes Tempe.3 Compared to the rest of the state, Maricopa County has a relatively high traffic fatality rate.

Below, you can find the cheapest average liability quotes for Tempe drivers by driving record.

Average cost of car insurance by age

Insurance companies consider driver age when determining premiums. Due to a lack of driving experience, teen drivers pay the highest car insurance premiums. In general, the trend of relatively high rates continues for young adults until around age 35. Most drivers earn lower rates until the age of 70, when senior drivers start to see increased rates.4

The following table illustrates how average car insurance costs change by age.

Tempe car insurance quotes by credit tier

Arizona is one of many states that allow insurance companies to consider your credit history when determining premiums. In general, this means that drivers with excellent or good credit pay the lowest rates for car insurance. In contrast, drivers with poor credit tend to pay more.5

The table below shows average full-coverage car insurance quotes by credit tier in Tempe.