Tempe drivers pay an average of $136 monthly for full coverage car insurance, but costs range from $132 to $388. The table below shows average premiums for different driver profiles to help drivers better understand potential costs.
Tempe, AZ, Car Insurance
Updated: January 13, 2025
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Cheapest Car Insurance in Tempe: Key Takeaways
Mercury, Root, Travelers and Auto-Owners offer Tempe's most affordable car insurance options.
Mercury offers the cheapest minimum coverage at $41 per month. Root provides the most affordable full coverage at $87.
On average, car insurance costs $71 per month for minimum coverage and $136 for full coverage.
Car Insurance Quotes in Tempe, AZ
| Young Drivers | $89 | $174 |
| Teens | No Data | $388 |
| Seniors | $70 | $132 |
| Drivers With an Accident | $108 | $211 |
| Drivers With a Speeding Ticket | $88 | $177 |
| Drivers With a DUI | $116 | $222 |
| Bad Credit | $164 | $345 |
Because insurers calculate premiums differently, you'll need to get quotes from multiple providers for the most accurate estimate.
Tempe vs. State Average
Arizona
State Average Full Coverage Rate
$1,530
Tempe, AZ
City Average Full Coverage Rate
$1,637Tempe Car Insurance is Costly:$107 more
This is 7% more expensive.
What Is the Average Car Insurance Rate in Tempe?
Tempe's average full coverage car insurance cost is $1,637 per year, while minimum coverage is $856. These rates are higher than Arizona's averages of $1,530 and $765, respectively.
| State Average | $765 | $1,530 |
| Tempe Average | $856 | $1,637 |
Cheapest Car Insurance Companies in Tempe
While car insurance premiums rise in Arizona, you can still find affordable options in Tempe. Mercury offers the cheapest minimum coverage at $41 per month. Root provides the best rate for full coverage at $87.
WHY CAR INSURANCE IN TEMPE IS EXPENSIVE
Tempe is expensive for car insurance due to high traffic and accident rates. This city ranks among the top in Arizona for insurance costs. Statewide issues such as many uninsured drivers and frequent personal injury lawsuits also increase prices.
Cheap Car Insurance in Tempe
Mercury offers the cheapest minimum coverage car insurance in Tempe, but rates vary by driver. To find the most affordable option, get quotes from multiple providers. Below is a table with the lowest rates for different driver profiles.
| Mercury | Minimum Coverage | $41 |
| Root | Full Coverage | $87 |
| Travelers | Teens | $218 |
| Root | Young Adults | $74 |
| Travelers | Seniors | $69 |
| Travelers | Bad Credit | $90 |
| Root | Drivers With a DUI | $82 |
| Travelers | Drivers With an Accident | $92 |
| Auto-Owners | Drivers With a Speeding Ticket | $85 |
Car Insurance Rates in Tempe by Company
Compare multiple providers to find the cheapest car insurance companies. Below, we explain the most affordable minimum and full coverage options in Tempe.
Cheapest Car Insurance Companies for Minimum Coverage in Tempe
Mercury offers the cheapest minimum coverage auto insurance at $41 per month, followed by State Farm and Progressive at $53. The table below provides a detailed breakdown of the affordable options.
| Mercury | $41 | $30 |
| State Farm | $53 | $18 |
| Progressive | $53 | $18 |
| GEICO | $54 | $17 |
| Travelers | $55 | $17 |
| Auto-Owners | $58 | $13 |
| Root | $61 | $10 |
| Allstate | $66 | $5 |
Cheapest Car Insurance Companies for Full Coverage in Tempe
Root offers the cheapest full coverage car insurance in Tempe at $87 monthly. Below is the full list of providers in the area.
| Root | $87 | $49 |
| Travelers | $97 | $39 |
| GEICO | $99 | $37 |
| Progressive | $100 | $37 |
| State Farm | $111 | $25 |
| Auto-Owners | $113 | $24 |
| Mercury | $116 | $21 |
| Allstate | $130 | $6 |
| Iowa Farm Bureau | $135 | $2 |
| Hartford | $135 | $1 |
Car Insurance Companies in Tempe
Root offers the cheapest car insurance in Tempe at $890 annually. Auto-Owners is the best affordable provider, with a MoneyGeek score of 86 out of 100. Check the table below for more options.
| Auto-Owners | 86 | $1,024 |
| Mercury | 83 | $941 |
| State Farm | 82 | $986 |
| Travelers | 78 | $910 |
| GEICO | 77 | $921 |
| Progressive | 76 | $920 |
| Nationwide | 73 | $1,365 |
| COUNTRY Financial | 73 | $1,384 |
| Allstate | 72 | $1,178 |
| Hartford | 70 | $1,273 |
| Farmers | 70 | $1,353 |
| CSAA | 60 | $1,965 |
| The General | 40 | $2,349 |
| Iowa Farm Bureau | No Data | $1,239 |
| Root | No Data | $890 |
*Rates are for a 40-year-old driver with good credit and no driving violations.
Car Insurance Cost in Tempe by Age
Middle-aged drivers and younger seniors pay the lowest car insurance rates in Tempe, averaging $1,637 per year for 40-year-olds and $1,578 for 65-year-olds. The table below shows average costs for drivers aged 16 to 65.
| 16 | $2,983 | $-900 |
| 17 | $2,870 | $-788 |
| 18 | $2,605 | $-522 |
| 19 | $2,225 | $-142 |
| 20 | $2,278 | $-195 |
| 21 | $1,876 | $207 |
| 22 | $1,875 | $208 |
| 23 | $1,942 | $141 |
| 24 | $1,835 | $248 |
| 25 | $2,087 | $-441 |
| 40 | $1,637 | $8 |
| 65 | $1,578 | $67 |
Cheapest Car Insurance for Teens in Tempe
Travelers offers the cheapest overall car insurance for teens in Tempe at $134 per month, saving $89 compared to the state average. The table below breaks down more affordable providers for this age group.
| Travelers | $134 | $89 | $218 |
| GEICO | $184 | $38 | $273 |
| Auto-Owners | $211 | $11 | $219 |
| Progressive | $218 | $5 | $527 |
| Nationwide | $224 | $-2 | $568 |
| State Farm | $225 | $-3 | $279 |
| Farmers | $241 | $-18 | $717 |
| Allstate | $343 | $-120 | $299 |
*Rates are for 16 to 19-year-old drivers with good credit and no driving violations for full coverage policies.
Best Car Insurance Rates for Young Drivers in Tempe
Travelers offers the cheapest minimum coverage for young drivers in Tempe at $53 per month. Root is the most affordable for full coverage at $87. Check the table below to compare affordable options across different driver profiles.
| Travelers | Minimum Coverage | $53 |
| Root | Full Coverage | $87 |
| Root | Bad Credit | $94 |
| Root | Drivers With a DUI | $83 |
| Root | Drivers With an Accident | $93 |
| Root | Drivers With a Speeding Ticket | $92 |
Cheapest Car Insurance Companies for Young Drivers in Tempe
Root offers the most affordable auto insurance for young drivers in Tempe at $74 monthly. The table below shows other companies with competitive rates.
| Root | $74 | $57 |
| Travelers | $76 | $56 |
| Progressive | $95 | $37 |
| GEICO | $98 | $34 |
| State Farm | $103 | $28 |
| Allstate | $113 | $19 |
| Mercury | $116 | $16 |
| Auto-Owners | $117 | $15 |
| Iowa Farm Bureau | $124 | $7 |
*Rates are for 25-year-old drivers with good credit and no driving violations for minimum and full coverage policies.
Best Car Insurance Rates for Seniors in Tempe
Mercury and Travelers are Tempe's most affordable car insurance providers for seniors. The table below highlights the cheapest companies for different driver and coverage profiles.
| Mercury | Minimum Coverage | $43 |
| Travelers | Full Coverage | $87 |
| Travelers | Bad Credit | $94 |
| State Farm | Drivers With a DUI | $87 |
| State Farm | Drivers With an Accident | $95 |
| Auto-Owners | Drivers With a Speeding Ticket | $82 |
Cheapest Car Insurance for Seniors in Tempe
Travelers offers the cheapest monthly premium for seniors at $69 for minimum and full coverage plans. Progressive and State Farm follow at $76. The table below shows the top car insurance options for seniors in Tempe.
| Travelers | $69 | $32 |
| Progressive | $76 | $25 |
| State Farm | $76 | $24 |
| Mercury | $80 | $21 |
| Root | $80 | $21 |
| GEICO | $82 | $19 |
| Auto-Owners | $82 | $18 |
| COUNTRY Financial | $83 | $17 |
| Hartford | $93 | $8 |
| Iowa Farm Bureau | $97 | $4 |
*Rates are for 65-year-old drivers with good credit and no driving violations for minimum and full coverage policies.
Car Insurance Cost for High-Risk Drivers in Tempe
For high-risk drivers, Tempe's rates for minimum coverage ($1,247) and full coverage ($2,438) are higher than the state averages. Drivers with bad credit or DUIs pay the most, while accidents and speeding tickets don't raise rates as much.
| Tempe Average | $1,247 | $2,438 |
| State Average | $1,126 | $2,277 |
DRIVING OFFENSES AFFECT RATES FOR A LIMITED TIME ONLY
Insurers typically consider minor incidents like a not-at-fault accident or speeding ticket for three to five years. For serious offenses like a DUI, the period extends up to 10 years, and you might need to file an SR-22 to meet Arizona's minimum coverage requirements.
Cheapest Auto Insurance Rates With a DUI in Tempe
Progressive offers the cheapest minimum coverage for drivers with a DUI in Tempe at $710 per year. Root provides the most affordable full coverage at $1,160. Check out the table below for more low-cost coverage options.
| Progressive | $59 | $115 |
| State Farm | $61 | $126 |
| Travelers | $65 | $124 |
| Mercury | $66 | $186 |
| Root | $68 | $97 |
*Rates are for a 40-year-old driver with good credit and a DUI.
Cheapest Auto Insurance Rates With an Accident in Tempe
Travelers, State Farm and COUNTRY Financial offer the cheapest auto insurance after an at-fault accident in Tempe. The table below shows various providers offering affordable coverage.
| Travelers | $64 | $120 |
| State Farm | $67 | $138 |
| COUNTRY Financial | $68 | $169 |
| Root | $77 | $110 |
| Progressive | $80 | $159 |
*Rates are for a 40-year-old driver with good credit and an at-fault accident.
Cheapest Auto Insurance Rates With a Speeding Ticket in Tempe
COUNTRY Financial is the cheapest car insurance provider for drivers with speeding tickets in Tempe, offering minimum coverage at $54. Auto-Owners and Travelers are the most affordable for full coverage at $113. Check the table below to see how much other providers charge drivers with speeding tickets.
| COUNTRY Financial | $54 | $199 |
| Auto-Owners | $58 | $113 |
| Travelers | $59 | $113 |
| State Farm | $61 | $126 |
| GEICO | $65 | $122 |
*Rates are for a 40-year-old driver with good credit and a speeding ticket.
Cheapest Car Insurance for Bad Credit in Tempe
Mercury offers the most affordable rates for drivers with bad credit in Tempe, with minimum coverage at $58 per month. Root provides the cheapest full coverage at $111. See the table below for other low-cost options.
| Mercury | $58 | $175 |
| Travelers | $64 | $116 |
| Root | $77 | $111 |
| Progressive | $78 | $163 |
| COUNTRY Financial | $82 | $201 |
*Rates are for a 40-year-old driver with bad credit and no driving violations.
Minimum Car Insurance Requirements in Tempe, AZ
Arizona requires each city to follow statewide mandates for car insurance minimums. Your policy must include at least:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $15,000 in property damage liability per accident
For example, if you're at fault in an accident, your insurance can cover up to $25,000 for injuries to one person, $50,000 total for all injuries per accident and $15,000 for property damage.
Cheap Car Insurance in Tempe: Bottom Line
Mercury offers the cheapest minimum coverage in Tempe at $41 a month, while Root leads for full coverage at $87. Affordable options are available regardless of age or credit. Ensure your policy includes Arizona’s required coverages, like injury and property damage. Compare providers to stay legal and save money.
Tempe Auto Insurance: FAQ
We answer common questions about affordable and best car insurance options in Tempe.
What is the cheapest car insurance company in Tempe, AZ?
Mercury offers the most affordable car insurance in Tempe, Arizona. With minimum coverage at just $41 per month, you can save $30 monthly.
What is the best car insurance company in Tempe, AZ?
The best car insurance provider in Tempe, Arizona, is Auto-Owners, with a MoneyGeek score of 86 out of 100. Minimum coverage costs around $1,024 annually.
How much does car insurance cost on average in Tempe, AZ?
In Tempe, minimum car insurance costs range from $70 to $164 monthly.
Best Cheap Car Insurance in Tempe: Our Methodology
MoneyGeek analyzed Tempe auto insurance prices using the Arizona Department of Insurance and Financial Institutions and Quadrant Information Services data.
Tempe Driver Profile
To assess the best and most affordable auto insurance options for Tempe residents, MoneyGeek used the following sample driver profile:
- 40-year-old male
- Clean driving history
- 2012 Toyota Camry LE
- 12,000 miles driven per year
By altering variables such as age, driving records and military status, MoneyGeek also found the top insurers for different types of drivers.
Coverage Levels in Tempe
In assessing the car insurance quotes for Tempe, we gathered data for minimum and full coverage policies, ensuring each insurer conformed to Arizona's minimum coverage requirements:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $15,000 in property damage liability per accident
For full coverage policies, MoneyGeek increased limits to:
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability
- Comprehensive and collision coverage with a deductible of $1,000
MoneyGeek’s Scoring System
MoneyGeek scored insurers on a scale of zero to 100, factoring in customer satisfaction, cost-effectiveness, claims management, coverage options and financial stability.
Insurers received scores as indicated below, with a total possible score of 100 points:
- General customer satisfaction (up to 35 points)
- Affordability (up to 30 points)
- Claims experience (up to 20 points)
- Essential coverages (up to 10 points)
- Financial stability (up to five points)
MoneyGeek’s Sources
To gauge rates and assess the best service experiences among Arizona providers, MoneyGeek used six sources:
- Quadrant Information Services provided actual policy quotes in Tempe
- J.D. Power's studies and the NAIC index contributed to the assessment of customer service
- Claims experience metrics came from J.D. Power and the CRASH Network’s report card
- AM Best and Demotech offered financial stability insights through their ratings
MoneyGeek gathered 50,284 quotes from 14 insurance companies in Tempe for the average driver of various ages who drives a Toyota Camry with a clean record, barring specific exceptions.
For more detail on our analysis, see MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a 5-time Jeopardy champion!
He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.