Is Car Insurance Cheaper in Arizona than in California? (2026)

Is car insurance cheaper in Arizona than in California?

Arizona generally has cheaper car insurance than California because of its lower liability coverage limits. Additionally, California’s roads tend to be more congested, especially in big cities like Los Angeles and San Francisco, which can lead to increased rates. Because Arizona has a lower population density, drivers get a small break on their insurance.

While California has strict insurance regulations, this doesn’t guarantee lower premiums for drivers in the Golden State. In January 2025, a new insurance law that raised minimum coverage requirements took effect, leading to higher premiums for many drivers with liability-only coverage.

The average cost of car insurance in California is a few dollars higher than the U.S. national average of $143 per month, according to Insurify data. Arizonans pay less than the national average.

In the following table, you can see car insurance rates for both states.

The below rates in Arizona are estimated rates current as of: Monday, August 31 at 5:00 PM PDT. 

State	Liability-Only Monthly Average	Full-Coverage Monthly Average
Arizona	$91	$163
California	$97	$202

Disclaimer: Table data sourced from real-time Arizona car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Arizona may vary based on the policy buyer's unique driver profile.

If you’re moving from California to Arizona, you could see a reduction in your car insurance premium. But that’s not the case for everyone, especially if you’re a high-risk driver with speeding tickets or a DUI, have young drivers on your policy, or plan to purchase a new vehicle.

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Average car insurance costs by driver type: AZ vs. CA

Your driving record significantly affects the average cost of car insurance in Arizona and California. Below, you can see the average premiums for different driver profiles in both states.

Driver Type	Arizona	California
Clean record	$127	$150
Speeding ticket	$164	$191
At-fault accident	$173	$192
DUI	$179	$204
SR-22	$168	$171
Teen driver	$266	$267
Driver with bad credit	$159	$178

Disclaimer: Table data is based on real-time Arizona quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.

Arizona vs. California car insurance minimum requirements

Arizona and California have different minimum coverage requirements. California’s car insurance requirements are slightly higher than Arizona’s minimum requirements. The table below shows the minimum coverage limits in both states.^{[3] [4]}

Required Coverage	Arizona Minimum	California Minimum	What It Covers
Bodily injury liability per person	$25,000	$30,000	Medical bills for one person in an accident you cause
Bodily injury liability per accident	$50,000	$60,000	Medical bills for all injuries you cause in an accident
Property damage liability	$15,000	$15,000	All damage you cause to another person’s property in an accident

A minimum-coverage policy in California provides more financial protection for bodily injuries than a minimum-coverage policy in Arizona. Both states require at least $15,000 in property damage liability coverage per accident.

Whether you’re moving from California to Arizona, or vice versa, it’s typically recommended to purchase higher liability limits than what’s required. A minimum-coverage policy might not cover the full cost of an accident you cause, which could leave you exposed to lawsuits.

If you’re relocating and leasing or financing a vehicle, your lender may require full coverage. A full-coverage policy provides physical damage protection for your vehicle.

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Why is Arizona car insurance usually cheaper than California?

Arizona generally has cheaper car insurance premiums due to lower liability coverage requirements, less traffic congestion, and lower vehicle repair costs. But it’s not a guarantee that you’ll pay less for auto insurance in Arizona than in California. Rates depend on a variety of factors beyond state, such as your ZIP code, driving record, claim history, and vehicle type.

Population density and traffic

California ranks No. 13 for population density in the U.S., while Arizona ranks No. 35, according to the U.S. Census Bureau. Car insurance rates are often cheaper in less densely populated locations because there’s less traffic and a lower risk of accidents, which often means fewer claims. California has more than 31 million registered vehicles on the road compared to 6.5 million in Arizona, according to National Highway Traffic Safety Administration data.

Urban vs. rural driving

Arizona has fewer urban areas than California, which can contribute to lower insurance premiums. For example, more than 50% of Arizona’s population lives in Maricopa County (home to Phoenix and Scottsdale), whereas California’s population is more spread out across several dense cities, like Los Angeles, San Diego, and the San Francisco Bay Area.

Vehicle repair and medical care costs

California tends to have more expensive vehicle repair costs than Arizona, according to AAA, which can affect the cost of property damage claims. When insurers are on the hook for higher claim payouts, they usually pass those increased costs on to consumers.

California also has higher medical costs. In 2020, the average per capita health spending was $10,299 in California and $8,756 in Arizona, according to KFF data. That means bodily injury liability claims can be more expensive for California insurers.

State regulations

California requires drivers to carry more insurance than Arizona, but only for bodily injury liability coverage. In general, states with higher minimum coverage requirements have more expensive premiums.

California also bans the use of credit-based insurance scores, which means that your credit score can’t affect your premium. But if you live in Arizona and have bad credit, you could end up paying a much higher rate.

Claims and risk factors

California has a much higher vehicle theft rate than Arizona. In 2025, 133,372 vehicles were stolen in California, according to the California Highway Patrol.^[5] Roughly 17,000 vehicles were stolen in Arizona, according to the Arizona Automobile Authority.^[6]

Another factor contributing to higher rates in California is the state’s wildfire risk. Although Arizona experiences some severe weather, it’s typically not as impactful as the disasters in California. In 2022, California saw 7,884 wildfires compared to 1,432 in Arizona, according to the Insurance Information Institute.

The table below shows how factors affecting Arizona and California car insurance rates compare.

Risk Factor	Arizona	California	How It Affects Car Insurance Costs
Accident rates	Medium	High	Insurers charge higher rates in states where accidents are more likely
Vehicle theft rates	Medium	High	Comprehensive insurance rates tend to be higher in states with more vehicle thefts
Weather-related claims	Low	High	Rates are often more expensive in states with a high risk of natural disasters, like wildfires and hurricanes
Repair/replacement costs	Medium	High	In states where car repairs cost more, insurance premiums are often higher because claims settlements are bigger
Medical costs	Medium	High	Insurers charge more for coverage in states with higher medical costs because bodily injury claims tend to be more expensive
Claims litigation	Medium	High	When insurers are required to provide larger settlements to cover claims litigation costs, rates are often higher
Uninsured motorist rates	Medium	High	In states with a high number of uninsured drivers, rates are typically more expensive
Wildfire exposure	Medium	High	Wildfires are a common occurrence in California, so premiums are usually higher

Cheapest car insurance companies in Arizona and California

No single insurance company is the cheapest for every driver in a particular state. Insurers consider a variety of personal factors when calculating rates, including your driving record, age, and vehicle type. The insurance company you choose can also significantly affect the price.

In the table below, you can see the cheapest auto insurance companies in California and Arizona.

Below are some of the key takeaways from Insurify’s quote data for these two states:

• Just Pay-Per-Mile has the cheapest car insurance in Arizona, with an average rate of $49 for minimum coverage.

• USAA has the cheapest auto insurance in California, with an average rate of $65 for liability coverage.

• State Farm has the largest price difference between Arizona and California.

Keep in mind that these car insurance rates are averages, so the amount you’ll actually pay could vary significantly depending on your individual rating factors and driver profile.

Cheapest car insurance companies for full coverage in Arizona

• Auto-Owners

• Novo Next

• Just Pay-Per-Mile

Cheapest car insurance companies for full coverage in California

• Aspire General

• Root

• GEICO

What to do about car insurance if you move between Arizona and California

If you’re moving between Arizona and California, you might have to purchase a new car insurance policy after you relocate. You can probably keep your existing policy if your current insurer operates in the new state, but your premium could change because insurers file rates at the state level.

Below is a closer look at the process of switching car insurance between Arizona and California:

1. Update your address. If you’re staying with your current insurer, you’ll need to update your address. If you carry minimum coverage, this will also change your liability limits.

2. Register your vehicle in your new state. If you’re moving to Arizona, you have 30 days after registering your vehicle to submit proof of insurance. For California moves, you have 20 days to register the vehicle, but you must have car insurance at the time of registration. The state you’re moving to will affect the order of the next few steps.

3. Compare quotes in your new state. Before you purchase car insurance, it’s a good idea to shop around and compare rates in your new state. Comparison shopping can help you find the cheapest policy for your location and personal situation.

4. Buy a policy. Once you’ve found a policy that meets your coverage needs and budget, you can purchase the new policy. You’ll need to pay at least the first month’s premium to bind your coverage.

5. Cancel your previous policy only after your new one starts. After your new policy is in effect, you can cancel the old one. Canceling the old policy before the new one starts creates a lapse in coverage, which can have consequences later on.

Besides updating your car insurance, you’ll also need to get a driver’s license in California or in Arizona. It costs $46 to get a new license in California and $25 in Arizona.^{[7] [8]}

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How can you lower your car insurance premium after relocating?

Relocating is a good time to review your car insurance policy to ensure it meets your current needs and you’re not overpaying. Below are a few ways to lower your car insurance costs after moving to a new state:

• Compare quotes. Comparing quotes from several insurers can help you find the cheapest policy for your situation.

• Update your annual mileage. If you’re planning to drive less frequently after relocating, updating your mileage could help you save money.

• Adjust deductibles. Choosing higher deductibles for collision coverage and comprehensive coverage can reduce your rate.

• Bundle home or renters with auto. Many insurers offer discounts for bundling your car insurance policy with a home insurance or renters insurance policy.

• Ask about discounts. Most insurers offer discounts that can help you lower your insurance premiums.

• Drop unnecessary coverages on older vehicles. If you drive an older vehicle, you might be able to drop full-coverage car insurance.

• Review coverage limits (not just price). When comparing insurance quotes, make sure you choose coverage limits that provide adequate financial protection. Choosing a policy based on price alone could put you at risk of a lawsuit if you cause a car accident.

Arizona vs. California car insurance FAQs