Arizona Car Insurance Companies

Not all Arizona car insurance companies are created equal, and all consumers should take the time to research companies before buying mandatory coverage. There are plenty of different factors that a prospective buyer should consider when comparing the most reputable insurers in the industry.

Knowing which factors are most important can help you make an informed purchase that you will not regret later down the line.

There are companies in the industry that have excellent reputations, and there are companies in the industry that have sub-par reputations for service and customer satisfaction.

While finding a company that offers competitive premiums is an obvious priority for budget-conscious buyers, you should not overlook the importance of entrusting a reputable company to provide you with coverage and protection while you are driving or even while your vehicle is parked.

Here is your guide to choosing the best company and a list of some of the top-notch providers in the state. You can always enter your ZIP code into the FREE comparison tool above to start your search for car insurance now!

Factors to Consider When You Are Selecting an Auto Insurance Company

Before you start pricing the cost of insurance, you should set aside time to conduct research on auto insurance companies in Arizona. When you purchase insurance to satisfy the mandatory insurance laws in the state, you must purchase your coverage from a company that is licensed with the Arizona Department of Insurance to do business in the state.

Having coverage with an insurer licensed in another state will not satisfy the laws or comply with the Department of Motor Vehicles requirements when your car is registered in Arizona.

There is a long list of Arizona car insurance companies that have a license through the National Association of Insurance Commissioners, and you should assess the reputation of each of these companies.

When you are assessing the reputation of a company, there are key factors that should be considered. Insurance premiums can help you determine which choice is best in the end, but diving deeper to find a company that is worthy of earning your business is important. Here are the key factors many consumers overlook when buying insurance:

Financial Stability and Marketplace Security

All too often, consumers do not use information that is gathered by consumer ratings agencies to make informed decisions. Insurance companies are in the financial sector, and all financial records are public record.

Before you simply look at the price charged by an insurer, you have to understand how the lowest price does not always mean the best company. In fact, the lowest price could be a red flag when the company is not financially stable.

The first thing that you should consider as you go down the list of all of the insurers that you can buy coverage from is financially security.

Luckily for you, there are agencies that will review financial records of insurers and assign letter grades to these companies based on how much money they have in reserves and how many policyholders they cover. You can easily access reports by visiting sites like A.M. Best. This site will tell you if the company is secure and if their financial rating has changed over the years.

You may be wondering why financial ratings are so important in the insurance industry. To understand why, you need to understand how claims are paid. When an insurer reviews an application, the underwriter will use rate formulations to determine how much to charge the policyholder based on the answers given. The rates collected must be sufficient based on the risk that you present of filing a claim.

If the company does not collect adequate premiums, there is a risk that they will not have the money in the pot to cover claims filed. When companies do not have enough to payout on claims, they risk going insolvent.

Coverage Options and Limits Offered

Once you have a list of car insurance companies in Arizona that are financially stable, the next step to finding the best company is considering the coverage options and limits that are offered.

Not everyone is interested in buying the bare minimum coverage ($15,000 per person/$30,000 per accident in Bodily Injury, $10,000 in Property Damage). Some individuals prefer to pay higher premiums for additional protection and peace of mind.

While all companies that are licensed to do business in Arizona are required by law to offer the mandatory forms of insurance, they do not have to offer optional coverage that is not required by law. Some of the options that you may want to consider include:

• Comprehensive
• Collision
• Medical Payments
• Uninsured Motorist
• Rental Reimbursement
• Glass Damage
• Towing Coverage

What types of discounts are offered?

If you are shopping for the most competitive premiums, one way to keep your premiums down is to choose an insurer that offers many different discount options. You should always research which discounts you may be eligible for before you begin comparing auto insurance quotes.

Once you know which discounts you could receive, find out which companies offer them so that you can take advantage of the savings. Some of the discounts insurers offer to stay competitive in AZ include:

• Multi-car
• Multi-policy
• Accident-free
• Local alarm
• Homeowner
• Good Student Discount
• Defensive Driver/Mature Driver
• Pay in Full Discounts
• Automatic Payment Discounts

Customer Service Options

How do you prefer to contact your insurer when you are making a payment or making policy changes? Not everyone has the same preferences when it comes to customer service contact options.

Some customers in today's modern world who are technologically savvy prefer to service their policies by using Internet tools. Others want the flexibility to contact a person directly 24/7.

Individuals who like face-to-face contact may prefer to contact a single agent at a local agency whenever they have questions and concerns. No matter which option you prefer, it is important to be sure that the company offers it as an option.

Customer Service Reputation

You buy insurance because it is the law, but you are buying your service until you actually file a claim. Because you are paying for a service that you never want to use, it is important to find an Arizona insurer that has high customer satisfaction rankings.

In today's modern world where there are all types of consumer rating and review sites, it is not difficult to find unbiased reviews on companies.

You can find official complaints that have been filed through the NAIC and see if these complaints have been confirmed, closed or resolved. In addition to reviewing official complaints through the Better Business Bureau and the NAIC, you can review consumer reviews online. If there is a common consensus or issue, you may want to reconsider the company that has made your list.

Cost of Auto Insurance Premiums

Cheap insurance is not always good insurance, but it does help to find a company that offers competitive premiums. Arizona car insurance companies do not price their rates to compete in every market niche.

Some companies may have formulations that make their policies more competitive for young drivers and others may be targeting families. This is why you really need to take time to price shop several different companies before you make a purchase.

You may be surprised to find that an insurer that you would have never considered has the best reputation and the best rates.

A List of Respected Companies Licensed to Do Business in Arizona

Now that you know just what to look for as you compare companies and then compare rates, it is time to learn which companies are currently offering coverage to drivers.

According to the National Association of Insurance Commissioners, State Farm Insurance, Zurich Insurance and Liberty Mutual are the three companies that have the highest market share in the latest 2012 report. In addition to these companies, others that have a good reputation and a low complaint ration include:

• Mendota Insurance Company
• Infinity Insurance Company
• Arizona Automobile Insurance Company
• Electric Insurance Company
• Safeway Insurance Company
• Safeco
• USAA
• Nationwide

Market share, complaint ratios and premium averages do not make a company the best company. You have to consider a combination of factors, price the cost of insurance with each insurer and then you can assess which company is the best pick for you.

Making an educated decision is impossible without doing the homework. With all of this information, you can make the best informed decision.

A reputable auto insurance company is a company that is financially stable and has the money in reserves to cover all of the claims that are filed by their policyholders.

Once you start narrowing down your options and you find a company that is secure, you can go a step further and narrow down your options based on satisfaction ratings and coverage options. Make sure that the last factor that you consider is the price. Consider a companies stability and their reputation and make a decision.

Enter your ZIP code into the FREE comparison tool below and start your search for the best car insurance today!