Car insurance rates vary significantly from state to state, but Phoenix, Arizona drivers pay higher insurance premiums than many other drivers due to several factors. Phoenix has a reputation for being a city with a very high auto theft rate, but that is just one of the reasons why, compared to the national average, Phoenix drivers have to pay more to insure their cars. Auto theft is a thriving business in Arizona, California and Texas. New, expensive makes and models are targeted by car thieves, but older models are as well. These cars are driven across the border and sold, or the cars are taken apart and its parts sold for large profits. Keep in mind that if you drive a car high on the list of the most frequently stolen vehicles, then your insurance rate may go up. Check to see if your car is on the list by looking at the most recent published statistics on which vehicles are most often stolen.
Auto insurance companies also determine risk using your zip code, which can increase the cost of insuring your vehicle. You might have a very good driving record, but if you live in a high-crime neighborhood, you could pay more than someone in a different Phoenix zip code. If you reside in a densely populated part of town or a high-traffic area, your insurance premiums may be higher, and even the number of insurance claims filed in your area can cause your insurance to cost you more than someone living just a few blocks away.
Insurance companies raise their rates to compensate for the losses incurred by frequent accidents in a particular city. Phoenix is a large city and it is still growing, at a faster pace than a lot of other cities, and the higher insurance rates reflect that fact. More people means more vehicles on the road. IN addition, insurance companies factor in commute times when they are calculating the price of auto insurance, and drivers in Phoenix and the surrounding suburbs spend a lot of time travelling on highways to and from work each day.