Who has the best cheap car insurance in Arizona?

Shutterstock/Francesco Ferrarini

Arizona drivers pay less than the average American in car insurance premiums, but they can save by shopping around.

• Arizona drivers spend slightly less than the average American on car insurance, spending an average of $890 per year on premiums according to the Insurance Information Institute.
• According to Consumer Reports data, GEICO offers Arizona drivers the lowest premiums at every credit level.
• But, insurance is based on a variety of different factors, and Arizona drivers could save big by shopping around. Get several auto insurance quotes and comparing them closely to find the best coverage.
• Visit Business Insider's homepage for more stories.

Car insurance rates in Arizona aren't incredibly high, though there are many factors other than where you live that could impact what you pay each year, also called a premium.

Though there are lots of factors that go into how your premium is calculated, every auto insurance company looks at these factors differently, so what you'll pay to stay insured each year can vary pretty widely. That said, it's important to shop around when you're looking for the best cheap car insurance in Arizona - you could be offered much better policy from one company and not know if you didn't get multiple quotes.

Who has the best cheap car insurance in Arizona?

While everyone's rates will vary based on a variety of factors, there are a few companies that offer lower rates than others for Arizona residents. Consumer Reports compiled every car insurance company's pricing formulas for each state, and found that in Arizona, GEICO has the best rates for drivers at every credit level.

Here are the companies that offered the lowest rates in Arizona, and the average premium for a single adult driver.

For those with good credit (670 to 739, according to FICO), GEICO won by far.

• GEICO car insurance: $769 per year
• USAA car insurance: $1,114 per year
• Farmers car insurance: $1,219

Drivers with excellent credit (800-plus FICO scores) will generally see some of the most affordable annual premiums.

• GEICO car insurance: $653 per year
• USAA car insurance: $963 per year
• Farmers car insurance: $973 per year

Those with poor credit (or FICO scores between 300 to 579) will pay more for their car insurance. However, GEICO still holds onto the top spot in Arizona in this credit category.

• GEICO car insurance: $1,130 per year
• American Family car insurance: $2,036 per year
• State Farm car insurance: $2,314 per year.

Who gets the best car insurance rates in Arizona?

There are lots of factors that car insurance companies will use to determine the premium that a particular driver will pay. Things like where in Arizona you live, your age, and your credit score can all have an impact. Generally, those who get the best auto insurance rates in Arizona are those who have the best driving records, the best credit scores, and live in the lesser-populated areas.

To get ready to shop, it might be worth doing some work to raise your credit score.

While shopping, get quotes from several insurance companies and compare them. You'll want to look at more than just the premium - also consider the coverage types and liability limits, and things like the deductible, which you'll be responsible for paying if you get into an accident.

The best policy is usually the one that gives you the most coverage for your money. And, the person who gets the best car insurance policy is going to be the one who shops around.

More personal finance coverage:

• What's the best airline credit card?
• The best cash back credit cards
• Are CDs a good investment?
• When to save money in high-yield savings