Media Contact: Erin H. Klug Public Information Officer (602) 364-3471
For Immediate Release February 17, 2006
Today, the Arizona Department of Insurance released its latest edition of the Automobile Insurance Premium Comparison to assist consumers in evaluating auto insurance premium rates. The publication contains valuable consumer information including quotes from 71 insurance companies for 12 hypothetical drivers, including a driver who takes the bus to and from work every day.
“We were delighted to see that 40 insurers offer discounts to their customers who significantly reduce the miles they drive by taking the bus to work every day,” said Christina Urias, Insurance Director. “If avoiding the stress of traffic and helping reduce pollution are not enough reasons to hop on the bus, perhaps the possibility of saving money on insurance premiums will motivate some valley drivers to give the bus a try! Just call your insurance company to find out if you qualify for a discount.”
The Automobile Premium Comparison Survey and in the Consumer Guide to Automobile Insurance contain more money saving tips; in addition to shopping around, you may be able to reduce your insurance bill by:
- Raising your deductible
- Asking about all available discounts
- Keeping your driving record clean
- Installing certain anti-theft devices
- Improving your credit
- Driving “safe” vehicles
The publication contains premium quotes from 71 insurers1 for 12 hypothetical drivers ranging in age from 18 to 81, with varied driving records and vehicle use, residing in 10 different Arizona cities. The 71 insurers represent over 53% of the personal automobile insurance market in Arizona. “One of the best ways to save money on your auto insurance is comparison shopping and taking advantage of the competition among the many auto insurance companies in Arizona,” said Urias. “The Auto Premium Comparison illustrates the vast range in premium rates among Arizona auto insurers.”
As the table below illustrates, it truly pays to shop around. Consider this hypothetical applicant:
Married couple; age 42; each drives 15 miles each way to work, has a clean driving record for the last three years and a median (average) credit score; husband drives a 2004 Ford Explorer, 4X4, four-door, Sport Trac; wife drives a 2005 Ford Taurus SEL, four-door sedan, automatic. Coverages & Limits: Combined single limit liability of $40,000 or split limits of $15,000/$30,000 BI and $10,000 PD; medical payments of $5,000; UM and UIM Limits same as liability; $250 deductible comprehensive; $500 deductible collision.
Six month premium quotes for above applicant:
Phoenix: $769 to $4,779 (85053)
Casa Grande: $576 to $4,099 (85222)
Tucson: $615 to $4,267 (85719)
Flagstaff: $462 to $4,267 (86001)
Glendale: $749 to $4,504 (85301)
Nogales: $552 to $4,162 (85621)
Scottsdale: $661 to $4,779 (85257)
Safford: $517 to $4,162 (85546)
Mesa: $699 to $4,824 (85202)
Yuma: $556 to $3,763
How to Use This Premium Comparison
Find the hypothetical driver that most closely matches your circumstances, then pick the city or zip code closest to your residence. While actual rates will depend on an applicant’s specific situation, readers can get an idea of how different insurers price a policy for a similarly situated driver.
The publication also includes a summary of the different kinds of auto insurance coverages. Insurance policies are complex documents, often difficult to comprehend, however, it is important for consumers to understand their insurance coverage. It is easier to compare insurance products when you are familiar with the various policy features. This publication can help.
The Automobile Premium Comparison also provides ‘customer satisfaction’ information in the form of a complaint ratio2 for each insurer. The complaint ratios represent the total number of written complaints the Department has received for each 1,000 exposures an insurer has in force in Arizona.
When switching insurers…
Arizona law limits an insurer’s ability to cancel or non-renew an auto insurance policy, however, consumers should be aware that purchasing a new auto insurance policy or switching to a new insurance company, allows an auto insurer to cancel the policy for any reason3 within the first 60 days after the policy’s effective date. Therefore, accurate, comprehensive evaluation of coverage eligibility and premium rates is essential.
To obtain any of the Department’s free publications, many of which are available in Spanish, call or visit our website: (602) 364-2499 in Phoenix, or (800) 325-2548 outside Phoenix, or www.id.state.az.us.
For more information on the benefits of riding the bus, visit www.valleymetro.org.
1 Due to space limitations, the Department did not include premiums for all insurers that write private passenger auto business in this publication.
2 Complaint data contained in this publication does not reflect the Department’s determination of the merits of each complaint.
3 Regardless, insurers may not cancel because of the location of residence, age, race, color, religion, sex, national origin or ancestry of anyone who is an insured.