Auto insurance rates in Phoenix have been steadily rising, with year-over-year rates up a whopping17%. The current yearly cost of a full coverage policy in Phoenix, Arizona, is $3,757, or $313 per month. This has pushed many drivers to seek cheap liability car insurance in Phoenix.
Minimum liability coverage is significantly cheaper than a full coverage car insurance policy, with average rates at about $182 per month. For good drivers with excellent credit who take advantage of discounts, they can get those rates even lower. This article takes a deep dive into liability-only coverage in The Valley Of The Sun and how to get the best policy possible at the lowest rates.
Arizona’s Minimum Liability Requirements
Every driver in Arizona must carry at least the state-mandated minimum coverage. The required limits are $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $15,000 for property damage.
These numbers, known as 25/50/15, protect other people and their property if you cause an accident. They don’t pay for your own car or medical expenses, so this type of insurance is best suited for drivers with older cars or those who simply need to meet legal obligations.
Driving without at least these minimums can lead to license suspension, fines, and even impoundment of your vehicle. Keeping a valid policy active is not only the law but also the easiest way to protect yourself from major financial trouble.
The 5 Cheapest Liability Insurers in Phoenix
After comparing rates and discounts, the five companies most often listed among the cheapest for liability-only car insurance in Phoenix are Travelers, GEICO, Mercury, Root, and Acceptance Insurance.
Travelers – A Great Option To Consider
GEICO – Great for Discount Hunters
Mercury Insurance – Cheap Local Option
Root Insurance – Perfect for Safe, Low-Mileage Drivers
Acceptance Insurance – Best for High-Risk Drivers
The Overall Cheapest Pick
Across most rate comparisons, Travelers tends to offer the lowest liability-only premiums in Phoenix, though GEICO and Mercury often come very close. The best approach is to compare all five companies directly, since prices depend heavily on your driving history, ZIP code, and vehicle.
Minimum Liability Auto Insurance Rates For Good Drivers
Pro Tip: Use a Telematics Program to Save More
One of the fastest ways to lower your Phoenix car insurance cost is to join a usage-based or telematics program. These programs track your driving habits—how smoothly you brake, how fast you drive, and how often you’re on the road. The safer you drive, the less you pay.
Travelers, GEICO, and Root all have versions of this system. Drivers who participate can save anywhere from 10% to 30% on their premiums. For liability-only coverage, this discount can easily bring a $95 monthly bill down to around $75, making it one of the most effective savings tools available.
How Zip Codes Affect Rates in Phoenix
Phoenix’s large size means that car insurance rates can vary dramatically from one neighborhood to another. Central Phoenix areas with more traffic and higher theft rates tend to cost more, while suburban ZIP codes often benefit from lower premiums. Drivers who park in a garage or live in gated communities may also receive small reductions. If you’ve moved recently or plan to, updating your garaging address can sometimes lower your rate instantly.
Simple Ways to Save on Liability-Only Coverage
Bundle Policies
Bundle your auto and renters or homeowners insurance for a multi-policy discount.
Pay in Full
Pay your premium in full instead of monthly installments to save extra fees.
Stay Covered
Maintain continuous coverage to avoid lapse penalties and keep rates low.
Go Paperless
Enroll in paperless billing and automatic payments for convenience and savings.
Affiliation Discounts
Ask about discounts for your employer, university, or professional group.
Combined, these savings can cut 20% or more off your annual premium!
Tips for Teen Drivers in Phoenix
Teen drivers pay more for insurance because they’re statistically more likely to have accidents. However, liability-only coverage helps keep the cost manageable. Parents can save money by adding teens to an existing family policy instead of getting a separate plan. Teens who maintain good grades usually qualify for a “good student” discount, and completing a defensive driving course can help, too. Choosing an older, safe car with lower repair costs will also reduce premiums. After a year of clean driving, most insurers lower rates automatically.
How Senior Drivers Can Save On Phoenix Liability Car Insurance
Seniors often enjoy steady driving records, but premiums can creep up slightly with age. To keep costs low, seniors should complete a defensive driving refresher course, which many insurers reward with lower rates. If you’re retired and drive less, ask about low-mileage discounts. Staying with the same insurer for several years can earn loyalty discounts, and bundling home and auto coverage adds even more savings. Seniors who set up automatic payments or annual billing also avoid lapse penalties and late fees.
When Minimum Coverage Isn’t Enough
Arizona’s 25/50/15 liability minimums meet the law but don’t always cover real-world accident costs. If you total a newer car or cause serious injuries, expenses can easily exceed those limits. Increasing your liability limits to 50/100/50 or even 100/300/50 provides far better protection and usually costs only a few dollars more per month. Drivers with savings, property, or other assets should seriously consider higher limits to avoid personal financial exposure.
How to Shop Smart For Cheap Liability Car Insurance in Phoenix
⭐ Gather your details — driver’s license, VIN, and current policy information.
⭐ Decide on your target coverage limits.
⭐ Get at least three quotes from top-rated insurers.
⭐ Add applicable discounts such as telematics, bundling, or defensive driving.
⭐ Review your rates every six months to ensure you’re still getting the best deal.
Rates in Phoenix often fluctuate, so shopping regularly can save you hundreds of dollars each year.
Frequently Asked Questions
Q. What’s the cheapest liability-only insurance in Phoenix?
A: Travelers consistently ranks as the cheapest, but GEICO and Mercury often compete closely. Compare all three to find your personal best rate.
Q: How much does liability-only insurance cost in Phoenix?
A: Most drivers pay between $50 and $90 per month. Excellent and low-mileage drivers can pay lower rates.
Q: Is liability-only coverage enough for me?
A: It meets Arizona’s legal requirements and is fine if your vehicle isn’t valuable. If you want protection for your own car or higher financial security, consider increasing your limits or adding comprehensive coverage.
Q: Can I get liability-only if I’m still paying off my car loan?
A: No. Lenders require full coverage until your car is paid in full. After that, you can switch to liability-only.
Q: How often should I get new quotes?
A: Check rates at least once or twice a year. Companies frequently change prices, and Phoenix’s insurance market is highly competitive.
The Final Word On Cheap Liability Car Insurance In Phoenix
Liability-only car insurance in Phoenix is one of the easiest ways to stay legally covered while keeping costs under control. Travelers, GEICO, Mercury, Root, and Acceptance Insurance all offer solid, affordable plans, and most drivers can save even more through telematics programs and discounts.
Teens should focus on good grades and safe driving, while seniors can benefit from loyalty and low-mileage programs. Whether you’re cutting costs or just staying compliant, the right liability policy keeps you legal, protected, and financially confident on Phoenix roads. Get cheap liability car insurance in Phoenix in five minutes or less with a free online quote. Save hundreds with direct rates.