The car, truck, or SUV to be insured is one of the largest considerations when trying to find affordable auto insurance for drivers with bad credit. Vehicles with lots of speed or power, a lack of safety features, or an increased likelihood of liability claims will cost significantly more to insure than more modest models. The list below outlines insurance premiums for a selection of the most budget-friendly vehicles to buy coverage for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda CR-V EX 4WD||$1,778|
|Ford Escape Limited 2WD||$1,783|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,912|
|Dodge Grand Caravan Hero||$2,064|
|Honda Accord EX-L 4-Dr Sedan||$2,076|
|Ford Explorer XLT AWD||$2,132|
|Hyundai Elantra SE 4-Dr Sedan||$2,174|
|Toyota Camry SE||$2,183|
|Nissan Rogue S AWD||$2,210|
|Ford Fusion Sport 4-Dr Sedan||$2,213|
|Chevrolet Malibu LTZ||$2,218|
|Ford Edge SEL AWD||$2,272|
|Toyota Tacoma Double Cab 4WD||$2,323|
|Toyota RAV4 2WD||$2,328|
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Data variables include single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include multi-vehicle, claim-free, safe-driver, homeowner, and multi-policy. Prices do not factor in vehicle location which can affect prices greatly.
Based upon these rates, you can expect cars like the Honda CR-V, Ford Escape, Jeep Wrangler, Dodge Grand Caravan, and Honda Accord are most likely to be the most economical vehicles to insure for people with poor credit. The cost of a car insurance policy will tend to be more expensive anyway just due to the fact that there is more claim exposure for drivers with bad credit, but in general those vehicles will have the lowest prices that you’ll find.
For people with poor credit, one of the more important things that are used to help calculate the price you pay for insurance is the neighborhood you call home in Phoenix. Cities with larger populations tend to have more expensive car insurance rates, whereas areas that tend to be more rural benefit from lower coverage costs.
The following table lists the highest-priced places in Arizona for drivers with bad credit to buy car insurance in. Phoenix is listed at #1 with an annual premium of $1,231 for the average insured, which is around $103 monthly.
|Rank||City||Premium Per Year|
|3||San Tan Valley||$1,185|
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Rate information is comparative as the specific area where the vehicle is garaged can decrease or increase coverage prices significantly.
Finding reliable, low-cost car insurance is challenging, and finding out which companies quote the cheapest car insurance rates for drivers with bad credit will take even more work.
Every car insurance company uses a different method for determining prices, so we need to take a look at the car insurance companies with the most affordable rates in Arizona. It’s a good idea to know that Arizona car insurance rates are based on many factors which can substantially change your annual premium. Improving your credit score, adding a teenager to your policy, or getting into an accident may cause policy rate changes that may make certain companies cheaper than others.
Best Cheap Insurance Rates with Bad Credit
|Rank||Company||Cost Per Year|
|12||Farm Bureau Mutual||$1,297|
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The Hartford quotes some of the cheapest car insurance rates in Phoenix at around $836 per year. Auto-Owners, Safeco, Travelers, and USAA would also be considered some of the cheapest Phoenix, AZ insurance companies.
As depicted above, if you buy coverage from Auto-Owners and switched to The Hartford, you could realize a yearly price reduction of around $52. Drivers with Safeco could save as much as $87 a year, and Travelers customers might lower prices by $239 a year.
To discover how much you can save, click here to get a free quote or quote prices from the following companies.
Understand that those policy prices are averaged across all ages of drivers and types of vehicles and and are not figured with a specific location for drivers with bad credit. So the auto insurance company that has the cheapest price for you may not even be in the top 28 companies shown above. That point stresses why you need to get rate quotes from many companies using your own driver data and vehicle information.
The information below highlights how deductible choice can raise or lower insurance prices when trying to find cheap insurance for drivers with bad credit. The premium estimates are based on a single female driver, full physical damage coverage, and no policy discounts are applied.
The chart above illustrates that a 30-year-old driver could lower their car insurance rates by $380 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $572 by using a $1,000 deductible. Even younger insureds, like the Age 20 chart data, could reduce their rates $844 each year by choosing a larger deductible amount.
When increasing deductibles, it is necessary to have spare funds to be able to cover the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Should you buy full coverage?
Finding the cheapest car insurance is important to the majority of vehicle owners, and one good way to buy cheaper insurance for drivers with bad credit is to only buy liability coverage. The illustration below illustrates the comparison of car insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The information is based on a clean driving record, no at-fault accidents, $1,000 deductibles, single marital status, and no policy discounts are applied.
If averaged for all ages, physical damage coverage costs an additional $1,366 per year more than carrying just liability coverage. Many people question when is it a good idea to stop buying full coverage. There is no set guideline of when to exclude comprehensive and collision coverage on your policy, but there is a general guideline. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost minus the deductible, then it might be time to buy liability only.
There are some cases where dropping physical damage coverage is not financially feasible. If you haven’t satisfied your loan, you are required to maintain full coverage to protect the lienholder’s interest in the vehicle. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should not consider dropping full coverage.
The professional agents shown below are a good start to provide answers to your questions and help you determine which car insurance company is the best fit, as many consumers aren’t sure which coverage to buy and prefer to have a consultation when shopping around for cheaper insurance for people with poor credit. It can be hard to find the cheapest rates, so getting advice from a licensed agent can provide peace of mind knowing your coverage gives you enough coverage when you need it.
To find a Phoenix insurance agency in your neighborhood, click the button after the list or click here to compare price quotes.
- Rodriguez Insurance
5720 N 27th Ave – Phoenix, AZ 85017 – (602) 242-5303
- Jim Nork – State Farm Insurance Agent
1600 W Camelback Rd #1a – Phoenix, AZ 85015 – (602) 222-9400
- Nichole Schaffer – State Farm Insurance Agent
2612 N 7th St – Phoenix, AZ 85006 – (602) 439-7000
- Marcella Busto – State Farm® Insurance Agent
3401 N 32nd St B – Phoenix, AZ 85018 – (602) 955-5450
How to find economical auto insurance for drivers with bad credit
It is possible to find better rates, and here are some penny-pinching suggestions that can help drivers locate low-cost auto insurance.
- Safe vehicles generally have lower rates
- Full coverage may not be needed on older vehicles
- Too many claims can make car insurance unaffordable
- Home or renters coverage can save on auto insurance
- Higher physical damage deductibles lower rates
- Clean up your credit
- Compare rates often to find the best deal
That last piece of advice is especially necessary, as was emphasized in the prior article. Auto insurance rates can be changed at any time, so you should be ready to change to a new company if a better deal can be had.
Brand loyalty is not necessarily bad, but it’s not a good idea if that stubbornness costs you big bucks every year. It only take a few minutes to shop around to find cheaper auto insurance for drivers with bad credit in Phoenix.