Having a low credit score can make car insurance more expensive in Arizona, but affordable options still exist. Many insurers consider credit when setting rates, and drivers with poor credit often pay more—even with a clean driving record.
“Bad credit can significantly impact your car insurance costs. Most insurance companies use a credit-based insurance score to help predict risks, in which statistically, drivers with lower credit scores are more likely to file claims,” says Ted Kaplun, principal attorney and founding partner of KaplunMarx, a personal injury law firm in Pennsylvania. “This means insurers often charge higher premiums to those with poor credit, despite a clean driving record.”
This guide breaks down the cheapest car insurance options for drivers with bad credit in Arizona, using real-world rate data to help you find savings and make informed choices.
- The average annual car insurance rate for full coverage for drivers with bad credit in Arizona is $8,435.
- The cheapest insurance company in Arizona for drivers with poor credit is Geico.
- Shopping around can help drivers with any credit score find more affordable rates for their situation.
What are the average car insurance rates for people with bad credit in Arizona?
In Arizona, drivers with bad credit pay an average of $703 per month for full coverage car insurance. If you choose liability-only coverage with 50/100/50 limits, the average monthly cost drops to $296. Minimum liability coverage is even lower at $200 per month.
The table below shows how car insurance rates in Arizona increase for drivers with poor credit.
| Company | Average rates | Rates after bad credit | $ increase | % increase |
|---|---|---|---|---|
| Geico | $1,312 | $2,035 | $724 | 55% |
| Travelers | $1,489 | $2,300 | $811 | 54% |
| Nationwide | $1,726 | $2,453 | $727 | 42% |
| Progressive | $1,903 | $3,126 | $1,223 | 64% |
| Allstate | $2,215 | $3,660 | $1,445 | 65% |
| Farmers | $2,331 | $4,037 | $1,706 | 73% |
| Auto-Owners | $1,539 | $4,355 | $2,816 | 183% |
| State Farm | $2,233 | $12,576 | $10,343 | 463% |
| USAA* | $1,581 | $3,280 | $1,699 | 107% |
Find out how bad credit can impact your car insurance rates
Top car insurance companies in Arizona for drivers with bad credit
Car insurance companies in Arizona use different methods to calculate risk, which means rates vary widely, especially for drivers with bad credit. Some insurers offer more competitive pricing than others.
The most affordable car insurance companies in Arizona for drivers with bad credit include Geico, Travelers, and Nationwide.
Use the table below to compare average rates by company for drivers with poor credit in Arizona.
| Company | Annual rates after bad credit | Six-month rates after bad credit | Monthly rates after bad credit |
|---|---|---|---|
| Geico | $2,035 | $1,018 | $170 |
| Travelers | $2,300 | $1,150 | $192 |
| Nationwide | $2,453 | $1,227 | $204 |
| Progressive | $3,126 | $1,563 | $260 |
| Allstate | $3,660 | $1,830 | $305 |
| Farmers | $4,037 | $2,018 | $336 |
| Auto-Owners | $4,355 | $2,178 | $363 |
| State Farm | $12,576 | $6,288 | $1,048 |
| USAA* | $3,280 | $1,640 | $273 |
Check out our detailed guide on the cheapest car insurance companies
How age and gender affect car insurance rates with bad credit in Arizona
Age and gender are key factors that impact car insurance rates in Arizona, especially for drivers with bad credit. Young drivers typically pay more for car insurance due to less experience, while female drivers often receive lower rates because they are statistically involved in fewer serious accidents.
The table below shows how car insurance premiums vary by age and gender for drivers with poor credit in Arizona.
| Age | Six-month cost for male drivers | Six-month cost for female drivers | Monthly cost for male drivers | Monthly cost for female drivers |
|---|---|---|---|---|
| 18 | $14,397 | $13,235 | $2,399 | $2,206 |
| 25 | $4,403 | $4,517 | $734 | $753 |
| 40 | $4,127 | $4,309 | $688 | $718 |
| 65 | $4,047 | $3,985 | $675 | $664 |
How driving record and location influence rates with bad credit in Arizona
In addition to credit history, your driving record and location play a significant role in determining car insurance rates, especially for drivers with bad credit. If you’ve had violations like speeding tickets or at-fault accidents, you’ll likely pay more due to the added risk insurers associate with your profile.
Where you live also matters. Car insurance rates vary by state and ZIP code, with rural areas typically seeing lower premiums than urban areas with higher traffic and crime rates.
For drivers with bad credit, driving history and location can sometimes impact premiums even more than credit score alone.
Check out 10 most important factors that affect car insurance rates
What are the discounts for drivers with bad credit in Arizona?
While drivers with bad credit might experience higher rates, seeking out discounts can help to offset their costs. Some of the discounts drivers with bad credit can pursue include:
Safe driving discounts: Many car insurance companies offer discounts to safe drivers. If you are comfortable signing up for a telematics program that tracks your driving behavior, you could score significant savings if you practice safe driving habits.
Bundling discounts: If you need other types of coverage, like renters insurance or homeowners insurance, buying multiple policies through the same insurer can often lead to a discount.
Affinity discounts: Being part of a group, like an alumni association or a veteran organization, can sometimes result in a discount.
Pay-in-full discount: Some insurers offer a discount when you pay for coverage upfront instead of monthly.
Paperless discount: Many insurers offer a discount if you opt to go paperless.
See what drivers with bad credit pay on average in nearby states
Tips to find cheap car insurance with bad credit in Arizona
As you look for cheap car insurance with bad credit in Arizona, use these strategies to seek out lower rates:
Shop around: Comparing rates across multiple insurance companies can help you find the most affordable rate for your unique situation.
Raise your deductible: Generally, opting for a higher deductible leads to a lower insurance premium. If you have the money on hand to cover a higher deductible during an emergency, locking in the premium savings can make sense.
Maintain safe driving habits: Safe drivers tend to pay less for coverage. Sticking to safe driving habits can lead to savings.
How to shop for car insurance with bad credit in Arizona
When shopping for car insurance with bad credit in Arizona, use the following steps as a guide:
- Gather your information: To get accurate quotes, you must provide some basic information about your vehicle. For example, you’ll need to provide the VIN, make, model and year of your car.
- Consider your policy needs: While a state minimum coverage policy often offers the cheapest rates, it might not fit your unique situation. For example, you might need comprehensive coverage while paying off an auto loan.
- Compare quotes: Collect quotes from multiple car insurance companies to find the most affordable option.
Frequently ask questions
Does a bad credit score affect car insurance rates in Arizona?
Your credit score can impact your car insurance rate in Arizona. Drivers with bad credit generally pay more than those with strong credit histories.
Can you improve your rates with bad credit in Arizona over time?
Improving your credit over time can help lower your car insurance rates in Arizona . Paying bills on time and reducing debt are effective ways to boost your score.
Car insurance rates for good vs. bad credit in Arizona
In Arizona , drivers with bad credit pay around $8,435 per year for full coverage car insurance, while those with good credit pay about $1,812 per year for the same policy.
Car insurance requirements in Arizona if you have bad credit
If you have bad credit, the car insurance requirement remains the same in Arizona. Like other drivers, you’ll need to carry a minimum amount of car insurance to legally drive in Arizona.
Find out whether it’s legal for insurers to raise your premium because of a bad credit score
Resources and Methodology
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates for drivers with poor credit scores. The rates are based on sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
Note: USAA is only available to military community members and their families
Still have a question? Ask our experts
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs