Determining which company quotes the lowest-priced car insurance rates for low income drivers takes a little more work than just comparing rates from one or two companies. Each auto insurance company has a proprietary formula for setting prices, so let’s examine the car insurance companies with the overall cheapest rates in Phoenix, AZ.
It’s important to understand that Phoenix car insurance rates are impacted by many things that may substantially change the price you have to pay. Simply improving your credit, buying a home instead of renting, or getting caught speeding can trigger rate changes resulting in some rates now being much cheaper than others.
Best Car Insurance Prices in Arizona
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $836 |
| 2 | Auto-Owners | $888 |
| 3 | Safeco | $896 |
| 4 | USAA | $1,080 |
| 5 | Travelers | $1,108 |
| 6 | GEICO | $1,142 |
| 7 | Progressive | $1,164 |
| 8 | Allied | $1,197 |
| 9 | Ameriprise Group | $1,208 |
| 10 | CSAA | $1,225 |
| 11 | Farm Bureau Mutual | $1,285 |
| 12 | Unitrin | $1,317 |
| 13 | Safe Auto | $1,323 |
| 14 | Farmers | $1,350 |
| 15 | State Farm | $1,377 |
| 16 | American Family | $1,435 |
| 17 | Titan | $1,461 |
| 18 | Amica | $1,473 |
| 19 | California Casualty | $1,522 |
| 20 | MetLife | $1,567 |
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The Hartford normally has some of the most affordable car insurance rates in Phoenix at around $836 each year. Auto-Owners, Safeco, USAA, and Travelers also make the cut as some of the cheapest Phoenix, AZ car insurance companies.
As illustrated above, if you are insured with USAA and switched to The Hartford, you may see a yearly savings of roughly $244. Arizona drivers with Travelers could save as much as $272 a year, and GEICO policyholders might realize rate reductions of up to $306 a year.
To find the cheapest coverage for you, click here to start your custom quote or click through to the companies below.
These estimates are averages for all types of insureds and vehicles and and are not figured with a specific zip code for low income drivers. So the auto insurance company that is most affordable for your situation may not even be in the top 28 companies in the list above. That point stresses why you need to quote rates from many companies using your own specific driver and vehicle information.
The car, truck, or SUV that needs insurance is one of the primary factors in finding the best insurance for low income drivers. Vehicles with average performance, good safety features, or a low likelihood of liability claims will cost quite a bit less to insure than fast, unsafe models.
The list below features coverage rates for some of the cheaper vehicles to insure in Arizona.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Toyota Prius | $1,683 |
| Ford Explorer XLT 2WD | $1,705 |
| Honda CR-V EX 2WD | $1,742 |
| Toyota Tacoma 2WD | $1,767 |
| Volkswagen Jetta SE 2.5 Station Wagon | $1,775 |
| Chevrolet Malibu LS | $1,800 |
| Dodge Grand Caravan Crew | $1,834 |
| Chevrolet Impala LTZ | $1,893 |
| GMC Sierra SLE Extended Cab 4WD | $1,926 |
| Ford Escape Limited 4WD | $2,027 |
| Kia Optima SX | $2,058 |
| Nissan Altima 2.5 S 2-Dr Coupe | $2,066 |
| Toyota RAV4 2WD | $2,064 |
| GMC Sierra 3500HD SLT Crew Cab 2WD | $2,092 |
| Dodge Ram 2500 Mega Cab Laramie 4WD | $2,094 |
| Ford F-150 FX2 Super Cab 2WD | $2,100 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $2,097 |
| Ford Focus SES 4-Dr Sedan | $2,131 |
| GMC Sierra 2500HD SLT Extended Cab 2WD | $2,153 |
| Honda Odyssey EX W/Rear Entertainment | $2,167 |
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Above prices assume single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include multi-vehicle, multi-policy, claim-free, homeowner, and safe-driver. Estimates do not factor in vehicle location which can affect premium rates greatly.
Based on these rates, you can expect vehicles like the Toyota Prius, Ford Explorer, and Honda CR-V are most likely going to be some of the cheaper vehicles to insure for poor drivers.
For poor drivers, one of the big factors that are used to help calculate auto insurance rates is your zip code. More populated areas tend to have higher rates, whereas less populated areas benefit from having to pay less for coverage.
The next table shows the most costly cities in Arizona for low income drivers to buy auto insurance in. Phoenix comes in at #1 with the yearly price of $1,268 for the average insurance policy, which is about $106 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Phoenix | $1,268 |
| 2 | Glendale | $1,226 |
| 3 | San Tan Valley | $1,196 |
| 4 | Avondale | $1,174 |
| 5 | Mesa | $1,147 |
| 6 | Goodyear | $1,131 |
| 7 | Scottsdale | $1,129 |
| 8 | Buckeye | $1,122 |
| 9 | Tempe | $1,118 |
| 10 | Chandler | $1,115 |
| 11 | Gilbert | $1,108 |
| 12 | Peoria | $1,104 |
| 13 | Catalina Foothills | $1,082 |
| 14 | Maricopa | $1,074 |
| 15 | Tucson | $1,061 |
| 16 | Oro Valley | $1,051 |
| 17 | Surprise | $1,048 |
| 18 | Casa Grande | $1,047 |
| 19 | Casas Adobes | $1,040 |
| 20 | Yuma | $963 |
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Rate quotes are comparative as the specific garaging location can affect coverage rates noticeably.
Difference between full coverage and liability only rates
Paying less for car insurance is important to most people, and one of the quickest ways to buy cheap insurance for low income drivers is to not buy comprehensive and collision coverage. The illustration below illustrates the difference between insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Arizona. The information is based on no accidents or driving violations, $100 deductibles, drivers are not married, and no additional discounts are factored in.
If we average the cost for all age groups, physical damage insurance costs $2,305 per year more than just insuring for liability. That is a big expense that brings up the question when is the right time to remove full coverage. There is no clear-cut formula for eliminating physical damage insurance, but there is a guideline you can consider. If the annual cost of your full coverage insurance is more than around 10% of the replacement cost minus the deductible, then you might consider buying liability only.
There are some cases where removing full coverage is not advised. If you haven’t paid off your loan, you must maintain physical damage coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you can’t afford to buy a different vehicle if your current one is in an accident, you should keep full coverage in place.
Buying coverage from the highest-rated insurance provider can be difficult considering how many companies provide coverage in Phoenix. The rank data shown below can help you select which auto insurers you want to consider when comparing auto insurance rates for low income drivers.
These rankings are only comprised of the largest companies in America, so companies that have a smaller presence are not taken into consideration for this list. If you wish to compare rates from these and other top-rated companies, follow this link.
Top 10 Large Auto Insurance Companies in Phoenix Ranked by Value
- USAA
- American Family
- The Hartford
- Titan Insurance
- The General
- Mercury Insurance
- AAA Insurance
- State Farm
- Nationwide
- Safeco
Top 10 Large Auto Insurance Companies in Phoenix Ranked by Customer Service
- State Farm
- GEICO
- The Hartford
- Mercury Insurance
- Progressive
- The General
- Allstate
- AAA Insurance
- American Family
- Nationwide
Your cheap policy may actually be overpriced
Phoenix, AZ car insurance rates are impacted by many things that will increase or decrease the cost of your policy. Improving your credit rating, filing a claim, or getting a speeding ticket can cause premium changes that can make some companies more affordable than others. Also, auto insurance companies change rates every year or even multiple times each year to ensure their profitability. An unexpected high level of claims can result in more expensive prices, while a lower level of claims can produce lower-cost Phoenix car insurance rates.
To illustrate this point, the chart below demonstrates which company has the cheapest car insurance in Phoenix, AZ for a 35-year-old male driver with no prior accidents, a clean driving record, and solid credit. If we estimate rates based on his personal profile, The Hartford may have the most affordable car insurance rates in Phoenix at $1,182 a year. This is $246 less than the average premium paid by Arizona drivers of $1,428. Auto-Owners, Safeco, USAA, and Travelers are also on the list of the best Phoenix, AZ auto insurance companies.
Now we will give the driver from the first example a chargeable accident, slightly worse credit, and a couple of points charged on his driving record. Because each company has a different process to set policy rates, comparing insurance quotes may now present a substantially altered list of the cheapest Phoenix car insurance companies as shown below.
GEICO now has the best insurance rate in Phoenix with CSAA, Allied, Ameriprise Group, and Farm Bureau Mutual now being in the top five. This example demonstrates why it is critical to shop around with many companies when trying to get affordable car insurance rates for low income drivers.
Auto insurance prices are made up of many different factors and can decrease or increase without notice, so the cheapest rate when you bought your policy may now be quite expensive.
How to find more affordable car insurance for low income drivers
Below you’ll find a few money-saving solutions that can help you buy more affordable auto insurance.
- Drive vehicles with five-star safety ratings
- Staying accident-free helps keep rates low
- Good credit can help you save money
- Don’t have frequent claims
- Ensure your driving record is clean
- Compare quotes from other companies often
The last item on the list is incredibly important, as we pointed out in the prior article. Car insurance rates in Phoenix fluctuate considerably, so don’t be afraid to switch to a new company if a more affordable price is available.
Having a favorite company is great, but it isn’t a good idea if that devotion results in you overpaying lots of hard earned cash every month. In less than five minutes you could compare prices to find cheaper auto insurance for low income drivers.