The words “cheap” and “auto insurance” probably shouldn’t be used together, specifically when comparison shopping for the cheapest coverage for welfare recipients. Because it’s so expensive, let’s start off by going over some things that have an impact on insurance rates, and come up with some ways to cut the cost of the next policy you buy.
For drivers on welfare, one of the largest things that are looked at to determine the price you pay for insurance is where your car is garaged in Phoenix. Areas with increased crime or more people tend to have more expensive car insurance rates, whereas areas that tend to be more rural can boast about having cheaper rates.
The illustration below lists the most costly cities in Arizona for welfare recipients in which to purchase auto insurance. Phoenix is ranked #1 with the yearly price of $1,255 for the average insurance policy, which is about $105 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Phoenix | $1,255 |
| 2 | Glendale | $1,190 |
| 3 | Avondale | $1,186 |
| 4 | Mesa | $1,159 |
| 5 | Tempe | $1,152 |
| 6 | Scottsdale | $1,151 |
| 7 | San Tan Valley | $1,150 |
| 8 | Goodyear | $1,131 |
| 9 | Peoria | $1,126 |
| 10 | Buckeye | $1,122 |
| 11 | Gilbert | $1,120 |
| 12 | Chandler | $1,115 |
| 13 | Tucson | $1,105 |
| 14 | Maricopa | $1,085 |
| 15 | Catalina Foothills | $1,072 |
| 16 | Surprise | $1,058 |
| 17 | Casas Adobes | $1,050 |
| 18 | Casa Grande | $1,047 |
| 19 | Oro Valley | $1,020 |
| 20 | Yuma | $983 |
| Start a Quote Go | ||
Premium costs are approximated as the specific geographic location can decrease or increase rates significantly.
Buying low-priced car insurance is challenging, and deciding which company offers the lowest-priced auto insurance rates for welfare recipients will involve even more rate comparisons. Every insurance company has a unique approach for determining rates, so let’s begin by taking a look at the overall cheapest auto insurance companies in Phoenix, AZ.
We do need to point out that Phoenix, AZ auto insurance rates are based on many factors which can substantially decrease or increase the price of your policy. Simply getting older, moving across town, or getting a DUI can cause premium changes that can cause some rates to be cheaper than others.
Find the Cheapest Auto Insurance in Arizona
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $845 |
| 2 | Safeco | $905 |
| 3 | Auto-Owners | $924 |
| 4 | USAA | $1,113 |
| 5 | Travelers | $1,119 |
| 6 | Progressive | $1,152 |
| 7 | GEICO | $1,177 |
| 8 | Allied | $1,197 |
| 9 | Ameriprise Group | $1,220 |
| 10 | CSAA | $1,225 |
| 11 | Farm Bureau Mutual | $1,247 |
| 12 | Unitrin | $1,317 |
| 13 | Safe Auto | $1,336 |
| 14 | State Farm | $1,364 |
| 15 | Farmers | $1,391 |
| 16 | American Family | $1,420 |
| 17 | Amica | $1,429 |
| 18 | Titan | $1,461 |
| 19 | MetLife | $1,551 |
| 20 | Safeway | $1,554 |
| Compare Rates Now Go | ||
The Hartford may have some of the lowest car insurance rates in Phoenix at around $845 each year. Safeco, Auto-Owners, USAA, and Travelers are also some of the most economical Phoenix, AZ car insurance companies.
As shown above, if you have coverage with Safeco and switched to The Hartford, you could see an annual premium reduction of about $60. Insureds with Auto-Owners may save as much as $79 a year, and USAA customers might lower prices by up to $268 a year.
Bear in mind that those premiums are averaged across all types of insureds and vehicles and do not factor in an exact zip code location for welfare recipients. So the insurer that can offer you the best price may not even be in the list above. That affirms the importance of why you need to quote rates from many companies using your own personal information and vehicle type.
The make and model of vehicle you are seeking coverage for is a large consideration when comparison shopping for the best cheap car insurance for welfare recipients. Vehicles with average performance, a great safety record, or a positive history of liability claims will cost much less to insure than high performance models.
The information below shows car insurance premiums for a handful of the most cost-effective automobiles to buy coverage for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Toyota Tacoma 4WD | $1,853 |
| Ford Explorer XLT 2WD | $1,858 |
| Honda Accord LX 4-Dr Sedan | $1,891 |
| Chevrolet Impala LS | $1,917 |
| Toyota RAV4 4WD | $1,955 |
| Honda Civic VP 4-Dr Sedan | $2,019 |
| Honda CR-V LX 2WD | $2,031 |
| Toyota Camry SE | $2,057 |
| Hyundai Elantra GLS 4-Dr Sedan | $2,067 |
| Ford Escape Limited 2WD | $2,078 |
| Jeep Grand Cherokee Limited 4WD | $2,095 |
| Chevrolet Silverado 2500HD LTZ Crew Cab 4WD | $2,101 |
| Honda Odyssey Touring | $2,095 |
| Nissan Rogue SL AWD | $2,197 |
| Volkswagen Jetta SE 2.5 Station Wagon | $2,212 |
| Toyota Camry Hybrid | $2,235 |
| Toyota Prius | $2,256 |
| Start Your Quote Go | |
Above prices assume single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include claim-free, multi-vehicle, homeowner, safe-driver, and multi-policy. Rate information does not factor in the specific area where the vehicle is garaged which can lower or raise rates noticeably.
Based upon the rates shown, you can expect models like the Toyota Tacoma, Ford Explorer, Honda Accord, and Chevrolet Impala are most likely going to be a few of the cheapest vehicles to insure for drivers on welfare.
Careless driving habits raise auto insurance rates
In a perfect world, the ideal way to score the best auto insurance rates in Arizona for drivers on welfare is to drive safely and avoid accidents and traffic citations. The illustration below highlights how traffic violations and at-fault fender-benders increase insurance costs for each age group. The data assumes a single male driver, full physical damage coverage, $1,000 deductibles, and no discounts are applied to the premium.
The chart shows that the average cost of car insurance per year with no violations or accidents is $1,263. Add in one speeding ticket and the average cost swells to $1,425, an increase of $163 each year. Now get one accident along with the one speeding ticket and the annual cost of auto insurance for welfare recipients goes up to an average of $1,870. That’s an increase of $608, or $51 per month, just for not maintaining a clean driving record!
Should you buy full coverage?
Reducing the cost of auto insurance is the goal of the majority of drivers, and an easy way to find cheap insurance for welfare recipients is to buy liability only. The illustration below shows the difference between insurance premiums with full coverage and liability only. The prices are based on a clean driving record, no claims, $1,000 deductibles, single status, and no discounts are taken into consideration.
If all age groups are averaged, full coverage on your policy costs $1,681 per year over liability only. A very common question is if it’s worth it to buy full coverage. There is no specific rule to eliminate physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of your full coverage insurance is more than about 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to consider dropping full coverage.
There are a few situations where dropping full coverage is not advised. If you still owe a portion of the original loan, you have to keep full coverage to protect the lienholder’s interest. Also, if you cannot afford to purchase a different vehicle in the event your current vehicle is totaled, you should not drop full coverage.
How to find low-cost insurance for welfare recipients
The list below summarizes some of the better money-saving ideas that can help Arizona drivers buy cheap coverage.
- Earn discounts for being claim-free
- Do not pay for full coverage if not needed
- Buy vehicles with five-star safety ratings
- Multi-policy discounts save money
- Good credit can mean cheaper rates
- Raise comprehensive and collision coverage deductibles
- Compare rates and switch if you can find a better deal
That last idea is incredibly important, as was emphasized in the prior information. Coverage rates vary greatly, so don’t hesitate to buy a policy from a new company if a more affordable price is available. Loyalty to a specific company is fine, but it isn’t a good idea if that loyalty results in overpaying money that could be spent on other things. It only take a few minutes to shop around to find cheaper auto insurance for welfare recipients in Phoenix.
The insurance agencies listed below can most likely help you determine which policy is best, as some people have coverage questions and would like to have a professional recommendation when shopping around for cheaper insurance for welfare recipients. It’s not always simple to find the cheapest rates, and insurance agents licensed in the state of Arizona can give you peace of mind knowing your policy gives you adequate protection in case of an accident or claim.
To locate a Phoenix insurance agent using an interactive map, click the button at the bottom.
- Allstate Insurance: Christine Yap
9303 N 7th St Ste 5 – Phoenix, AZ 85020 – (602) 371-0581 - Horizon Insurance Group
2880 E Northern Ave #100 – Phoenix, AZ 85028 – (602) 992-9750 - Mattie Taylor – State Farm Insurance Agent
4225 W Bell Rd – Phoenix, AZ 85053 – (602) 938-4491 - Arly Sanchez – State Farm Insurance Agent
1625 N 51st Ave Ste 103 – Phoenix, AZ 85035 – (602) 455-2886