Cheapest Low-Income Car Insurance In Arizona 2024

After comprehensive research and much analysis, I’ve found State Farm Insurance to be the cheapest auto insurance for low income drivers in the state of Arizona.

We’ve saved shoppers an average of $600 per year on their car insurance.

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Updated: 15 May 2024
Written by Bob Phillips
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I understand that finding affordable car insurance with the coverage you need can be problematic. Arizona residents who are likely to find it particularly difficult to get affordable car insurance are the ones in the low income part of the population. Low income, in this sense, is referring to a family with an income of about fifty per cent (or less) than the median income of an area.

Unlike some states, Arizona hasn’t had a problem with auto insurers leaving the state. However, rates are rising drastically, with many drivers paying an average of $300 more annually this year than last year. Insurance companies blame this on inflation.

Still, the majority of Arizonans will be able to look around and find affordably priced car insurance. This coverage is legally necessary to keep drivers on the road, and to comply with Arizona laws that cover vehicles driven on public roads.

With over 35 years as a car insurance buyer, and also 15 years as a licensed insurance agent, this means that I’m familiar with the insurance companies included in this review.

Cheapest Low-Income Car Insurance In Arizona, 2024

Low-Income Car Insurance, Arizona 2024

Compare Low-Income Car Insurance Providers In Arizona

Overall Rating (Best 5.0) Best Suited For A.M. Best Rating J.D. Power Rating (Best 1000) Average Monthly Cost* Get A Quote
State Farm

Cheapest Overall




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Poor Credit




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Our methodology

As we set out to put this review of car insurance companies together, we compiled research that took in multiple components like: customer service ratings, product options, pricing, user experience, and our evaluation of online review sites. The resulting review is an impartial, well researched, in-depth view of Arizona's provider landscape as pertains to car insurance. This information was built on our collective perspectives, finely tuned by over 15 years of experience in the car insurance industry as a licensed agent, countless experiences with agents representing a variety of companies, plus insights from our hands-on experience of purchasing car insurance in Arizona.


Quotes Analyzed


Brands Reviewed


Years Of Experience


Research Hours

Cheapest Car Insurance For Low-Income Drivers In Arizona

Cheapest Overall

Overall Rating

Key Statistics

10/10 Coverage level
9/10 Claim payouts
9/10 Customer reviews
10/10 Affordability

Why We Like Them

Arizona has a sharply competitive car insurance market. But, the company that stands out for its all round excellence in coverage, as well as price, is State Farm.

Our hours of research and careful reviews of auto insurance rates in Arizona showed us that State Farm offers some of the most affordable full coverage auto insurance rates, with premiums as low as $90 per month.

If you are a driver in Arizona on a tight budget, and searching for insurance protection that won’t cost a small fortune, be sure to have a look at what State Farm has to offer.

State Farm doesn’t stop at providing wallet friendly premiums, it’s also rated at the top of the industry, along with the best auto insurance companies in the country. State Farm is a clear choice for car insurance, and has long been acclaimed for its money saving discounts and coverage that is tailored to a multitude of needs.

Comprehensive coverage and affordability, in combination with flexible plans to accommodate a variety of needs, gives State Farm the edge in Arizona’s car insurance market. It’s the top pick for drivers who want the protection of car insurance without a high price tag.

Benefits & Drawbacks

  • Superior AM Best financial strength rating
  • Numerous coverage options and discounts available
  • Cheapest rates for most drivers in Arizona
  • Must buy from a State Farm Agent

It’s vitally important to have adequate car insurance if you want to be able to drive without worrying about the financial burden you could incur without it, in case of an accident. Besides that, it’s illegal in almost all states to operate a vehicle on a public road without at least liability insurance.

Inexpensive car insurance doesn’t necessarily mean poor quality coverage. If you check on car insurers within your state and compare rates between several of the leading companies, you can often get adequate coverage at a reasonable price.

Rates for the cheapest car insurance in Arizona

Insurance company Monthly Rate
State Farm $82
Farm Bureau   $120
Progressive   $128
Nationwide  $124

Cheapest for Seniors

Overall Rating

Key Statistics

8/10 Customer reviews
9/10 Affordability
9/10 Coverage level
8/10 Claim payouts

Why We Like Them

You should check out Nationwide if you’re an older driver shopping around for low cost car insurance that offers coverage to fit your particular needs. This tip isn’t based just on my opinion, it’s formed of facts and statistics gleaned from in-depth research of the car insurance industry in Arizona, along with customer reviews.

Nationwide’s premiums are widely considered to be the best in the state for seniors. Policy holders with Arizona Farm Bureau, for instance, have an annual rate of around $1345.00, and those who have Home State Insurance pay approximately $1,873.00 per year.

Nationwide provides rates that have been designed for older age drivers, making it the best choice in auto insurance for any senior who wants reasonably priced, adequate coverage.

Benefits & Drawbacks

  • High financial strength ratings
  • Auto, homeowners, life, and other insurance products available
  • Comprehensive mobile app for digital policy management
  • Can only buy from Nationwide agents
  • Not rated by J.D. Power for customer service

Older drivers may notice their auto insurance premiums going up in cost as time passes. This happens because most car insurers tend to perceive senior drivers as being high-risk, much like teenage drivers.

This high risk isn’t prejudice on the car insurer’s part, but is derived from proven statistics such as: slower reaction times, age related health issues that could affect the ability to drive safely, and the statistical probability that any injury resulting from a car crash will be more serious in older aged drivers. It’s these components combined that are responsible for the preconceived idea that senior drivers are more high risk than much of the population.

The Insurance Institute for Highway Safety (IIHS) conducted a study and found that the rates of fatalities resulting from a car accident start to increase exponentially at age 70. Fatalities sustained in a car crash in drivers 85 years old or older are the highest of any other age group.

So, it’s easy to understand why older drivers are likely to have a hike in their car insurance rates. Insurance companies must try to counterbalance premiums and the risk for increased and more costly claims.

However, this is not to say that senior drivers can’t save some money on their car insurance. A lot of insurers have discounts available for the older age group that help shave some dollars off rates, while maintaining adequate coverage.

Cheapest low-income car insurance rates in Arizona for seniors

Insurance company Monthly Rate
Nationwide $81
State Farm  $116
USAA  $124
AAA  $166

Best for Poor Credit

Overall Rating

Key Statistics

8/10 Coverage level
8/10 Customer reviews
9/10 Affordability
9/10 Claim payouts

Why We Like Them

According to our research, GEICO is a good choice for any Arizona driver with poor credit who needs car insurance. GEICO has the best rates in the state for poor credit drivers. Many studies and reports  have shown over and over again that this insurer is the most cost effective company for drivers with a lower credit rating.

But, don’t mistake GEICO’s lower rates with lower coverage. GEICO is a well respected and long established company with a proven track record for top tier comprehensive coverage as well as superior customer service. So, all drivers in Arizona, regardless of their credit score, are able to purchase car insurance at an affordable cost. This affordable coverage is a major reason why GEICO makes such a wise choice for drivers with poor credit.

GEICO knows that having a low credit rating doesn’t automatically mean that someone will be a high risk policyholder. While some car insurers may boost premiums of customers with not-so-hot credit, GEICO takes a balanced approach and takes into considerations other things like the type of vehicle being insured, along with an applicant’s driving record.

Guided by these factors, GEICO is able to provide reasonably priced premiums to drivers with poor credit, making this insurer the top choice for many Arizonans.

Benefits & Drawbacks

  • Numerous coverage options and discounts are available
  • Superior AM Best financial strength rating
  • Superior AM Best financial strength rating
  • Not as many GEICO agents in Arizona compared to many large competitors
  • Digital tools are available but aren’t as robust as some competitors

The sad truth is that for a lot of auto insurers, the correlation so often found between a poor credit rating and a low income can cause rates to double those of policyholders with good credit.

There are steps you can take to help lower your car insurance rates if you have poor credit. For example, look around for an insurer that offers discounts you may be eligible for as this can save you some money. Another important way to lower your premiums is to be careful about avoiding traffic violations. Both of these things can help you lower your car insurance cost.

Rates for the cheapest car insurance for bad credit in Arizona

Insurance company Monthly Rate
GEICO $132
Farm Bureau   $177
Travelers  $178
USAA  $228
Nationwide  $315

Arizona law requires drivers to have a minimum amount of liability car insurance to help cover the expenses of car accidents. The minimum coverage amounts required for Arizona drivers are below.

Car insurance coverage must be a minimum of:

  • $15,000 for property damage liability per accident
  • $25,000 for bodily injury per person
  • $50,000 for bodily injury liability per accident

Arizona’s minimum requirements for car insurance are about the same as elsewhere in the country.

You are mandated by Arizona law to carry auto insurance minimum amounts of coverage, but it may be prudent to have more than the legally required minimum. When you stop and think that you could be held responsible to pay the difference if the cost of a car accident is more than your auto insurance will pay, it might make sense to add another layer of protection in the form of more coverage.

This is why many Arizona drivers decide to purchase more than the minimum, to be sure they have enough protection.

Full Coverage Options

While the term “full coverage,” is commonly used in car insurance lingo, it’s not an official category. Usually, full coverage alludes to having multiple coverage types, so that the policyholder is protected from the different types of loss that could accompany a car accident. In most cases, full coverage includes comprehensive coverage, liability coverage for both bodily injury and property damage, and collision coverage.

Liability insurance will help cover the costs of injuries or property damage in an accident that was the fault of the insured driver. Collision coverage will help defray expenses in the event your car is damaged in a collision with an object or another vehicle. Comprehensive coverage is for non-collision accidents including things like theft, natural disasters, vandalism and fire.

Full coverage auto insurance is an inclusive package that was designed to offer all-in-one blanket coverage and give peace of mind to all drivers both on and off the highway.

Does Arizona have a government-sponsored car insurance program for low income families?

Arizona  does not have a government sponsored auto insurance program for low-income drivers. Even though Arizona drivers are legally required to carry a minimum of liability car insurance, about 12% do not have it.

Does income affect car insurance rates in Arizona?

No, your income doesn’t enter into the cost of your auto insurance rates in Arizona. Car insurance providers will look at things like: the vehicle you drive, adding teenaged or senior drivers, your age, location, driving history and how much coverage you want, to calculate your rates.

How To Save On Car Insurance Costs In Arizona

Finding a path through the Arizona auto insurance landscape can be confusing, but if you enter into it correctly and use the right techniques, you can lower your premiums. Here are three tips that will help you save money on car insurance in Arizona:

Compare Rates from Different Providers

You’ll need to scout around and compare rates between different car insurance providers if you want to save money. Auto insurance companies will calculate premiums based on a variety of components, including: your driving history, your age, and your location, among other things.

Rates may vary quite a lot from one carrier to the next. Spend a little time gathering premium quotes, comparing discounts and coverage amounts before settling on the insurer that seems best for your needs. It will be a wise investment.


Leverage Discounts

A lot of car insurance providers have discounts available that might help lessen your premiums. A few  examples of these discounts include: being a good student, safe driving, bundling coverage or purchasing multiple policies with the same company, your vehicle’s safety features, and more. Inquire about what discounts are offered, and which you might be eligible to receive.


Adjust Your Coverage and Deductibles

Another way to save money on car insurance is to adjust your coverage along with the deductible. For example, if you drive an older vehicle, you might consider dropping the pricey collision and comprehensive coverage, as the cost of these coverages could be higher than your car’s value.

You could also raise your deductible, which is the amount you pay out of pocket in the event you file a claim, to lower the price of your premium. Before you do that, though, be sure that the amount of your deductible is something you can easily pay if you have an accident.



How can low income families get affordable car insurance in Arizona

Arizona low income drivers need to scout around and do some comparisons between rates of different insurers. Additionally, it’s always a good idea to check on what discounts various carriers offer, as these can lower rates, as well. Those two steps might save quite a bit on your car insurance.

What is the minimum amount of car insurance you have to carry in Arizona

Arizona law says that drivers must have a minimum amount of liability auto insurance. These amounts are: $25,000 for injury/death of one person in an accident, $50,000 for more than one person, and $5,000 for property damage in a single incident.

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