Cheapest Arizona Car Insurance for Low Income Drivers In 2024

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, including low income, 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.

Each one of these car insurance providers have excellent ratings and established reputations, and each has its own strengths in providing dependable car insurance protection for Arizonans.

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

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.

Rates for the cheapest car insurance in Arizona for seniors

The sad truth is that to 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

Recommended car insurance coverage for low-income drivers in Arizona

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?

No, it doesn’t. 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. Liability insurance is less expensive than full coverage.

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:

1. 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.

2. 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.

3. 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.