Cheapest Car Insurance for Low-Income Drivers in Arizona (October 2024)

The cheapest car insurance company for individual drivers with low-income in Arizona is Mercury at $46 per month. For families with low-income, the most affordable provider is Travelers at $50 per month.

Arizona does not offer state-backed car insurance programs for low-income families and individuals. Finding the provider with the most affordable rate is one option to manage costs, and there are ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, there are downsides. For example, it offers limited protection in an at-fault accident.

Car insurance companies in Arizona do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history, and type of car. At-fault accidents and moving violations will increase rates for drivers. Comparing quotes from several insurance companies is the best way to find the cheapest rates.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, pay-per-mile insurance is a good option for drivers who rarely drive. MoneyGeek rounded up the cheapest insurers for low-income drivers in Arizona to help you save.

To legally drive in Arizona, you must have car insurance that meets the state's minimum car insurance requirements. Your policy must include the following liability insurance coverage amounts:

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

In Arizona, if you're on a tight budget, you might consider a liability-only car insurance policy. This affordable option covers the other driver's expenses in an accident you cause but won't cover your own vehicle's damages. To protect your own car, you'll need a full coverage car insurance policy, which includes collision and comprehensive coverages. These coverages safeguard your vehicle from damages beyond collisions, such as theft, vandalism, or weather-related incidents.

For instance, in Arizona, where monsoon storms can cause unexpected damage, opting for full coverage can be particularly wise. Understanding the risks and benefits of various coverages is crucial to determining what's best for your situation.

Having a good credit history is crucial for low-income drivers in Arizona as it directly influences car insurance premiums. Insurers often view a poor credit record as a higher risk, which can lead to increased premiums. Therefore, maintaining a good insurance score can significantly lower your insurance costs.

The cheapest car insurance companies for drivers with low-income and poor credit record in Arizona are:

• Mercury: $554 per year, $46 per month
• Travelers: $694 per year, $58 per month

Drivers with good insurance credit, you can get the cheapest car insurance in Arizona from:

• Mercury: $395 per year, $33 per month
• Auto-Owners: $479 per year, $40 per month

It's essential to secure state minimum coverage as driving without insurance is illegal. In Arizona, this is considered a misdemeanor and can lead to suspension of your driver’s license, vehicle registration, and fines ranging from $175 to $1,000, among other penalties.

Car insurance rates in Arizona are not directly influenced by income; however, the family structure does play a role in premium costs. For instance, a single parent may face annual rates ranging from $1,276 to $3,249, which contrasts with the more affordable range of $605 to $1,542 per year for married couples with a teen. This demonstrates a significant cost difference based on family status.

The most budget-friendly car insurance companies for a married couple with a teen in Arizona are:

• Travelers: $605 per year; $50 per month
• Auto-Owners: $878 per year; $73 per month

For a single parent with a teen, the cheapest options are:

• Travelers: $1,276 per year; $106 per month
• Auto-Owners: $1,312 per year; $109 per month

Married couples with a teen can access minimum coverage auto insurance at a lower rate than single parents with a teen. This difference reflects how insurers assess the risk and responsibility associated with different family types. Keeping a solid credit history is crucial, as it can help you secure more affordable car insurance rates.

Car insurance premiums generally decrease as you reach early senior years, typically around age 55 to 65, especially if you have a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

• Mercury: $47 per month, $568 per year
• Travelers: $61 per month, $733 per year

After age 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Arizona, specific laws or guidelines may apply to seniors getting car insurance.

Your income doesn't directly affect car insurance rates in Arizona. However, a low income might lead to a poor credit record, which can increase your rates. On the other hand, a good credit score can help you get lower rates. Understanding the factors that contribute to car insurance rates can help you make informed decisions in choosing the best car insurance for you.

There are several ways to find affordable car insurance in Arizona. Whether you qualify for state-sponsored programs for low-income drivers or not, there are strategies to help you save on your premiums. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance in Arizona can be tough for drivers with low incomes. Here are answers to some of your most common questions on how to save.