Loading credit cards with unnecessary debt, living lavishly, and going on trips can all sink your credit score. Most car insurance companies take advantage when you’re down and load you with expensive payments. They’d tell you it’s impossible to find affordable auto insurance policies with bad credit.
Even with minimal levels of insurance in Arizona, carriers can still charge hundreds more than they should. And you shouldn’t have to suffer from past mistakes and not be able to make them right.
While it can be difficult and may result in some increases to your rates, it is possible to secure reasonable car insurance rates even with poor credit. We can help you find the best auto insurance rates for drivers like yourself with poor credit ratings.
It’s possible to secure cost-friendly policies that work for your vehicle and family.
How Much Does Arizona Car Insurance Cost?
The exact cost of auto insurance varies from driver to driver based on a large number of factors, including premiums and deductibles.
Premiums are the costs you pay upfront to ensure coverage. And the amount you pay in the event of a collision before insurance kicks in is called a deductible.
Generally, the higher your deductible the lower your monthly premiums will be. You’ll have greater protection and quality of car coverage the more you pay per month.
The Cheapest Car Coverage in Arizona
Another variable is whether you choose to have just liability coverage. This auto insurance necessity protects you in incidents where you are at fault. As of 2020, the state-mandated minimum liability insurance coverage is as follows:
- $25,000 bodily injury coverage for one person.
- $50,000 bodily injury coverage for multiple people
- $15,000 coverage for damage to property
These costs don’t include coverage for your family if you were at fault and are the minimum amount the state requires.
If you decide to increase the coverage amounts or add full coverage for yourself, then you will have higher premiums. Obtaining comprehensive coverage is a good idea if you have a valuable vehicle.
The average Arizona driver will pay approximately $567 annually for the minimum coverage and $1,536 annually for comprehensive coverage. However, auto companies skyrocket this car insurance for drivers with bad credit.
What Factors Affect the Cost of My Car Insurance?
While a low credit score can decrease your car insurance, other factors exist too. You may not even know they are driving policy prices higher than you’d expect. Insurance agents calculate your rate with an impersonal company formula using these variables.
- Marital Status
- Driving History
- Home Ownership
- Credit Report
Other factors include your car’s appraisal value and your current policy’s actual coverage. If you have a Mercedes Benz with full auto coverage, for example, prices will be much higher than protecting a beater. Having a history of car crashes and DUIs can also negatively impact your payments.
Comprehensive Coverage with Bad Credit
The price difference between having good credit and bad credit is much worse than you think. It can be normal for you to pay massive car insurance prices, but you should understand what rate you deserve.
Without considering the factors above, an Arizona driver would pay an average of $1,592 per year for comprehensive car insurance. The kicker is when bad credit drivers have to cough up $2,812.
That’s over $1,000 per year for financial mistakes car companies won’t let you get over.
Can Drivers with Bad Credit get Cheap Insurance?
If you are a driver with bad credit, one of your biggest priorities should be improving your credit score to reduce your rates. The quality of your credit rating is the single greatest variable in determining whether you can get cheap car insurance.
Improving your credit score takes time, however. There are steps that you can take in the interim to reduce your monthly payments:
Don’t make claims
One of the easiest ways to keep your auto insurance rates and coverage costs down is to avoid making claims. Having a small incident where your insurance would not provide that much aid saves more money in the long run by not filing.
Use GPS tracking devices
Many insurance carriers offer significant discounts for utilizing GPS tracking devices. These devices allow your insurance company to monitor driving habits and forgive bad credit with lower rates.
Budling your auto insurance is a simple way to decrease month-to-month insurance costs. You can find carriers that offer packages with auto, homeowner, and renter’s insurance as one policy. An experienced broker can help you find deals like those instantly.
Don’t settle with the first insurance quote that you receive. Checking with multiple providers and comparing quotes is a simple step that allows you to obtain the best rates. They do the work for you without researching several companies and being solicited with hundreds of agents.
Reduce Your Coverage
If all else fails, drivers with poor credit can reduce car coverage. Cutting your policy’s scope and only including state-mandated liability coverage will allow you to cut down on your premium. However, we only recommend this in a desperate situation since you are putting your family at risk in case of an accident.
Receive Car Insurance Forgiveness
No matter how bad your credit is, our Arizona insurance brokers can help.
We compare your coverage and vehicle needs with 40+ carriers so you get the cheapest rate. While other auto insurance companies may have turned you down, we help you get back on your feet.
You can call Lonny Britner and our team at (480)-660-3950 so we can answer your questions and hear about your car insurance needs. Or you can receive a free quote on a lower insurance premium today and we’ll follow up afterward.