It’s hard to miss the ads from companies like Liberty Mutual, GEICO, and The General that say if you switch you’ll get enormous savings, so you should just pick the company with the cutest commercial, right?
That is not the case, however, as there are a ton of unknown elements like how old you are, the number of miles you drive each year, and your credit score, that all factor into the price you pay. The content below will cover the types of situations that result in high rates and will hopefully give the reader a good start to your coverage search.
For people with poor credit, one of the more important factors that are looked at to help calculate the annual cost of car insurance is where your car is garaged. Larger areas tend to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates tend to receive cheaper rates.
The information below lists the highest-priced places in Arizona for drivers with bad credit to buy car insurance in. Scottsdale is listed at #10 having an annual price of $1,117 for the average policy, which is about $93 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Phoenix | $1,268 |
| 2 | Avondale | $1,210 |
| 3 | Glendale | $1,190 |
| 4 | San Tan Valley | $1,185 |
| 5 | Gilbert | $1,154 |
| 6 | Mesa | $1,147 |
| 7 | Peoria | $1,137 |
| 8 | Goodyear | $1,131 |
| 9 | Buckeye | $1,122 |
| 10 | Scottsdale | $1,117 |
| 11 | Maricopa | $1,107 |
| 12 | Tempe | $1,106 |
| 13 | Chandler | $1,093 |
| 14 | Catalina Foothills | $1,072 |
| 15 | Casas Adobes | $1,072 |
| 16 | Tucson | $1,072 |
| 17 | Oro Valley | $1,062 |
| 18 | Surprise | $1,058 |
| 19 | Casa Grande | $1,047 |
| 20 | Yuma | $992 |
| Compare Rates Now Go | ||
Rate quotes are comparative as vehicle location can alter price quotes considerably.
The vehicle model driven is one of the primary factors that determines whether or not you find the most affordable auto insurance for drivers with bad credit. Vehicles with limited speed and performance, an excellent safety record, or a positive history of liability claims will cost much less to insure than adrenaline junky models.
The information below showcases coverage prices for a selection of the most budget-friendly vehicles to insure in Arizona.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Edge SE 2WD | $1,578 |
| Toyota Prius | $1,594 |
| Honda CR-V LX 4WD | $1,621 |
| Honda Odyssey EX W/Rear Entertainment | $1,667 |
| Ford Focus S 4-Dr Sedan | $1,674 |
| Chevrolet Malibu Hybrid | $1,699 |
| Hyundai Elantra SE Touring Station Wagon | $1,716 |
| Ford Escape Limited 4WD | $1,725 |
| Honda Civic EX 4-Dr Sedan | $1,759 |
| Jeep Grand Cherokee Limited 2WD | $1,824 |
| Ford Fusion SE 4-Dr Sedan | $1,831 |
| Ford F-150 FX2 Super Cab 2WD | $1,832 |
| Volkswagen Jetta 2.0T Station Wagon | $1,853 |
| Chevrolet Impala LT | $1,864 |
| Toyota RAV4 Limited 4WD | $1,870 |
| Compare Cheap Rates Go | |
Prices above based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include homeowner, multi-vehicle, multi-policy, claim-free, and safe-driver. Table data does not factor in specific location information which can influence premium rates significantly.
Based upon the rates shown, we can infer that makes and models like the Ford Edge, Toyota Prius, and Honda CR-V are some of the most budget-friendly vehicles to insure for people with poor credit. The cost of a car insurance policy will be higher anyway because there is more claim risk for drivers with bad credit, but in general those specific models will probably have the best rates compared to other vehicles.
Finding reliable, budget car insurance is not most people’s favorite thing to do, and figuring out which company offers the cheapest insurance rates for drivers with bad credit involves additional perseverance. Every insurance company has a proprietary formula to determine premium rates, so let’s begin by examining the insurance companies with the overall cheapest rates in Arizona.
It’s a good idea to be aware that Scottsdale, AZ insurance rates are impacted by many things which can significantly increase or decrease the price you have to pay. Getting older, filing a claim, or getting a driving violation may generate price changes resulting in some companies being more expensive than others.
Best Insurance Companies with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | The Hartford | $836 |
| 2 | Auto-Owners | $915 |
| 3 | Safeco | $923 |
| 4 | Travelers | $1,075 |
| 5 | USAA | $1,080 |
| 6 | Progressive | $1,164 |
| 7 | GEICO | $1,166 |
| 8 | CSAA | $1,189 |
| 9 | Ameriprise Group | $1,220 |
| 10 | Allied | $1,233 |
| 11 | Safe Auto | $1,284 |
| 12 | Farm Bureau Mutual | $1,297 |
| 13 | Unitrin | $1,303 |
| 14 | State Farm | $1,337 |
| 15 | Farmers | $1,391 |
| 16 | Amica | $1,443 |
| 17 | Titan | $1,461 |
| 18 | American Family | $1,478 |
| 19 | MetLife | $1,521 |
| 20 | California Casualty | $1,522 |
| View More Rates Go | ||
The Hartford has some of the cheapest car insurance rates in Scottsdale at around $836 a year. This is $592 less than the average price paid by Arizona drivers of $1,428. Auto-Owners, Safeco, Travelers, and USAA also rank well as some of the lowest-priced Scottsdale, AZ insurance companies.
As shown in the rates above, if you have coverage with Travelers and switched to Auto-Owners, you may see yearly savings of roughly $160. Insureds with USAA could save as much as $165 a year, and Progressive policyholders might reduce rates by $249 a year.
Be aware that those rates are averages across all ages of drivers and types of vehicles and and are not calculated with a specific location for drivers with bad credit. So the auto insurance company that is best for you may not even be in the top 28 companies shown above. That points out the importance of why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
Liability rates compared to full coverage
Saving on insurance is important to most drivers, and one of the easiest ways to pay lower rates for insurance for drivers with bad credit is to only pay for liability coverage. The information below illustrates the comparison of insurance costs with and without full coverage. Data assumes no violations or accidents, $250 deductibles, marital status is single, and no discounts are taken into consideration.
If we average the cost for ages 20 through 70, full coverage on your policy costs $2,144 per year more than insuring for liability only. That proposes the question if you should buy full coverage at all. There is no exact formula for eliminating comp and collision coverage, but there is a general school of thought. If the annual cost of comprehensive and collision coverage is about 10% or more of the replacement cost minus the deductible, then you might consider buying liability only.
For example, let’s pretend your vehicle’s replacement cost is $5,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $4,500 after the policy deductible has been paid. If you are paying in excess of $450 a year for your policy with full coverage, then you may need to consider dropping full coverage.
There are some scenarios where removing full coverage is not financially feasible. If you have an outstanding loan on your vehicle, you have to keep full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should not drop full coverage.
The diagram below shows how different deductible levels can change annual premium costs when trying to find cheap insurance for drivers with bad credit. The premiums are based on a married male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
A 40-year-old driver could lower their policy premium by $250 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $378 by selecting a $1,000 deductible. Young drivers, like the 20-year-old category, could roll back prices up to $834 or even more by choosing a higher deductible. If you do decide to increase your deductibles, it will be important to have enough spare savings to satisfy the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
Picking the best auto insurance company can be rather challenging considering how many companies are available to choose from in Scottsdale. The company rank data shown below could help you decide which auto insurers to look at shopping your coverage with. The rankings below include the largest companies in America, so companies without a large exposure are not factored into these rankings.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 98 | 100 | 100 | 94% | A++ | 98.6 |
| American Family | 98 | 89 | 100 | 86% | A | 95.4 |
| State Farm | 88 | 93 | 96 | 90% | A++ | 92.4 |
| The Hartford | 94 | 92 | 90 | 89% | A+ | 91.7 |
| AAA Insurance | 88 | 89 | 95 | 91% | A | 91.2 |
| GEICO | 84 | 93 | 93 | 89% | A++ | 90.3 |
| The General | 89 | 91 | 89 | 88% | A- | 90 |
| Titan Insurance | 90 | 87 | 91 | 95% | A+ | 89.6 |
| Progressive | 84 | 91 | 93 | 87% | A+ | 89.5 |
| Mercury Insurance | 88 | 91 | 90 | 85% | A+ | 89.4 |
| Allstate | 85 | 90 | 92 | 88% | A+ | 89.3 |
| Nationwide | 87 | 88 | 84 | 90% | A+ | 88.7 |
| Liberty Mutual | 84 | 87 | 93 | 88% | A | 88.5 |
| 21st Century | 85 | 86 | 87 | 88% | A | 86.7 |
| Esurance | 85 | 80 | 95 | 87% | A+ | 85.9 |
| Safeco | 85 | 85 | 85 | 86% | A | 85.8 |
| Travelers | 80 | 87 | 87 | 83% | A++ | 85.2 |
| Farmers Insurance | 78 | 87 | 88 | 79% | A | 84.3 |
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Data Source: Insure.com Best Car Insurance Companies
If you have coverage questions and would like to get some professional input when shopping for cheaper insurance for drivers with bad credit, the agencies below can probably aid you in deciding which car insurance policy is best.
To locate a Scottsdale insurance agent close to you, click the button at the bottom of the list or click here to compare price quotes now.
Joe Dufek – State Farm Insurance Agent
5425 E Bell Rd #108 – Scottsdale, AZ 85254 – (602) 493-5300
JVP Insurance Agency
10025 E Dynamite Blvd – Scottsdale, AZ 85262 – (480) 473-3100
Denise Knobbe – State Farm Insurance Agent
10814 N Scottsdale Rd – Scottsdale, AZ 85254 – (480) 905-1019
More Scottsdale, AZ insurance agents
How to find the cheapest insurance for drivers with bad credit
It’s not impossible to find cheaper rates, and here are some thrifty solutions that can help Scottsdale drivers find cheaper coverage.
- Increase physical damage deductibles
- Safe vehicles cost less to insure
- Accidents can significantly increase rates
- Do not waste money insuring older vehicles for full coverage
- Save money by obeying traffic laws and keeping a clean driving record
- Maintaining good credit helps earn cheaper rates
- Compare rates regularly and switch companies to save money
The last item on the list is especially necessary, as was pointed out in this piece. Coverage rates fluctuate constantly, so don’t be tentative to switch carriers if a cheaper price is available.
Staying with the same company for years is fine, but we do not recommend it if your bullheadedness ends up costing you a lot of money every month. Now is a great time to compare rates to find cheaper insurance for drivers with bad credit in Scottsdale.