Find affordable car insurance with bad credit by comparing rates.
Find affordable car insurance with bad credit by comparing rates.
Jermaine J.
It can be tough to find cheap auto insurance if you have bad credit. Auto insurers use credit tier as a rating factor, assigning premiums based partially on drivers’ credit histories. Because auto insurance companies use data showing drivers with bad credit histories are more likely to file car insurance claims, they account for for that additional risk by charging more expensive rates.
Your car insurance costs with bad credit depends on which company you choose, where you live, and a few other rating factors. We've gathered below average insurance prices for drivers with bad credit in major Arizona citiesand rates from popular auto insurance companies, plus a few tips on how to save on car insurance if you have bad credit in Arizona.
Arizona drivers pay an average penalty of $1,955 per year for having a credit score in the “worst” tier. A driver in the "poor" or "below fair to poor" credit tiers will also face higher-than-average rates.
| Credit Tier | Average Annual Rate in Arizona |
| Worst | $3,202 |
| Poor | $2,723 |
| Below Fair to Poor | $2,380 |
| Average — All Credit Tiers | $1,247 |
Your car insurance rates also depend on the geographic area in which you live. Insurance companies rely on your address to better understand how likely you are to file a claim: the denser your area,, the more you'll pay.
We've listed major Arizona cities and their average car insurance rates for drivers with low credit scores.
| City | Average Annual Rate — Worst Credit | Average Annual Rate — Poor Credit | Average Annual Rate — Below Fair to Poor Credit |
| Phoenix | $3,966 | $3,368 | $2,936 |
| Tucson | $3,470 | $2,944 | $2,564 |
| Mesa | $3,453 | $2,935 | $2,562 |
| Chandler | $3,352 | $2,852 | $2,489 |
| Glendale | $3,771 | $3,202 | $2,791 |
Another contributing factor to your car insurance rate is the insurer you choose. Each auto insurance company rates policies differently, giving rating factors varying weights in their pricing calculations. Credit history can be a significant price differentiator between insurance companies. In Arizona, the most affordable insurance company with bad credit is GEICO, which offers a price break of $505 per year in comparison to the second-cheapest company, American Family.
See below prices from popular auto insurance companies in Arizona for drivers with bad credit.
| Company | Average Annual Rate — Worst Credit Tier |
| GEICO | $1,514 |
| American Family | $2,020 |
| USAA | $2,464 |
| Allstate | $2,774 |
| Progressive | $2,822 |
If you're having a hard time purchasing car insurance with a bad credit history, remember these tips:
