Arizona Drivers with Poor Credit are Paying WAY too Much for Car Insurance

If you live and work in Arizona, there’s a good chance that you need to drive a car. According to Walk Score®, the three largest cities in the Grand Canyon State (Phoenix, Tucson, and Mesa) are all considered “car-dependent.” And, of course, vehicle ownership requires at least minimal car insurance coverage.

In fact, if you’re pulled over by an Arizona law enforcement officer and fail to present valid proof of insurance, the penalties are pretty stiff. You’ll be slapped with a $500 fine, and your driver’s license, registration, and license plates will be suspended for three months, and this is just for your first offense.

So, you definitely need an auto insurance policy if you’re planning to be behind the wheel. And if you’re like most people, you want the best deal possible on your coverage. But guess what? If you have a poor credit rating, you absolutely will NOT get a good deal on your policy. This is because, in most states, your credit rating is one of the factors used to determine your premium. So, drivers with low credit scores automatically pay more than those with good credit. And, in Arizona, they pay a lot more.

Arizona Drivers with Poor Credit have the Biggest Rate Hikes in the Nation

InsuranceQuotes.com recently conducted a study to determine how poor credit ratings impact car insurance premiums in every state. The site then used the data to rank states according to how much a low credit score typically affects policy prices. Hawaii, Massachusetts, and California were, of course, excluded from the study because it’s illegal to charge poor credit drivers more for insurance in these states.

Sadly, Arizona was ranked number one among the five states that showed the “greatest average premium increase” for drivers with bad credit. It appears that, on average, AZ drivers with poor credit ratings pay – wait for it – 226% more for coverage than drivers with excellent credit! And, if this study is accurate, even drivers with fair credit in Arizona can expect a rate increase of 50%.

So, it appears that the absolute best way to save money on car insurance in the Apache State is to improve your credit rating if it’s anything less than stellar. At this point, you may be wondering why car insurance providers should even care about your credit score. After all, what does your credit have to do with how well you can drive a car?

Well, according to statistics, drivers with low credit scores are much more likely to file claims than their good credit counterparts. For this reason, auto insurance companies are allowed to consider low credit scores as “risk factors” when calculating premiums.

But here’s something to think about. What if mistakes on your credit reports are bringing down your credit rating and making you pay WAY too much for your car insurance?   That would be unfortunate and yet, avoidable.

How Arizonians can Get their Credit Fixed Legally and for Free

At Credit Repair Lawyers of America, we operate under the Fair Credit Reporting Act (FCRA) to get errors removed from your credit reports at no cost to you. So, there’s no reason why credit inaccuracies have to keep bringing down your rating.  Under the law, the defendants putting those errors and mistakes on your credit report have to pay our fees and costs.

Let’s have a chat about how we can fix your credit and possibly save you some money on your car insurance. Set up your free consultation today by calling Attorney Gary Nitzkin at (888)293-2882 or emailing him at gary@crlam.com. Or, for more information about who we are and what we do, visit our website: www.creditrepairlawyersAM.com.