Cheap Car Insurance Companies In Arkansas

The average semiannual cost of car insurance in the state of Arkansas is $949.50. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Arkansas across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 3/2/2024

The Arkansas car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in AR. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Arkansas Minimum Liability Coverage

Arkansas has minimum liability insurance requirements to ensure motorists carry an adequate level of coverage to compensate for damage and injuries resulting from traffic collisions. The minimum requirements in Arkansas are:

• Bodily Injury Liability of $25,000 per person and $50,000 per accident. This covers reasonable medical expenses and lost wages for individuals injured in an accident caused by the policyholder.
• Property Damage Liability of $25,000. This pays for damage to other vehicles and property resulting from a collision caused by the policyholder.
• Medical Payments or MedPay of $5,000. MedPay covers the medical expenses of individuals injured while occupying the policyholder’s vehicle, regardless of fault. This includes the policyholder, passengers, and pedestrians.

Arkansans are encouraged to purchase more than the state minimum coverage for adequate financial protection. Many insurance agents and experts recommend the following:

• Bodily Injury Liability of $100,000 per person and $300,000 per accident.
• Property Damage Liability of $100,000.
• Medical Payments of $10,000.
• Uninsured/Underinsured Motorist Coverage equal to the Bodily Injury Liability limits to cover injuries caused by motorists with insufficient or no insurance.

Penalties for Driving Without Insurance in Arkansas

If you are pulled over or involved in an accident and found to be driving without insurance, you will likely receive a citation with a fine between $100 and $500. The offense is considered a misdemeanor crime, and if you fail to pay the fine or appear in court, additional penalties may apply.

Your driver’s license will also be suspended for a period of time. First-time offenders typically face a license suspension of 30 days, while repeat offenders may have their license suspended for up to 12 months. In some cases, you may be required to complete an insurance course to have your license reinstated.

You will also be required to provide proof of proper insurance coverage before your license can be reactivated. Insurance rates will likely increase substantially due to being cited for driving uninsured.

Auto Insurance Rates in Arkansas

Auto insurance rates in Arkansas are generally lower than the national average. Arkansas has a relatively low population density and fewer miles of congested roadways, leading to fewer accidents and lower insurance claims. According to the Insurance Information Institute, the average annual expenditure for auto insurance in Arkansas was $797 in 2019, compared to the national average of $1,066.

Several key factors influence auto insurance rates in Arkansas:

• Vehicle type – Sports cars, luxury vehicles, and large SUVs tend to have higher insurance costs due to higher repair costs and theft risk. Compact cars and hybrids typically have lower rates.
• Driving record – Drivers with a history of speeding tickets, accidents, or other violations will usually pay higher premiums. Insurance companies view these incidents as indicators of greater risk. Maintaining a clean driving record for several years can help lower your rates.
• Credit score – Insurers often use credit-based insurance scores as part of their underwriting process. Drivers with poor credit typically pay higher premiums, while those with good credit often qualify for discounts.
• Bodily injury and property damage liability limits – Higher liability limits provide more protection but also cost more. Choose amounts that make you feel comfortable but are within your budget.
• Age and gender – Younger drivers under age 25 and males under age 30 typically pay the highest rates due to higher claim frequencies and accident severities. Rates generally decrease as drivers get older.
• Discounts – Many insurers offer discounts for good grades, completing a driver’s training course, installing anti-theft devices, bundling auto and homeowners policies, and more. Be sure to ask your provider about any discounts for which you may qualify.

Low Cost Car Insurance Programs and Discounts in Arkansas

Arkansas drivers can find several ways to reduce the cost of their car insurance. Whether you’re looking for lower premiums, discounts or other programs, there are options to fit most budgets. Here are some of the most common methods to save on car insurance in Arkansas:

• Good Student Discounts: Many insurance companies offer discounts for students who maintain good grades. This typically requires a GPA of 3.0 or higher. Students can save 5% to 25% on their premiums through good student discounts.
• Multi-Car Discounts: Insuring two or more vehicles with the same company often qualifies you for a multi-car discount of up to 20%. If you have teens driving or other family members with separate policies, consolidating under one policy can provide significant savings.
• Defensive Driving Courses: Completing an approved defensive driving or accident prevention course can earn you a discount from 5% to 10% or more. Many insurance providers will give you this discount for up to three years.
• Low Mileage Discounts: If you drive fewer than 7,500 to 10,000 miles per year, you may qualify for a low-mileage discount of 5% to 10% off your premiums. Provide your estimated annual mileage when getting quotes to see if you qualify.

Arkansas Car Insurance Statistics

Arkansas has relatively low car insurance rates compared to the rest of the nation. Several factors contribute to these rates, including the state’s risk profile, insurance regulations, and population demographics.

One reason for lower rates is the state’s lower risk profile. Arkansas has a lower population density compared to many states, meaning fewer cars per mile of roadway and less traffic congestion. The state also has a lower frequency of car accidents, injuries, and fatalities compared to the national average. Fewer insurance claims help keep premium costs down.

Arkansas also has less stringent car insurance requirements compared to some states. While state law requires drivers to have liability insurance coverage, there are no mandatory coverage limits. This gives consumers flexibility but also means many opt for lower coverage amounts, resulting in lower premium costs.

The state’s demographics also contribute to cheaper car insurance rates. Arkansas has a lower median income compared to the national average, meaning residents tend to own older cars worth less money. Insurance premiums are calculated partially based on vehicle value, so lower valued vehicles lead to lower premiums. The state also has a younger population profile, and younger drivers typically pay lower insurance rates.

The Largest Arkansas Car Insurance Companies

Arkansas drivers have many insurance companies to choose from for their auto insurance needs. Here are the 10 largest car insurance companies in Arkansas based on premium volume in the state:

1. State Farm: As the largest auto insurer in the U.S., State Farm also leads the way in Arkansas. It offers a wide range of coverage options at competitive rates for customers of all risk levels.
2. Farmers Insurance: Farmers Insurance has been providing auto insurance to Arkansas drivers for decades. It offers several discounts and innovative coverage options for its customers.
3. Allstate Insurance: Allstate has a large market share in Arkansas and is known for offering multiple discounts to help lower premium costs. Customers can access Allstate agents or purchase policies online.
4. USAA: Though mainly serving military members and their families, USAA also insures Arkansas residents. It is known for providing exceptional customer service and financial stability.
5. Liberty Mutual Insurance: Liberty Mutual has been serving Arkansas customers for over 100 years. It offers many optional coverage types as well as discounts for safe drivers, bundling policies, and more.
6. Arkansas Farm Bureau Insurance: As the largest property and casualty insurer based in Arkansas, Farm Bureau Insurance provides auto coverage tailored to the needs of state residents.
7. GEICO: GEICO is known for offering some of the lowest auto insurance rates in Arkansas. Customers can access agents, make policy changes, and file claims through GEICO’s digital platforms.
8. Progressive Insurance: Progressive has been providing auto insurance to Arkansas drivers for over 50 years. It is known for offering a wide range of coverage options and discounts.
   Shelter Insurance: Shelter Insurance is a regional insurer that has been serving Arkansas customers for decades. It offers affordable rates and high customer satisfaction.
9. The Hartford: The Hartford is a national insurer offering auto coverage to Arkansas residents. It provides discounts for safe drivers, bundling policies, and using paperless billing.