Car insurance in Arkansas

Posted on September 23, 2014

If you own or drive a vehicle in Arkansas, the info shown here can help you keep your car insurance costs to a minimum. Here’s the latest information pertaining to quotes, rates, minimums, state laws, statistics, and tips on customizing the best Arkansas auto insurance package for you.

Arkansas Minimum Liability Coverage

In compliance with Arkansas state law, the minimum required insurance coverage for each owned vehicle is 25/50/25. That’s insurance speak for $25,000 in Personal Injury Protection (death or injury to the driver), $50,000 in per-accident coverage (death or injury to others) and $25,000 against property damage. Even these amounts often fall short of covering the actual costs associated with having an accident. In fact, the Insurance Information Institute recommends 100/300 coverage for all U.S. drivers. Uninsured Motorist Insurance (UMI) is also recommended for Arkansas drivers.

Penalties for Driving Without Insurance in Arkansas

The standard penalty for getting caught driving an uninsured vehicle in the state of Arkansas is typically a fine of up to $1,000, in conjunction with a suspended registration. In other words, it costs more to get caught driving uninsured than it would in annual premiums if we were smart enough to buy car insurance to begin with.

Auto Insurance Rates in Arkansas

Premiums on automobile insurance in Arkansas are influenced by site-specific factors like climate, economy, crime rate, percentage of uninsured vehicles, insurance availability and population density, for instance. Other conditions affecting premiums include the driver’s age, gender, marital status and driving record.

The average yearly premium for auto insurance in the “No-Fault” state of Arkansas was about $1,345 in 2016, according to demographic data recently posted on various statistical websites. This figure falls just below the national average for annual car insurance premiums, which was $1,347 at the time.

Low Cost Car Insurance Programs in Arkansas

Car insurance carriers offer a broad assortment of discounts for safe drivers, senior citizens, good students, drivers who use anti theft devices, drivers who buy more than one policy and drivers who own more than one car, among others. For example, Arkansas law requires car insurance companies to give a discount to drivers over the age of 55, if they complete an accident prevention course approved by the state’s Office of Motor Vehicles.

Obtaining Auto Insurance Quotes in Arkansas

According to recent consumer reviews, the most popular car insurance providers in Arkansas are Encompass, Liberty Mutual, The Hartford, State Farm and 21^st Century Insurance. By comparison, some Arkansas drivers prefer smaller, local carriers. Overall, the state of Arkansas is home to several dozen car insurance companies based in hundreds of neighborhood offices. Local agents can offer adequate coverage at competitive rates. Call around and compare quotes. Ask about their discount programs.

Arkansas Car Insurance

You may come across many posts pertaining to Arkansas car insurance, but this page provides all you need to know about lowering your auto insurance premium rates in Arkansas.

If you decide to buy a car insurance policy in the state of Arkansas, it’s important to get all the info you can find that pertains to Arkansas auto insurance, and scan the different car insurance premium rates for the “typical” Arkansas driver.

Learn about the types of car insurance coverage Arkansas drivers need. View a list of the 10 largest auto insurance companies in the state of Arkansas, along with a list of the 10 largest auto insurance companies in America. Check out Arkansas poverty statistics, Arkansas unemployment rates, Arkansas population info, Arkansas median incomes, and other data regarding auto insurance rates in the state of Arkansas. Just for fun, there’s even a list of outdated Arkansas traffic laws that still exist.

Read about the average car insurance premium rates for eight different zip codes in Arkansas. Find out where the state of Arkansas ranks among states in terms of average auto insurance premiums. Learn how to reduce your own Arkansas car insurance rates as much as possible.

This page will benefit Arkansas drivers who are looking to save money on car insurance policy premiums. Or maybe you’re just one of those curious “armchair travelers” who wants to know more about the state of Arkansas. Either way, read on.

Arkansas Car Insurance Statistics

A 2017 population estimate indicates that the state of Arkansas is home to more than 3 million people. The median resident age of the population of Arkansas is approximately 37.9 years. The state’s poverty level is about 19.1 percent, which is quite a lot higher than the national average poverty rate of 13.5 percent. The unemployment rate in Arkansas is roughly 3.5 percent, a breathable margin below the national average unemployment rate of 4.4 percent.

A team of researchers at the Insurance Research Council recently conducted a study of drivers in the state of Arkansas. The study determined that nearly 16 percent of autos being driven on Arkansas roads are uninsured. Among states, Arkansas has the 11^th highest rate of uninsured drivers.

Still, Arkansas car insurance premium rates remain about average, overall. A 2017 study showed that the statewide average annual premium rate for a car insurance policy purchased in the state of Arkansas was roughly $1,370. This figure is not far at all from the national average car insurance rate, which was around $1,355 at the time.

The Largest Arkansas Car Insurance Companies

Arkansas car insurance companies are numerous, to say the least. So how do we choose the one that’s right for us? It makes sense to start by looking at some of the popular local and national favorites.

A recent study concluded that the ten largest car insurance companies in America are Allstate Insurance, State Farm Insurance, Geico, Progressive Insurance, Nationwide Group, AAA, Liberty Mutual Insurance, 21^st Century Insurance, GMAC, and AIG, in that order. In this case, insurance companies were ranked by their total annual dollar amount in written premiums.

Shown below is a list of the ten largest car insurance companies in Arkansas, again based on the total amount of direct premiums written for each carrier. This dollar amount reveals each company’s total market share within the state of Arkansas.

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Group	$375,632	24.25
2	Southern Farm Bureau Casualty	$206,211	13.31
3	Shelter Insurance Companies	$125,867	8.13
4	Allstate Insurance Group	$117,277	7.57
5	Progressive Insurance Group	$93,506	6.04
6	Farmers Insurance Group	$92,138	5.95
7	Berkshire Hathaway Insurance	$81,793	5.28
8	USAA Group	$67,526	4.36
9	Nationwide Group	$61,861	3.99
10	Liberty Mutual Insurance	$44,950	2.9

As you can probably see from this list, State Farm Insurance holds car insurance policies for more than one out of four drivers in the state of Arkansas. Still, there are other major Arkansas auto insurance companies to choose from, as well as quite a few smaller, regional carriers. There is no such thing as The One Best Arkansas Car Insurance Company. The best car insurance company for any Arkansas driver will be determined by a number of factors.

Cutting Costs on Arkansas Car Insurance

It is important to research Arkansas car insurance companies, as drivers in Arkansas have a number of creative ways to reduce their car insurance premium rates considerably.

For one thing, Arkansas drivers should take the time to read a few recent customer reviews pertaining to at least a few major Arkansas car insurance companies. Auto insurance companies are competitive, each one targeting a slightly altered demographic, and each one offering slightly different deals and discounts. Reading consumer reviews will help you pick the right car insurance carrier for you.

Next, make a list of your preferred Arkansas car insurance companies. Then visit their websites and compare quotes online. You can compare quotes from different insurance companies, and also for different Arkansas zip codes in your area. For instance, you might go to a company website and get three quotes: One for your home zip code, one for your work zip code, and one for your school zip code.

Also be sure to check out the discounts each company offers. Jump on every discount you think you might qualify for. You can even call an insurance agent to inquire about which discounts may apply to you. Be very proactive when you ask for discounts, as car insurance agents will not necessarily mention it. Types of car insurance discounts you can get may include billing discounts, occupational discounts, vehicle discounts, low mileage discounts, senior discounts, good student discounts, and safe driver discounts, to name a few.

Adding up discounts and comparing car insurance quotes between insurance companies and between zip codes are easy ways to reduce your rates on Arkansas car insurance.

What Types Of Car Insurance Do Arkansas Drivers Need?

In accordance with Arkansas state law, drivers are required to buy car insurance policies having minimum liability coverage limits of $25,000 against bodily injury to other people, $50,000 in coverage for each accident, and $25,000 insurance to cover the cost of property damage. However, other types of coverage are recommended as well, since the minimum amounts of coverage required by state law are rarely enough to cover the costs of auto accidents.

Also recommended for Arkansas drivers are the same liability limits in uninsured and underinsured motorist protection (UMI). The state of Arkansas has the 11^th highest rate of uninsured drivers in the nation. Roughly one out of six vehicles on Arkansas roads is uninsured.

United States insurance experts suggest that drivers in Arkansas (and all across America) buy more than the minimum amount of car insurance coverage required by law. Suggested coverage amounts are $100,000 for personal injury protection, $300,000 for bodily injury to others, and no less than $50,000 to cover the cost of property damage.

For the best possible protection, drivers in the state of Arkansas can also purchase comprehensive and collision coverage for their vehicles. These types of insurance will cover the cost of damage to your car from catastrophic events such as auto collisions, animal strikes, floods, fires, falling trees, and flying objects, to name just a few.

Odd and Outdated Arkansas Traffic Laws

In the state of Arkansas, it is illegal for the Arkansas River to rise higher than the Main Street Bridge in Little Rock.
In Little Rock, it is illegal to honk your car horn at a sandwich shop after 9 p.m.
Also in Little Rock, it is illegal to stop (or start) your car too suddenly when you are at McDonald’s.
Again in Little Rock, it is illegal to walk your cow down Main Street after 1 p.m. On Sundays.

Best And Worst Zip Codes For Arkansas Car Insurance

Your premium rates on an Arkansas car insurance policy will typically depend on your particular Arkansas zip code, among other factors. Auto insurance premium rates are determined by the on-road behavior of the driver, as well as on the zip code demographics of the driver. Car insurance rates change between zip codes, even within the same state, due to the variance in population densities, unemployment rates, median resident ages, median income levels, poverty stats, crime data, and the percentage of uninsured drivers on the road, for instance.

Here is a list of the four most expensive zip codes in the state of Arkansas to buy car insurance. The yearly premium rates in these neighborhoods can range anywhere from about $1,080 to around $2,015, according to quote comparisons. Arkansas car insurance premiums are highest in Helena-West Helena, where unemployment and poverty rates are soaring, and also in Little Rock, which is the largest city in Arkansas.

Zip Code	Pop Density	Unemployed %	Poverty %
72342 (Helena-West Helena)	57	18.70%	40.10%

The unemployment rate and the poverty rate far exceed the state average in this Phillips County zip code, which is home to only about 5,000 people.

Zip Code	Pop Density	Unemployed %	Poverty %
72390 (Helena-West Helena)	242	22.80%	38.90%

This neighborhood is home to about 9,000 people. Again, the unemployment rate and the poverty rate are well above the state average in this zip code.

Zip Code	Pop Density	Unemployed %	Poverty %
72201 (Little Rock)	734	0%	6.30%

Fewer than 1,000 people reside in this Pulaski County neighborhood. Curiously, the median resident age in this zip code is 51.8 years, nearly 14 years above the state average. The unemployment rate is unknown, but poverty is listed as very low here. It remains unclear why this neighborhood is one of the four most expensive zip codes in which to buy Arkansas car insurance. Could it be the correctional facility nearby?

Zip Code	Pop Density	Unemployed %	Poverty %
72202 (Little Rock)	1,257	13.40%	31.00%

In this zip code, high unemployment and poverty rates are sure to hike up the cost of Arkansas car insurance premiums.

Now compare the above Arkansas zip codes to the neighborhoods shown below. Here is a list of the four least expensive zip codes (on average) in the state of Arkansas to buy car insurance. Annual premium rates in these Arkansas neighborhoods will range from about $800 to around $1,710.

Zip Code	Pop Density	Unemployed %	Poverty %
72719 (Centerton)	1,174	2.90%	6.00%

This Benton County zip code has a population of about 10,000. The unemployment rate and the poverty rate are both well below the state average in this neighborhood.

Zip Code	Pop Density	Unemployed %	Poverty %
72745 (Cave Springs)	355	3.80%	12.10%

Roughly 12,000 people live in this Benton County neighborhood. The population density is light, and the unemployment and poverty rates are both far beneath the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
72761 (Siloam Springs)	193	4.30%	17.90%

This Benton County zip code is home to roughly 22,000 residents. The population density is quite low, and the unemployment and poverty rates are not too far from the state averages.

Zip Code	Pop Density	Unemployed %	Poverty %
72768 (Sulphur Springs)	31	6.10%	34.80%

Approximately 1,200 people live in this Benton county neighborhood. The population density is very light, although the poverty rate and the unemployment rate seem to be approaching twice the state average.

All in all, the state of Arkansas is home to 704 zip codes scattered throughout 75 counties comprised of 603 cities, from Alexander to Yellville and everywhere in between. It seems that there is a difference of several hundred dollars in annual premium rates between the least expensive zip codes and the most expensive zip codes in the state of Arkansas to buy car insurance.

Go online today and obtain quotes for your own Arkansas zip codes. See how low your premiums can go on Arkansas car insurance.

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