Best car insurance in Arkansas for 2023

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Arkansas car insurance laws require drivers to purchase at least minimum levels of liability coverage, including coverage for bodily injury and property damage. When you purchase car insurance in Arkansas, companies are also legally required to offer you uninsured motorist coverage and personal injury protection (PIP) coverage, although you can decline these in writing.

Buying minimum coverage car insurance often results in the lowest premium. However, if you cause an accident and damage someone’s vehicle or property, or cause injuries, you will be responsible for paying any bills that exceed your insurance limits. Most insurance professionals recommend purchasing higher liability limits if you can afford to.

If you loan or lease your vehicle, your financial institution will likely require you to maintain full coverage on it. This protects the lender's financial interest in your vehicle. You might also consider gap insurance to cover the "gap" between what you own on the vehicle and its value if it is totaled or stolen and nonrecoverable.

Your car insurance needs will likely change along with your life circumstances. For example, you might shop around for a cheaper carrier after adding a teen driver to your policy or switch to a carrier that offers classic car coverage when you buy an antique vehicle. Reviewing your budget, coverage needs and insurance priorities before comparing quotes may help you narrow down your list of top carriers.

There is no one single best car insurance company for all drivers, because every driver has a different situation and has different wants and needs. Getting quotes from several providers may help you decide what company offers the best coverage options, discounts and policy features for you.

The cheapest car insurance for one driver may not be the same as for another. While we’ve compiled and compared average rates between companies, the exact numbers will differ between drivers based on variables like your age, vehicle, driving record, credit history and more. To find the cheapest Arkansas car insurance company for you, most experts recommend pulling free quotes from several top companies and comparing their offers. Keep in mind that you'll likely want to select the same types and amounts of coverage in each quote to get an accurate picture of rates across companies.

Arkansas' average annual premium for full coverage is $1,907, which is slightly lower than the national average of $2,014. The average cost of minimum coverage in the state is also lower than the U.S. average at $443 per year compared to the national average of $622 per year. Low average rates in Arkansas may be attributed to the state's low cost of living and primarily rural population, which may help reduce accident rates. However, Arkansas does have the eighth-highest number of uninsured drivers, which may prevent rates from being lower.

Arkansas requires that all drivers carry at least minimum coverage car insurance. In Arkansas, minimum coverage is denoted as 25/50/25. This means drivers need $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident. While these limits meet the legal requirements, most insurance professionals recommend carrying higher coverage limits and additional coverage types if you can afford to do so for enhanced financial protection.