Arkansas is packed with drivers and cars, with over 2 million drivers and 2.9 million registered vehicles as of 2019. The state also has one of the highest rates of uninsured drivers in the nation, with over 19% of drivers estimated to be forgoing insurance coverage. Purchasing a car insurance policy in Arkansas is an important part of your financial plan.
Arkansas drivers pay, on average $1,914 annually for full coverage and $470 annually for minimum coverage. Even though car insurance is a legal requirement in Arkansas, there are ways to find coverage for an affordable price. If you are looking for the cheapest car insurance in Arkansas, knowing what companies offer cheap average rates and what steps you can take to lower your premium could help.
The cheapest car insurance in Arkansas
Bankrate’s insurance editorial team partnered with Quadrant Information Services to obtain current rate information for the largest insurance carriers by market share in Arkansas. We then analyzed the premiums to find the companies that offered cheap average rates.
In addition to price, we also considered each insurance provider’s policy offerings, availability, customer service and financial stability. If you are shopping for the cheapest auto insurance in Arkansas, you may want to get quotes from the following companies:
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Southern Farm Bureau||$316||$1,215|
USAA provides the insurance products to military members, both active and retired, and their immediate family members. Although USAA is rank-ineligible with J.D. Power due to these eligibility restrictions, the company received the highest number of points in the 2020 U.S. Auto Insurance Study in the Central region, which includes Arkansas. This indicates that customers are generally satisfied with USAA’s customer service.
Although USAA’s average minimum and full coverage premiums are the lowest on our list, the company still offers numerous discounts that could help you save even more. If you garage your vehicle on a military base, store your vehicle while you are deployed, insure a new car, or insure multiple cars or policies with USAA, you might save money on your premium.
Learn more: USAA Insurance review
Southern Farm Bureau
If you are looking for a company with cheap average rates coupled with a long list of discounts, Southern Farm Bureau may be a good choice. On top of its lower-than-average premiums, Southern Farm Bureau offers discounts like driver training, defensive driving, good student, customer loyalty and continuous coverage.
Although Farm Bureau received a below-industry average score from J.D Power, the company has a low complaint index rating from the National Association of Insurance Commissioners (NAIC). A score of 1.00 represents a baseline number of complaints received; a score above 1.00 means that the NAIC received a higher-than-average number of complaints, whereas a score below 1.00 means a lower-than-average number of complaints. Southern Farm Bureau’s private passenger auto product received a score of 0.09, meaning that the NAIC received far fewer complaints than average.
Learn more: Farm Bureau Insurance review
Farmers Insurance offers excellent coverage options, including customized equipment coverage, accident forgiveness, original equipment manufacturer (OEM) coverage and new car replacement coverage. If you are looking for cheap full coverage but do not qualify for USAA, Farmers may be a good choice.
Farmers does not advertise many discounts on its website, but you might save by insuring your home and auto with Farmers, insuring multiple cars and remaining accident free. You may also be able to take advantage of the company’s telematics program, Signal. The program involves using a mobile app to track your driving habits and earn a personalized discount. You could save up to 15%, and might get another 10% off if you enroll a driver under 25-years-old.
Learn more: Farmers Insurance review
If you prefer to handle your car insurance needs in person, State Farm could be a good option. The company offers agents across Arkansas who stand ready to help with your insurance and banking needs. With State Farm, you have the chance to add numerous optional coverages to tailor your policy to your needs, like ridesharing coverage, car rental reimbursement and roadside assistance.
State Farm also offers several discounts, including savings for being accident free, having a vehicle with certain safety features, insuring multiple cars or buying multiple policies. You may also want to take advantage of one of State Farm’s safe driving programs, Drive Safe and Save for adults and Steer Clear for drivers under 25. Both programs could save you money and teach you safer driving habits.
Learn more: State Farm Insurance review
Geico’s average premiums may be the highest on our list, but the company does offer a wide range of discounts that might help you save. You might be able to lower your premium by being a safe driver, wearing your seatbelt, having a vehicle with anti-lock brakes, insuring a new vehicle or being a member of certain affiliated organizations.
If you like to handle your insurance needs digitally, Geico could be a good choice. The company’s mobile app is one of the most robust on the market, allowing you the ability to file claims, pay bills, make changes, view ID cards and call for roadside assistance. The app is highly rated in both the App Store and Google Play.
Learn more: Geico Insurance review
Minimum coverage requirements for Arkansas drivers
Arkansas, like most states, requires all drivers to carry a minimum amount of car insurance before they get behind the wheel.
In the state of Arkansas, drivers must carry the following minimum insurance coverage:
- Bodily injury liability coverage per person: $25,000
- Bodily injury liability coverage per accident: $50,000
- Property damage liability coverage per person: $25,000
There are also recommended coverages that insurance companies are required to offer to you, but you may opt to reject in writing. These options include uninsured motorist coverage, underinsured motorist coverage and personal injury protection (PIP).
While minimum coverage is often the cheapest car insurance option, most insurance professionals advise that you purchase higher liability limits. If you cause an accident and the damages and injuries exceed your insurance amount, you will be responsible for the overage out of pocket. Higher liability limits provide an extra layer of financial protection.
Additionally, minimum limits do not include comprehensive and collision coverage, which provide coverage for damage to your own vehicle. If you need these options, you will need to purchase full coverage. If you have a loan or lease, your lender probably requires that you have full coverage. Financial institutions may also mandate that you carry certain liability limits and put an upper limit on your deductible amount.
How to get cheap car insurance in Arkansas
Although car insurance in Arkansas can be expensive, there are ways to save. If you need cheap car insurance in Arkansas, you might want to consider the following:
- Compare providers: Each insurance company uses its own rating algorithm to determine your premiums, so prices will vary for even the same coverage. Additionally, each company has its own unique combination of coverages, discounts, features and third-party rankings. Determining your needs and getting quotes from several carriers might help you find the coverage you need at a lower price.
- Take advantage of discounts: Utilizing car insurance discounts is an easy way to save money on your policy. From safe driving discounts and low mileage discounts to payment discounts and even student discounts, most insurance providers offer ways that you can save money on your insurance policy.
- Improve your credit score: When insurance companies price your insurance, they may look to your credit score. By reviewing your payment history, insurance providers are able to better assess your risk as a policyholder and will price your coverage accordingly. Higher credit scores generally mean lower premiums.
- Increase your deductibles: One way to lower your payment each month is to increase your comprehensive and collision deductibles, which are the amounts you will pay if you file a claim for damage to your vehicle. While a higher deductible may mean more affordable car insurance, it is also important to remember that you will have to pay more out-of-pocket if you file a claim.
Working with a licensed agent might be helpful in determining how much car insurance you need, what coverages are right for you, what discounts you qualify for and what policy features you can take advantage of.
Frequently asked questions
What is the best car insurance in Arkansas?
The best car insurance in Arkansas will vary depending on what you want from your insurance company. When shopping for coverage, you might want to take some time to determine what matters to you. Are you looking for the lowest price, certain coverages, specific discounts or unique policy features? Once you know what your priorities are, you can get quotes from several companies to find one that best fits your needs.
What is the average cost of car insurance in the U.S.?
The average cost of car insurance in the U.S. is $565 per year for a minimum courage policy and $1,674 per year for full coverage car insurance. In Arkansas, drivers pay less annually for minimum coverage, with an average premium of $470 per year, but more for full coverage, with an average cost of $1,914 per year
What happens if I drive without insurance in Arkansas?
Driving without insurance in Arkansas is illegal. If you are caught, regardless if you cause an accident or not, you could be facing fines, may have your license suspended and could even be jailed. If you cause an accident without insurance, you will be responsible for paying for the damages and injuries out of pocket, which can lead to financial hardship. If your budget is particularly tight, finding a cheap car insurance policy is a better option than skipping coverage altogether.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.