Find Your Perfect Policy: 866-843-5386

Icon CheckLast updated: April 11, 2023

The Best Auto Insurance in Arkansas

Everything you need to know about the top car insurance providers in Arkansas.

Best Overall
Direct Auto Logo

Direct Auto specializes in car insurance for drivers with histories of moving violations and accidents. Arkansans have higher average rates of these incidents.

Best for Military and Veterans
USAA Logo 2023

USAA is our top choice for active military members, veterans, and their families. If you qualify for USAA’s membership, you can enjoy a low cost of car insurance, quality customer service, and excellent benefits.

Twitter brand
Facebook brand
Linkedin brand
Reddit brand
Envelop icon

If you’re one of the 2.15 million drivers in Arkansas, you need liability coverage (property damage and bodily injury) to drive legally. On average, Arkansans spend $879 for car insurance, which is about 16 percent lower than the national average of $1,047.

Unsure which providers offer the best policies and prices for your specific needs? Below, we’ll break down the best providers in The Natural State, giving you a closer look at their discounts, rates, niche coverage options, mobile features, and more.

Summary of the Best Auto Insurance in Arkansas

  1. 1.

    Best Auto Insurance in Arkansas Overall: Direct Auto

  2. 2.

    Best Auto Insurance for Active Military and Veterans in Arkansas: USAA

  3. 3.

    Best Auto Insurance for Teens in Arkansas: Nationwide

  4. 4.

    Best Auto Insurance for Safe Drivers in Arkansas: State Farm

Comparison of the Best Auto Insurance in Arkansas

Insurance company Average annual rate Bundling discount Senior discount Good student discount Safe driver discount Low mileage discount J.D. Power auto claims satisfaction study

(out of 1,000)1

Direct Auto $2,487 Yes Yes Yes Yes No N/A Direct Auto review
USAA $1,151 Yes No Yes Yes Yes 890 USAA review
Nationwide $1,614 Yes No Yes Yes Yes 868 Nationwide review
State Farm $1,419 Yes No Yes Yes Yes 882 State Farm review

Detailed List of the Best Auto Insurance in Arkansas

1. Best Auto Insurance in Arkansas Overall - Direct Auto
Direct Auto Logo

What We Like Most:

  • Low rates for high-risk drivers
  • Can pay in cash locally
  • Save money by bundling with life insurance

If you’re a high-risk driver — a new driver, a teen driver, someone with a history of traffic violations, and so on — you might have difficulty finding a car insurance company willing to provide you with coverage. Direct Auto, unlike most providers, caters to high-risk drivers by offering customizable payment plans, several sizable discounts, and a team of agents trained to work with unsafe drivers.

Below, we’ll break down what it means to be a high-risk driver and how Direct Auto can help you gain quality coverage at an affordable price.

ProsWho It's Best For
  • pro
    High-risk drivers
  • pro
    People with prior coverage
  • pro
    Young drivers
  • pro
    People with bad credit
ConsWho It's Not Best For
  • con
    Safe drivers
  • con
    People looking for the cheapest auto insurance

Support for High-Risk Drivers

Unfortunately, Arkansas ranks higher than average in several categories that insurance providers look for when assessing risk. Below we’ll break down some of those numbers and see how they compare to the national averages.

Category Arkansas average National average
DUI rate .203% .164%2
Motor vehicle fatality rate .021% .011%3
Uninsured/underinsured motorist rate 19% 13%4
Percentage of people who always wear their seat belt 84% 90%5
Credit score 694 7146

Other factors that might be categorized as high-risk drivers include the following:

  • People with high-value vehicles
  • Teen drivers
  • People with several past insurance claims
  • People who haven’t been covered in the past six months
  • Recent driver’s license recipients

Direct Auto can help you curate an affordable plan with flexible payment options if you find yourself in one of the above categories.

Flexible Payment Plans

Because Direct Auto caters to high-risk drivers, its average rate (about $2,500) is nearly $1,500 more than the national average ($1,047).7 One way to lessen the sting of high rates is to customize your insurance payment options. You can personalize your payment options to fit your budget by adjusting the following factors:

  • Payment dates
  • Payment frequencies
  • Down payment rate (the higher your down payment, the lower your premiums will be)
  • Payment method, including cash (physical locations only)


Arkansas has 27 Direct Auto locations, including North Little Rock, Fort Smith, Springdale, and Jonesboro.

Ample Discounts

Direct Auto offers one of the longest lists of discounts among any provider, small or large. You can earn savings of up to 25 percent in multiple categories, which is more than most large providers offer. Whether you’re a teen driver, active military member, full-time student, or homeowner, Direct Auto probably has a discount for you. Here’s the full list:

Type of discount Requirements Maximum savings percentage
Military  You need to be an active military service member to qualify for this discount. 25%
Prior coverage  If you can prove that you’ve maintained continuous liability coverage with a different provider for at least six months, you could be eligible for this discount. 25%
Multivehicle  If you and your household insure more than one vehicle with Direct Auto, you might be able to get a quarter of your premiums off. 25%
Renewal  Renew your policy within seven to 10 days of its expiration date, and you could qualify for this discount. 20%
Vehicle equipment  You might be able to gain additional savings if you have an anti-theft system or safety features (anti-lock brakes or stability control) in your vehicle. 10%
Accident prevention course  If you have completed a qualifying accident prevention course within the past 36 months, you could qualify for this discount. 10%
DynamicDrive  Share insights about your driving habits with Direct Auto’s DynamicDrive program, and you could earn a discount. 10%
Good student  If you’re an unmarried student who has a B average or better or ranks in the top 20% of your class, you could save on your car insurance. 10%
Multipolicy  You can bundle your auto with motorcycle insurance and/or commercial auto insurance to earn this discount. 10%
Safe driver  You need to be accident- and violation-free for the past 36 months to be eligible for this discount. 10%
Pay-in-full  You could earn this discount by paying for your entire policy upfront, as opposed to in monthly installments. 9%
Payment discounts Set up automatic payments, pay-in-full, or paperless payments to qualify for this discount. 9%
Returning customer This discount is available to customers who return to Direct Auto after ending a previous Direct Auto plan more than six months ago. 6%
Senior  You must be over the age of 55 and complete an approved accident prevention course to save. 5%
Affinity discount If you’re part of an affinity group (church, alumni associations, wholesale clubs, etc.), you could qualify for this discount. 5%
Multiproduct  Add additional coverage (roadside assistance, term life insurance, etc.), and you might be able to earn some savings. 5%
2. Best Auto Insurance for Active Military and Veterans in Arkansas - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

USAA is consistently our top pick for active military service members, veterans, and military families because of its affordable rates, specialized military coverage, and excellent customer service scores. If you’re one of the 252,000 veterans or 3,000 active military members in Arkansas, you can apply for USAA’s exclusive military-only membership.8 Whether you need to figure out the best way to store your vehicle during deployment, transfer your insurance overseas, or save more on your domestic policy, USAA will have you covered.

ProsWho It's Best For
  • pro
    Safe drivers
  • pro
    Deployed military members with vehicles garaged in the U.S.
  • pro
    Military members, veterans, and their families
  • pro
    People who bundle their insurance
ConsWho It's Not Best For
  • con
    Non-USAA membersOwners of electric or hybrid cars
  • con
    Owners of electric or hybrid cars

Big Savings With USAA SafePilot

You can earn up to 30 percent off on your car insurance with USAA’s SafePilot program, one of the company’s top saving opportunities. Here’s how it works.

  1. Enroll in the SafePilot program online or with an insurance agent (you get 10 percent off your insurance just for enrolling).
  2. Download the SafePilot app, which is available on both iOS and Android. The app has a 4.4 out of five-star rating for iOS and a 4.1 out of five for Android.
  3. Drive and allow the app to track your driving habits and score your trips. You don’t need to turn on the app every time you drive; it will track your driving automatically.
  4. During the renewal period, USAA will review your score and add any discounts to your policy. You can earn up to 30 percent off at renewal. Also, your rates won’t increase if you exhibit poor driving habits, which isn’t always the case for safe driving programs.

Special Offers for Deployed Military Members

If you’re deployed overseas or in a different state, you can keep your car stored in Arkansas and save money in the process. Here are the three main ways to save if you’re deployed out of state:

  • If you’re on deployment and are storing your vehicle back home, you can earn up to 60 percent off your car insurance policy.
  • You can earn an additional 15 percent off on your comprehensive coverage if you’re garaging your vehicle on a military installation.
  • Finally, if you’re coming in and out of Arkansas between deployments, you can earn a discount for driving fewer miles per year. The less you drive, the more you can save.

Deployed military members can also extend their USAA policies overseas if they plan on driving away from home. You can keep using your USAA insurance if you’re deployed to one of the following countries/territories:

  • Azores
  • Belgium
  • Cuba
  • France
  • Germany
  • Greece
  • Guam
  • Italy
  • Netherlands
  • Portugal
  • Puerto Rico
  • South Korea
  • Spain
  • U.S. Virgin Islands
  • United Kingdom

Coverage for Multiple Types of Vehicles

Whether you’re waiting to insure your favorite classic car, have your own golf car, or want to offroad on an ATV, USAA covers several types of motor vehicles. On top of regular cars, trucks, SUVs, and sports cars, you can also gain coverage for the following vehicles:

  • ATVs
  • Classic cars
  • Dirt bikes
  • Golf cars
  • Motorcycles
  • Motorhomes
  • RVs
  • Snowmobiles
  • Trucks

If you plan on insuring two or more vehicles with USAA, talk to your agent to see what kind of multivehicle savings you’re eligible for.

3. Best Auto Insurance for Teens in Arkansas - Nationwide

What We Like Most:

  • Discounts for taking a defensive driver course
  • Network of local agents
  • Usage-based insurance program for low-mileage drivers

Nationwide is a well-known and highly rated car insurance provider that’s been around for nearly a century. Nationwide has over 125 independent agents in Arkansas who are ready to help you customize your ideal policy, add your teen driver to your plan, bundle insurance, and more.

ProsWho It's Best For
  • pro
    Teen drivers and their parents
  • pro
    Safe drivers
  • pro
    People who want gap insurance
  • pro
    Pet owners who want pet coverage
ConsWho It's Not Best For
  • con
    People who want rideshare coveragePeople looking for the cheapest option

Discounts for Teens and Parents

On average, drivers under the age of 21 pay over $3,000 for car insurance annually. With Nationwide, you might be able to add your teen driver to your policy free of charge until they become a licensed driver. This perk varies from person to person, so talk to your agent to see if you qualify.

Even if you don’t qualify, you can bring those high prices down with the following discounts for teens:

  • Good student discount: If you’re a full-time student, maintain a B average, and are between the age of 16 and 24, you could qualify for this discount.
  • Accident forgiveness: With Nationwide, your rates could rise as much as 30 percent after an accident. Adding accident forgiveness to your plan ensures your rates will not increase after your or your teen’s first at-fault accident.
  • Defensive driving class: Have your teen complete a Nationwide-approved defensive driving course, and you might be eligible for a discount.
  • SmartRide: Keep an eye on your teen’s driving habits with the SmartRide program. You can track driving habits through the SmartRide or plugin device. Safer driving leads to more savings, but your rates could increase if you or your teen drive poorly.

Excellent Third-Party Ratings

Third-party ratings help customers and industry leaders get a sense of the customer service quality, financial strength, and efficiency of insurance providers regarding actions like filing claims or processing repairs. Nationwide has some of the highest ratings in these categories from the most credible third-party rating systems.

  • NAIC Complaint Index score: The National Association of Insurance Commissioners (NAIC) compares the number of complaints an insurance provider receives (relative to the number of claims it files) to other providers in the industry. Any score lower than one indicates that a provider receives fewer complaints than the industry standard, so the lower the score, the better. The NAIC gave Nationwide a score of 0.65, which means Nationwide receives almost half the number of complaints relative to the industry standard.
  • AM Best Financial: AM Best gave Nationwide an A+ (Superior) rating, which is the highest AM Best rating. AM Best rates for creditworthiness and financial strength, important qualities for companies that need steady cash/credit flow to file claims, process repairs, and reimburse their customers.9
  • Better Business Bureau (BBB) rating: The BBB gave Nationwide an A+ accreditation, which is the highest score it gives out. Although Nationwide has a low customer rating (1.14 out of five stars), the A+ score indicates it’s committed to resolving those complaints in a timely manner.10

Seamless Mobile Features

Nationwide has a seamless, sleek, and easy-to-use mobile app with plenty of convenient features. Here are a few actions you can take with the app:

  • Access your digital ID card.
  • Add or remove a driver on your policy.
  • Add or replace a new vehicle.
  • Change your coverage options.
  • Change your due date for payments.
  • Manage and change your payment options.
  • Pay your bill.
  • Track your car insurance claims.

The app has a modern design and is easy to navigate with its helpful menu panel. One of the best new features was being able to access our ID cards, i.e. our proof of insurance, without having to log in to our account, which makes showing insurance cards to police officers or DMV reps much simpler.

4. Best Auto Insurance for Safe Drivers in Arkansas - State Farm

What We Like Most:

  • Multiple discounts for safe driving, including one specifically for young drivers
  • Local agents
  • Discounts for multiple cars

With over 91 million customers and over 100 years in business, State Farm is the largest provider on our list. In Arkansas, you can reach out to hundreds of State Farm agents across nearly 100 cities and towns. You can also benefit from some of the cheapest rates in the country, especially if you’re a safe driver.

ProsWho It's Best For
ConsWho It's Not Best For
  • con
    People who want gap insurance
  • con
    Nonmilitary members

Discounts for Safe Drivers

State Farm has a long list of discounts for several types of drivers, many of which apply to safe drivers. Safe driving discounts can be especially helpful in Arkansas, where accident rates tend to be higher and have gotten worse since 2019 (we’ll take a closer look at those numbers below). If you want to improve your driving habits, or even if you are a safe driver already, you can try one of the following State Farm discounts or programs:

  • Drive Safe & Save: Drive Safe & Save is a tracking program that records your driving habits, scores you on how safely (or unsafely) you’re driving, and calculates either a premium deduction or an increase. You get a discount just for signing up, and you can earn up to 30 percent off based on your performance.
  • Good driver discount: New to State Farm? You can receive a discount if you don’t have any at-fault accidents or moving violations within your first three years as a State Farm customer.
  • Steer Clear driver program: Steer Clear is a safety program for drivers under the age of 25. Here’s what you need to be eligible for the 15 percent discount:
    • A valid driver’s license
    • No at-fault accidents or moving violations in the past three years
    • A certification of program completion from Steer Clear
  • Defensive driving course discount: State Farm has a network of safety courses in every state. Complete one and you can earn a discount on your premium.
  • Vehicle safety discount: You can qualify for this discount by equipping your vehicle with modern safety features such as electronic stability controls, forward collision warnings, and adaptive headlights.


Between 2016 and 2020, Arkansas’s Highway Safety Program exceeded many of its target safety numbers, with an annual average of 551 fatalities, 134 of which involved speeding and 64 of which involved drivers ages 20 or younger.

Classic Car Coverage

State Farm is our top pick for the best classic car insurance providers in the country. Not every insurance provider offers classic car coverage because classic cars require a specialized valuation process that isn’t necessary for normal cars. Because the value of a classic car increases over time, instead of depreciating, you and your State Farm agent have to agree to a valuation for the vehicle.

State Farm employs a fair insurance payout process that takes into account any modifications you’ve made to your classic car. Because classic car owners make modifications to their vehicles often, they want to know that their insurer will cover those modifications, not just the original parts of the vehicle.

Excellent Rideshare Coverage

If you drive for a rideshare company (Uber, Lyft, etc.), you’re going to need rideshare coverage. Not all providers offer rideshare insurance, but with State Farm, you can easily integrate rideshare coverage into your plan.

Rideshare insurance fills in the gaps between your personal insurance and your Transportation Network Company (TNC) insurance. When your TNC insurance is unable to provide coverage for you, like when you’re waiting to be matched with your next passenger, your rideshare insurance will kick in. State Farm will also match coverage between your personal and rideshare policies, so you’ll have the same limits and deductibles for rideshare that you do for your personal plan.


  • Proprietary data: Over the past 20 years, has collected millions of data points on car insurance companies that have had the most success insuring drivers across each state, including Arkansas. We leverage that data to narrow down the best service providers in Arkansas, including the best local providers, rates, and driving trends.
  • Public studies: Third-party ratings and studies help customers and industry leaders keep track of the credit ratings, customer service scores, and financial strength of insurance companies. We look at third-party studies from recognized organizations like the Better Business Bureau, J.D. Power, Moody’s, AM Best, the National Association of Insurance Commissioners, and S&P Global, among others, to find the most accurate ratings on insurance providers.
  • State and federal studies: Car insurance policies, laws, rates, discounts, and benefits will vary from state to state, which is why it’s so important to look at federal and state studies for the most up-to-date information. At, we look at only the most credible organization for our facts, figures, and research, including Arkansas-specific data from the NHTSA, NAIC, and other government sources.
  • Expert institutional guidance: Last but not least, is backed by an insurance industry expert, Paul Ford. Paul is the president of insurance services at Centerfield,’s parent company. Paul’s decades of insurance-related experience informs our guides and research, providing us with the expert guidance we need to improve our recommendations, information, and assessments of car insurance companies.

Frequently Asked Questions

What is the car accident statute of limitations in Arkansas?

You have three years from the date of the collision to file a lawsuit for a negligent accident that led to injury, death, or property damage claims that exceeded $1,000.

Is Arkansas a no-fault state?

No, Arkansas is an at-fault state, which means the driver responsible for the accident (the “at-fault” driver) is responsible for covering the property damages and injuries of all parties involved.

What amount of car insurance is required in Arkansas?

According to the Arkansas Insurance Department, every driver must have liability coverage: $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident.

Do I need full coverage car insurance for rentals in Arkansas?

You do not need full coverage for rentals in Arkansas, nor do you need rental car insurance for your rental. All you need is the state minimum, which rental car companies are legally required to provide to you when you rent the car.


  1. Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase, J.D. Power Finds. J.D. Power. (2022, Oct 27).

  2. 2019 Crime in the United States. Federal Bureau of Investigation. (2019).

  3. Fatalities and Fatality Rates by STATE, 1994 – 2020 – State : USA. National Highway Traffic Safety Association. (2020).

  4. One in Eight Drivers Uninsured: $13 Billion Spent in 2016 to Protect Against Uninsured and Underinsured Drivers. Insurance Research Council. (2021, Mar 22).

  5. Seat Belt Use in 2021 — Use Rates in the States and Territories. U.S. Department of Transportation Traffic Safety Facts. (2022, May).

  6. What Is the Average Credit Score in the U.S.? Experian. (2023, Feb 24).

  7. 2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).

  8. Military Appreciation in Arkansas. State of Arkansas House of Representatives. (2019, May 3).

  9. AM Best Affirms Credit Ratings of Nationwide Mutual Insurance Company and Its Key Operating Subsidiaries. AM Best. (2022, Dec 1).

  10. Business Profile: Nationwide. Better Business Bureau. (2023).