The Cheapest Car Insurance in Arkansas

Coverage

• Full coverage car insurance: State Farm, $888 per year
• Minimum coverage car insurance: Southern Farm Bureau, $245 per year

Driving Record

• Good driving record: GEICO, $312 per year
• Bad driving record: State Farm, $348 per year

Here are the best car insurance companies in Arkansas:

• Direct Auto
• USAA
• Nationwide
• State Farm

1. Get discounts from your provider: The easiest and most common way to save money on your car insurance is through discounts from auto insurance providers. Look online or ask your agent about discounts for driving safely, bundling home and auto insurance, being a good student, and paying bills in full or on time.
2. Opt for minimum coverage: The minimum requirement for car insurance in Arkansas is  liability coverage, which means you can get cheap car insurance with fewer requirements.² Your auto insurance premium will be lower if you stick to the minimum required coverage, but on the flip side, you’re more likely to pay out of pocket in the event of an accident if you have low coverage limits. Keep in mind that liability coverage only pays for the other party’s losses. This means if you cause an accident, you won’t have any coverage for your own property damage or injuries.
3. Shop the market: In many cases, you can save money on your auto insurance premium by switching your auto insurance provider. Compare quotes from multiple providers to see which one can offer you the lowest car insurance rates.
4. Raise your deductible: A higher deductible on collision and comprehensive coverage works out to lower monthly payments. However, it does mean you’ll pay a higher amount out of pocket after an at-fault accident or a non-collision incident like vandalism or auto theft.

Auto insurance is required in Arkansas. Every car owner in Arkansas needs to purchase a state minimum of liability coverage. The minimum liability you need to carry by law is as follows:

• $25,000 in bodily injury liability per person and $50,000 per accident
• $25,000 in property damage liability per accident

When you apply for liability coverage in Arkansas, your provider must offer you the opportunity to purchase coverage for uninsured/underinsured motorist bodily and property damage liability and personal injury protection coverage.

The Arkansas House of Representatives stated that 16 percent of drivers in Arkansas do not have insurance, which is higher than the national estimate of 1 in 8 drivers, or 12.5 percent. Other estimates from the Insurance Research Council put Arkansas’ rate of uninsured drivers at 19 percent, which would make it the eighth-highest rate in the U.S.³ The Arkansas State Police writes more than 100,000 citations for failing to provide proof of insurance every year.

With these statistics in mind, we strongly recommend you add uninsured/underinsured motorist coverage to your policy. Uninsured/underinsured motorist coverage ensures your provider will cover you and your car if the other driver in an accident is at fault and either doesn’t have any coverage or not enough.

The Arkansas Automobile Insurance Plan, enacted in 1947, provides automobile insurance coverage to eligible people who are unable to obtain such coverage through the voluntary market. Any insurance agent who holds a valid property and casualty license in Arkansas can write policies through this program. The program administrators divide applications to the plan among insurance companies in proportion to the amount of voluntary automobile insurance business each company writes in the state.⁶

Arkansas allows you to self-insure only if you owe more than 25 registered vehicles. The minimum required collateral is $100,000.⁷

• Mail:
  Ragland Building
  1900 W Seventh St., Suite 1010
  Little Rock, Arkansas 72201
• Phone: 501-682-4692
• URL: https://www.dfa.arkansas.gov/motor-vehicle

Shopping around is the best way to find the cheapest auto insurance in Arkansas. Periodically comparing car insurance quotes is good practice, even if you’re happy with your current rate. Any change in circumstances may impact the rate you receive from your provider and other providers in the state.