Comparison shopping is key to getting cheap car insurance in Arkansas. Policies with the same coverages can command very different prices depending on the insurer, so settling for the first estimate you get might mean losing out on a much better deal elsewhere.
To help you get a clear picture of rates in your state, NerdWallet tested quotes from the nine largest companies in Arkansas. Below you’ll find the three most affordable options for common driver profiles, including:
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Cheapest for good drivers
For drivers with no DUIs, at-fault crashes or moving violations; range of average prices from the nine largest insurers: $1,017 to $2,512 per year.
Price
- $1,017/year
Price
- $1,054/year
Price
- $1,190/year
The average among the three cheapest insurers was $1,087 per year. Both Geico and USAA returned estimates below that number, $1,017 per year and $1,054 per year, respectively. Note, however, USAA is only available to active or retired military members and their families.
To keep costs down, good drivers should look to take advantage of discounts for going accident-free, which are available from all three companies above.
Cheapest for young drivers
For drivers in their early 20s; range of average prices from the nine largest insurers: $475 to $1,806 per year.
Price
- $475/year
Price
- $646/year
Price
- $772/year
The relatively low rates listed for young drivers may come as a surprise given these drivers’ inexperience behind the wheel. But because shoppers in their early 20s typically have less savings than older drivers, they tend to buy policies with less coverage, and thus lower rates. Our sample used less coverage for young drivers.
USAA notched the lowest average price at $475 per year, which comes to about $40 a month. For those without a military connection, however, USAA is off the table. Geico had the next-cheapest price tag, roughly $54 a month on average.
Cheapest for drivers with one at-fault crash
Range of average prices from the nine largest insurers: $1,345 to $3,806 per year.
Price
- $1,345/year
Price
- $1,418/year
Price
- $1,548/year
At-fault crashes typically lead to higher car insurance rates, either when you renew with your current company or when you shop around for a new policy. The cheapest average price we found for this group was $328 more per year than the lowest estimate for drivers of the same age with no crashes.
Even if you have a blemish on your record, it’s important to be thorough in your shopping. There was nearly a $2,500 difference between the lowest and highest costs in our test; comparing several quotes will help you avoid sky-high rates and find the most competitive deals.
Cheapest for drivers with poor credit
For drivers placed in the “Poor Credit” tier using the Quadrant Information Services rate tool; range of average prices from the nine largest insurers: $1,187 to $2,900 per year.
Price
- $1,187/year
Price
- $1,518/year
Price
- $1,779/year
You may wonder what your credit score has to do with your car insurance. In most states, including Arkansas, companies use a credit-based insurance rating to help predict how likely applicants are to file claims. If you have less-than-ideal credit, you could face steeper costs when shopping for coverage.
Geico had the best deal for this group with an average quote of $1,187 per year. That’s roughly $14 a month more than what it quoted drivers of the same age with no credit problems. A pair of smaller, regional insurers rounded out the list of cheapest companies — Southern Farm Bureau, available in 11 states, and Shelter Mutual Insurance, available in 17 states.
Cheapest for retired drivers
For drivers in their mid-to-late 60s who no longer use their car for commuting; range of average prices from the nine largest insurers: $877 to $2,252 per year.
Price
- $877/year
Price
- $900/year
Price
- $945/year
Older drivers tend to have high car insurance rates if they drive as frequently as their middle-age counterparts. But retirees can significantly cut down on their annual mileage — and policy costs — by ditching the daily commute, a factor we took into account in our analysis.
USAA led the field with an average annual rate of $877 a year. If you don’t have a military connection and can’t qualify for USAA, State Farm and Geico were next in line with fairly comparable estimates.
Minimum Arkansas car insurance requirements
State law requires drivers to carry liability insurance with at least the following limits:
- $25,000 bodily injury liability per person.
- $50,000 bodily injury liability per incident.
- $25,000 property damage liability per incident.
If you ever cause a crash, liability insurance pays for others’ injury treatment and property damage, up to your limit.
For a more detailed breakdown of how liability and other common coverages work, as well as advice on choosing your limits, check out NerdWallet’s guide to minimum car insurance requirements by state.
Alternative car insurance for high-risk drivers
If you’re labeled a “high-risk” driver because of past crashes, DUIs or other factors, you may have trouble getting approved for auto coverage on the traditional market. As an alternative, you can apply for a policy through the Arkansas Automobile Insurance Plan.
For more help finding cheap car insurance in Arkansas, spend some time with NerdWallet’s car insurance comparison tool.
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: aglenn@nerdwallet.com.
METHODOLOGY
For most categories, NerdWallet averaged rates from the largest insurers for 30-year-old men and women in 10 ZIP codes and with 100/300/50 liability insurance limits, 100/300 uninsured motorist bodily injury coverage and collision and comprehensive with a $1,000 deductible. We used a 2012 Toyota Camry in all cases.
Our sample young driver was 22 and carried the minimum required coverage. Our sample retired driver was 67 and drove 5,000 annual miles; all other groups drove 10,000 annual miles. These are sample rates generated through Quadrant Information Services. Your own rates will be different.
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