The Cheapest Car Insurance in Arkansas (September 2023)

In Arkansas, Southern Farm Bureau offers the cheapest car insurance for drivers looking for minimum or full coverage, as well as for young adults and motorists with accidents and DUIs. But depending on the driver, Nationwide or Auto-Owners could be more affordable.

If you’re looking to balance cost and service quality, we also ranked the best car insurance in Arkansas.

On average, MoneyGeek’s research shows Arkansas’ cheapest auto insurance companies for minimum coverage policies are:

• Southern Farm Bureau: $261 per year
• State Farm: $311 per year

Conversely, Dairyland offers the most expensive minimum coverage car insurance in the state, costing approximately $935 per year.

Minimum coverage car insurance in Arkansas covers bodily injury liability and property damage liability.

A minimum coverage car insurance policy will only pay for damages you cause other people. It won’t reimburse your repair or replacement costs for your own car. Comprehensive and collision insurance, also known as full coverage, provides broader protection and extends coverage to your vehicle.

MoneyGeek’s research indicates that these providers have Arkansas’s cheapest full coverage car insurance, on average:

• Southern Farm Bureau: $684 per year
• Auto-Owners: $769 per year

Dairyland’s full coverage policy is the most expensive in Arkansas at approximately $2,238 per year.

Your auto insurance premiums will increase if you purchase comprehensive and collision coverage. You’ll pay $423 more if you choose Southern Farm Bureau’s full coverage insurance instead of its minimum coverage policy.

Despite its higher cost, a full coverage policy provides more protection as it covers on- and off-road incidents.

The amount of car insurance you need impacts your premiums. Our sample full coverage policy features the following liability limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident

If you want to save on your car insurance costs, you can:

• Get lower liability limits
• Remove comprehensive and collision coverage
• Increase your deductible

However, these strategies may leave you with inadequate coverage.

You can get quotes online from most auto insurance companies. However, it can take you roughly 15 minutes to get an estimate from each company. Consequently, comparing rates can take a lot of time as it requires you to go through the same process multiple times.

With MoneyGeek’s car insurance calculator, you can estimate your car insurance costs quickly without having to obtain quotes from several providers. You can use it as a starting point to find the cheapest auto insurance for your profile.

Your age is a key factor that determines how much you pay for car insurance in Arkansas. Allstate and Southern Farm Bureau have the lowest prices on average for various age groups and family members.

MoneyGeek’s analysis shows that the following companies offer the cheapest car insurance in Arkansas on average for teens on their parent’s policy:

• Allstate: $1,689 per year for male teens and $1,576 per year for female teens
• Nationwide: $1,771 per year for male teens and $1,569 per year for female teens

Conversely, Auto-Owners Insurance Co has the priciest car insurance for young drivers. Its policies cost approximately $3,051 for male teens and $3,004 for female teens. These rates reflect inclusion in their parent’s policy.

Wherever you are in the U.S., teens' car insurance rates decrease as they become older. Among this age group, 19-year-olds have the cheapest rates. In Arkansas, the provider with the most affordable rates for 19-year-old males is Allstate ($1,425 per year).

Car insurance for teenagers is typically cheaper if they’re included on a parent's policy compared with buying their own policy. A 16-year-old male teen in Arkansas pays up to $2,988 less if they are included on their parent’s policy as opposed to getting their own coverage.

If your family is insuring a teen, check if you qualify for discounts that may help lower your premium prices. Farmers, Progressive, State Farm, Travelers, Auto-Owners Insurance Co and Allstate all offer good student and distant student discounts, whereas GEICO and Nationwide just offer good student discounts.

On average, MoneyGeek’s research shows that the most affordable car insurance companies in Arkansas for drivers in their 20s are:

• Southern Farm Bureau: $836 per year
• Hanover: $842 per year

Dairyland has the most expensive rates for the state’s young adults, with an average rate of $3,166 per year.

Generally, drivers in their 20s pay higher rates than their middle-aged counterparts. In Arkansas, car insurance with Southern Farm, the cheapest option for middle-aged drivers, is approximately $152 more expensive for young adults.

MoneyGeek’s research shows that these providers have the cheapest average car insurance in Arkansas for senior drivers:

• Southern Farm Bureau: $621 per year
• Hanover: $627 per year

Dairyland has the most expensive rates for older adults in the state, at approximately $2,361 per year.

On average, senior drivers pay $63 less for car insurance from State Farm compared with middle-aged drivers. State Farm is the cheapest insurer for middle-aged drivers. However, rates usually increase once drivers reach their 70s and 80s.

If you’re a senior, you might be qualified to get a discount to reduce your car insurance rates. Allstate, Farmers, GEICO and Shelter all offer discounts for senior drivers.

Insurance companies usually charge higher premiums for drivers with traffic violations. MoneyGeek’s research found that Southern Farm Bureau offers the cheapest car insurance in Arkansas for drivers with at-fault accidents, DUIs and speeding tickets.

Drivers with poor credit can find the best deals with Nationwide. Auto-Owners provides the lowest options for those with sports cars.

According to MoneyGeek’s analysis, these companies offer the most affordable car insurance for drivers with a speeding ticket, on average:

• Southern Farm Bureau: $756 per year
• State Farm: $964 per year

Dairyland has the priciest car insurance if you have a speeding ticket, at around $3,158 per year.

On average, car insurance premiums for Arkansas drivers with a speeding ticket are $302 more expensive compared with drivers with clean records.

MoneyGeek’s analysis shows that drivers with at-fault accidents on their records can find the cheapest car insurance in Arkansas from these providers, on average:

• Southern Farm Bureau: $910 per year
• Hanover: $999 per year

Dairyland insurance is the most expensive, at roughly $3,567 per year.

If you have an at-fault accident on your record, you may have to pay up to $544 more for car insurance compared with someone with a clean driving record.

On average, the cheapest car insurance companies in Arkansas for drivers with a DUI are:

• Southern Farm Bureau: $841 per year
• Hanover: $999 per year

Conversely, at approximately $3,567 per year, Dairyland has the most expensive car insurance for Arkansas drivers with a DUI.

MoneyGeek found that having a DUI can increase your car insurance rates by around $449 per year.

On average, MoneyGeek’s analysis shows that drivers with poor credit can find the cheapest auto insurance in Arkansas from:

• Nationwide: $1,224 per year
• Alfa: $1,227 per year

Meanwhile, Dairyland’s approximately $3,288 per year premium is the most expensive for drivers with poor credit.

On average, you may pay about $758 more for your car insurance in Arkansas if you have poor credit compared with someone with an above-750 credit score.

Insurance companies found that drivers with lower credit scores are more likely to file insurance claims, so they tend to charge higher rates. Although this practice is illegal in some states, it’s legal in Arkansas.

Improving your credit may reduce your insurance premiums over time. Meanwhile, you can save money now by shopping around and taking advantage of common discounts.

If you’re driving a sports car, you can get the lowest average car insurance rates in Arkansas from:

• Auto-Owners: $859 per year
• Farmers: $879 per year

Meanwhile, Dairyland’s roughly $2,658 per year rate is the most expensive car option in the state.

Generally, auto insurance is more expensive if you’re driving a sports car. This is because insurance companies view sports car drivers as riskier to insure. Sports car drivers in Arkansas will pay around $139 more than a Toyota Camry driver.

Although we used a Ford Mustang as the sample sports car in this study, premiums may vary significantly depending on your car model. Generally, car insurance for luxury, electric and sports cars are more expensive compared with other car types. However, this can vary between states.

If you’re a veteran or an active-duty military member, USAA offers the cheapest car insurance in Arkansas at $550 per year.

Exclusive to military families, USAA is notable for plans that are affordable and financially stable with high customer satisfaction.

Your car insurance cost is affected by your address. If you live in a neighborhood with a high incidence of theft, vandalism or accidents, insurance companies will see you as riskier to insure and charge you higher premiums.

MoneyGeek’s research shows that Southern Farm Bureau offers the cheapest full coverage car insurance in Little Rock, Arkansas, at $936 per year.

Click to learn more about the city’s car insurance rates.

Most states require that drivers have bodily injury liability and property damage liability coverage. Arkansas is no exception, and drivers must carry certain limits in order to meet the state’s minimum requirements.

In Arkansas, you’re required to get the state’s minimum required insurance. This includes bodily injury and property damage liability coverage.

A minimum coverage policy is cheaper, but it offers less protection in an accident. It’s generally smart to get as much liability coverage as you can afford.

Additionally, if you’ve been involved in repeated or severe driving violations, you might be required to get an SR-22. This could also increase the cost of your coverage.

When it comes to car insurance, we suggest that you get $100,000 in bodily injury liability per person and $300,000 per accident, plus $100,000 in property damage insurance per accident.

If you’re financing your vehicle, you might be required to get comprehensive and collision coverage.

Comprehensive coverage pays for the cost of repairing or replacing your car after a covered off-road accident. Collision insurance takes care of your expenses if your vehicle is damaged by a crash with another vehicle or an object.

If you’re driving a high-value car, we recommend getting comprehensive and collision insurance.

There are no car insurance alternatives in Arkansas. Nonetheless, if your application has been declined by three insurance providers, the Arkansas Automobile Insurance Plan (AAIP) can help you get auto insurance.

AAIP is the state’s residual market for drivers who are unable to get coverage through regular insurance markets. It offers insurance for all kinds of vehicles and drivers, including high-risk motorists.

Since AAIP only accepts applications from licensed insurance agents, we recommend that you reach out to an agent first.

If you need coverage but don’t have a car, you can also look into non-owner car insurance options in the state.

It’s common to have inquiries about cost and quality if you’re in the market for an auto insurance policy. MoneyGeek answered some frequently asked questions about car insurance in Arkansas to help you start your search.