Cheap Arkansas Low-Income Car Insurance for Families and Individuals

Arkansas does not have a government-supported low-income car insurance program. MoneyGeek gathered rates from insurers for low-income car insurance in Arkansas and found Southern Farm Bureau is the most affordable.

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Last Updated: 4/19/2022
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Insurers in Arkansas do not use income to determine car insurance rates. In Arkansas, adding a teen driver to a policy and the policyholder's age affect the cost of car insurance for low-income and other drivers the most.

MoneyGeek determined the most affordable car insurance for low-income individuals and families in Arkansas based on credit score, whether poor or good.

Is There Car Insurance for Low-Income Families and Individuals in Arkansas?

Arkansas does not have a government program to assist low-income individuals and families with car insurance costs. Up to 19.3% of drivers in Arkansas are not insured, which may be partly due to expensive car insurance rates.

A state minimum coverage policy is the most affordable option for drivers in Arkansas, although pay-per-mile insurance may also be an inexpensive choice for low-income drivers in Arkansas who do not drive a great deal.

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Does Arkansas Have a Government Program to Support Low-Income Drivers with Insurance?

Drivers looking for cheap car insurance for low-income families in Arkansas should compare rates from different insurers to get the best price since there is no government assistance program for auto insurance in Arkansas. MoneyGeek analyzed the cheapest car insurance companies in Arkansas to help low-income drivers save on car insurance.

The Cheapest Arkansas Car Insurance Companies for Low-Income Drivers

Insurance companies in Arkansas do not use income when calculating car insurance costs, but they consider age, credit score, and other factors that may have a correlation to income. You pay the lowest premium for car insurance in Arkansas if you choose a minimum coverage policy.

MoneyGeek found that Southern Farm Bureau and GEICO are the cheapest companies for low-income car insurance in Arkansas. MoneyGeek also analyzed the cheapest minimum car insurance for low-income families and individuals of different ages.

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The Cheapest Arkansas Car Insurance Companies for Low-Income Families

Income does not impact the cost of car insurance in Arkansas, but low-income families need to know that credit scores can greatly affect car insurance rates.

Car insurance rates in Arkansas differed by around $1,715 per year for MoneyGeek’s sample single parents if they had a poor credit score versus a good credit score. For couples with a child, rates in Arkansas differed by roughly $2,214 per year if they had a poor credit score versus a good credit score.

On average, the most affordable companies in Arkansas for a couple with a child and poor credit are:

  • Southern Farm Bureau: $3,216 per year
  • GEICO: $3,502 per year

Couples with a military background that have a child and poor credit may qualify for a USAA policy, costing around $2,477 per year.

On average, the cheapest companies in Arkansas for a single parent with poor credit are:

  • Southern Farm Bureau: $2,300 per year
  • GEICO: $2,429 per year

For a single parent with a poor credit score and military background, USAA is cheapest at roughly $1,881 per year.

Not all low-income families have a poor credit score. You can use the table below to find the cheapest options for your profile.

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  • Company
    Annual Rates
  • USAA
    $1,024
  • Southern Farm Bureau
    $1,252
  • GEICO
    $1,322
  • Nationwide
    $1,656
  • State Farm
    $1,690
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The Cheapest Arkansas Car Insurance Companies for Low-Income Individuals

For MoneyGeek’s sample 40-year-old driver, rates in Arkansas differed by around $514 per year if they had a poor credit score versus a good credit score.

On average, the cheapest insurers in Arkansas for a 40-year-old driver with a poor credit score are:

  • GEICO: $706 per year
  • Southern Farm Bureau: $746 per year

With a military background, you may qualify for USAA, the cheapest car insurance option for a low-income individual in Arkansas at around $575 per year.

Being a low-income individual does not mean you have a poor credit score. For a 40-year-old in Arkansas with good credit, a GEICO policy costs around $384 per year, Southern Farm Bureau roughly $406 per year, and USAA around $313 for those who qualify.

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  • Company
    Annual Rates
  • USAA
    $313
  • GEICO
    $384
  • Southern Farm Bureau
    $406
  • Nationwide
    $498
  • Farmers
    $517

The Cheapest Arkansas Car Insurance Companies for Low-Income Students

A young student driver in Arkansas pays a higher car insurance rate due to inexperience. Car insurance rates can be a financial burden for college students since they typically have a lower income, but their income does not determine what they pay for auto insurance in Arkansas.

On average, the cheapest insurers in Arkansas for student drivers with a poor credit score are:

  • GEICO: $1,902 per year
  • Southern Farm Bureau: $2,011 per year

USAA is cheapest at around $1,549 per year, but only students from a military family background may qualify.

Not all low-income students in Arkansas have a poor credit score. For those with good credit, a GEICO policy costs about $1,036 per year, Southern Farm Bureau around $1,095 per year, and USAA roughly $843 per year if eligible.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $843
  • GEICO
    $1,036
  • Southern Farm Bureau
    $1,095
  • Nationwide
    $1,341
  • Farmers
    $1,394

The Cheapest Arkansas Car Insurance Companies for Low-Income Seniors

Seniors in Arkansas pay higher car insurance rates than middle-aged drivers, and credit score does impact rates for low-income senior drivers. For MoneyGeek’s sample 70-year-old driver, rates in Arkansas differed by around $565 per year if they had a poor credit score versus a good credit score.

On average, the two cheapest companies for low-income senior drivers with poor credit in Arkansas are:

  • Southern Farm Bureau: $691 year
  • GEICO: $844 per year

Senior drivers with a military background may qualify for USAA, costing around $665 per year.

Not all low-income seniors have a poor credit score. For those with a good credit score, a Southern Farm Bureau policy costs around $376 per year, GEICO costs roughly $460, and USAA costs about $362 for seniors who qualify.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $362
  • Southern Farm Bureau
    $376
  • GEICO
    $460
  • State Farm
    $530
  • Nationwide
    $537

Does Income Affect Car Insurance Rates in Arkansas?

When calculating car insurance premiums, Arkansas insurance companies can’t consider income. However, some factors that often relate to income impact car insurance costs in Arkansas. For example, a young person pays more for car insurance because of their inexperience, which poses a higher risk for insurers, and they are more likely to have a lower income since they are in college or at the beginning of their career.

MoneyGeek found that the top factors affecting car insurance rates in Arkansas are:

  • Adding a teen driver.
  • Age of the driver.
  • Coverage levels.

Your credit score and the model of your car are also important factors in the cost of car insurance in Arkansas.

  • Factor
    How It Affects Your Rates
  • Adding a Teen Driver

    Adding a teen driver is the biggest factor in Arkansas, making rates 3.5x more expensive.

  • Age of Driver

    Rates can be 2.7x higher for young drivers in Arkansas versus middle-aged drivers.

  • Coverage Levels

    A full coverage policy in Arkansas is 2.3x more expensive than the state minimum.

  • Credit Score

    A driver with a poor credit score may pay 2.2x more than one with an excellent score.

  • Car Model

    The model of your car could make insurance twice as expensive.

Frequently Asked Questions About Low-Income Car Insurance in Arkansas

You may have questions when searching for low-income car insurance in Arkansas for yourself or your family. MoneyGeek answers frequently asked questions about car insurance for low-income individuals and families in Arkansas below.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Arkansas using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old), or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Arkansas.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.