Temporary Car Insurance in Arkansas: The Cheapest Options and What You Need to Know

The shortest car insurance term offered by insurers in Arkansas is six months. If you own a car in Arkansas and are looking for temporary auto insurance or if you’ll only be driving temporarily in the state, MoneyGeek identified the best options for your needs.

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Last Updated: 1/27/2022
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Drivers who own a vehicle in Arkansas and want temporary insurance coverage can buy a six-month policy and cancel it within the first three months for a refund. The average cost for a three-month policy in Arkansas is $297.

If you’re looking to insure your rental car while visiting Arkansas, you can opt for rental car insurance.

MoneyGeek evaluated other situations when temporary car insurance in Arkansas might be necessary, including working for a rideshare company or buying non-owner car insurance.

Can You Get Temporary Car Insurance in Arkansas

Individuals may think they need temporary car insurance, but understanding when to opt for it is important since this term may mean different things in different states. In Arkansas, if you own a car, you might want to get full coverage and cancel it early. However, if you don’t own a car, you might be better off with rental car insurance or a non-owner policy.

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HOW TO FIND TEMPORARY CAR INSURANCE IN ARKANSAS TO FIT YOUR NEEDS

There is no solitary way to get temporary car insurance in Arkansas, but MoneyGeek researched all the potential options to get this type of coverage.

Buying a Six-Month Arkansas Insurance Policy and Canceling It Early

Insurance companies usually do not sell short-term car insurance for less than six months at a time. In Arkansas, an insurance policy for six months would cost $595 on average. You can cancel your policy before the end of this duration and get a refund for the remaining time.

For instance, if you choose a six-month policy but cancel it after three months, your effective cost would be roughly half of $595 at around $297.

When implementing this strategy, MoneyGeek recommends you ensure there is no lapse in coverage, as this could lead to higher costs later on.

Cheap Temporary Car Insurance in Arkansas

MoneyGeek’s research evaluated average car insurance rates for six-month, three-month and one-month periods from multiple providers.

On average, the two cheapest car insurance companies in Arkansas for drivers looking for a three-month policy are:

  • Southern Farm Bureau: $211 per 90 days
  • GEICO: $217 per 90 days

Although most insurers refund the entire amount for the remainder of your temporary insurance term, keep in mind that our estimations do not include cancellation fees that insurers may charge.

Annual Cost of Car Insurance in Arkansas by Policy Length

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Altering Arkansas Car Insurance Temporarily Depending on Your Needs

You may come across temporary circumstances where you may want to add or remove specific coverages. It makes sense to make adjustments to your current insurance policy in these scenarios. Some of the most common situations when drivers look for temporary insurance policies are when vehicles are being stored, when lending the car to another driver and when families have young drivers who are living in a different city.

When You Should Alter Your Policy Temporarily

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If a young family member is attending school or college in a different part of Arkansas, you can remove them from your policy or ask your insurer for a discount.

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Adding another driver to your policy is recommended only when they drive your vehicle regularly.

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If you are going to store your car, you can eliminate all coverages except your comprehensive insurance. Military drivers can utilize storage discounts through USAA.

Cheap Temporary Car Insurance for Students in Arkansas

If you live with your child in Arkansas, they need to be on your auto insurance policy. However, this can be expensive. In Arkansas, the average cost of adding an 18-year-old driver to your insurance policy is $2,680 per year.

To save money, families that have students who live more than 100 miles away can remove them from their policy temporarily, use distant student discounts that some insurers offer or keep them on their policy.

It can be cheaper for drivers in Arkansas to add young drivers to existing policies for two months instead of the whole year. The average cost of adding a young driver for two months is $447, which is roughly $2,233 less than keeping them on for a full year.

Nationwide’s policies help you save the most, at approximately $2,490, when you take young drivers off an insurance policy.

Annual Cost of Adding an 18-Year-Old to Car Insurance in Arkansas

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  • Company
    Adding 18-year-old for two out of 12 months
    Adding an 18-year-old for the full year
    Difference
  • $2,247
    $375
    -$1,873
  • $2,587
    $431
    -$2,155
  • $2,802
    $467
    -$2,335
  • $2,837
    $473
    -$2,365
  • $2,988
    $498
    -$2,490
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WHAT IF I CAN’T GET A DISCOUNT?

If the student in your family studies at a college that is less than 100 miles from your residence, you can check for quotes from multiple insurers and get the best rates by using MoneyGeek’s research on the best cheap car insurance for teens.

What to Do About Car Insurance if You’re Storing Your Car in Arkansas

If you are looking to save on insurance costs while your car is being stored, you can either convert your existing policy to comprehensive-only insurance or ask your insurer for a discount.

Coverage with only comprehensive and collision insurance costs roughly $408 per year in Arkansas as compared to a policy that includes liability insurance that costs around $950 per year.

At an average of $663 per year, USAA is the best option for military families. The company also offers storage discounts.

What to Do If You Let Someone Else Drive Your Car

If you let someone in your household drive your car, they should be added to your policy. On the other hand, if you are looking to lend your vehicle to someone who does not live in the same household, you can use your policy to cover them without making any alterations.

Buying Rental Car Insurance in Arkansas

If you are renting a car in Arkansas, you can opt to purchase rental car insurance. Although the policies offered by car rental companies may cover only liability insurance, you can add other coverages such as collision waivers, supplemental liability and personal accident insurance. You may need to pay anywhere between $45 to $57 per day to add these coverages depending on the company you choose.

Finding Cheap Rental Car Insurance in Arkansas

In Arkansas, MoneyGeek’s analysis was based on quotes collected from multiple insurers in Little Rock. You could have to pay $45 to $57 per day for rental car insurance depending on the rental company. For policies with personal accident insurance, supplemental liability and collision damage waiver, Enterprise offers coverage at around $45 a day, while Avis and Hertz cost roughly $55 and $57 per day, respectively.

If you have existing car insurance or a credit card that provides a collision damage waiver or any of the above coverages, you can use these coverages to save money.

Cost per Day of Rental Car Insurance in Arkansas

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  • Rental Company
    Total Insurance Cost
    Supplemental Liability Cost
    Collision Damage Waiver Cost
    Personal Accident Insurance Cost
  • Enterprise
    $45
    $13
    $26
    $6
  • Avis
    $57
    $17
    $31
    $10
  • Hertz
    $55
    $14
    $34
    $7

Buying Non-Owner Car Insurance in Arkansas

Non-owner car insurance can help you get your license reinstated when filing an SR-22 in Arkansas or is good if you need to show proof of insurance. The average cost of non-owner car insurance in Arkansas is $396 per year.

Non-owner insurance is the most affordable option for drivers who do not own a car but need to file an SR-22.

How to Get Temporary Rideshare Car Insurance for Rideshare in Arkansas

Although drivers working for rideshare companies in Arkansas are covered when they accept a fare or are transporting a passenger, they are not covered in between fares. This is where rideshare insurance can be helpful. However, this type of coverage is not offered in all states.

If you work for a rideshare company in Arkansas, you can find the best rideshare insurance companies using MoneyGeek’s research.

Frequently Asked Questions About Temporary Car Insurance in Arkansas

Find out more about the best options and when to choose temporary insurance by reading the answers to some of the most frequently asked questions about temporary car insurance in Arkansas.

Methodology

MoneyGeek partnered with Quadrant Information Services to collect non-owner car insurance rates from multiple providers in Arkansas to determine average rates based on our methodology. These rates were for a 40-year-old male driver with a clean driving record for full coverage policies that came with comprehensive and collision insurance and higher liability limits (100/300/100). MoneyGeek also calculated rates for an 18-year-old driver while determining the cost of adding a student to an existing policy.

The costs for one-month and three-month policies were determined on a prorated basis without taking into account any cancellation fees that the insurer may charge. MoneyGeek manually collected costs for rental car insurance policies provided by Hertz, Avis and Enterprise using their respective online tools.

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.