INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Arkansas for 2024

Updated Sept. 27, 2023
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USAA is generally the cheapest car insurance in Arkansas for both full coverage and minimum liability policies.

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Arkansas is known for its mountains and farmland and boasts a relatively low cost of living. The average cost of car insurance in Arkansas is $1,546 per year for full coverage policies, compared to the national average of $1,582.

Your cost may vary based on the length of your commute, age, driving history, and credit, and you may be eligible for discount programs that could make your coverage more affordable.

In this article

Key takeaways

  • Full coverage policies in Arkansas cost an average of $1,546 per year.
  • State-minimum liability coverage averages $547 per year.
  • Teen drivers pay an average of $4,346 per year for auto coverage.

How much does car insurance cost in Arkansas?

Full coverage policies that include liability, collision, and comprehensive insurance average $1,546 per year in Arkansas.

If Arkansas has a low cost of living, why is insurance more expensive? One of the factors behind the price is mileage; Arkansas drivers tend to drive significantly more miles per year than the national average. 

With more time on the road, Arkansas drivers are more likely to be involved in accidents, so insurers charge them higher rates to offset the added risk.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,546/year $547/year USAA
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$4,346/year $1,723/year $2,250/year

Average cost of car insurance in Arkansas by provider

Rates, coverage options, and discount programs vary by insurer. In Arkansas, there are a number of insurance providers. 

For those eligible for membership, USAA has the lowest average premiums for both full coverage and state-minimum liability policies. At the other end of the range, Allstate was the most expensive for both forms of insurance.

Provider Full coverage Minimum liability coverage
Allstate $1,794/year $636/year
Nationwide $1,150/year $422/year
GEICO $1,354/year $382/year
Progressive $1,480/year $470/year
State Farm $1,067/year $428/year
USAA $949/year $295/year

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How does credit score affect car insurance rates in Arkansas?

Arkansas’ laws allow insurers to consider credit history when setting their premiums. If you have less-than-perfect credit, you’ll typically pay much more for insurance than drivers with excellent credit. 

In Arkansas, drivers with credit scores between 550 and 649 paid hundreds more than those with credit scores of 750 or better.

Credit health Avg. annual premium
Poor (550-649) $2,244/year
Average (650-699) $2,094/year
Good (700-749) $1,759/year
Excellent (750+) $1,522/year

Average car insurance rates for high-risk drivers in Arkansas

Your premiums could skyrocket if you’re convicted of a driving violation in Arkansas. A driving under the influence (DUI) conviction may cause premiums to increase by an average of $875 per year. 

An at-fault accident similarly impacts premiums; one accident can increase premiums by an average of $791 per year.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,546/year $2,337/year $791
DUI $1,546/year $2,421/year $875
Speeding ticket $1,546/year $2,044/year $498

*Assumes clean driving record with good credit

How does age affect car insurance rates in Arkansas?

Age has a major role in determining your car insurance rates. Young drivers tend to pay much more for coverage than other age groups. Arkansas’s average premium for 18-year-olds is $4,917 per year — more than three times the state average.

The median household income in Arkansas is $52,123, so families would have to pay nearly 10% of their income to insure a teen driver.

Age Avg. annual premium
18 $4,917/year
25 $1,856/year
30 $1,677/year
40 $1,683/year
60 $1,608/year

Arkansas car insurance rates by city

Location is another factor insurance companies consider when deciding premiums. Cities and areas with high rates of crime usually have higher premiums. With an average premium of $1,960 per year, Jonesboro is Arkansas’s most expensive city for car insurance. 

It’s so costly for residents to insure their vehicles because Jonesboro has a higher crime rate than the rest of the state. NeighborhoodScout issued Jonesboro a six on its crime rating index, meaning that 94% of cities in the U.S. are safer.

City Avg. annual full-coverage premium
Conway$1,925/year
Fayetteville $1,787/year
Fort Smith $1,732/year
Jonesboro $1,960/year
Little Rock $1,934/year
Springdale $1,797/year

AR’s minimum car insurance requirements

Car insurance is required for all drivers in Arkansas, and policies must meet the following minimum requirements:

  • $25,000 in bodily injury insurance for one person
  • $50,000 in bodily injury insurance for two or more people
  • $25,000 in property damage insurance

Because Arkansas has a high rate of uninsured drivers — the Insurance Research Council reported that 19.3% of drivers in the state are uninsured — it may be a good idea to add uninsured/underinsured motorist protection to your policy.

How to save money on car insurance in Arkansas

To lower your premiums in Arkansas, follow these tips:

  • Take advantage of discounts: Arkansas’ laws require insurers to offer two discount programs: college graduate discounts and defensive driver discounts for those 55 and older who complete a qualifying course. However, some insurers may have other discount programs, too, such as discounts for paperless billing or driving fewer-than-average miles.
  • Sign up for usage-based insurance: Drivers in Arkansas tend to cover more miles than the national average. But if you drive less — for example, if you’re a stay-at-home parent or work from home — you could save money by enrolling in a usage-based or pay-per-mile insurance program. These programs base your premiums on how many miles you drive and your driving habits, so some drivers can save money. In Arkansas, several companies have usage-based policies, including Root and State Farm.
  • Get quotes from other companies: Being loyal to one company could cost you; other insurers may offer much lower rates, so request quotes from the best car insurance companies to find the most competitive prices.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in AR

Is car insurance expensive in AR?

Car insurance in Arkansas is typically slightly more expensive than the national average. Full coverage policies average $1,546 per year, compared to the national average of $1,582.

How much is car insurance per year in AR?

The average cost of car insurance in Arkansas is $1,546 per year for full coverage policies. State-minimum coverage averages $1,546 per year. 

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.