The Ultimate Arkansas Insurance Car Guide

We understand there is nothing more irritating than having to correct someone who says “Ar-Can-Zus.” It is truly mindblowing that people think Arkansas is pronounced similarly to Kansas when Arkansas was founded 25 years before Kansas.

The same frustration may also be experienced when trying to find the best car insurance rate by getting quotes from a variety of Arkansas insurance companies. Before you consider giving up and moving to neighboring “Can-Saw,” we are here to help make the process a little easier.

In this complete guide to all things car insurance for Arkansas residents, we include coverage and rates, car insurance providers, state laws, and so much more.

You may already know comparing car insurance rates is a great way to save money. Start today with just your zip code.

Arkansas Car Insurance Coverage and Rates

Knowing the most possible about your coverage options is the best way to save the most on your car insurance premium.

Let’s take a closer look at the car insurance regulations in Arkansas and the rates based on where you live.

—Arkansas Car Culture

Believe it or not, the state of Arkansas was initially heavily involved in vehicle manufacturing since almost day one.

Even though the Arkansas driving pathways were not quite up to par in 1913 to handle the 3,596 vehicles registered that year, a small Little Rock company called Climber Motor Corporation made its debut in 1919. This company produced some of the first off-road vehicles to inspire Arkansas residents to shred the local trail systems.

Minimum Car Insurance Requirements in Arkansas

Take a look at how state minimum car insurance rates vary from state to state.

Liability insurance pays those who are owed compensation for property damage and/or injuries resulting from a car accident.

If you are the driver at fault after an accident, you will be held responsible for injuries or the desctruction of property because Arkansas is an “at-fault” state.

The minimum liability coverage amounts required in Arkansas are as follows:

• $25,000 – to cover Injury or death of one person in an accident you caused
• $50,000 – to cover total injuries or death of more than one person in an accident you caused
• $25,000 – to cover property damage in an accident you caused

Remember, additional coverage is needed to cover the injury or death of yourself or your own passengers. These above amounts are minimum requirements to cover your liabilities only.

What if I am hit by another driver?

For each policyholder, Arkansas requires that insurance providers make available personal injury protection (PIP) in the minimum amount of $5,000. PIP will immediately cover medical expenses and loss of wages no matter who is at fault.

—Required Forms of Financial Responsibility in Arkansas

Technology tools to track financial responsibility are in place in Arkansas; however, the Department of Finance and Administration recognizes that some insurance carriers may not always be on top of reporting requirements if the electronic system shows your status as “not insured.”

Even though carrying proof of insurance is not mandated in Arkansas, it’s a good idea to keep a copy of your insurance card in your car.

When it comes to technology, it’s better to be safe than sorry.

Along with your insurance card, be sure to keep a copy of another important document in your vehicle: the Safety Responsibility SR-1 accident report. Having a copy of this form will ensure you have documentation of the other driver’s contact information.

This form must be submitted along with proof of insurance within 30 days if damages from a collision exceed $1,000. The 30-day rule applies to injuries or death as well.

You may not get a ticket at the scene, but judgment could still be entered against you. Always be prepared and have proof of insurance and the accident form on hand.

—Premiums as Percentage of Income in Arkansas

The average annual per capita disposable income was $33,929 in 2014 for Arkansas residents.

After taxes have been paid, disposable personal income (DPI) is the amount of funds available for a person to spend (or save).

Almost 2.7 percent of the average DPI goes to pay annual car insurance premiums equal to $900.

The math works out to about $75 per month for car insurance for the average Arkansas resident. The remainder of the $2,827 monthly income is allocated to food, bills, etc.

Getting the best deal on car insurance is critical.

American Consumer Credit Counseling advises saving 20 percent of every paycheck. With Arkansas’s DPI, that’s a whopping $565 each month! How much are you depositing into your savings account every month?

Since our figures above don’t include factors such as your specific annual income, driving record, amount of uninsured motorist coverage, or your chosen deductibles, consider using our calculator to find out what percent your car insurance is of your monthly income.

Average Monthly Car Insurance Rates in AR (Liability, Collision, Comprehensive)

Let’s take a look at the average monthly car insurance rates.

One thing we can guarantee is that car insurance rates in Arkansas will continue to increase as they are all over the country. The table below shows data provided by the National Association of Insurance Commissioners which is an agency dedicated to keeping up with the changing costs of car insurance.

In an at-fault state like Arkansas, the leaders on car insurance research recommend you purchase more than the minimum liability coverage requirements.

You may be wondering: Why would more coverage be needed?

Let’s take a look at the most popular coverage options to make your policy cover you even better.

—Additional Liability Coverage in Arkansas

Additional coverage like Med Pay and Uninsured and Underinsured motorist coverage is completely optional in Arkansas, so why are these important?

You can try your best to be a safe and alert driver to avoid accidents, but you can’t always count on other drivers to do the same.

If someone who owns an old car with the minimum liability coverage hits your vehicle and injures you or your passengers, chances are they will not have the means to cover your property damage expenses and medical bills after their insurance company pays out. In this scenario is when your underinsured motorist coverage kicks in.

Dare we mention a worse scenario: the other driver is not insured at all.

Believe it or not, Arkansas ranked 9th in the nation in 2015 with 16.6 percent of drivers uninsured.

That’s almost four percent higher than the nationwide rate of 13 percent.

Another way to consider additional coverage is to take a look at loss ratios for companies statewide. Loss ratios are a way for customers to examine how much a company pays out on claims compared to the amount they make on premiums.

For example, if a loss ratio is 60 percent, this shows that the company paid $60 on claims for every $100 earned in premiums. Typically, a loss ratio in the range of 60 to 70 percent is considered in the “safe zone.”

A little later, we will examine the loss ratios for individual companies, but the table below shows loss ratios for Med Pay and Uninsured and Underinsured motorists coverage statewide.

Some states have caught onto the advantages of requiring additional coverage such as the 17 states that require both Uninsured and Underinsured motorist coverage. Most insurance carriers in these states recommend having these two limits equal to that of your liability coverage.

Other states have mandated certain types of coverages. As shown in the table above, carriers in Arkansas have lowered their loss ratios for Med Pay, but still have some work to do to reach the national average.

—Add-ons, Endorsements, and Riders

Med Pay and Uninsured motorist coverage are not the only powerful but cheap extras to increase your protection. We have included links below to these additional coverages because we know having full protection for a great rate is a goal for most families.

Want to know all about these additional coverages and more? Start comparison shopping today using our FREE online tool. Enter your zip code below to get started!

Here’s a list of coverage options available to you in Arkansas.

• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Emergency Roadside Assistance
• Rental Reimbursement
• Mechanical Breakdown Insurance
• Non-Owner Car Insurance
• Modified Car Insurance Coverage
• Classic Car Insurance
• Pay-as-You-Drive or Usage-Based Insurance

Average Monthly Car Insurance Rates by Age & Gender in AR

Age and gender will affect your car insurance. Younger drivers are often in a high risk class. See if the gender stereotype (males pay more) holds true in AR.

Most would agree that the more experience we have as drivers, the better rates we should get. That’s the case across the board when drivers turn 25.

But what about gender and marital status?

The statistics show that females are typically more cautious drivers than males, especially before the age of 25. And being married is a sign of further stability and responsibility.

When our data analysts began looking at gender, age, and marital status, they somewhat confirmed these assumptions. The differences in rates are most influenced by age and the company.

Let’s see how these factors pan out for Arkansas residents.

Demographic and Insurance Carrier

The tables above demonstrate that, for Arkansas residents, age and the carrier do in fact significantly affect rates. Even gender, in most cases, makes a difference.

Surprisingly, Travelers charges ten to seventeen thousand dollars more for drivers under the age of 18. When examining these rates based on gender, males under 18 pay almost $17,000 more in annual premiums. Other carriers, such as USAA for military personnel and their family members, charge much less based on age.

Highest and Lowest Rates by Zip Code and City per Carrier

Does the city or zip code you live in affect car insurance rates? Most definitely.

The tables below list those zip codes and cities in which the car insurance rates are the most and least expensive for each carrier. Each company rate is also compared to the average for all zip codes for that company.

As you recall, we have already determined that location and the carrier make the biggest difference in your rates.

Now, let’s inspect rates by individual carriers.

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The Best Arkansas Car Insurance Companies

Which company can you trust to cover you in case of a car accident? It seems there are so many options, it’s difficult to decide without having some direction.

Read more: Farm Bureau Mutual Insurance Company of Arkansas, Inc. Car Insurance Review

That’s what we are here for—direction. In this section, we will guide you on how to choose a company based on several factors not just on who has the best rates.

Are you ready?

Number of Car Insurance Providers in Arkansas

The 10 Largest Car Insurance Companies in Arkansas

—The 10 Largest Arkansas Car Insurance Companies’ Financial Rating

Several factors may go into your decision in choosing a particular carrier: best rates, best financial outlook, least customer complaints, most stable loss ratios, or even a particular business model.

Let’s start with each company’s financial outlook.

The most trusted source for financial ratings of car insurance companies is AM Best. The higher the rating, the more likely that the company will be stable and come through on your return on investment. AM Best ratings for Arkansas companies are included in the table below.

Just because a company has a good rating for financial stability doesn’t mean their customers are always happy.

Let’s check out their record of official complaints.

—Car Insurance Company Complaints

One way to take the guesswork out of exploring complaints is to generate a complaint index for each company. The complaint index is figured by comparing their share of profits with the total number of official complaints.

If a company’s complaint index is lower than one, they are better than the average. If the index is higher than one, they are worse than the average.

—Cheapest Companies in Arkansas

Now to the gold: rates by provider.

We aren’t going to deny that the company with the best rates in Arkansas will be the one you consider first.

The table below displays the top carriers in Arkansas with their average rate for all drivers and compares it to the state average of all companies.

The highest average premium as compared to that state average is that of Travelers, and Progressive isn’t trailing too far behind. USAA and State Farm appear to be a great deal lower than the state average.

Keep in mind that USAA serves military members, active and retired, and their family members. So, if this doesn’t apply to you, State Farm is good to consider based on average rates in Arkansas.

Commute Rates

Beyond location, gender, age, and marital status, and carrier, other factors that affect your quoted rates from each company are those that are specific to your individual situation such as your commute, how much coverage you want, credit history, and driving record.

The tables below compare such factors based on each carrier.

It appears that Geico, State Farm, and USAA do not charge higher rates based upon your individual commute distance.

Coverage Level Rates

Nationwide seems to have the best deal when it comes to increasing your coverage levels.

Credit History Rates

Experian ran a study that revealed Arkansas residents have an average credit score of 657 and almost three credit cards per person averaged as having a total credit balance of $5,660.

Your credit score is one of the many factors insurance companies consider in determining your likelihood of filing a claim, so if you see a spike in your rates, it may not be because of an accident or ticket.

If your credit score goes down while with Farmers, they seem to be most forgiving.

Driving Record Rates

So, you do well with managing your credit score, but maybe you have a lead foot or don’t pay the most attention when you drive. Getting a ticket, causing an accident, or getting a DUI certainly affects your rates both before you get a quote and after you have been with a company for a while.

Expect your rates to increase if one of these unfortunate occurrences happens to you. Case in point, rates with Geico will jump by more than $3,000 if you get a DUI. That is a 67 percent increase.

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Laws in Arkansas

Obeying the laws of the road are the best way to prevent your insurance rates from increasing as well as keep you and other drivers safe. Laws in each state can be very different, and they can change frequently.

We are here to keep you up to date.

Next, we cover the ins and outs of specific driving laws that every Arkansas resident should know.

—Car Insurance Laws in Arkansas

Some special situations apply to certain individuals who seek car insurance coverage or need to file a claim. Arkansas laws are in place for these special situations.

Windshield Coverage

Sometimes small accidents happen like hitting a bird or a large rock may be kicked up from under a semi-truck. If such damage obstructs your view while driving, leaks water into your car, or is otherwise unsafe to operate the vehicle, you will need to replace your windshield.

In some cases, it may be cheaper to contact a local windshield repair service. Some of these services can make the repair or replacement for you while you have your car parked at work.

In other cases, depending on your deductible, you can ask your car insurance company to assist with the repairs, especially if the windshield of your vehicle is expensive to ship and replace.

Fortunately, Arkansas permits its residents to replace a windshield with aftermarket parts, as long as written notice is provided that details the fit, quality, performance, and warranty. On top of that, Arkansas residents are allowed to shop around, get the best quote, and choose the vendor.

Some states mandate a zero deductible for windshield repair; however, Arkansas does not, so if you anticipate needing to replace your windshield, choose a low deductible for your comprehensive coverage.

Specific insurance carriers handle windshield repair and replacement differently outside of what is stated in the laws. Be sure to do your research.

—High-Risk Insurance

If you have a shady driving record, it may be difficult to find a company that is willing to insure you. Luckily, in most states, the insurance companies are required to participate in a loss-sharing program to provide affordable coverage for those who are high-risk drivers.

In Arkansas, this program is known as the Arkansas Automobile Insurance Plan.

Applying is fairly simple. Go to any insurance carrier to complete the application, but since it is a lottery, you can’t really control which company is selected for you.

Low-Cost Insurance

Some states have programs set up for those who receive benefits from Medicaid or Medicare, or those who have a combined family income that is below the poverty level. Unfortunately, Arkansas has no such plan in place.

In order to obey the law, you must carry the minimum liability coverage. Therefore, in Arkansas, you can’t afford not to have insurance.

Automobile Insurance Fraud in Arkansas

The easiest way to become a felon is to commit insurance fraud that exceeds $300 in Arkansas. While this is not the goal of too many individuals, let it be known that insurance fraud is a serious criminal offense in your state.

If you need to dodge the felony and want just a misdemeanor, you will still face up to one year in prison and up to $2,000 in fines. That just isn’t worth making $300 on a false insurance claim.

When the amount of benefit goes beyond $300, expect up to five to 10 years imprisonment and $10,000 to $25,000 in fines.

Again, just not worth it.

In case you are still tempted, here are the facts. Fraud can come in many shapes and sizes which include something as “innocent” as providing false or intentionally incomplete information when you get your quote.

Lying about an accident is a no-brainer, but did you know helping someone else commit fraud is punishable as the same offense as fraud itself?

Don’t let your name appear on the convictions list. If you suspect or know of fraud being committed by anyone, you can report it on the Arkansas Insurance Department’s Criminal Investigations page.

Statute of Limitations

Most drivers, when they discover the at-fault driver is either uninsured, underinsured, or is not otherwise willing to cover the damage and injuries they cause, will file a lawsuit to obtain compensation.

It does take some time for claims to be filed and processed, so if you need immediate reimbursement for medical bills and lost wages, that is when your (optional) personal injury protection coverage kicks in. Your uninsured and underinsured motorist coverage would also help in this situation.

After all claims are processed and all that is possible to do is done to seek reimbursement from the at-fault driver, the legal system in Arkansas provides three years from the date of the accident to file for a lawsuit. This is known as a statute of limitations.

Some states differentiate between the length of time permitted to file suit for personal injury and property damage; however, Arkansas applies three years time to both, regardless of the extent of injuries (to include death) or the extent of damages.

—Vehicle Licensing Laws in Arkansas

Arkansas, just like any other state, has in place mandatory licensing laws in addition to the statute of limitations and car insurance laws we previously covered.

REAL ID

Arkansas is compliant with the REAL ID Act.

Penalties for Driving Without Insurance

Even though roughly 16 percent of drivers are uninsured in Arkansas, penalties are still in place if caught. Fines for the first offense can get towards $250 with a suspension of vehicle registration and possible impoundment. The punishment for a second offense is similar only with a fine increased to $500.

Teen Driver Laws

Older Driver and General Population License Renewal Procedure

New Residents

Before you pack your bags and move to Arknsas, take note of these tips for new residents:

• New residents must apply for an Arkansas driver’s license within 30 days of moving to the state.
• The Arkansas Department of Finance and Administration handles all matters related to vehicle licensing.
• Arkansas encourages its residents to “skip the trip” to the DMV and offers many of their services online, including pre-registration to reduce your wait time.

—Comparative Negligence

Modified comparative negligence is the name of the game in Arkansas. The courts will weigh fault of each driver, and a percentage of compensation for each person is determined based on the degree of fault.

But don’t take your case to court unless you know for sure the other driver is more at fault than you are because, as the plaintiff, if you are determined to be more at fault than the other party, you will not gain reimbursement at all.

—Rules of the Road in Arkansas

Before you get behind the wheel, be sure to review these basic laws that can vary from state to state.

Ready?

Keep Right and Move Over Laws

Arkansas has in place six exceptions to their keep right law which requires drivers to stay in the right lane if they are driving slower than the surrounding traffic.

If you approach an emergency vehicle, state highway vehicle, tow truck, utility vehicle, or any other vehicle with flashing lights that is pulled over on the side of the road, you must move over into the lane away from the vehicle.

Speed Limits

Maximum posted speed limits are 75 mph on rural interstates, 75 mph on urban interstates, 75 mph on limited-access roads and 65 mph on all other roads.

Seatbelt, Carseat, and Cargo Area Laws

A child safety seat must be in use for any child five and younger and less than 60 pounds or you will be fined $100.

Once a child turns 6 years old and weighs over 60 pounds, they can sit in all seats, including the front seat.

Based on Arkansas law, cargo areas must be occupied only by employees on the clock.

Ridesharing

Rideshare services like Uber and Lyft mandate that all their drivers carry personal car insurance that meets the minimum requirements. However, if drivers wish to purchase a commercial insurance policy, Farmers is the only provider to offer rideshare insurance in Arkansas.

Automation on the Road

According to the Insurance Institute for Highway Safety (IIHS),

“Automation is the use of a machine or technology to perform a task or function that was previously carried out by a human. In driving, automation involves using radar, camera and other sensors to gather information about a vehicle’s surroundings, which is then used by computer programs to perform parts or all of the driving task on a sustained basis.”

Currently, Arkansas has no restrictions on autonomous vehicles.

—Safety Laws in Arkansas

Paying attention while driving and following the speed limits are both easy ways to stay safe; however, if you drive while impaired or distracted, there are penalties.

DUI Laws

Marijuana-Impaired Driving Laws

Arkansas currently has no marijuana-specific impaired driving laws.

Distracted Driving Laws

Arkansas distracted driving laws are a bit more confusing than other states’ distracted driving laws. It really does come out to be situational.

For example:

• Texting is banned and primarily enforced for all drivers;
• A hand-held ban is in place for all drivers, but only if driving through a school zone or work zone;
• Anyone younger than 18 is not permitted to use a cellphone. Between the ages of 18 and 21, drivers can use a cellphone, but are under a hand-held ban;
• If that driver under 18 is using a cellphone while driving through a school or work zone, it is only secondarily enforced;
• A school bus driver using a cellphone, though, is primarily enforced.

You may then be wondering: When and where am I allowed to do what?

While you think deeply about how voice commands and Bluetooth calling fall within all of this, let’s just all be safe and not use any form of distractions while driving anytime, anywhere, or at any age.

Driving in Arkansas

We have covered all that you can do to protect yourself while behind the wheel, but what about the actions of others?

In this section, we look at fatalities, risky driving, and theft.

—Vehicle Theft in Arkansas

Believe it or not, over 4,900 vehicle thefts occurred in 2016 alone in Arkansas.

When you decide to purchase a car, consider this list of the top ten stolen vehicles in Arkansas.

It’s important to be extra careful in cities in which more cars are stolen. Below is a list of those Arkansas cities with total thefts for 2016.

—Road Fatalities in Arkansas

Pulaski County alone had 51 traffic incident-related fatalities in 2017. Let’s take a look at those fatalities a little more closely.

Fatal Crashes by Weather Condition and Light Condition

2017 Traffic Fatalities

Fatalities by Person Type

Fatalities by Crash Type

Five Year Trend for the Top 10 Counties

Fatalities Involving Speeding by County

Fatalities in Crashes Involving an Alcohol-Impaired Driver by County

Teen Drinking and Driving

EMS Response Time

Transportation

Most Arkansas households have two or more cars and commute 20-40 minutes alone to work.

Residents have an average commute time of 20.5 minutes which puts Arkansas below the national average. Not too surprising is that over 83 percent of the population driving alone.

—Car Ownership

—Commute Time

—Commuter Transportation

Can you believe 1.36 percent of residents of Arkansas have a super commute? That means they spend 90 or more minutes in the car every day.

Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”

Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!

After learning all there is to know about car insurance rates, get your quotes today. Enter your zip code below to get started.

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