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Regardless of the type of car, people always require insurance, so the automobile insurance business has been a mainstay. The Average Cost of Car Insurance in Arkansas highlights this ongoing need. Looking ahead, the global motor insurance market is projected to grow from approximately $910.96 billion in 2025, with a strong compound annual growth rate driving it even higher in the coming years.
However, the industry has had an average yearly decline of 0.4% since 2018. The primary challenge is high competition, while a significant positive factor is its growing life cycle stage. Despite recent fluctuations, the enduring necessity of auto insurance underscores its lasting relevance in the market.
Also Read: How To Get Temporary Car Insurance for a Road Trip Fast
Arkansas Car Insurance Rates by City
In Arkansas, car insurance rates are generally below the national average, with state drivers typically paying about $442 annually for minimum coverage and $2,154 for full coverage. It is compared to the national averages of $637 and $2,299, respectively.
However, individual rates in Arkansas can vary significantly based on factors like driving history, vehicle type, and chosen coverage options. State-specific risks, such as tornadoes, also play a role in determining premiums. Considering these variables is crucial for understanding how your insurance costs might compare to these averages.
Further, Arkansas’s average car insurance cost also varies by city, highlighting the impact of location on premiums. In the state’s most populated cities, average rates for full coverage can differ from the statewide average due to various local factors.
These differences often arise from the regional cost of repairs, availability of parts and services, and the frequency of auto accidents. Additionally, vehicle type, age, driving history, local theft rates, and vandalism influence individual premiums.
Below are the average rates in some of the most populated cities in Arkansas, providing a comparison to the state average premium for full coverage.
| City | Avg. monthly full coverage premium | Avg. annual full coverage premium |
| Combs | $171 | $2,047 |
| Springdale | $166 | $1,998 |
| Russellville | $170 | $2,035 |
| Altus | $170 | $2,035 |
| Briggsville | $177 | $2,125 |
Average Car Insurance Costs by Age and Gender in Arkansas
A driver’s age significantly influences auto insurance rates. Young drivers, particularly those under 25, pay the highest premiums, with 18-year-olds facing the steepest costs. As drivers age, their rates generally decrease.
Teen drivers generally cost more to insure than older, experienced drivers. Teenagers must stay on their parents’ car insurance policy until they turn 18 and can legally sign a contract. However, young drivers can often save money by staying on their parents’ policy for as long as their insurer permits, potentially until age 25 or as long as they live at home.
| Age | Drivers on parents’ policy | Drivers on their policy | Cost difference |
| 16 | $4,270 | – | – |
| 17 | $3,986 | – | – |
| 18 | $3,693 | $5,963 | 61 percent more |
| 19 | $3,395 | $4,959 | 46 percent more |
| 20 | $3,261 | $4,599 | 41 percent more |
Gender also affects premiums, with males typically paying more than females. This disparity is linked to higher rates of accidents, traffic violations, and claims filing among male drivers. As a result, insurers charge higher premiums to male drivers to offset these increased risks.
Car Insurance Rates in Arkansas by Credit Score
Insurance companies can factor in credit-based insurance scores in Arkansas when determining premiums. Individuals with better credit scores typically enjoy lower premiums, while those with poorer credit face higher rates.
For instance, in Arkansas, a lower credit rating can result in an average increase of 91 percent in full coverage premiums compared to the state average, a higher average increase than that resulting from a DUI conviction. Conversely, having an excellent credit rating in Arkansas can lead to an average decrease of 12 percent in full coverage premiums.
This table illustrates how different credit tiers impact Arkansas’s average annual premiums, along with the percentage difference compared to the state’s average annual premium.
| Age | Male | Female | ||
| Avg. full coverage premium in AR | Avg. min. coverage premium in AR | Avg. full coverage premium in AR | Avg. min. coverage premium in AR | |
| 16 | $4,493 | $1,098 | $4,047 | $1,036 |
| 18 | $6,372 | $1,570 | $5,554 | $1,371 |
| 20 | $5,043 | $1,084 | $4,156 | $957 |
| 25 | $2,948 | $585 | $2,596 | $562 |
| 30 | $2,399 | $480 | $2,300 | $479 |
| 40 | $2,177 | $440 | $2,130 | $444 |
| 50 | $1,963 | $407 | $1,835 | $405 |
| 60 | $1,917 | $404 | $1,851 | $391 |
| 70 | $2,107 | $475 | $2,012 | $453 |
Car Insurance Rates in Arkansas by Credit Score
Insurance companies can factor in credit-based insurance scores in Arkansas when determining premiums. Individuals with better credit scores typically enjoy lower premiums, while those with poorer credit face higher rates. For instance, in Arkansas, a lower credit rating can result in an average increase of 91 percent more in full coverage premiums compared to the state average, a higher average increase than that resulting from a DUI conviction. Conversely, having an excellent credit rating in Arkansas can lead to an average decrease of 12 percent in full coverage premiums.
This table illustrates how different credit tiers impact the average annual premiums in Arkansas, along with the percentage difference compared to the state’s average annual premium.
| Credit Tier | Avg. Annual Premium in AR | Percentage Difference from AR Avg. Annual Premium |
| Poor | $4,108 | +91% |
| Average | $2,377 | +10% |
| Good | $2,154 | 0% |
| Excellent | $1,900 | -12% |
Cheapest Car Insurance Companies in Arkansas
When seeking the most affordable car insurance in Arkansas, it’s crucial to recognize that each insurance company utilizes its unique algorithm to calculate rates. Therefore, finding the cheapest option depends on your circumstances. Comparing free quotes from multiple insurers is wise to secure the best rates tailored to your needs. Here are three providers to consider:
Beem
Beem offers personalized car insurance quotes from industry-leading providers, ensuring coverage that fits everyone’s budget. With over 5 million users relying on Beem for secure financial transactions and budgeting tools, they stand out for their commitment to customer satisfaction.
By comparing rates from all major car insurance providers in one place, Beem helps you find the best match and potentially save hundreds of dollars annually. Plus, with incentives for safe driving behavior, such as unlocking discounts of up to 40%, Beem rewards responsible motorists.
Progressive
Progressive is renowned for its competitive rates and extensive coverage options. You can explore potential savings and benefits by comparing quotes from Progressive with those from other insurers.
GEICO
GEICO is another reputable insurer known for its affordable premiums and excellent customer service. By obtaining a quote from GEICO, you can assess how its rates compare to those of other providers in Arkansas and make an informed decision.
Ultimately, conducting thorough research and obtaining quotes from multiple insurers will help you find the most cost-effective car insurance coverage for your needs.
Also Read: Is Usage-Based Car Insurance Right for You?
Cost for Driving Record in Arkansas
In Arkansas, your driving record significantly impacts your car insurance premiums. Insurance companies assess risk based on various factors, including past driving incidents. Here’s how different violations can affect your rates:
At-fault accident
Being at fault in an accident can substantially increase your car insurance premiums. Insurance providers view drivers with at-fault accidents on their record as higher risks, as they demonstrate a propensity for unsafe driving behavior. Expect your rates to rise significantly following an at-fault accident, potentially resulting in a premium increase of several hundred dollars per year.
Speeding ticket
Speeding tickets also hurt your car insurance rates in Arkansas. While the exact increase varies depending on factors such as the severity of the offense and your driving history, expect a noticeable uptick in your premiums. Typically, a speeding ticket can lead to an increase of around 20% to 30% in your insurance rates.
DUI
A DUI conviction has the most severe consequences for your car insurance rates in Arkansas. Besides legal penalties, such as fines and license suspension, expect a significant hike in your insurance premiums. In some cases, insurance rates can double or even triple following a DUI conviction. This increase reflects the heightened risk of impaired driving, making you a more costly policyholder to insure.
In Arkansas, the impact of driving incidents on car insurance premiums is evident in the following comparisons:
| Driving Incident | Avg. Annual Premium in AR | Percentage Increase from AR Avg. Annual Premium |
| Clean Driving Record | $2,154 | 0% |
| Speeding Ticket Conviction | $2,533 | 18% |
| At-Fault Accident | $2,919 | 36% |
| DUI Conviction | $3,374 | 57% |
These statistics underscore the significant impact of driving incidents on insurance rates in Arkansas. Maintaining a clean driving record is essential for safety and keeping insurance premiums affordable.
Avoiding violations such as speeding tickets, at-fault accidents, and DUI convictions can help drivers mitigate the financial burden associated with increased insurance costs.
How Much is Car Insurance For Good and Poor Credit Scores In Arkansas?
The disparity in auto insurance premiums based on credit scores is notable in Arkansas. Drivers with good credit scores typically enjoy lower premiums, while those with poor credit scores face higher rates.
For instance, a driver with a good credit score might pay an average annual premium of $1,800 for full coverage, while a driver with a poor credit score could see their premium soar to around $3,200 annually. This significant difference underscores the importance of maintaining a good credit score, as it directly impacts the affordability of car insurance in Arkansas.
Conclusion
The Automobile Insurance industry remains a steadfast necessity, exemplified by its enduring relevance despite market fluctuations. Arkansas drivers enjoy rates lower than the national average; however, specific rates differ according to region, credit score, age, gender, and driving history.
Amidst this landscape, Beem stands out for its commitment to providing personalized car insurance quotes and rewarding safe driving behavior. It offers a pathway for drivers to find cost-effective coverage. As drivers navigate the complexities of insurance, leveraging resources like Beem can lead to greater financial security.
FAQs on Average Cost of Car Insurance in Arkansas
What Is Full Coverage Car Insurance in Arkansas?
Full coverage car insurance in Arkansas typically includes liability, collision, and comprehensive coverage, providing financial protection against damage to your vehicle and others involved in an accident.
How much car insurance do I need in Arkansas?
The car insurance you need in Arkansas depends on your vehicle’s value, financial situation, and legal requirements. Minimum coverage usually includes liability insurance, but additional coverage may be necessary for comprehensive protection.
What is the monthly insurance cost in Arkansas?
The monthly insurance cost in Arkansas varies based on factors like your driving history, vehicle type, coverage options, and insurer. On average, drivers in Arkansas pay around $185 per month for car insurance, but individual rates may differ.
