Arkansas families look for the best ways to save money when they can. Working within a budget no matter how much money you earn each year is always wise, and it’s something you must do if you want to succeed in living a life of financial freedom. One way to find savings in your monthly budget is to shop around for the best car insurance rates. In Arkansas, national data shows the least expensive annual premium on average comes from Farmers Insurance Company with a quote of $288 per year. This is a low price, and it’s one many drivers and vehicle owners want to take advantage of. Before you switch your car insurance company, though, it’s imperative to understand how your rates are affected, how to get the best rates, and why you might not be offered the same low rates as others
Auto Insurance Statistics in Arkansas
Car insurance rates in Arkansas have stayed reasonably low for many years according to data released by the NAIC.org.
Average Car Insurance Premiums State Vs. National
Drunk Driving Fatalities
An annual report put out by the National Highway Traffic Safety Administration revealed that Arkansas has seen a sharp decline in drunk driving deaths in 2012 and 2013. However, the year 2014 showed a major increase in incidences of drunk driving fatalities.
Drunk Driving Fatalities in Arkansas from 2010 to 2014
Teen Drinking and Driving
In Arkansas, teen drinking has been high, however, it has not yet surpassed the national average for teen drinking according to The Center for Disease Control. It is important to warn any teen drivers in your household about the potential dangers inherent in drinking while intoxicated. Early intervention and prevention are the best ways to avoid fatalities from drinking and driving.
Teen Drinking & Driving in Arkansas vs. Nationwide
Car Theft in Arkansas
The Federal Bureau of Investigation reports the national average of car theft to be about 215 while in Arkansas, the statistics show a lower amount. To protect against vehicular theft, it is recommended to get comprehensive car insurance coverage. This type of coverage may be more expensive upfront but in the long run, the added protection will be worth it.
Vehicle Thefts by Rank Nationwide vs. Arkansas
Uninsured Motorists in Arkansas
Uninsured and underinsured motorist coverage provides reimbursements for drivers in Arkansas who have been in an accident where the other driver was underinsured or uninsured. The below statistics show how well Arkansas ranks in the total number of reported uninsured motorists in the state in the year 2015.
Percentage of uninsured drivers (Top 10 States in 2015)
Source: Insurance Information Institute
How to Get the Lowest Rates for Car Insurance in Arkansas
It’s a simple process to obtain the lowest possible car insurance rates, but it’s not always something you can achieve. The better your driving record the lower the fee you will pay each year. If you have numerous tickets, accidents, and a bad driving record as a whole, you’ll pay far more. If you want the lowest possible rates, you’ll want to see if you fall into these categories:
- Be a younger woman or an older man
- Get married
- Live somewhere without much traffic or population
- Drive a car no one wants to steal
- Have good credit
Unfortunately for many Arkansas drivers, you can’t change much of this. If you’re an older woman, your rates might be higher than those of your husband as statistically, it’s older men who are better drivers than older women. The same goes for young men. They are traditionally considered more likely to become involved in accidents, therefore they must pay higher rates. Married couples pay lower rates, and many insurance companies base your rates on how densely populated your neighborhood is. All insurance companies check your credit before they approve you for a policy, and bad credit means you’re going to pay a much higher insurance premium no matter how good your driving record is.
The Best Arkansas Insurance Rates
There’s always an option available for you in Arkansas. Just because one company offers the lowest rates on average doesn’t mean it’s the right company for you. Your driving record and personal information affect your rates, so you might shop around to find the best rates. With dozens of insurance companies from which to choose, Arkansas statistics show most people find the lowest rates with companies such as the following:
- Horace Mann Property & Casualty Insurance Company
- Safeco Insurance Company of Illinois
- USAA General Indemnity Company
- American National General Insurance Company
- United Home Insurance Company
Many residents in Arkansas aren’t even aware some of these companies offer insurance for their vehicles, and they overlook them in the process of finding an insurance company. This is why it’s imperative to do your homework to understand what’s available to you and how you can get the best possible rates.
Lowering Your Premium
While shopping for an insurance policy, be aware that several factors can change the price of your premium. If you have a car with a security system, an alarm, safety features such as backup cameras and lane change assistance, you can get a lower rate. These features make driving safer, and they make your job a bit easier. Tell your insurance company if your car has any of these features, and you might see a discount on the overall cost of your insurance premium.
One more thing to take note of when shopping for a premium in Arkansas is that you might be able to save significantly on your policy by forgoing monthly payments and paying upfront. Most companies charge a small fee of approximately $5 per month to auto debit or bill you directly, which can add up to $60 per year in fees. Pay your premium up front and many companies will also off you a small discount for doing so. You can save around $100 per month doing this, which makes your insurance premium as cheap as possible.
Types of Auto Insurance Coverage in Arkansas:
- Uninsured/Underinsured Motorist Bodily Injury Insurance
- Uninsured Motorist Property Damage Insurance
- Bodily Injury Liability Insurance
- Property Damage Liability Insurance
- Comprehensive Insurance Coverage
Minimum Requirements for Car Insurance in Arkansas
There are minimum requirements for car insurance in the state of Arkansas. According to the Arkansas State Insurance Department, it is mandatory to carry at all least liability coverage when driving on roadways in the state of Arkansas. Failing to do so can have very serious consequences including suspension of registration or driver’s license.
Arkansas Liability Coverage minimums are as follows:
- $25,000 for property-damage liability coverage
- $25,000 for single-person bodily injury or death coverage
- $50,000 for multiple-person bodily injury or death coverage
New Driver Licensing in Arkansas
To obtain a driver license in Arkansas, all drivers are mandated to take specific written and vision tests. The vision test must be passed with a score of 20/40 for a standard license and a score of 20/50 for a restricted license. To pass the written test, drivers must study from the driver study guide which includes all of the required information. The final test is a road test which is given by the Arkansas State Police.
Cheap Auto Insurance Discounts
At Cheap Auto Insurance, we strive to help you get the very best deals on auto insurance including finding the best auto insurance discounts. Browse through the list below to see if you can take advantage of any of these discounts on car insurance.
- Anti-theft discount
- Mature driver discount
- Multi-car auto insurance discount
- Senior citizen discount
- Military or Veteran discount
- Infrequent usage discount
- Car safety features discount
- Low-mileage discount
- Good student discount
- Defensive driving discount
- Bundling insurance policies discount