How to Get Affordable Car Insurance in Arkansas

Fran
Lucy Lazarony
July 1, 2020

When it comes to car insurance in Arkansas, drivers pay auto insurance premiums just above the national average. Drivers in Arkansas pay $1,458 in yearly auto premiums and this is just over 2 percent higher than the U.S. average. Fortunately for Arkansas drivers, there are all sorts of ways to save money on car insurance. So those premiums can drop below the national average in no time. But first let’s take a closer look at car insurance in Arkansas.

Minimum State Liability Requirements

If you ever cause a car accident, liability insurance pays for other people’s injuries and property damage up to your liability limit. Each state has its own minimum liability requirements for drivers in their state.

In Arkansas, state minimum liability requirements are $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident and $25,000 property damage liability coverage per accident.

The state minimum liability requirements in Arkansas costs $501 for a yearly premium.

Cost of a Full Coverage Policy

The state minimum liability coverage plus collision and comprehensive coverages with $1,000 deductibles would cost $1,172 for a yearly premium in Arkansas.

Collision insurance is coverage that helps to repair or replace your car if it is damaged in an at-fault accident with another vehicle or object such as a fence or a tree. Comprehensive insurance covers events that aren’t covered by collision insurance. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane, a tornado.

Both collision and comprehensive coverages come with deductibles. A deductible is the amount you need to pay before your auto insurance company begins to pay for your damages to your car or losses. Choosing a high deductible can help to lower your insurance premium.

If you are financing your vehicle, your lender may require you to have collision and comprehensive insurance coverages.

Why Car Insurance Is Expensive in Arkansas

Car insurance rates are high in Arkansas because the state has higher than average traffic fatalities. In Arkansas, there are 17 traffic deaths per 100,000 people compared to the national average of 10 traffic deaths per 100,000 people.

Arkansas Is an At-fault State

When it comes to insurance, Arkansas is an at-fault state. This means Arkansas drivers are responsible for any damages they cause to another vehicle. Who is at fault in an accident is determined by an insurance adjuster.

How to Save Money on Car Insurance

If you live in Arkansas you are ready to save some money on your auto insurance. Here are some tips and strategies to show you how.

Be a safe driver. If you have a clean driving record you will save money on your car insurance. So no speeding tickets, no DUIs, no moving violations, no at-fault accidents, you want your driving record free of all these things. In Arkansas, a DUI will raise your yearly insurance premium by as much as $551. And if you cause a minor accident, you’ll pay an additional $684 each year in your auto premiums in Arkansas. Drivers with clean driving records pay less for insurance. So if you’ve been a good driver, ask for your discount today.

Get married. If you are married you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles. In Arkansas, married drivers save $42 annually on car insurance.

Get good credit. Arkansas drivers with good credit records pay less for auto insurance than drivers with bad credit. National auto insurance companies have been using credit information to determine risk pools and set insurance rates since the mid1990s. Compared to a driver with bad credit a driver with excellent credit saves $1,390 each year in auto premiums in Arkansas. To improve your credit and lower your auto insurance rate, get current on any past due accounts and pay down debt. Both will help you improve your credit.

Bundle your policies. Bundle your auto policy with another insurance policy such as a homeowners policy and save money.

Insure more than one car. Insure more than one car with the same auto insurance company and save money on your premiums.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Check safety and anti-theft devices. Having certain anti-theft and safety features on your car will lower your car insurance rate. So check with your auto insurance company about the features on your car and find out which ones will give you a discount on your auto premium.

Check memberships. Members of particular professional organizations and affiliate groups get discounts on car insurance. So open up your wallet, check your membership information and find out how you can save on car insurance.

Insure less on older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry comprehensive and collision coverages any longer.

Maintain your insurance coverage. You’ll pay higher auto insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your coverage and save money.

Choose a high deductible. Choosing a high deductible will help to lower your insurance premium. Just make sure to put the money for the deductible in a small emergency fund. That way if you have to make a claim on your auto insurance the money will be there.

Drive low miles. Low-mileage drivers save money on car insurance. While heavy commuters pay more. So drive less and pay less on your car insurance.

Be older than 25 and younger than 65. Younger and older drivers pay more for their car insurance because they are involved in more serious accidents. The drivers that are in-between these ages pay less on car insurance.

Live in a safe neighborhood. If you live in a neighborhood with high accident claims and high auto theft, you’ll pay more for auto insurance. On the flipside, if you live in a neighborhood with few accidents and low crime you will pay less on car insurance.

Be a woman. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men with their higher accident claims wind up paying higher rates.

Shop around. The best thing you can do to lower your auto insurance rate quotes is to shop around for the best deal. You’ll want to get several quotes from different insurance companies. SmartFinancial makes it easy to do. Just enter the type of insurance you’re looking for and a zip code to get started. Answer a few, quick questions and you’ll be comparing auto insurance rates in Arkansas in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you want.

Be a safe driver, be a smart shopper and enjoy your time on the roads of Arkansas.

Get a Free Auto Insurance Quote Online Now.

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