The Best Arkansas Auto Insurance Companies
Arkansas's auto insurance rates are on the low side — on average $906 per year, compared to the nationwide average of $1,009. That said, how much you’ll pay can vary a lot depending on your car, your coverage, and your address. Use our tool to find your best rates:
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Good news: Arkansas drivers were recently named the ninth best in the nation. However, despite the kudos, Arkansas auto insurance rates are going up and if you get into an accident or get ticketed for a moving violation, you’re likely to see your premiums increase even more.
Why are Arkansas insurance rates so high? Cars and healthcare are both more expensive than they used to be, which means that car accidents result in higher claims. When insurers pay more in claims — and Arkansas insurers have seen claims go from several million dollars per year to over a billion dollars — they charge higher rates to make up the difference.
To find the best auto insurance in Arkansas, you’re going to want to look for the insurance provider that gives you the coverage you need while offering enough premium discounts that you aren’t stuck paying high rates. You’ll also want to make sure your insurer has enough financial stability to pay out your claims in the event of an accident. We’ve researched the five largest insurance providers in Arkansas to help you get started.
Arkansas Minimum Liability
Minimum liability is important for you to know and it varies from state to state. Here is the minimum amount of insurance required to drive in Arkansas:
- $25,000 bodily injury coverage per person
- $50,000 bodily injury coverage per accident
- $25,000 property damage coverage per accident
This minimum liability policy is often called a 25/50/25 policy, so if you hear insurance agents mention those numbers, they’re referring to the minimum amount of insurance you are legally required to carry.
However, it’s a good idea to get more than the minimum amount of insurance. As we explain below, accidents can be very expensive, and anything that isn’t covered by your insurance will end up getting paid out of pocket. With that in mind, you should consider increasing your minimum liability and adding a few additional coverages to your policy:
- Comprehensive coverage: this coverage protects your car from weather, theft, and other types of non-accident-related damage.
- Collision coverage: this coverage protects your car from accidents that only involve one vehicle (e.g. if you collide with a tree).
- Uninsured/underinsured motorist coverage: this coverage protects you if you are hit by an uninsured or underinsured driver. For example: if a driver with no insurance rear-ends you and your hospital bills total $60,000, your uninsured/underinsured motorist coverage will help cover those costs.
Insurers also offer additional types of coverage, from roadside assistance to custom stereo coverage. Ask yourself which types of coverage might be best for you — and then get quotes from multiple insurance providers to see which insurer gives you the best offer.
How We Found the Best Auto Insurance in Arkansas
We researched the five largest insurance providers in Arkansas using the same methodology we developed for our nationwide auto insurance review. We examined each insurer’s financial stability, using ratings from A.M. Best, to determine whether each insurer would have enough financial resources to pay off expensive claims. We also looked at customer service ratings from industry leaders JD Power and Consumer Reports, evaluating customers’ overall experience with each insurer and their satisfaction with the claims process.
Then we took a deep dive into each insurance provider’s offerings, comparing coverage options and available discounts. Our goal is to help you find the best coverage at the lowest rates, and our rankings represent the insurance providers we think you should reach out to first. Remember that it’s best to get multiple quotes from different insurers before making your decision!
Arkansas Auto Insurance Reviews
State Farm is the largest insurance provider in Arkansas, and it earned an honorable mention in our nationwide auto insurance review. State Farm also earned an A++ rating from A.M. Best, which is the highest possible rating and represents a superior level of financial stability. JD Power rates State Farm 3/5 for both overall experience and claims experience, and Consumer Reports gave State Farm a Very Good rating for claims process and an Excellent rating for speedy claims payment.
In terms of coverage and discount offerings, State Farm gives you what we consider the standard package: bodily injury, property damage, collision, comprehensive, etc. You aren’t going to get some of the more unique coverage options with State Farm, but you will get the coverages most drivers need.
State Farm does offer rideshare coverage, though, which is worth adding to your policy if you drive for Uber and Lyft. Personal auto insurance policies don’t cover you when you use your car for commercial purposes — as pizza delivery drivers are well aware — so Uber and Lyft drivers will want to add rideshare coverage to their policies to ensure that they’re fully covered.
State Farm’s discounts are a lot like its coverages: you’ll get the typical auto insurance discounts, such as multi-car (if you insure more than one car) and multi-policy (if you insure both a car and a home), as well as discounts for good grades, good driving habits, and cars equipped with safety features like air bags and anti-theft devices. You can cut your auto insurance rate even further if you sign up with State Farm’s Drive Safe & Save app, which tracks your driving in real time and — if you drive safely — can save you up to 50 percent off your premium.
You won’t get as many discount options with State Farm as you will with some of our other providers, but we still recommend getting a quote with State Farm due to its reputation for both stability and service. After all, it’s not the quantity of the discounts you receive that matters; it’s how much they lower your total car insurance package.
Like State Farm, Progressive also earned an honorable mention in our nationwide auto insurance review and a 3/5 from JD Power for both overall and claims experiences. It also picked up a Very Good for claims process and an Excellent for claims payment speed from Consumer Reports. Progressive earned an A+ financial rating from A.M. Best: an extremely good rating and a superior level of financial stability.
Progressive offers a few more coverage options than State Farm, including gap loan/lease payoff coverage. If you total a car that you’re still paying off, gap loan coverage will help pay the remainder of your loan — because nobody wants to be stuck making car payments on a car that’s been written off. Progressive also offers pet injury coverage, in case your pet is injured in a car accident, and this is one of the few coverages you don’t have to pay extra for. If you add collision coverage to your package, you get pet injury coverage at no extra charge. Lyft and Uber drivers, be aware that Progressive does not offer rideshare coverage.
Progressive doesn’t offer quite as many discounts as State Farm, although you can save money by having a continuous insurance policy (with no gaps in your history) and by starting the quote process online. Like State Farm, Progressive offers an app that turns safe driving into discounts. Snapshot tracks your driving in real time and can reduce your premium if you practice good driving habits — but unlike Drive Safe & Save, you could also see your premium increase as a result of fast starts, hard brakes, or late-night drives. Make sure you get your quote from Progressive online so you get that discount if you ultimately choose to go with them!
Like State Farm and Progressive, Allstate also earned an honorable mention in our nationwide auto insurance review. Allstate earned an A+ financial stability rating from A.M. Best, and Consumer Reports gave Allstate a Very Good for claims process and an Excellent for claims payment speed — but JD Power only gave Allstate a 2/5 for overall experience and a 3/5 for claims experience.
Allstate offers more coverage options than any of the providers on our list; in addition to the typical insurance policy coverages, you can sign up for classic car coverage and sound system coverage — plus, Uber and Lyft drivers can take advantage of Allstate’s rideshare coverage. Allstate also offers Deductible Rewards coverage, which reduces your deductible by $100 for every year of accident-free driving, up to 5 years or $500.
You aren’t going to get as many discounts with Allstate as you will with some of our other providers, though you can get a discount if you insure a new car or sign up for Allstate’s ePolicy paperless billing system.
Like State Farm and Progressive, Allstate also offers an app that tracks your driving. Instead of getting a premium discount, Allstate’s Drivewise program gives you up to 25% cash back every six months. If you complete Drivewise challenges, such as going three days without any hard braking, you can earn Allstate Rewards points that can be redeemed for savings on top brands, like Nike or the Gap. The Allstate Rewards program is available to everyone, not just Allstate policyholders — but if you’re interested in earning those rewards, you might as well ask Allstate for a quote!
Southern Farm Bureau
Southern Farm Bureau is a division of the Farm Bureau insurance company. A.M. Best gave Southern Farm Bureau an A+ financial stability rating, and although the insurance company division was too small to be rated by JD Power or Consumer Reports, both companies rated the larger Farm Bureau: JD Power gave Farm Bureau 4/5 for overall satisfaction and 3/5 for claims satisfaction, and Consumer Reports rated Farm Bureau as Very Good in both claims process and claims payment speed.
Southern Farm Bureau’s coverage options look a lot like State Farm’s: the standard options, without anything stand-out or unique. Its discounts, however, offer a variety of options: in addition to the typical discounts for multi-line or multi-car policies, you can get a discount for driving a “conservative” car (instead of a sports car) or being a college graduate.
Southern Farm Bureau also offers an explanation of how it calculates its insurance rates prior to any discounts. Younger drivers get higher rates, as do drivers in metropolitan areas. Read through Southern Farm Bureau’s summary of how it calculates rates, and if it looks like you’ll get a decent rate, ask for a quote.
Shelter Insurance received an A financial stability rating from A.M. Best, but is not large enough to be rated by JD Power or Consumer Reports.
There’s a lot to like about Shelter Insurance, including the way it packages its insurance coverage. If you sign up for Shelter’s standard auto insurance policy, you automatically get bodily injury, property damage, roadside assistance, and new car replacement coverage included in your package. Additional coverages, such as comprehensive and collision coverage, are also available if you want to add them to your policy.
Shelter Insurance also offers a few unique coverages, including accidental death coverage (which provides payment if you or your spouse are killed in a car accident) and disability income coverage (which provides a monthly stipend if you are unable to work due to disability sustained during an accident). If you’re an Uber or Lyft driver, Shelter suggests talking to an agent about your coverage needs.
Every coverage you add will cost you a little more in your premium, though — and Shelter Insurance offers the fewest discounts of any provider on our list. The available discounts are pretty standard: multi-line, multi-car, safe driver, and so on. Shelter’s goal is to provide affordable car insurance, so you might discover that even with a limited number of discounts, your rates will still be comparable to the other insurers on our list. You won’t know for sure until you get a quote!
Want a good reason to get more than the minimum required amount of car insurance? Try an $80,000 accident.
In April 2018, Northwest Arkansas News shared the story of a Siloam Springs woman who, after being hit by a city-owned tractor-trailer, found herself with medical bills in excess of $80,000. The city-owned vehicle carried Arkansas’s minimum 25/50/25 policy, which only provided $25,000 towards the woman’s medical bills; the woman carried $25,000 in uninsured/underinsured motorist insurance, which left $30,000 in medical bills she owed out of pocket. Because the tractor-trailer was a city vehicle, the woman was not able to sue for the remainder of her damages.
This unfortunate situation is a reminder that accidents can be very expensive — and getting more than the minimum 25/50/25 policy will benefit not only you, but also anyone else who might be involved in an accident. You don’t want to be the person sued for excess damages, and you don’t want to be the person stuck paying damages out-of-pocket.
Don’t just protect your car from other drivers. Protect it from the weather, too.
Arkansas has experienced multiple tornadoes, floods, and wildfires over the past few years, and these hazardous weather patterns are likely to continue. Before it’s time to seek shelter from an incoming storm, talk to your insurance agent about adding comprehensive insurance to your policy. In most cases, comprehensive insurance will help pay for damage to your car due to weather — although you’ll want to clarify exactly which types of weather your insurance covers. As an Arkansawyer, you should make sure to ask your agent if flooding, tornadoes, and wildfires are part of the comprehensive insurance package.