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The Best Arkansas Auto Insurance Companies
In order to find the best auto insurance in Arkansas, it’s important to look for the insurance provider that gives you the coverage you need while offering enough 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 compared coverage options and quotes of the five largest insurance providers in Arkansas to help you get started.
How We Found the Best Arkansas Auto Insurance Companies
We followed a similar methodology to our review of nationwide auto insurance providers, taking a deep dive into the offerings of the five largest insurance providers in Arkansas. 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 J.D. Power and Consumer Reports, evaluating customers’ overall experience with each insurer and their satisfaction with the claims process. Since each provider has its own strengths and weaknesses, we recommend obtaining multiple quotes from different insurers before making your decision.
The 5 Best Auto Insurance Companies in Arkansas
State Farm currently holds 25.7% of the Arkansas auto insurance market share, making it the largest insurance provider in the Land of Opportunity. It’s also earned an A++ rating from A.M. Best, which is the highest possible rating and represents a superior level of financial stability. J.D. Power rates State Farm three out of five 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, and comprehensive. And while it doesn’t host many unique coverages, there are a few standouts, including rideshare coverage. This is incredibly useful if you drive for Uber or Lyft, since your personal auto insurance policies will not cover your personal vehicle when used for commercial purposes.
State Farm’s discounts include typical auto insurance discounts like multi-car and multi-policy along with some others 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% on your premium.
Like State Farm, Progressive earned an honorable mention in our nationwide auto insurance review thanks to strong customer satisfaction scores and financial strength ratings. Progressive picked up a three out of five from J.D. Power for both overall satisfaction and claims experiences, plus a Very Good for claims process and an Excellent for claims payment speed from Consumer Reports. What’s more, A.M Best granted Progressive a financial rating of A+: an extremely good rating and a superior level of financial stability.
Progressive offers extensive coverage options, 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, which comes free if you add collision coverage to your package. And if you drive for Lyft or Uber, Progressive has you covered: Just look for for-hire livery insurance.
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.
Allstate earned an A+ financial stability rating from A.M. Best, and Consumer Reports gave it a Very Good for claims process and an Excellent for claims payment speed. However, Allstate falls slightly behind the competition in J.D. Power ratings, earning only a two out of five for overall experience and a three out of five for claims experience.
In addition to typical policy coverages, Allstate offers some uncommon coverage options, including coverage for classic cars, sound systems, and rideshare drivers.
Standard discounts include those for new cars, anti-theft devices, anti-lock brakes, and good grades. While Allstate doesn’t have the same volume of discounts as other providers, there are easy options for saving money, like signing up for Allstate’s ePolicy paperless billing system or Deductible Rewards coverage. This coverage reduces your deductible by $100 for every year of accident-free driving, up to five years or $500.
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.
Southern Farm Bureau
Southern Farm Bureau, a division of the Farm Bureau insurance company, earned a solid A+ financial stability rating from A.M. Best. However, that’s where the ratings end; the insurance company division was too small to be rated by J.D. Power or Consumer Reports. That being said, the broader Farm Bureau insurance company is rated Very Good in both claims process and claims payment speed on Consumer Reports, an indication that you’ll be in good hands with the company’s smaller divisions.
Southern Farm Bureau’s coverage lineup looks a lot like State Farm’s: the standard options, without anything standout or unique. Its discounts, however, offer a plethora of options including:
- Discount for having a qualifying property policy through Southern Farm Bureau
- Adult driver training
- Away at school
- Company vehicle
- Continuous coverage
- Vehicles qualifying for farm use
- Financial responsibility
- Good student
- Loyal customer
- No moving violations
- Personal financial responsibility
- Youthful driver training
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. This explanation is unusual among insurance providers, which usually keep algorithms close to the vest. Southern Farm Bureau’s approach makes it easier to predict your quote and compare against other options.
Shelter Insurance received an A in financial stability from A.M. Best, but, like Southern Farm Bureau, it is not large enough to be rated by J.D. Power or Consumer Reports.
Even so, 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 receive coverage for bodily injury, property damage, roadside assistance, and new car replacement.
In addition to the standard coverage options, Shelter Insurance also offers a few unique coverages, like accidental death coverage, disability income coverage, and loss of use coverage.
Every added coverage will cost you a little more in your premium, though — and Shelter Insurance offers a list of discounts comparable to that of its competitors, with standard options like multi-line, multi-car, and safe driver discounts. It doesn’t have many unique discount options, but it’s still possible that Shelter could offer you a better baseline premium than its competitors. As always, we recommend gathering quotes from multiple providers before making your decision.
Guide to Arkansas Auto Insurance
Arkansas minimum liability
Minimum liability varies from state to state. The minimum amount of insurance required to drive in Arkansas is:
- $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.
Get more than the minimum coverage
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. To avoid this, we recommend purchasing as much coverage as you can afford.
Seek additional coverage against the weather
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, make sure to ask your agent if flooding, tornadoes, and wildfires are part of the comprehensive insurance package.
Arkansas Auto Insurance FAQ
How much is car insurance in Arkansas?
On average, auto insurance costs in Arkansas has been estimated at $906.34 per year, which is over $100 less than the national average. That being said, the amount you’ll pay depends on the coverage options you choose.
What is the penalty for not having car insurance in Arkansas?
If you are stopped in traffic and have car insurance but are unable to present proof, you’ll likely be issued a citation and a fine of $25. Further violations can result in steeper fines and even suspension of your vehicle registration.
Which Arkansas auto insurance company is the best?
This depends on the coverage you need and what you are willing to pay. Our top picks not only offer a wide variety of coverage options but ways to save money through discounts. Shop around and get quotes from as many Arkansas providers as you can in order to find the policy that’s right for you.