Looking to save on auto insurance in Arkansas? Here’s how you can cut costs while maintaining essential coverage:
- Compare Quotes: Gather multiple quotes from insurers to find the best rates.
- Use Discounts: Take advantage of savings for bundling policies, good grades, safe driving, and more.
- Clean Driving Record: Avoid violations like speeding or DUIs to prevent premium hikes.
- Adjust Coverage: Raise deductibles or drop unnecessary coverage on older cars.
- Choose the Right Car: Pick vehicles with high safety ratings and low repair costs to reduce premiums.
- Bundle Policies: Combine auto, home, or renters insurance for discounts.
- Improve Credit Score: A higher score often means lower premiums.
- Work with Local Agents: They can find hidden discounts and tailor policies to your needs.
How to get lower car insurance rates
1. Get Multiple Insurance Quotes
Insurance rates can vary dramatically between providers, with differences of up to $830 per year depending on whether you choose liability-only or full coverage.
To make the best decision, follow these steps:
- Gather 3–5 quotes from both major and regional insurers, ensuring the coverage and deductible levels are the same for accurate comparisons.
- Look at additional benefits and discounts each provider offers.
- Recheck quotes at renewal time or after big life changes, like moving or purchasing a new car.
Online tools such as The Zebra and Bankrate can help streamline the process, but don’t overlook local agents - they might find extra savings that aren’t advertised online. Make sure all quotes comply with Arkansas' minimum liability requirements: $25,000 per person, $50,000 per accident, and $25,000 for property damage.
Once you’ve compared rates, dig into available discounts to lower your premium even more.
2. Find Available Discounts
Arkansas drivers can save on insurance by exploring discounts offered by major providers like Farm Bureau Insurance and Nationwide.
Here are some common discounts available:
- Multi-Policy Bundle can typically save up to 30% when you combine auto with home, renters, or life insurance.
- Good Student can usually save 10% to 15% when full-time students (ages 16-24) achieve a B average or higher
- Defensive Driving could typically save 5% to 10% when you complete a stat-approved safety course (ages 55+).
- Claims-Free can typically save up to 20% when you have no chargeable accidents for 3+ years.
- Paperless & AutoPay usually can save you 5%-8% when you enroll in electronic statements and automatic payments.
These discounts can result in noticeable savings. Here’s how to qualify and make the most of them:
- Young drivers (under 22) can combine driver training discounts with rewards for good grades.
- Older drivers (55 and up) can qualify for further savings by completing a state-approved defensive driving course.
For example, Nationwide offers discounts for completing a defensive driving program, while Farm Bureau provides loyalty discounts for customers who’ve been with them for over two years.
Tips to Maximize Savings:
- Check with your local agent to confirm available discounts.
- Bundle multiple policies with the same provider.
- Keep a clean driving record to qualify for claims-free savings.
- Opt for paperless billing and automatic payments for quick discounts.
- Retain academic records to verify eligibility for good student discounts.
Discounts and savings vary by insurer, so it’s worth comparing options from different companies to find the best fit.
3. Keep Your Driving Record Clean
Keeping your driving record spotless is one of the best ways to reduce insurance costs in Arkansas. Traffic violations, even minor ones, can cause your premiums to spike significantly.
Here’s how different violations can affect your annual premiums:
Tips for Maintaining a Clean Record:
- Regularly check your driving record through the Arkansas DMV every 6–12 months. This helps ensure all information is accurate, violations are removed when eligible, and errors that could inflate your rates are corrected.
- Practice safe driving habits to avoid violations. Completing a state-approved defensive driving course not only reinforces safe driving but can also help you avoid future infractions.
Insurance companies heavily weigh your driving history when setting your premium. For example, a single DUI can push rates up by 56% for over five years. On the other hand, insurers like Farm Bureau often offer Claims Experience Discounts to drivers with a clean record.
Once your record is in good shape, consider reviewing your coverage levels to ensure your policy meets your needs.
4. Review Your Coverage Levels
Making smart decisions about your coverage can help you cut costs while still protecting yourself. Meeting the minimum coverage requirements might keep you legal, but it may leave you exposed in certain situations. On the other hand, opting for high limits can increase your premiums. Let’s look at some practical ways to balance your needs and your budget.
Here’s a breakdown of coverage levels and their average annual premiums in Arkansas:
Once you’ve taken steps like maintaining a clean driving record, the next move is to fine-tune your coverage for additional savings.
Here’s how you can adjust your policy:
- Drop comprehensive and collision coverage on older vehicles. If the cost of full coverage exceeds your car’s value, switching to liability-only can save you a good chunk of money while still meeting state requirements.
- Raise your deductible. Increasing your deductible from $500 to $1,000 can lower your annual premium by about $157. Just make sure you’re comfortable with the higher out-of-pocket cost if you need to file a claim.
- Evaluate optional coverages. While extras like Personal Injury Protection (PIP) do increase premiums, they can help cover medical expenses and may be worth considering, depending on your situation.
It’s also important to revisit your policy when your circumstances change - like if your car’s value decreases or there’s a change in drivers. For reference, full coverage in Arkansas averages $1,319 per year, which is slightly above the national average.
To make the best adjustments for your needs, consider consulting with an Arkansas-based insurance agent like us here at Martin Agency. We can provide personalized insights to help you find the right balance.
5. Pick a Car That Costs Less to Insure
The car you drive plays a big role in determining your insurance premiums in Arkansas. The difference in insurance costs between vehicles can add up to hundreds - or even thousands - of dollars each year.
Insurance companies evaluate several factors when setting rates:
Certain models, like the Honda Civic and Toyota Corolla, are often considered budget-friendly choices. They combine excellent safety ratings with affordable repair costs, making them appealing for drivers looking to save.
Cars with advanced safety features can offer even more savings. Systems like lane departure warnings or blind spot monitoring may qualify you for additional discounts from insurers.
When choosing a new vehicle, keep these money-saving tips in mind:
- Vehicle Size and Type: Mid-size sedans and family cars usually cost less to insure compared to luxury or sports cars.
- Engine Power: Cars with less horsepower often come with lower insurance premiums.
- Reliability and Repair Costs: Models known for dependability and low repair expenses typically get better rates.
For example, insuring a basic sedan with full coverage costs around $1,458 annually, while a luxury car can exceed $2,000. By factoring in these details, you can find a car that keeps both your insurance costs and driving needs in check.
6. Combine Multiple Insurance Policies
Bundling your insurance policies is a smart way to lower auto insurance costs in Arkansas. It not only helps reduce premiums but also makes managing your policies much easier.
For example, Farm Bureau Insurance in Arkansas offers around a 27% discount when customers bundle home and life insurance policies. This can lead to noticeable yearly savings while keeping everything organized.
Here are some common bundling options in Arkansas:
Local providers like Martin Agency in Pocahontas, AR, specialize in creating customized bundling packages that balance cost savings with personalized coverage.
However, bundling isn’t always the cheapest option. It’s worth comparing quotes from different providers to see if individual policies might actually save you more. Always check the fine print for any restrictions or exclusions in your bundled policy.
Up next: Learn how improving your credit score can help you save even more on your insurance premiums.
7. Build a Better Credit Score
Your credit score has a big impact on auto insurance rates in Arkansas. Insurers often use credit-based details to evaluate risk and determine premiums. Simply put, a higher credit score can often mean lower insurance costs.
Want to improve your credit score? Focus on these areas:
- Payment History: Always pay bills on time. Setting up automatic payments can help you avoid late payments.
- Credit Utilization: Keep your credit card balances low compared to your credit limit. This shows you're managing your finances well.
- Credit History: Keep older credit accounts open. A longer credit history can demonstrate reliability over time.
- Credit Mix: Having different types of credit (like loans and credit cards) helps, but avoid opening new accounts just for variety. Too many new inquiries can hurt your score temporarily.
Improving your credit score won’t happen overnight, but many Arkansas drivers notice improvements within 6 to 12 months when they follow these steps.
By law, Arkansas insurance companies must tell you if they’re using your credit information to set rates. If you’re notified, get a copy of your credit report and check for errors. Dispute any inaccuracies right away.
Next, we’ll explore how working with Arkansas insurance agents can help you save even more.
8. Work with Arkansas Insurance Agents
Local insurance agents offer more than just quotes - they provide tailored advice designed specifically for Arkansas drivers. These professionals are great partners when it comes to lowering your auto insurance costs, building on earlier strategies with their in-depth knowledge of local requirements and opportunities.
Agencies like Martin Agency bring a lot to the table. Their understanding of Arkansas insurance laws and savings programs can help you navigate state-specific regulations while finding ways to cut costs.
How Local Agents Help Lower Premiums
Local agents play a key role in reducing your insurance expenses through:
- Personalized Coverage Assessment: They take the time to evaluate your unique situation, factoring in your driving history, vehicle usage, current coverage needs, and even discounts you might not be aware of.
- Access to Multiple Carriers: Independent agents work with various insurance companies, comparing rates and coverage options. Thanks to their relationships with carriers, they can often negotiate better deals for you.
They also know about exclusive discounts that online systems might miss, making their expertise even more valuable.
Unlocking Discounts with Local Knowledge
Local agents are pros at spotting Arkansas-specific savings. They can help you qualify for:
- Bundling discounts when combining multiple policies
- Savings for a clean claims history
- Discounts for completing driver training programs
- Reduced rates for defensive driving courses
These savings often go unnoticed on online platforms, but agents know exactly where to look and how to ensure you qualify.
Ongoing Support and Claims Assistance
The benefits of working with a local agent don’t stop at finding savings. They’re there to help you through the claims process, adjust your coverage as your needs change, and even advocate for you with insurance companies. Their ongoing service ensures your policy works for you, not the other way around.
Conclusion
Lowering auto insurance rates in Arkansas is possible with the right approach. By shopping around for quotes, taking advantage of discounts, keeping a clean driving record, adjusting your coverage, choosing affordable vehicles, bundling policies, improving your credit score, and collaborating with local agents, you can cut down on your insurance expenses.
Keeping a spotless driving record is especially important. Avoiding tickets and accidents not only keeps you safe but also makes you eligible for safe driver discounts from companies like Nationwide and Farm Bureau Insurance. Similarly, bundling multiple policies with one insurer can lead to valuable multi-policy discounts.
Your credit score also plays a big role in determining premiums. A higher score, combined with strategies like selecting vehicles with lower insurance costs and using available discounts, can result in noticeable savings.
Start implementing these tips now to reduce your costs while staying compliant with Arkansas insurance requirements.
FAQs
What are the Arkansas insurance requirements?
In Arkansas, drivers are required to carry minimum liability insurance coverage of 25/50/25. This breaks down as follows:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage per accident
While these are the legal minimums, they might not fully cover you in the event of a serious accident. It’s worth considering higher coverage limits depending on your situation.
Who has the cheapest car insurance in Arkansas?
USAA offers some of the lowest rates, starting at $32 per month for liability and $112 per month for full coverage. However, USAA is available only to military members, veterans, and their families.
For those who don’t qualify for USAA, companies like Shelter and GEICO are often highlighted as budget-friendly options. Keep in mind, though, that rates depend on factors like your driving history, credit score, and the type of vehicle you drive.
