Arkansas car insurance: what the average driver pays

The Arkansas premium next to the U.S. average

The National Association of Insurance Commissioners (NAIC) tracks what insurers charge per insured car in each state. Its 2023 tables, the latest by state, put the Arkansas average expenditure at $1,051, up 13% from $927 in 2022. That average counts liability-only cars as well as fully covered ones. A car with all three main coverages averaged $1,297.

The pattern is uneven. Liability cost $538, about 27% less than nationally, and that drives the low overall average. Collision matched the U.S. figure, and comprehensive, at $292, was about 23% higher. For a car with full coverage, the gap with the nation narrows to about 10%. How old and how valuable your car is shapes the physical damage lines; see how make and model affect a premium.

What an Arkansas policy includes by law

Arkansas law (Ark. Code § 27-22-104) requires liability coverage of at least $25,000 for one person's injury or death, $50,000 for two or more people in one accident and $25,000 for property damage: 25/50/25. The Arkansas Insurance Department's auto brochure says liability is the only coverage you must buy; the rest are voluntary unless a lienholder requires them.

• Personal injury protection (PIP) pays medical bills, part of lost income and a death benefit without regard to fault, within limits set in Ark. Code § 23-89-202, such as $5,000 per person for medical expenses. To decline any part of it you must reject it in writing.
• Uninsured motorist coverage is included unless an insured named in the policy rejects it in writing (Ark. Code § 23-89-403). The Insurance Research Council estimated 12.1% of Arkansas drivers were uninsured in 2023.
• Underinsured motorist coverage can pay injury costs above what an at-fault driver's liability covers, up to the limit you buy.

Signing away PIP or uninsured motorist coverage cuts the premium, but it also removes the first layer that pays for your own injuries. Our guide to limits and deductibles helps you decide what to keep.

How Arkansas oversees rates and credit

Under the department's Rule 23, insurers in a competitive market file rates with a proposed effective date at least 20 days after the filing and required information reach the department; filings missing that information are disapproved. The department's brochure notes that in a competitive market companies charge different amounts for essentially the same coverage. The department also publishes a public search of rate change filings.

Credit is governed by the Use of Credit Information in Personal Insurance Act of 2003 (Ark. Code §§ 23-67-401 to 414). The department describes credit history as one of several rating factors. An insurer must tell you if it uses credit, and it must not penalize you for a lack of credit information. You can ask your company to re-evaluate your insurance score at renewal. Read more on credit-based insurance scores.

If you can't find an insurer

The Arkansas Automobile Insurance Plan covers drivers who can't get liability insurance in the voluntary market. The department's brochure says to have your agent apply through the plan; the AIPSO plan office can be reached at (800) 413-5808. Expect plan coverage to cost more, and see our guide to assigned-risk plans for how to get back to standard rates.

Practical ways to cut the Arkansas bill

1. 1 Compare at least three quotes. Keep limits, PIP choices and deductibles identical so the only variable is the company.
2. 2 Take the senior course if you qualify. Arkansas law requires insurers to discount premiums for drivers over 55 who complete an accident prevention course approved by the Office of Motor Vehicles. See the course discount guide.
3. 3 Match your deductible to your savings. The deductible break-even calculator shows how long a higher deductible takes to pay off.
4. 4 Call Consumer Services with a problem. The Arkansas Insurance Department's Consumer Services Division is at (501) 371-2640 or (800) 852-5494, and complaints can also be filed online.

Questions drivers ask