To help you find the best car insurance in Arkansas, we at the MarketWatch Guides team conducted extensive research of the state’s insurers. We looked at industry standing, availability, coverage, discounts and customer experience to determine the top five companies for Arkansas drivers.
In this article, we explain our findings, detailing each company’s coverage offerings, reputation and overall customer experience. We also examine average annual car insurance rates in Arkansas, breaking down costs by carrier, age bracket and city.
Key Takeaways
- Based on our research, State Farm offers the best coverage for Arkansas drivers due to its range of coverage options, affordable rates and solid reputation.
- The average cost of full-coverage car insurance in Arkansas is $2,038 per year, which is slightly more expensive than the national average of $2,008 per year.
- Arkansas requires drivers to carry a minimum of $25,000 in bodily injury per person, $50,000 in bodily injury per accident and $25,000 in property damage liability coverage.
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The MarketWatch Guides Team is committed to providing reliable information to help you make the best decision possible about insuring your vehicle. Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. After 800 hours of research, the end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Learn more about our methodology and editorial guidelines.
What Is the Best Car Insurance in Arkansas?
The best car insurance company for drivers in Arkansas is State Farm, followed by USAA, Auto-Owners Insurance, Southern Farm Bureau and Shelter Insurance. Each of these companies offers Arkansas drivers minimum- and full-coverage policies, reliable protection and strong financial backing.
Compare Arkansas Auto Insurance
To compare Arkansas auto insurance companies, we analyzed carriers based on five key categories: industry standing, availability, coverage, cost and discounts and customer experience. We then calibrated a score for each company on the list and ranked them one through five against other in-state carriers. Below are the results of our research.
| Best Car Insurance in Arkansas | Our Score | Industry Standing | Availability | Coverage | Cost and Discounts | Customer Experience |
| State Farm | 9.4 | 10 | 9.8 | 9.2 | 9.3 | 9.3 |
| USAA | 9.2 | 8.9 | 8 | 9.5 | 9.7 | 8.9 |
| Auto-Owners Insurance | 8.9 | 9.1 | 8.3 | 9.4 | 8.6 | 8.3 |
| Southern Farm Bureau | 8.8 | 8.6 | 7.3 | 9.2 | 9.2 | 8.5 |
| Shelter Insurance | 8.4 | 8.4 | 8.1 | 8.2 | 9 | 8.1 |
Customer Experience
To determine our rating for customer experience, we read and analyzed individual customer reviews on third-party sites like Google, Trustpilot and the Better Business Bureau (BBB) and assessed overall sentiment and customer satisfaction. We also surveyed customers to learn about their satisfaction with their insurance companies.
After compiling this information, we looked at industry studies J.D. Power. In each provider section, we pulled scoring from the J.D. Power 2023 U.S. Auto Insurance Study℠, which breaks customer satisfaction down by region. For this article, we’ll be using scores from the Central region, which includes Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota.
Similarly, all costs are based on a quote for 35-year-old drivers with good credit scores and clean driving records.
Best Car Insurance Companies in Arkansas
See our top five picks for Arkansas auto insurance providers below.
#1 State Farm: Best Customer Experience
J.D. Power rating: 833/1,000
AM Best financial strength rating: A++BBB rating:C-
Pros
A++ financial strength rating from AM Best
Good discount opportunities for students and young drivers
Usage-based insurance (UBI) discount
Cons
Low BBB rating
Coverage
There are six standard coverages for auto insurance that are available from any major company, including State Farm. These include:
- Liability insurance: Pays for other people’s repair and medical bills when you cause an accident
- Collision insurance: Repairs or replaces your car after an accident
- Comprehensive coverage: Repairs or replaces your vehicle after vandalism, theft, collision with a stationary object or environmental damage
- Medical payments: Covers your medical bills after an accident and can cover your health insurance deductible
- Personal injury protection: Covers your medical bills, lost wages up to a limit and death benefits
- Uninsured/underinsured motorist: Covers your medical and repair bills if someone without enough insurance causes an accident
For added protection, State Farm also offers:
- Emergency road service coverage
- Rental car reimbursem*nt
- Rideshare driver coverage
- Travel expenses coverage
Reputation
State Farm has been in the protection business since 1922 and has an established reputation for providing reliable coverage. An A++ rating from AM Best indicates superior financial strength. It does, however, have a low rating from the BBB for neglecting to resolve several complaints.
In the J.D. Power Auto Insurance Study, State Farm pulled an 833 rating out of 1,000, placing it third on the list of top providers regionally.
Also, in an industry-wide study conducted by the MarketWatch Guides team, State Farm placed second among the best auto insurance companies in the nation and was awarded Best Customer Experience in 2024.
Read more: State Farm insurance review
#2 USAA: Best for Military Members
J.D. Power rating: 890/1,000
AM Best financial strength rating: A++
BBB rating: Not Rated
Pros
Affordable rates
High performance on J.D. Power customer surveys
A++ financial rating
Highly rated mobile app
Cons
Limited availability
Coverage
USAA offers insurance only to active duty and retired military members and their families. It has all the basic standard car insurance coverages, plus the following optional ones:
- Car replacement assistance
- Rental reimbursem*nt
- Rideshare gap protection coverage
- Roadside assistance
- SafePilot UBI program
Reputation
With an A++ rating from AM Best, USAA company has superior financial strength and the ability to pay claims. It also has a strong customer service reputation. In the J.D. Power Auto Insurance Study, it scored 890 out of 1,000 — the highest score for all companies in the Central region.
While J.D. Power regularly reviews USAA, it doesn’t rank the carrier because of USAA’s customer-eligibility restrictions. Regardless, the company earns consistently high marks on J.D. Power studies in all geographical regions and is a strong option for drivers with military backgrounds.
Read more: USAA insurance review
#3 Auto-Owners Insurance: Best for Young Drivers
J.D. Power rating: 829/1,000
AM Best financial strength rating: A++
BBB rating:A+
Pros
Strong customer reviews
A range of insurance products
Excellent financial health
Cons
Limited online presence
Coverage
In addition to all the standard car insurance coverages, Auto-Owners Insurance has a selection of optional coverages to choose from, including:
- Additional expense
- Diminished value
- Loan/lease gap
- Rental auto gap
- Road trouble service
Reputation
In business since 1916, Auto-Owners Insurance has excellent ratings from both AM Best and the BBB. It’s available in 26 states, has 48,000 insurance agents nationwide and offers multiple other product lines, including home, life and business.
Auto-Owners Insurance came in fourth on the list of top insurers in the Central region in the J.D. Power Auto Insurance Study.
Read more: Auto-Owners insurance review
#4 Southern Farm Bureau: Best Local Service
J.D. Power rating: Not Rated
AM Best financial strength rating: A
BBB rating: A+
Pros
Local agents and personalized service
Offers a deductible rewards program, DriveDown
Cons
Lower AM Best financial rating than other insurers
No online quoting platform
Coverage
Southern Farm Bureau offers all the standard car insurance coverages in Arkansas plus a handful of optional coverages.
- Rental car coverage
- Roadside assistance
- Towing
Southern Farm Bureau also offers DriveDown, a usage-based insurance (UBI) program. Unlike other UBI programs, it doesn’t discount your monthly premium based on your driving. Instead, it lowers your deductible.
Reputation
Southern Farm Bureau has been in business for more than 70 years and has an A rating from AM Best and A+ rating from the BBB, both of which indicate its reputation as a financially strong company committed to providing customers with excellent service.
Available in Arkansas, Colorado, Florida, Louisiana, Mississippi and South Carolina, Southern Farm Bureau is one of the smallest auto insurers on our list. However, smaller companies can often provide more personalized customer service.
#5 Shelter Insurance: Best Regionally
J.D. Power rating: 851/1,000
AM Best financial strength rating: A
BBB rating: A+
Pros
Personalized service from local agents
Numerous coverage options
Disability income coverage
Cons
No online quoting platform
No UBI program
Coverage
Shelter Insurance in Arkansas includes basic policies, plus some additional coverages:
- Accidental death benefit
- Disability income coverage
- Gap insurance
- Loss of use coverage
- New car replacement
- Roadside assistance
- Temporary transportation coverage
Beyond its availability in the Natural State, Shelter Insurance is also available in Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, Ohio, Oklahoma and Tennessee.
Reputation
Shelter Insurance has been in business since 1946. The company enjoys stellar ratings from AM Best and the BBB, which indicates excellent financial strength and a solid commitment to customer service.
In the J.D. Power Auto Insurance Study, Shelter Insurance scored 851 out of 1,000, placing it first on the list of best insurers in the Central geographical region.
How To Find the Best Car Insurance in Arkansas
To find the best car insurance in Arkansas, shop around and compare coverages, discounts and rates from a handful of insurers. Here are a few tips for finding the lowest rate possible on the best auto insurance policy for you.
- Look for discounts. Discounts are the quickest and easiest way to bring your average rates down. Remember that they vary from insurer to insurer, so it’s important to gather several price quotes to see which insurance company can offer you the most savings.
- Sign up for a usage-based insurance (UBI) program. UBI programs determine your rate based on how — and how often — you drive. Using a telematics device or smartphone app, you can monitor your driving and calculate a monthly premium based on that data. If you’re a good driver or don’t drive often, usage-based insurance has the potential to save you significantly on your monthly car insurance premiums.
- Keep your driving record clean. Having one at-fault accident, DUI, speeding ticket or other violation in your driving history can cause your rates to increase. Most insurers will offer a discount if you haven’t had any accidents or tickets within a given time frame, usually three to five years.
- Don’t let your car insurance policy lapse. Even a short lapse in coverage can cause your rates to increase when you reinstate your policy. The simplest way to avoid an accidental lapse is to sign up for auto-pay or pay your premium all at once. These payment methods could also get you a discount.
- Bundle your policies. Most top providers offer bundling discounts. For example, if you bundle your auto and homeowners insurance under one provider, you can save.
Check Arkansas Car Insurance Requirements
Minimum requirements for car insurance in Arkansas include:
- $25,000 bodily injury liability coverage per person
- $50,000 bodily injury liability coverage per accident
- $25,000 property damage liability coverage per accident
Arkansas requires that drivers carry the state minimum liability insurance, which protects others in an accident, and is broken down into two parts.
- Bodily injury (BI) liability pays for medical expenses and hospital bills if you injure another driver.
- Property damage (PD) liability covers damage you might cause to someone else’s property as the result of a covered accident.
Insurance carriers list liability limits as three consecutive numbers. When getting a car insurance quote in Arkansas, you’ll see 25/50/25 — indicating the minimum amount of each of these coverages needed to drive legally. You can always choose to increase these coverage limits if you like.
Consider How Much Car Insurance Coverage You Need
Beyond your state requirements, you’ll want to choose whether you want minimum- or full-coverage insurance. You may also want to choose higher liability amounts. How much car insurance you need depends on a number of factors.
- Requirements from your lender: If you’re leasing or financing your vehicle, your lender will typically require you to carry liability insurance plus comprehensive and collision.
- Your finances: If you own your vehicle and can afford to pay for repairs out of pocket, you can opt to buy a minimum-coverage policy instead of full coverage. If you choose to go this route, make sure that you have enough in the bank to cover worst-case scenarios, like a total loss.
If you choose a minimum-coverage policy, keep in mind that it doesn’t include medical protection for you or anyone in your vehicle.
Shop Around
As soon as you’ve figured out what coverage you want, collect free online quotes from at least three companies. In order to get the best comparisons, make sure you put in the exact same information for each quote.
Average Cost of Car Insurance in Arkansas
The average cost of minimum-coverage car insurance in Arkansas is $38 a month or $451 a year, which is less than the national average of $52 per month or $627 per year. For full coverage, you can expect to pay an average of $170 monthly or $2,038 annually, which is slightly higher than the national average of $167 per month or $2,008 per year.
Arkansas Car Insurance Costs by Provider
At an average of $242 annually for minimum coverage and $1,239 annually for full coverage, USAA is by far the least expensive auto insurance provider in Arkansas. For non-military members, the cheapest rates come from State Farm, which costs an annual average of $293 for minimum coverage or $1,346 per year for full coverage.
| Car Insurance Provider | Minimum-Coverage Annual Average Cost | Full-Coverage Annual Average Cost |
| USAA | $242 | $1,239 |
| State Farm | $293 | $1,346 |
| Southern Farm Bureau | $397 | $1,679 |
| Geico | $434 | $2,166 |
| Auto-Owners Insurance | $435 | $1,802 |
| Progressive | $445 | $2,548 |
| Alfa Insurance | $453 | $3,179 |
| Shelter Insurance | $504 | $1,773 |
| Farmers Insurance | $640 | $2,155 |
| Allstate | $670 | $2,494 |
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Provider Car Insurance Costs by Age in Arkansas
For drivers aged 16 to 25, Southern Farm Bureau is the cheapest provider in Arkansas at an average annual rate of $3,876 for a full-coverage policy. For drivers in all other age brackets, USAA is the least expensive insurer in the state.
| Provider | 16 | 25 | 35 | 45 | 55 |
| Southern Farm Bureau | $3,876 | $1,939 | $1,679 | $1,616 | $1,541 |
| State Farm | $4,499 | $1,601 | $1,346 | $1,320 | $1,241 |
| Auto-Owners Insurance | $5,420 | $2,379 | $1,802 | $1,750 | $1,627 |
| USAA | $5,658 | $1,444 | $1,239 | $1,166 | $1,112 |
| Shelter Insurance | $6,096 | $2,390 | $1,773 | $1,529 | $1,354 |
| Alfa Insurance | $7,431 | $3,894 | $3,179 | $2,862 | $2,724 |
| Geico | $7,681 | $2,315 | $2,166 | $2,077 | $1,802 |
| Progressive | $12,164 | $2,747 | $2,548 | $2,321 | $1,971 |
| Allstate | $12,391 | $2,712 | $2,494 | $2,494 | $2,360 |
| Farmers | $13,463 | $2,346 | $2,155 | $2,066 | $1,850 |
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Arkansas Car Insurance Costs by City
Car insurance rates vary by ZIP code. Accident, theft and vandalism rates are usually higher in large cities and urban areas, so drivers in ZIP codes with these risks pay more for car insurance than drivers in more rural areas.
In Arkansas, Bella Vista has the cheapest options for car insurance rates. Full coverage, on average, is $112 monthly or $1,346 annually. Drivers in Little Rock will pay the most for car insurance at an average of $140 monthly or $1,691 annually for a full-coverage policy.
| City in Arkansas | Average Full-Coverage Monthly Cost | Average Full-Coverage Annual Cost |
|---|---|---|
| Arkadelphia | $128 | $1,531 |
| Bella Vista | $112 | $1,346 |
| Berryville | $118 | $1,419 |
| Camden | $135 | $1,620 |
| Clarksville | $116 | $1,386 |
| De Queen | $134 | $1,608 |
| El Dorado | $138 | $1,655 |
| Fayetteville | $116 | $1,394 |
| Green Forest | $123 | $1,473 |
| Hope | $136 | $1,628 |
| Jacksonville | $128 | $1,538 |
| Little Rock | $141 | $1,691 |
| Magnolia | $138 | $1,653 |
| Morrilton | $118 | $1,416 |
| Newport | $124 | $1,491 |
| Pocahontas | $121 | $1,454 |
| Russellville | $119 | $1,425 |
| Sherwood | $129 | $1,551 |
| Springdale | $115 | $1,383 |
| Stuttgart | $126 | $1,512 |
| Trumann | $126 | $1,509 |
| Van Buren | $119 | $1,427 |
| Warren | $139 | $1,669 |
| Wynne | $126 | $1,513 |
| Yellville | $120 | $1,440 |
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Arkansas Car Insurance Discounts
Discounts are the quickest and easiest way to save money on your monthly car insurance premiums. Here are a few common discounts to look out for when shopping around.
| Discount | Description |
|---|---|
| Multi-policy | Insure numerous items, like auto, home and motorcycle with the same provider |
| Multi-auto | Insure more than one vehicle on the same policy |
| Good student | Maintain a GPA of 3.0 or above as a full-time student |
| Distant student | Insure a student under the age of 22 who lives more than 100 miles from home |
| Safe driver | Maintain a clean driving record for three consecutive years |
| Defensive driving | Complete an approved defensive driver course |
| Driver training | Complete a driver’s ed course as a teen driver |
| Pay in full | Pay your premium all at once vs. monthly |
| Automatic payments | Set up auto-pay on your car insurance account |
| Continuous insurance | Remain continuously insured for 6 months or more |
Best Arkansas Car Insurance: The Bottom Line
For the best Arkansas car insurance, we recommend State Farm, USAA, Auto-Owners Insurance, Southern Farm Bureau and Shelter Insurance. Each has a reputation for being financially stable and customer-focused. Also, each offers Arkansas drivers a range of protection options, discounts and affordable rates.
When shopping for Arkansas car insurance, get quotes from at least two to three providers. Compare coverages, discounts and costs to find the best coverage for your specific needs at the best rate possible.
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Best Auto Insurance in Arkansas: FAQ
Here are some frequently asked questions about car insurance in Arkansas.
The cheapest car insurance companies in Arkansas are USAA and State Farm. USAA’s annual premium averages $242 for minimum coverage and $1,239 a year for full coverage. If you’re not eligible for USAA, the next cheapest car insurance in Arkansas is State Farm, with an annual average of $293 for minimum coverage or $1,346 for full coverage.
Arkansas has fairly cheap car insurance options with the average cost for minimum-coverage car insurance in Arkansas being $38 monthly. The price goes up to $170 a month for full coverage.
USAA, State Farm and Southern Farm Bureau offer the most reasonable car insurance rates in Arkansas.
The best full-coverage car insurance should include liability, comprehensive and collision coverage plus medical coverage (PIP, MedPay or both) for you and your passengers.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Industry standing (20% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
