Southern Farm Bureau is the most affordable choice for low-income adults with a clean record and good credit in Arkansas. Alfa, State Farm and Hanover are often cheaper if you have bad credit or violations.
Cheapest Low-Income Car Insurance in Arkansas
Updated: February 6, 2025
Advertising & Editorial Disclosure
Key Takeaways
Arkansas doesn't provide a low-income car insurance program, but residents can find affordable plans that meet minimum coverage requirements.
Southern Farm Bureau, Hanover and State Farm are some of the cheapest insurance options for low-income drivers.
Low-income drivers should compare insurance providers and look for discounts to maximize savings.
Cheapest Car Insurance Companies for Low-Income Drivers in Arkansas
| Hanover | Young Drivers | $30 |
| Southern Farm Bureau | Adults | $26 |
| Hanover | Seniors | $22 |
| Southern Farm Bureau | Drivers With a Speeding Ticket | $30 |
| State Farm | Drivers With a DUI | $33 |
| Hanover | Drivers With an Accident | $34 |
| Alfa | Bad Credit | $42 |
*All rates in this table, except for adults, are based on a modified profile of a 40-year-old driver with good credit and a clean record insuring a 2012 Toyota Camry. The age ranges are 22 to 29 for young drivers, 30 to 59 for adults and 60+ for seniors.
Compare Cheap Low-Income Car Insurance Providers
Use the table below to find the most affordable insurance provider for your driver profile. It helps you filter options to see which company offers the best rates.
Data filtered by:Results filtered by:
Select
Age Range:30-59
Select
Driving Record:Clean
Select
Credit Score:Good
Select
Coverage Level:State Minimum Liability Only
| Southern Farm Bureau | $26 | $315 |
| State Farm | $29 | $347 |
| Auto-Owners | $31 | $373 |
| Nationwide | $33 | $401 |
| Progressive | $35 | $415 |
Cheapest Car Insurance for Families With Low Income in Arkansas
State Farm offers the lowest rates for low-income families with teens in Arkansas. Married couples pay $53 monthly, while single parents pay $84. GEICO is the cheapest for couples without teens at $33.
Data filtered by:Results filtered by:
Select
Family Type:Married Couple with Teen
| State Farm | $631 | $53 |
| Allstate | $697 | $58 |
| Progressive | $714 | $60 |
| Nationwide | $725 | $60 |
| GEICO | $759 | $63 |
| Travelers | $856 | $71 |
| Auto-Owners | $990 | $83 |
| Farmers | $1,190 | $99 |
*Rates for couples and single parents with teens apply to a 16-year-old driver. Those for a married couple without children are based on a 40-year-old male with good credit and a clean driving record.
Tips to Save On Car Insurance for Low-Income Drivers
Follow these tips to lower your auto insurance costs and save money:
- 1
Choose minimum coverage
Minimum coverage is the cheapest way to meet legal requirements. It provides basic coverage but won't cover all costs in an at-fault accident.
- 2
Compare quotes
Gathering quotes from various providers helps you find the most affordable choice. For a thorough evaluation, use channels like provider websites, independent brokers, provider agents and online comparison tools.
- 3
Look for discounts
Insurance companies provide discounts for having a safe driving record, being a good student or being in the military. Residents may find online defensive driving courses for around $25 that reduce premiums by 10% for three years.
- 4
Increase your deductible
Raising your deductible on collision or comprehensive coverage can reduce monthly premiums. Ensure you can afford the higher cost if you need to file a claim.
- 5
Consider pay-per-mile insurance
Pay-per-mile insurance offers a low base rate with a per-mile fee, helping drivers who cover fewer miles save by paying only for the miles they drive.
- 6
Bundle your policies
Drivers can cut costs significantly by bundling home and auto insurance. In the state, you can save up to 40% when you bundle home and auto insurance with State Farm.
- 7
Get a cheaper car
Your vehicle’s make, model and year affect insurance costs due to repair and replacement expenses. Choosing a cheaper car to insure, like an older, reliable vehicle, can significantly lower annual premiums.
Minimum Car Insurance Requirements in Arkansas
Arkansas drivers must meet these minimum car insurance requirements:
- $25,000 in bodily injury liability per person
- $50,000 per accident
- $25,000 in property damage liability per accident
If you lease or finance a vehicle, you'll need liability coverage of 100/300/100 and comprehensive and collision protection.
WHY MINIMUM COVERAGE MAY NOT BE RIGHT FOR YOU
Minimum car insurance covers only the other driver's expenses if you're at fault in an accident. You'll still be responsible for your car's repair and legal costs. If you drive often and can afford it, consider higher coverage.
Cheap Low-Income Car Insurance in Arkansas: Bottom Line
Southern Farm Bureau and Hanover are the most affordable car insurance providers for most low-income drivers in Arkansas. High-risk drivers can find the cheapest options with Southern Farm Bureau for speeding tickets, State Farm for DUIs, Hanover for at-fault accidents and Alfa for bad credit. To get the best deal, explore various providers and comparison channels.
Low-Income Auto Insurance in Arkansas: FAQ
Low-income drivers in Arkansas find affordable car insurance challenging. Here are answers to common questions on saving money.
What is the cheapest car insurance for low-income drivers in Arkansas?
Minimum coverage is often the most budget-friendly option for low-income drivers, unless your car is financed or leased. Southern Farm Bureau has the cheapest monthly rates in Arkansas: $26 for minimum coverage and $71 for full coverage.
Does Arkansas have a state-supported low-income car insurance program?
Arkansas has no state-supported program to assist low-income drivers with obtaining car insurance.
Does your income affect the cost of car insurance in Arkansas?
Income doesn't directly impact car insurance costs in Arkansas. Rates are based on driving history, vehicle type and coverage amounts.
How We Chose the Cheapest Car Insurance for Low-Income Drivers
Study Overview
MoneyGeek analyzed Arkansas auto insurance rates using data from the Arkansas Insurance Department and Quadrant Information Services.
Data Acquisition, Depth and Analysis
MoneyGeek analyzed 328,384 quotes from 14 companies across 370 ZIP codes to determine the average cost of car insurance for drivers with low income in Arkansas.
Sample Driver Profile
We used a sample driver profile with the following attributes to determine average car insurance rates for low-income drivers in Arkansas:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
To determine rates for specific driver profiles, we adjusted factors such as age, family status, driving history and credit standing.
Our study defines seniors as 60 or older, young drivers as 22 to 29 and adults as 30 to 59. Married couples with a child include 40-year-old male and female drivers with a 16-year-old teen. Single parents with children are 40-year-old male or female drivers with a 16-year-old teen.
Coverage Levels and Deductibles
Our data shows rates for minimum coverage, which follows the requirements set by Arkansas law, and offers affordable options for low-income drivers.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.