Cheapest Car Insurance for Low-Income Drivers in Arkansas (2024)

For individual drivers with low-income and poor credit history in Arkansas, Alfa offers the cheapest car insurance rate at $40 per month. For families with low-income, State Farm provides the most affordable rate at $53 per month.

Arkansas does not offer state-backed car insurance programs for low-income families and individuals. However, finding the provider with the most affordable rate is one option to manage the cost. Additionally, there are ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, there are downsides. For example, in an at-fault accident, minimum coverage may not cover all expenses, leaving you with significant out-of-pocket costs.

Like most other states, car insurance companies in Arkansas don't offer income-based assistance programs. Income isn't a factor when calculating your car insurance rates in Arkansas, but other factors — including your age and credit history — are important.

The best way to find the cheapest rates is to compare quotes from several insurance companies. A minimum coverage policy is often the most inexpensive way to stay legal on the road, but it can leave you vulnerable to a substantial loss from an at-fault accident. If you rarely drive, look into pay-per-mile insurance, which could be a great way to save.

To legally operate a vehicle in Arkansas, you're required to carry car insurance that meets the state's minimum car insurance requirements. This includes the following liability coverage levels:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident

Arkansas does not mandate uninsured motorist coverage, personal injury protection (PIP), medical payments coverage, or death liability coverage.

When considering car insurance, you have two main policy types: a liability-only car insurance policy, which covers damages to others if you're at fault in an accident but not your own vehicle, and a full coverage car insurance policy. The latter includes collision and comprehensive coverages, safeguarding your vehicle against various damages, including theft and natural disasters.

In Arkansas, known for its unpredictable weather, opting for full coverage can be particularly wise. For example, if you live in an area prone to severe storms or flooding, full coverage can provide peace of mind against the elements. Understanding the risks and benefits of each policy type is crucial in determining the best coverage for your needs.

Credit history plays a crucial role for low-income drivers in Arkansas, impacting car insurance premiums. A poor credit record can signal higher risk to insurers, resulting in higher premiums. In Arkansas, your credit history can significantly influence your insurance rates.

The cheapest car insurance companies for drivers with low-income and poor credit record in Arkansas are:

• Alfa: $477 per year, $40 per month
• Nationwide: $539 per year, $45 per month

Drivers with good insurance credit, you can get the cheapest car insurance in Arkansas from:

• Southern Farm Bureau: $315 per year, $26 per month
• State Farm: $344 per year, $29 per month

It's vital to secure state minimum coverage because driving without insurance is illegal. In Arkansas, this is considered a misdemeanor and can lead to suspension of your driver’s license, vehicle registration, and fines ranging from $175 to $1,000, among other penalties.

While your income doesn't change car insurance rates, your family situation does. In Arkansas, single parents with a teen pay around $1,006 annually, whereas married couples with a teen pay about $631, saving nearly $375 per year.

The most affordable car insurance companies for a married couple with a teen in Arkansas are:

• State Farm: $631 per year; $53 per month
• GEICO: $759 per year; $63 per month

For a single parent with a teen, the cheapest options are:

• State Farm: $1,006 per year; $84 per month
• GEICO: $1,386 per year; $115 per month

These rates show that single parents may face higher premiums, which could be due to insurers viewing them as having a higher risk profile. Maintaining a solid credit score is vital, as it can help secure more favorable car insurance rates.

Car insurance premiums generally decrease as you reach the early senior years, typically around age 55 to 65, especially if you have a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

• Alfa: $43 per month, $511 per year
• Nationwide: $43 per month, $516 per year

After the age of 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Arkansas, specific guidelines for seniors getting car insurance may apply.

Income does not directly affect car insurance rates in Arkansas. However, if a low income leads to a poor credit record, your car insurance rates may go up. Conversely, a good credit record can help lower your rates. Understanding the factors that contribute to car insurance rates can help you make informed decisions in choosing the best car insurance for you.

There are several ways to find affordable car insurance in Arkansas. Whether you're looking for state minimum coverage or considering state-sponsored programs for low-income drivers, you have options to save money on your premiums.

Here are some tips to lower your car insurance premiums:

Finding affordable car insurance can be difficult for low-income drivers in Arkansas. Get answers to some of the most commonly asked questions about low-income car insurance in Arkansas.