When insurance companies are allowed to consider credit histories, drivers with a bad credit score in Arkansas tend to face higher insurance premiums than those with good credit scores. It comes down to risk for the insurer, and most insurers consider drivers with higher credit scores are less of a financial risk.
“Bad credit can significantly impact your car insurance costs. Most insurance companies use a credit-based insurance score to help predict risks, in which statistically, drivers with lower credit scores are more likely to file claims,” says Ted Kaplun, principal attorney and founding partner of KaplunMarx, a personal injury law firm in Pennsylvania. “This means insurers often charge higher premiums to those with poor credit, despite a clean driving record.”
This guide explores the cheapest car insurance rates for drivers with bad credit in Arkansas.
- The average annual car insurance rate for full coverage for drivers with bad credit in Arkansas is $4,291.
- The cheapest insurance company in Arkansas for drivers with poor credit is Nationwide.
- Shopping around can help drivers with any credit score find more affordable rates for their situation.
Shopping around can help drivers with any credit score find more affordable rates for their situation.
What are the average car insurance rates for people with bad credit in Arkansas?
In Arkansas, drivers with bad credit pay an average of $358 per month for full coverage car insurance. If you choose liability-only coverage with 50/100/50 limits, the average monthly cost drops to $108. Minimum liability coverage is even lower at $73 per month.
The table below shows how car insurance rates in Arkansas increase for drivers with poor credit.
| Company | Average rates | Rates after bad credit | $ increase | % increase |
|---|---|---|---|---|
| Nationwide | $1,503 | $2,350 | $848 | 56% |
| Travelers | $1,442 | $2,462 | $1,020 | 71% |
| Geico | $1,794 | $2,770 | $976 | 54% |
| Progressive | $2,431 | $4,190 | $1,759 | 72% |
| Allstate | $2,729 | $4,654 | $1,925 | 71% |
| Farmers | $2,248 | $4,804 | $2,556 | 114% |
| State Farm | $2,060 | $10,102 | $8,043 | 390% |
| USAA* | $1,090 | $2,059 | $969 | 89% |
Find out how bad credit can impact your car insurance rates
Top car insurance companies in Arkansas for drivers with bad credit
Car insurance companies in Arkansas use different methods to calculate risk, which means rates vary widely, especially for drivers with bad credit. Some insurers offer more competitive pricing than others.
The most affordable car insurance companies in Arkansas for drivers with bad credit include Nationwide, Travelers, and Geico.
Use the table below to compare average rates by company for drivers with poor credit in Arkansas.
| Company | Annual rates after bad credit | Six-month rates after bad credit | Monthly rates after bad credit |
|---|---|---|---|
| Nationwide | $2,350 | $1,175 | $196 |
| Travelers | $2,462 | $1,231 | $205 |
| Geico | $2,770 | $1,385 | $231 |
| Progressive | $4,190 | $2,095 | $349 |
| Allstate | $4,654 | $2,327 | $388 |
| Farmers | $4,804 | $2,402 | $400 |
| State Farm | $10,102 | $5,051 | $842 |
| USAA* | $2,059 | $1,029 | $172 |
Check out our detailed guide on the cheapest car insurance companies
How age and gender affect car insurance rates with bad credit in Arkansas
Age and gender are key factors that impact car insurance rates in Arkansas, especially for drivers with bad credit. Young drivers typically pay more for car insurance due to less experience, while female drivers often receive lower rates because they are statistically involved in fewer serious accidents.
The table below shows how car insurance premiums vary by age and gender for drivers with poor credit in Arkansas.
| Age | Six-month cost for male drivers | Six-month cost for female drivers | Monthly cost for male drivers | Monthly cost for female drivers |
|---|---|---|---|---|
| 18 | $7,459 | $6,377 | $1,243 | $1,063 |
| 25 | $2,539 | $2,421 | $423 | $403 |
| 40 | $2,124 | $2,168 | $354 | $361 |
| 65 | $1,970 | $1,932 | $328 | $322 |
How driving record and location influence rates with bad credit in Arkansas
In addition to credit history, your driving record and location play a significant role in determining car insurance rates, especially for drivers with bad credit. If you’ve had violations like speeding tickets or at-fault accidents, you’ll likely pay more due to the added risk insurers associate with your profile.
Where you live also matters. Car insurance rates vary by state and ZIP code, with rural areas typically seeing lower premiums than urban areas with higher traffic and crime rates.
For drivers with bad credit, driving history and location can sometimes impact premiums even more than credit score alone.
Check out 10 most important factors that affect car insurance rates
What are the discounts for drivers with bad credit in Arkansas?
While drivers with bad credit might experience higher rates, seeking out discounts can help to offset their costs. Some of the discounts drivers with bad credit can pursue include:
Safe driving discounts: Many car insurance companies offer discounts to safe drivers. If you are comfortable signing up for a telematics program that tracks your driving behavior, you could score significant savings if you practice safe driving habits.
Bundling discounts: If you need other types of coverage, like renters insurance or homeowners insurance, buying multiple policies through the same insurer can often lead to a discount.
Affinity discounts: Being part of a group, like an alumni association or a veteran organization, can sometimes result in a discount.
Pay-in-full discount: Some insurers offer a discount when you pay for coverage upfront instead of monthly.
Paperless discount: Many insurers offer a discount if you opt to go paperless.
See what drivers with bad credit pay on average in nearby states
Tips to find cheap car insurance with bad credit in Arkansas
As you look for cheap car insurance with bad credit in Arkansas, use these strategies to seek out lower rates:
- Shop around: Comparing rates across multiple insurance companies can help you find the most affordable rate for your unique situation.
- Raise your deductible: A higher deductible generally leads to a lower insurance premium. Locking in the premium savings can make sense if you have the money to cover a higher deductible during an emergency.
- Maintain safe driving habits: Safe drivers tend to pay less for coverage. Sticking to safe driving habits can lead to savings.
How to shop for car insurance with bad credit in Arkansas
When shopping for car insurance with bad credit in Arkansas, use the following steps as a guide:
Gather your information: To get accurate quotes, you’ll need to provide some basic information about your vehicle. For example, you’ll likely need to provide the VIN, make, model, and year.
Consider your policy needs: While a state minimum coverage policy often offers the cheapest rates, it might not fit your unique situation. For example, you might need comprehensive coverage while paying off an auto loan.
Compare quotes: Collect quotes from multiple car insurance companies to find the most affordable option.
Frequently ask questions
Does a bad credit score affect car insurance rates in Arkansas?
Yes, drivers with bad credit in Arkansas tend to pay more for car insurance than drivers with good credit.
Can you improve your rates with bad credit in Arkansas over time?
Improving your credit over time can help lower your car insurance rates in Arkansas . Paying bills on time and reducing debt are effective ways to boost your score.
Car insurance rates for good vs. bad credit in Arkansas
In Arkansas, bad credit drivers pay an average of $4,291 per year for car insurance. In contrast, good credit drivers pay an average of $1,957 per year for the same full coverage car insurance.
Car insurance requirements in Arkansas if you have bad credit
Car insurance requirements in Arkansas don’t change based on credit score. Drivers with bad credit must still meet the state’s minimum coverage requirements.
Find out whether it’s legal for insurers to raise your premium because of a bad credit score
Resources and Methodology
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates for drivers with poor credit scores. The rates are based on sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
Note: USAA is only available to military community members and their families.
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