Arkansas variant. This is a Arkansas-specific version of the Auto Insurance Premium Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Auto Insurance Premium Estimator.
Arkansas's average annual auto insurance premium is $1,657 - near the national average. Rates reflect state regulation, traffic density, weather, and uninsured-driver rates.
Why Arkansas auto premiums look the way they do
At $1,657/year ($138/month), Arkansas premiums are shaped by minimum-coverage laws, litigation environment, repair costs, and theft/accident frequency.
Your individual rate depends on driving record, vehicle, credit (where allowed), and coverage limits. The estimator above lets you adjust these to localize the Arkansas average.
About taxes and housing in Arkansas
Arkansas has a graduated income tax that tops out at a modest rate, and the state has steadily reduced its top rate in recent years.
Arkansas has low property taxes and some of the most affordable home prices in the country.
Arkansas is home to major retail and food-processing companies, with agriculture and timber remaining important to its low-cost-of-living economy.
Worked example: monthly budget in Arkansas
The $1,657 state average works out to $138/month. A clean record and higher deductible can pull you below this; a recent claim or young driver pushes above it.
Quick reference
- State income tax: Top rate 4.4% on income over $24,300
- State sales tax: 6.5% (plus 2.97% avg local)
- Median home value: $200,000
- Median household income: $56,335
- Effective property tax rate: 0.61%
- Avg auto insurance: $1,657/yr
Frequently Asked Questions
What is the average car insurance cost in Arkansas?
About $1,657 per year, or $138 per month.
How can I lower my Arkansas premium?
Raise your deductible, bundle policies, maintain a clean record, and compare quotes - rates vary widely between insurers in Arkansas.