Cheap Car Insurance Quotes for Young Drivers in Arkansas

Determining which companies have the cheapest auto insurance rates for young drivers requires a bit more work in order to find the lowest price quote. Each auto insurer has their own formula to establish rates, so we’ll take a look at the most budget-friendly auto insurance companies in Arkansas.

It’s important that you understand Arkansas auto insurance rates are based on many factors which can substantially change the price of your policy. Getting older, buying higher coverage limits, or getting a ticket for careless driving can trigger rate changes resulting in some rates now being affordable when they were higher priced.

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USAA may have some of the lowest car insurance rates in Arkansas at around $981 a year. Auto Club, Travelers, State Farm, and Southern Farm Bureau also rank well as some of the cheaper Arkansas insurance companies.

As the example above demonstrates, if you currently buy coverage from State Farm and switched to USAA, you might realize savings of about $230. Policyholders with Southern Farm Bureau could save as much as $244 a year, and Farmers policyholders might lower prices by up to $309 a year.

To discover how much you can save, click here to get quotes or visit any of the companies below.

These estimates are averaged across all insureds and vehicles and do not take into consideration a price surcharge for young drivers. So the car insurance company that has the cheapest price for you may not even be featured in the list of companies shown earlier. That emphasizes why you need to get car insurance quotes using your own personal information and vehicle type.

When shopping for car insurance for youthful drivers, one of the many components used to establish the cost of insurance is where you choose to live in Arkansas. Cities with more crime and/or more people like Texarkana, El Dorado, and Pine Bluff will most likely pay more, whereas areas with lower crime rates and fewer weather claims benefit from lower coverage costs.

The information below rates the highest-priced places in Arkansas for young drivers to purchase car insurance in.

Premium amounts are comparative as specific location information can influence coverage rates significantly.

Cost difference between full coverage and liability

Finding cheap auto insurance for young drivers in Arkansas is important to the majority of people, and one of the easiest ways to buy cheaper insurance is to not pay for full coverage. The diagram below illustrates the comparison of yearly insurance costs with full coverage and liability only. The costs are based on no claims, a clean driving record, $500 deductibles, single status, and no discounts are taken into consideration.

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Averaged out for all age groups, comp and collision coverage costs $2,133 per year over liability only. That touches on the question when is it safe to stop buying full coverage. There isn’t a steadfast formula of when to phase out comprehensive and collision coverage on your policy, but there is a general school of thought. If the yearly cost for physical damage coverage is more than around 10% of replacement cost minus your deductible, then it could be time to drop full coverage.

For example, let’s pretend your vehicle’s book value is $12,000 and you have $1,000 deductibles. If your vehicle is severely damaged, the most your company would pay you is $11,000 after paying your policy deductible. If it’s costing in excess of $1,100 annually for comprehensive and collision coverage, then it’s probably a good time to buy liability coverage only.

The information below demonstrates how deductible levels can influence annual premium costs when searching for cheap insurance for young drivers. The premiums assume a married female driver, comp and collision included, and no discounts are factored in.

google.charts.setOnLoadCallback(drawDfdqcibChart);function drawDfdqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘$100 Deductible’,’$250 Deductible’,’$500 Deductible’,’$1,000 Deductible’],[‘Age 20’, 2143,1967,1765,1569],[‘Age 30’, 1505,1373,1225,1081],[‘Age 40’, 1487,1359,1217,1079],[‘Age 50’, 1301,1193,1069,951],[‘Age 60’, 1243,1141,1021,905],[‘Age 70’, 1331,1223,1099,983]]);var options = {title: ‘Deductibles and Insurance Prices in Arkansas’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 700,’chartArea’: {left:100,top:50,’width’: ‘100%’,’height’: ‘80%’},legend: {position: ‘bottom’,textStyle: {fontSize: 12}},bar: {groupWidth: ‘80%’},colors: [‘#6791b9′,’#75a8d8′,’#98bee2′,’#bad4ec’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);formatter.format(data,3);formatter.format(data,4);var chart = new google.visualization.BarChart(document.getElementById(‘qcibdfd’));chart.draw(data, options);}

In the chart above, a 50-year-old driver could reduce rates by $232 a year by switching from a $100 deductible up to a $500 deductible, or save $350 by using a $1,000 deductible. Young drivers, such as the Age 20 example, could possibly save up to $574 every year by choosing a higher deductible.

If you make the decision to raise deductibles, it will be necessary to have additional funds squirreled away to satisfy the extra out-of-pocket expense that deters many people from opting for higher deductibles.