How Much Does Car Insurance Cost for Unemployed Drivers in Arkansas?

Deciphering which company quotes the cheapest car insurance rates for unemployed drivers will require a bit more work than just comparing rates from one or two companies. Each auto insurer uses their own formula to establish rates, so we’ll take a look at the car insurance companies with the overall best prices in Arkansas.

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USAA offers some of the most affordable car insurance rates in Arkansas at around $1,011 per year. Auto Club, Travelers, Southern Farm Bureau, and State Farm would also be considered some of the more affordable Arkansas auto insurance companies.

In this example, if you are a policyholder with Southern Farm Bureau and switched to Auto Club, you could see an annual premium reduction of around $162. Customers with State Farm may save as much as $209 a year, and Safeco policyholders might lower prices by $263 a year.

Understand that those prices are averaged for all insureds and vehicles and are not factoring in a rate decrease for unemployed drivers. So the auto insurance company that fits your age and vehicle best may not even be included in the chart above. That helps illustrate why you need to compare rates from as many companies as possible using your own driver data and vehicle information.

When shopping for cheaper auto insurance for the unemployed, one of the many things that is looked at to determine a rate quote is where you keep your car in Arkansas. Areas with more people like Hot Springs, El Dorado, and Bryant tend to pay more, whereas less populated areas have the luxury of cheap car insurance for unemployed drivers in Arkansas.

The following table illustrates the more expensive cities in Arkansas for unemployed drivers to buy car insurance in.

Premium amounts are approximated as specific Arkansas zip code can impact coverage prices considerably.

The type of vehicle driven is one of the main factors that determines whether or not you find cheap car insurance for unemployed drivers in Arkansas. Vehicles with lower performance, good crash test ratings, or a low likelihood of liability claims will cost quite a bit less to insure than adrenaline junky models.

The information below showcases car insurance premiums for some of the most budget-friendly vehicles to buy insurance for.

Price data assumes married male driver age 50, no speeding tickets, no at-fault accidents, $500 deductibles, and Arkansas minimum liability limits. Discounts applied include multi-vehicle, homeowner, claim-free, safe-driver, and multi-policy. Estimates do not factor in specific zip code location which can affect coverage prices noticeably.

By looking at the data, we can assume that makes and models like the Chevrolet Silverado, Jeep Wrangler, and Toyota Highlander are going to be the cheapest vehicles to insure for the unemployed.

Cost difference between full coverage and liability

Finding cheap car insurance for unemployed drivers in Arkansas is important to the majority of vehicle owners, and one great way to lower the cost of insurance is to buy only liability coverage. The example below shows the comparison of premium costs with full physical damage coverage compared to only buying liability only. The premiums are based on a clean driving record, no claims, $500 deductibles, marital status is single, and no discounts are taken into consideration.

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As an average, physical damage insurance costs an extra $1,600 per year over having just liability coverage. Many of you may wonder if buying full coverage is a waste of money. There is no set rule that works best for making the decision to drop comp and collision coverage, but there is a broad guideline. If the annual cost of your full coverage insurance is 10% or more of the replacement cost of your vehicle minus the policy deductible, then it could be time to drop full coverage.

For example, let’s say your vehicle’s settlement value is $4,500 and you have $1,000 deductibles. If your vehicle is severely damaged, you would only receive $3,500 after paying your deductible. If you are paying over $350 annually for your policy with full coverage, then it may be the right time to buy liability only.

There are some circumstances where removing full coverage is not a good idea. If you have an outstanding loan on your vehicle, you have to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your finances do not allow you to purchase a different vehicle if your current one is in an accident, you should keep full coverage in place.

Is the best company Allstate, Geico, Progressive, or State Farm?

When shopping for auto insurance, the first places to look would be Allstate, Geico, Progressive, and State Farm. Combined they insure over 48% of all policies written in the United States. They all have the same basic coverages, but each one has a unique set of features, discounts, and options that you can select from. The data below compares and contrasts some of the different features you can buy with each company.

How to find the cheapest car insurance for unemployed drivers

It is possible to find better rates, and here are a few thrifty ideas that can help Arkansas drivers buy low-cost coverage.

• Do not waste money insuring older vehicles for full coverage
• Do not get into accidents
• Raise your deductibles
• Try to not file small claims
• Speeding tickets and other violations increase rates
• Compare price quotes at least once a year

The last idea is especially valuable, as was discussed in this piece. Coverage prices fluctuate considerably, so don’t be tentative to buy a policy from a new company if a better deal can be had.

We understand brand loyalty, but we do not recommend it if that devotedness results in you overpaying major coinage every year. It takes less than five minutes to compare rates to find cheaper car insurance for unemployed drivers.

Cheapest insurance quotes for the unemployed

Drivers have a lot of ways to find affordable car insurance in Arkansas, but the most common ways are through a non-exclusive or independent agent, an exclusive agency such as Allstate or Auto-Owners, or direct online or over the phone from a company like Progressive or Geico. They all follow the same basic process, but car insurance shoppers should know the differences in how they work.

Independent insurance agents are appointed by several companies and can compare coverage rates with all of them. They can give you a larger rate selection, which can help you get a better chance of finding cheaper coverage. If they quote lower rates, the agent simply finds a different carrier and you don’t have to switch agencies.

Exclusive agents are only able to quote rates from just one company, for example Allstate or Farmers Insurance agents. This type of agents cannot give you multiple price quotes, so they are skilled at selling on more than just price.

Direct car insurance buyers forego the middleman (the agent) and instead buy buying direct from a company like Progressive or Esurance. Shopping direct may be a decent choice families who do not need advice for asset protection and have an above average understanding of what coverage options they need.

Which way works best for finding cheap car insurance for unemployed drivers in Arkansas? We’d like to say buying from a direct car insurance company results in the cheapest rates since there is no need to pay agent commissions, but that does not always hold true. It would also be easy to say an independent agent guarantees the lowest rates due to more options, but again, that’s not accurate. In many cases, exclusive agencies may have very competitive prices that other companies cannot beat.

Because there are so many factors that make up car insurance rates, the one way to make sure you’re not overpaying for car insurance is to get quotes and compare the rates. Set aside the time to get rate quotes from independent agents, exclusive agents, and direct companies to have the best selection of rates to choose from. To see some of the cheapest online companies available, click here to view.