Arkansas' car insurance prices spike more than one-third
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The cost of car insurance is hitting high-water marks nationwide. Arkansas drivers are feeling the pinch, paying an average of 34% more at the start of 2024 than just three-and-a-half years earlier.
Why it matters: Fast-rising insurance rates are contributing to a transportation affordability crisis. That's especially true in the many parts of the country — like much of Arkansas — where alternatives to car ownership are few.
- And the higher rates come alongside all sorts of other rising consumer costs in recent years — like groceries, for example.
Driving the news: The nationwide average annual cost of full-coverage car insurance hit $2,329 in June, per Insurify, a digital insurance agent that helps users collect quotes from multiple insurers.
- That's up from $1,601 in January 2021.
Zoom in: Arkansas rates jumped from $1,781 to $2,386 during that time.
- Regionally, Louisiana ($3,175), Texas ($2,672) and Missouri ($2,623) are more expensive than the Natural State, while Tennessee ($1,765), Oklahoma ($2,135) and Mississippi ($2,424) cost less.
Zoom out: Rates are highest in Connecticut ($3,598), Maryland ($3,400) and South Carolina ($3,336), and lowest in New Hampshire ($1,000), Maine ($1,209) and North Carolina ($1,403).
How it works: Insurify's monthly figures are two-year rolling medians to account for "extreme market volatilities" in recent years, the company says.
- And they're based on rates for drivers ages 20-70 with clean driving records and at least average credit scores.
The big picture: Several factors play into the difference in rates between states, including road conditions, accident rates and whether a state requires no-fault coverage (meaning plans must cover medical expenses regardless of who's at fault in an accident).
- Individual people's quotes, meanwhile, also take into account age, gender, driving record, etc.
The intrigue: Insurers are increasingly using data about people's actual driving behavior to inform their rates — sometimes with drivers' explicit knowledge and sometimes less so, per the New York Times.
The bottom line: Shopping around can pay big dividends with insurance — new providers are more likely to offer a deal.
- And if you're a homeowner, look into bundling home and auto coverage to save on both.