Ark. Average Auto Rates Reportedly Lower than Most Surrounding States

Arkansas Insurance Commissioner Mike Pickens announced the existence of a lower auto rate in Arkansas than in all surrounding states, with Tennessee being the state of exception.

Arkansas ranked 33rd in 2001 for the average cost of auto insurance, offering premiums lower than Louisiana, Mississippi, Missouri, Oklahoma, and Texas.

According to a report released by the National Association of Insurance Commissioners (NAIC), Arkansas’s average cost for auto insurance in 2001 was $621, compared to $839 in Louisiana, and $638 in Mississippi. The reported average for Texas for that same period was $736, with an average of $638 for Missouri and $622 reported for Oklahoma.

“Although we have seen some rate increases in auto insurance over the past few months, the report recently issued by the NAIC indicates we did not see much increase in the automobile insurance market from 2000 to 2001,” Commissioner Pickens said. “I’m happy to say Arkansas ranked below the national average in overall auto insurance rates.”

The NAIC reported the national average premium for automobile insurance in 2001 at $718. Arkansas ranked 33rd in the nation, with North Dakota having the lowest average premium of $498; New Jersey had the highest premium at $1,028. Based on the configuration of the NAIC’s report, the higher the ranking, the lower the premium.