An outdoor air conditioning condenser unit on a concrete pad beside a wood-clad house, with tall grass, a two-lane road, and misty hills at sunrise in the background.

Arkansas Teen Driver Insurance: Parents & New Drivers

Arkansas requires 25/50/25 liability coverage and is an at-fault state.

Compare my rates

Free to compare

Arkansas at a Glance

25/50/25

Minimum liability limits, in thousands of dollars (per person / per accident / property)

At-fault

The at-fault driver's insurance pays for the damage they cause

Optional

PIP and uninsured motorist coverage are not required by law

Minimum learner's permit age

Source: state DMV, insurance department and statute records, verified July 2026

State Requirements

The state operates a three-stage graduated driver licensing (GDL) system: learner's permit at age 14, intermediate (restricted) license at 16 after holding the permit for at least 6 months, and full licensure at 18 after maintaining the intermediate license for 12 months without violations. Arkansas Code § 23-89-207 mandates that all insurers licensed in the state must offer good student discounts to drivers under 25 who maintain a B average or better, making this one of the few states where the discount is legally required rather than carrier-discretionary.

Bodily Injury Liability

Property Damage Liability

Uninsured/Underinsured Motorist Coverage

Arkansas does not mandate uninsured/underinsured motorist (UM/UIM) coverage, but insurers must offer it and you must sign a waiver to decline. UM/UIM is typically inexpensive to add to a parent's policy and covers your teen's medical expenses and vehicle damage if they're hit by an uninsured driver.

Collision Coverage

Collision coverage pays to repair or replace your teen's vehicle after an at-fault accident, minus the deductible. If the teen drives a financed or leased vehicle, collision is required by the lender and non-negotiable.

Comprehensive Coverage

Comprehensive covers non-collision events like theft, vandalism, hail, and animal strikes—all common in Arkansas where deer collisions are frequent in rural areas and severe thunderstorms produce hail damage annually. Like collision, it's required if the vehicle is financed.

Cost Overview

$260–$438/mo

Typical monthly rate in Arkansas, adding a driver aged 16–19 to a parent's policy

Rate data: Insurify and ValuePenguin, 2025

What Affects Your Rate

Insurers must offer this discount, but you must provide proof such as a report card or transcript.
Arkansas does not require driver's ed for licensure, but most insurers reward it.
Telematics programs: Usage-based insurance programs from carriers like State Farm (Drive Safe & Save), Progressive (Snapshot), and Allstate (Drivewise) monitor braking, speed, and nighttime driving.
Arkansas does not require collision/comprehensive on paid-off vehicles, giving parents flexibility to drop costly coverages on older cars.
Separate policies only make sense if the parent has a poor driving record or the teen qualifies for a non-standard carrier due to unique circumstances.
Location within Arkansas: Urban areas like Little Rock, Fayetteville, and Jonesboro have higher theft and accident rates, increasing comprehensive and collision costs. Rural areas see lower rates but higher animal collision risk.

A woman in a tan jacket, jeans and ankle boots walks across a wet parking lot at night, holding keys, with a silver SUV, other parked cars, a lit light pole and a low building behind her.

Add Your Teen Without Doubling Your Bill

Compare Teen Driver Rates

Rules for new drivers

Night driving

11pm-4am

Passengers

no more than 1 passenger younger than 21

Source: IIHS and state DMV records, verified July 2026

Frequently Asked Questions

What are Arkansas's graduated licensing restrictions for teen drivers?

Arkansas uses a three-stage system. At 14, teens can get a learner's permit (must hold for 6 months, drive only with a licensed adult 21+). At 16, they qualify for an intermediate license with restrictions: no more than one non-family passenger under 21, and no driving between 11 p.m. and 4 a.m. unless for work, school, or emergencies. At 18, after holding the intermediate license for 12 months violation-free, they receive a full unrestricted license.

Coverage Types

Liability-Only (State Minimum)

Arkansas's 25/50/25 minimums cover only what you're legally required to carry. This is the cheapest option but leaves your teen's vehicle unprotected and exposes your family to significant financial risk if the teen causes a serious accident.

Liability + Uninsured Motorist

Adds UM/UIM protection to state minimum liability. This covers your teen's injuries and vehicle damage if hit by one of Arkansas's many uninsured drivers, without the cost of full collision/comprehensive.

Full Coverage (100/300/100 + Collision/Comp)

Higher liability limits (often $100,000/$300,000/$100,000) plus collision and comprehensive with a $500–$1,000 deductible. This is the most complete protection and is required if the teen's vehicle is financed or leased.

Increased Liability Limits

Raising bodily injury to $100,000/$300,000 and property damage to $100,000 without adding collision/comprehensive. This protects the family's assets if the teen causes a serious accident but doesn't cover the teen's own vehicle.

Collision with High Deductible

Adding collision coverage but choosing a $1,000 or $1,500 deductible instead of $500. This lowers the monthly premium while still providing protection if your teen totals the car.

Comprehensive Only (No Collision)

Covers theft, vandalism, hail, fire, and animal strikes, but not at-fault accidents. Works for parents whose teen drives an older vehicle and who want protection against Arkansas's frequent deer collisions and hail storms without paying for full collision.