If you’re driving in Arkansas with just the state-required minimum coverage — 25/50/25 liability — you’re legal, but you may be exposed to more financial risk than you realize. As independent agents, we get asked constantly whether it’s worth paying more for higher limits. Rather than give you a generic answer, we ran real numbers on a real policy.
The Scenario – What we actually quoted
We took a 6-month Progressive auto policy for a family of four: two adult drivers and two 18-year-old drivers — a household with real risk on the road every day. Here’s what happened to the premium as we increased coverage:
| Coverage Level | 6-Month Premium | Monthly Cost | Increase Over Minimum |
|---|---|---|---|
| 25/50/25 liability, 25/50 UM, no UIM | $982.00 | $163.66/mo | — |
| 50/100/50 liability, 50/100 UM/UIM | $1,111.00 | $185.16/mo | +12% for 2x the coverage |
| 100/300/100 liability, 100/300 UM/UIM | $1,283.00 | $213.83/mo | +24% for 4x the coverage |
| 250/500/250 liability, 250/500 UM/UIM | $1,589.00 | $264.83/mo | +39% for 10x the coverage |
The Takeaway: More Coverage Doesn’t Cost Proportionally More
Going from state minimums all the way up to 250/500/250 — ten times the liability protection — costs about $101 more per month. That’s it. The math doesn’t scale the way most people assume: 4 times the coverage does not cost 4 times the price, and 10 times the coverage doesn’t cost 10 times the price either. The more coverage you buy, the cheaper it gets per dollar of protection.
Why This Matters More With Teen Drivers
If you’re average, your car is worth somewhere around $30,000. Hit someone driving a similarly-valued vehicle while carrying Arkansas minimums, and you could be $5,000 out of pocket after the insurance runs out — and that’s before medical bills, which climb far faster than property damage ever does. Add two 18-year-old drivers to a household, and the odds of a claim only go up. State minimums were never designed to protect a family’s assets; they were designed to meet a legal bar.
Our Recommendation for Arkansas Families
We generally recommend a floor of 100/300/100 with matching uninsured and underinsured motorist coverage. And if you have real assets — a home, savings, equity — it’s worth carrying liability limits at least equal to what you have to lose, with an umbrella policy layered on top once your underlying limits are maxed out. As this example shows, getting there usually costs far less than people expect.
Have questions about where your own policy stands? Give your local MBG office a call — we’ll run your numbers the same way.
Brandon Thompson
CEO & Co-Founder, MBG Insurance
Pea Ridge, AR
Brandon leads MBG Insurance’s Bentonville office, serving Northwest Arkansas families and businesses. He specializes in workers’ compensation, high-value home insurance, lessor’s risk, and tree care risk, and is a Certified Work Comp Advisor (CWCA).