Best cheap car insurance in Memphis for 2024

The best car insurance companies in Memphis

Comparing car insurance companies is the best way to find auto coverage that works for your priorities and budget. To help drivers in Memphis start their comparison, Bankrate’s insurance editorial team analyzed several of Tennessee’s best auto insurance companies. We looked at the latest premium data available from Quadrant Information Services to find affordable rate options, but we also considered customer satisfaction scores from J.D. Power, financial strength ratings and each company’s offerings for coverage and discounts.

The cheapest car insurance companies in Memphis

According to our average premium research, Tennessee Farmers Mutual, Travelers and Geico are the three cheapest car insurance companies for drivers in Memphis seeking state minimum coverage. Keep in mind, however, that rates vary significantly based on driver profile as well as coverage selections. Depending on your individual risk factors, you may find a cheaper rate with a company not listed here, including a smaller regional or local carrier.

How much is car insurance in Memphis, Tennessee?

The average cost of car insurance in Memphis, Tennessee is $2,365 per year for full coverage and $608 per year for minimum coverage. For drivers who need full coverage, that’s roughly 25 percent more than the Tennessee state average and 4 percent more than the national average. However, individual risk factors — including age and driving record — can impact what you pay for auto insurance coverage in Memphis.

Memphis rates for teens

Teen drivers in Memphis pay well above the citywide average. On average, an 18-year-old driver on their own policy pays $7,574 per year for full coverage and $2,302 per year for state minimum coverage. Teens who stay on their parents' policy after they turn 18 pay considerably less for insurance — as seen in the tables below — but their high risk of accidents and violations still makes coverage more expensive.

Memphis rates for young drivers

Once you hit your early 20s, it may be necessary to get a standalone auto insurance policy if you own your own car and don’t live with your parents. While going solo can come with higher rates for a while, prices typically go down around age 25.

Memphis rates for adults

Car insurance rates tend to stabilize in adulthood, making it easier to find affordable coverage in Memphis for drivers aged 30 to 50. However, factors like your driving record, credit history and ZIP code also impact rates, so you may continue to see high rates if you have an imperfect driving record or other risk signals.

Memphis rates for senior drivers

Car insurance for seniors typically comes at a lower cost, thanks to a lifetime of experience behind the wheel. However, rates may climb as you enter your mid-70s, since increased vulnerability to injury, vision problems and slower reaction times could raise your risk factors in the eyes of insurance companies.

The cheapest car insurance in Memphis by driving record

Memphis’s high crime rates and treacherous traffic can result in high auto insurance premiums for drivers with tickets or accidents on their driving record. Your driving history is one of the most significant rating factors that insurers consider when setting your premium, but not every carrier treats each mark on your record the same — making rate comparison an essential step in shopping.

Car insurance with a speeding ticket in Memphis

A speeding ticket conviction could cause your auto insurance rates to go up at your next renewal. On average, Memphis drivers with a single speeding ticket conviction pay $2,827 per year for full coverage — 20 percent more than the Memphis average.

Car insurance after an accident in Memphis

If you’re found at fault in a car accident, you could see your insurance premium go up when you renew your policy. A Memphis driver with a single at-fault accident on their driving record pays 43 percent more for full coverage, on average, than a driver with a clean record, for an annual total of $3,380.

Car insurance after a DUI in Memphis

Most insurance companies take a DUI conviction seriously as a signal of driver risk. In our analysis, we found that Memphis drivers with a single DUI on their record pay an average of $4,866 per year for full coverage and $1,372 per year just for state minimum coverage. For drivers with minimum coverage policies, that’s an increase of 125 percent more compared to the Memphis average. If you’re struggling to find affordable rates with a DUI on your record, you may need to shop around and consider a nonstandard provider.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze July 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Age: Rates were calculated by evaluating our base profile with the ages 20-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Teens: Rates were determined by adding a 16- or 18-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.