Best cheap car insurance in Memphis for 2025
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The best car insurance companies in Memphis
The average car insurance premium for Memphis drivers is higher than the state average, making it a priority for residents of the city to find affordable coverage. There are a handful of companies writing some of the cheapest car insurance in Memphis, and any one of them might be a good fit for your needs. Bankrate looked at Tennessee's best auto insurance companies to see which ones were able to offer the most affordable rates. We also looked at customer satisfaction and financial strength rankings, available coverage options and discounts and more to help you make the best decision for your own vehicle's coverage.
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Why Geico made our list: For drivers in Memphis, Geico offers some of the lowest average prices for both full and minimum coverage, with a strong lineup of discounts that could add extra savings for some drivers. In 2025, the company was given a Bankrate Award for Best Auto Insurance Company for High-Risk Drivers, making it worth considering if you have marks on your license.
Why Geico may be best for digital policy management: For drivers who prefer to manage their car insurance from their phone, Geico’s suite of digital tools could be the ideal option. The company makes shopping for your policy online easy, earning it an above-average ranking in J.D. Power's 2024 U.S. Insurance Digital Experience Study in the shopping category. Geico’s mobile app offers 24/7 access to digital insurance cards, roadside assistance and virtual customer service along with photo estimates for claims and vehicle care services to help drivers manage their car’s maintenance and repairs.
| Bankrate Score | 4.3 |
| J.D. Power | 651/1,000 |
| AM Best Rating | A++ |
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Why Nationwide made our list: Nationwide has an above-average score in both J.D. Power's 2024 Auto Claims Satisfaction Study, as well as its Auto Insurance Study for the Southeast region. This suggests a company that pays attention to its policyholders and works to provide a good customer experience for them. The company has a robust list of coverage options, including some, such as accident forgiveness, that are not available at all carriers. Available perks include a vanishing deductible, that takes $100 off your deductible amount for every year of safe driving, up to $500.
Why Nationwide may be best for discounts: Nationwide's discounts can save you money on your premium. Along with common discounts such as multi-policy and accident-free, there are some that are less common. The SmartMiles program, for example, is a pay-per-mile option that may be appealing to retirees and those who work from home and spend less time on the road.
| Bankrate Score | 4 |
| J.D. Power | 669/1,000 |
| AM Best Rating | A+ |
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Why USAA made our list: Affordable rates, reliable customer service and excellent financial strength ratings helped to earn USAA its high Bankrate Score and its place on the list of Memphis’s best auto insurers. USAA ranked higher for customer satisfaction than any other carrier in the Southeast region in J.D. Power’s 2024 U.S. Auto Insurance Study and scored well above average in the 2024 U.S. Auto Claims Satisfaction Study. However, only military drivers, veterans and their families are eligible for coverage.
Why USAA may be best for military-focused coverage: Not many auto insurers offer unique perks and discounts for military members, but a policy from USAA is designed specifically to meet the needs of service members and veterans. Storage discounts during deployment, along with additional rate reductions for vehicles garaged on a military installation, could add unique value for active service members.
| Bankrate Score | 4.3 |
| J.D. Power | 759/1,000 |
| AM Best Rating | A++ |
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Min. coverage
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Why Travelers made our list: In our analysis of average premium data, Travelers had some of the cheapest full coverage car insurance rates for Memphis drivers with clean records. A solid slate of discounts and a wide network of Memphis-area agents could make Travelers an ideal choice for many local drivers. However, it’s worth noting that Travelers received below-average customer satisfaction scores from J.D. Power.
Why Travelers may be best for customized coverage: In addition to standard coverage options like liability, collision and comprehensive coverage, Travelers gives drivers the option to add various endorsements to their policies, including gap insurance and new car replacement. Adjusting coverage limits, deductibles and add-ons may be easier with Travelers than other carriers, making it a good option for drivers who know exactly what they want in a policy.
| Bankrate Score | 4.1 |
| J.D. Power | 642/1,000 |
| AM Best Rating | A++ |
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Why Erie made our list: Erie offers below-average rates for both full and state minimum coverage in Memphis. Erie also consistently scores well above the industry average for customer service and claims satisfaction, coming in third nationwide in J.D. Power’s 2024 U.S. Auto Claims Satisfaction Study and fifth in the Southeast in the 2024 U.S. Auto Insurance Study.
Why Erie may be best for bundled policies: In addition to its strong Bankrate Score for auto insurance, Erie earned a 2025 Bankrate Score of 4.3 for its home insurance offerings, making it a potentially strong option for Memphis drivers who own a home and want to manage their auto and home policies in one place. Erie advertises discounts of 16 to 25 percent for customers who bundle home and auto insurance.
| Bankrate Score | 4.1 |
| J.D. Power | 676/1,000 |
| AM Best Rating | A+ |
Bankrate's trusted insurance industry expertise
Read our full methodologyBankrate’s insurance editorial team is made up of seasoned industry professionals, including licensed insurance agents with combined decades of experience. In order to provide the most accurate evaluation of Memphis auto insurance companies, we analyzed the latest rate data available from Quadrant Information Services along with expert third-party ratings.
46
years of industry experience
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
The cheapest car insurance companies in Memphis
According to our average premium research, Geico, Travelers and USAA 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.
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|---|---|---|
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$427
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$1,576
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$370
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$1,768
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$451
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$1,799
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Tennessee Farmers Mutual
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$503
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$2,111
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$644
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$2,122
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How much is car insurance in Memphis, Tennessee?
The average cost of car insurance in Memphis, Tennessee is $2,654 per year for full coverage and $681 per year for minimum coverage. For drivers who need full coverage, that’s roughly 27 percent more than the Tennessee state average and 1 percent less 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 $8,471 per year for full coverage and $2,472 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.
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$1,031
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$1,064
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$1,158
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$738
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$1,263
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$1,095
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$1,442
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$1,203
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$1,459
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$873
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|---|---|---|
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$3,595
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$2,625
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$3,700
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$3,700
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$4,604
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$4,288
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$4,656
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$3,833
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$4,670
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$3,068
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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.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Compare auto insurance rates
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
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 $3,259 per year for full coverage — 23 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 41 percent more for full coverage, on average, than a driver with a clean record, for an annual total of $3,736.
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 $5,588 per year for full coverage and $1,560 per year just for state minimum coverage. For drivers with minimum coverage policies, that’s an increase of 129 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.
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$634
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$2,364
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$788
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$4,191
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Tennessee Farmers Mutual
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$796
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$3,368
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$901
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$3,566
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$927
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$3,622
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Minimum coverage requirements in Memphis
By law, all drivers in Memphis must carry at least the following limits on their auto insurance policy:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
In most cases, insurance professionals recommend carrying more than the minimum coverage required by Tennessee insurance laws. Higher liability limits typically only cost a few dollars more each month in exchange for greater protection against out-of-pocket expenses and potential lawsuits in the event of an accident that causes injuries or property damage. In addition, if you lease or finance your car, your lender likely requires you to maintain comprehensive and collision coverage on your policy.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze March 2025 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 for our base profile are based on the following characteristics and full coverage limits:
Bodily injury liability
$100,000 per person$300,000 per accident
Property damage liability
$50,000 per accidentPersonal injury protection
$100,000 per accidentUninsured motorist bodily injury
$100,000 per person$300,000 per accident
Collision deductible
$500Comprehensive deductible
$500To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. These are sample rates and should only be used for comparative purposes. Your quotes will differ.
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 2025 Bankrate Score for auto insurance considers key variables that our insurance editorial team determined impact policyholders’ experiences with an insurance company. These factors include a robust assessment of each company’s cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach.
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.
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Cost & ratings 50%
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Coverage & savings 30%
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Support 20%
- Tier 1 (Cost & ratings): To determine how well auto insurance companies satisfy these priorities, our team analyzed 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 National Association of Insurance Commissioners (NAIC).
- 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 the discount options listed on each company’s 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 in a company’s corporate sustainability efforts.
