Memphis, TN Car Insurance
Compare Progressive, Allstate, GEICO and Nationwide (+ other top companies) to find the best and cheapest car insurance in Memphis.
How much does car insurance cost in Memphis?
For residents of Memphis, car insurance can be costly, with drivers paying an average of $977 every six months or $163 per month. These rates are higher than both the state average of Tennessee and the national average, which are $751 and $742, respectively. A survey conducted with our customers showed that 32% of them believe they're being overcharged for their car insurance coverage in Memphis.
Our data shows that Auto-Owners is currently offering rates that are nearly 40% lower than the industry average, with a six-month policy costing just $605. Whether you're content with your current provider, seeking to compare rates, or interested in learning more about car insurance in Memphis, The Zebra is ready to help. We'll explore how factors such as your age, creditworthiness, and location can impact your premiums and offer suggestions for obtaining the best possible coverage at the most reasonable price.
| Car Insurance in Memphis vs. Tennessee | Avg. 6 Mo. Premium |
|---|---|
| Memphis Average | $977 |
| Tennesee Average | $751 |
The cheapest car insurance companies in Memphis
In Memphis, Auto-Owners is the cheapest car insurance company with average rates at $605 for a six-month policy.
Penn National comes in second with $622 six-month premiums.Â
Our third-place winner is State Farm, with average monthly rates at $104 ($625 for a six-month policy).
The Zebra's key takeaways about car insurance in Memphis:
- The average cost of a car insurance policy in Memphis is $977 per six-month policy — $163 per month.
- The cheapest company in Memphis is Auto-Owners ($605).
- Memphis is the number one most expensive city for car insurance in Tennessee.
- 32% of Zebra customers in Memphis stated they used our product because they were paying too much for car insurance with their current provider.
Are you paying too much for auto insurance?
Memphis car insurance rates by company
Our data for 2022 shows that the cheapest car insurance company for full coverage in Memphis is Auto-Owners, with rates of $101 per month or $605 per six-month policy. Penn National is the second cheapest insurance company, with rates of $104 per month or $622 for a six-month policy.
The Zebra's Customer Satisfaction Survey can help you learn more about top-rated car insurance companies.
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Cheapest car insurance companies in Memphis, TN
| Company | Avg. 6 Mo. Premium |
|---|---|
| Auto-Owners | $605 |
| Penn National | $622 |
| State Farm | $625 |
| USAA | $650 |
| Travelers | $859 |
| Nationwide | $868 |
| GEICO | $871 |
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Shop around for the best rates
The only way to know which company is the cheapest coverage for you is to compare. Our comparison will do the leg work for you. Enter your ZIP code to see rates from USAA, GEICO, State Farm and Nationwide (+ other top companies) to find the best and cheapest car insurance in Memphis.
Average car insurance in Memphis by rating factor
Car insurance companies use a series of rating factors that each driver possesses to determine individual rates. Rating factors are specifics about drivers that determine the level of risk they represent as insured drivers. These factors may include age, gender, location, credit score, and more. Although most companies use the same rating factors, the extent to which they affect your premium may differ.
It is important to note that some rating factors are subject to change over time, and therefore, the most suitable car insurance provider for you may also change. Obtaining new quotes periodically is a great way to determine if you are still receiving the best rates.
Q: I didn't have an accident — Why is my insurance going up?
A: End-of-year earnings, which contrast the revenue of premiums with the cost of paying out insureds’ claims, are a critical rating factor that determines the cost of car insurance in Memphis. Despite having a spotless driving history with no claims, you may still encounter higher premiums from a specific insurance company because of increased business expenses in your area.
Auto insurance premiums by age in Memphis
Age is a critical rating factor that auto insurers consider when determining rates. Teen drivers, and their parents, may be surprised to learn that their auto insurance premiums can be significantly more costly than other age groups. Insurers have compiled data that indicates teens have a higher accident rate, leading to them being subjected to the highest car insurance costs in many regions. The increased expenses enable the insurance company to offset the cost of claims.
In Memphis, the difference in premium rates between teen drivers and those in their 20s for new policies is 157%. Although it may seem unfair, keep in mind that it is not personal. The insurer's objective is to mitigate the risk posed by inexperienced drivers, and as you gain more experience and become older, your premiums will gradually decrease.
Cheapest car insurance companies for teen drivers in Memphis, TN
| Company | Avg. 6 Mo. Premium |
|---|---|
| Penn National | $1,943 |
| USAA | $2,173 |
| State Farm | $2,295 |
| Auto-Owners | $2,321 |
| Travelers | $2,498 |
| GEICO | $2,702 |
| Nationwide | $3,421 |
| Age Bracket | Cheapest Companies | Avg. 6 Mo. Premium |
|---|---|---|
| 20s | USAA | $855 |
| 30s | Penn National | $598 |
| 40s | Penn National | $539 |
| 50s | Penn National | $496 |
| 60s | Penn National | $516 |
| 70s | Penn National | $594 |
Zebra Tip:Â The cheapest companies for Memphis drivers between 20-40 are USAA, Penn National, and Auto-Owners
People aged between 20 and 40 constitute the majority of Memphis's drivers, as our research indicates. On average, drivers in this age group pay $1,136 every six months. However, they can save up to 34% on their insurance premiums by partnering with one of these companies. It is important to note that only military personnel and their families are eligible for USAA insurance, and not the general public.
Auto insurance premiums for minimum coverage in Memphis
There are a multitude of car insurance options, each with varying price tags. Understanding your current policy and how it influences your rates is essential for cutting costs. Our research suggests that roughly 28% of Memphis drivers possess the minimum legal insurance required by the state, which may be less costly than comprehensive coverage but can leave you underinsured.
For leased and financed vehicles, most lending associations require "full coverage" insurance. This package includes collision or comprehensive coverage, both of which involve a deductible and result in increased rates. Despite this, they offer the broadest protection possible.
You could also opt to add roadside assistance or uninsured motorist coverage. to protect against uninsured drivers. Despite the increase in rates, The Zebra's experts recommend carrying these options to add another layer of protection in case of an incident, similar to full coverage.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
Memphis's drivers leased vehicles at a rate of 51%, as per our data analysis. If you're not leasing or financing your car, it's important to consider if you need comprehensive or collision coverage. We suggest using a reputable source like Kelley Blue Book to determine the actual cash value of your vehicle. Generally speaking, if your car is valued at less than $4,000, it's unlikely that you'll require collision coverage. However, keep in mind that by dropping these coverages, you'll be responsible for any repair expenses out of your own pocket.
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Cheapest car insurance companies for minimum coverage in Memphis, TN
| Company | Avg. 6 Mo. Premium |
|---|---|
| Penn National | $192 |
| Auto-Owners | $192 |
| State Farm | $213 |
| USAA | $230 |
| GEICO | $242 |
| Travelers | $287 |
| Nationwide | $338 |
- Minimum: State liability coverage only
- Basic: State liability + collision and comprehensive (full) coverage
- Better: Better liability limits at 50/100/50. Full coverage included with towing and rental car benefits. May include additional personal medical benefits and uninsured/underinsured motorist coverage.
- Best: Best liability limits at 100/300/50. Full coverage included with better towing and rental car benefits and better personal medical benefits and increased uninsured/underinsured coverage.
Most of our customers in Memphis opt for the basic level of coverage, but this may not be the best option for everyone. While we understand state minimum coverage is a budget-friendly solution, it does leave you at risk for damages that exceed your liability limits. Tennessee's 25/50/15 liability limits provide coverage for damage you cause up to $25,000 per person in bodily injury, $50,000 per accident in bodily injury and $15,000 for property damage. While this may be sufficient for most standard car accidents, it might not be for bodily injury claims or multi-vehicle accidents.
Learn more about insurance laws in Tennessee.
Memphis car insurance rates by credit score
In Tennessee, as in most states, credit score is one of the factors considered when determining car insurance premiums. Credit score is taken into account for several reasons. Analysis of historical data suggests that drivers with lower credit scores have a higher likelihood of filing claims, having lapses in coverage, and engaging in risky driving behavior. As low credit scores are linked with a higher level of risk, the worse your credit, the more you'll have to pay for auto insurance.
According to our research, Memphis drivers with poor credit (300-579) pay 129% more for car insurance than drivers with excellent credit (800-850). Our data indicates that the majority of drivers in Memphis fall into the "Average" credit score category. For the year 2022, we recommend USAA as the most cost-effective option for Memphis drivers with this credit range.
Cheapest car insurance companies for bad credit in Memphis, TN
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $1,221 |
| Nationwide | $1,227 |
| GEICO | $1,287 |
| Penn National | $1,558 |
| Travelers | $1,563 |
| Auto-Owners | $1,593 |
| State Farm | $4,053 |
Zebra Tip: If you recently improved your credit score, shop around for car insurance!
Drivers in Memphis with "Fair" credit are paying $1,336 less per year for car insurance than those with "Poor" credit, our data shows. If you've recently made efforts to improve your credit score, such as paying off a loan, it's worth checking your preferred credit monitoring software to see if you could save on your car insurance.
Auto insurance rates with an at-fault accident
The most common type of insurance claim is for at-fault and collision-related accidents. In 2022, an at-fault accident caused the average car insurance rates in Memphis to increase from $163 to $244 per month. State Farm is the most affordable car insurance option in Memphis after an at-fault accident.
Your auto insurance rates can be kept affordable by maintaining a clean driving record, regardless of where you live. Various factors, including speeding citations, reckless driving charges, DUIs and DWIs, and at-fault accidents, can affect your insurance premiums. Depending on the type of citation or accident, your premium may be affected for three to five years. While at-fault accidents and speeding tickets usually stay on your record for three to five years, DUIs and DWIs may remain on your record for a more extended period, affecting your premiums for a more extended period.
Cheapest car insurance companies after an at-fault accident in Memphis, TN
| Company | Avg. 6 Mo. Premium |
|---|---|
| State Farm | $765 |
| Penn National | $878 |
| USAA | $940 |
| Auto-Owners | $1,053 |
| Travelers | $1,164 |
| GEICO | $1,390 |
| Nationwide | $1,414 |
Memphis car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in Memphis.
Car insurance rate increases after violations and citations in Memphis, TN
Why is car insurance in Memphis so expensive?
Memphis is known for its expensive auto insurance rates, which can be attributed to multiple factors. The high cost of living in the city is one of the primary reasons, causing car insurance companies to charge more to cover their expenses. However, other variables such as driving record, credit history, and coverage level also play a significant role.
In the paragraphs below, we will delve into why auto insurance in Memphis is so expensive, regardless of your driving profile.
A study conducted in 2022 concluded that Memphis is the third most dangerous city in the country for pedestrians[1] based on the number of deaths per year. The study, called Dangerous by Design, states that the top-ranking cities are designed primarily to move cars quickly regardless of safety. If Memphis roads are so dangerous that vehicles are striking pedestrians at such an alarming rate, insurance companies will take notice and increase premiums.Â
Tennessee ranks as the third-highest state in the country for the number of uninsured motorists, with a statewide rate of nearly 24% of drivers uninsured[2]. In Memphis, 43% of drivers in Memphis do not possess current insurance coverage. Insurance companies must account for the possibility of colliding with an uninsured driver, and with Tennessee rates so high, the risk is greater.Â
The cost of car insurance in Memphis is heavily influenced by the neighborhood you live in. Your driving record and credit score are important determinants, but your residential location is one of the most significant factors affecting your premium prices.
Auto insurance rates can vary based on your ZIP code's crime rates, theft rates, and uninsured motorist rates. Insurance companies evaluate the risks associated with specific locations and adjust their rates accordingly. Living in a high-crime area may result in a higher auto insurance premium compared to someone living in a safer neighborhood.
Zebra Tip: Consider uninsured property damage coverage
Carrying uninsured motorist coverage, also known as UMPD, is recommended in cities where the number of uninsured drivers is high. Some states mandate this coverage as part of their minimum requirements, while others make it an optional add-on. This type of coverage helps you in case an uninsured or underinsured driver causes damage to your vehicle or injures you. It has a lower deductible and is usually less expensive than collision coverage. Moreover, filing a claim under UMPD is likely to lead to a smaller rate increase compared to a collision claim.
Bundling insurance policies in Memphis
Regardless of the upward trend in car insurance charges across the nation, there are still ways to make savings possible. If you're seeking a new auto insurance policy, ponder integrating it with your home or renters insurance. This move can often unlock a significant rebate — a savings of 10% or more on your joint premiums might be within reach. Gather more details about the benefits of bundling home and car insurance.
If your home and car insurance policies are not combined, it's wise to find out if you can save by bundling them. Most of the time, the positive results make the effort worthwhile.
Cheapest car insurance companies for bundling home and auto insurance in Memphis, TN
| Company | Avg. 6 Mo. Premium |
|---|---|
| State Farm | $508 |
| Auto-Owners | $532 |
| Penn National | $550 |
| USAA | $620 |
| Nationwide | $755 |
| Travelers | $773 |
| GEICO | $838 |
While there are certain aspects that may be beyond your control, drivers can still take steps to make their profiles more attractive to insurers. Our top recommendation is to research and compare auto insurance quotes from a wide range of companies to find the most affordable rate that also provides great coverage and service. This is particularly essential if there have been any changes in your personal situation, such as a relocation, a birthday, or an enhancement in your credit score. Remember that some insurers are more costly than others, and switching providers is always an option.
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Frequently asked questions
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.