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Best Cheap Car Insurance Companies in Memphis, Tenn.
Auto-Owners Insurance, USAA, State Farm, Tennessee Farmers Mutual and Erie Insurance are our top recommendations for car insurance in Memphis. Not only do they provide rates that fall below the city’s minimum- and full-coverage averages, but they also have exceptional customer service reviews and provide thorough coverage options.
| Car Insurance Company | Overall Rating | Average Monthly Minimum-Coverage Rate | Average Monthly Full-Coverage Rate |
|---|---|---|---|
| State Farm | 9.4 | $35 | $136 |
| USAA | 9.2 | $32 | $117 |
| Geico | 9.1 | $45 | $163 |
| Erie Insurance | 9.4 | $43 | $149 |
| Travelers | 9.5 | $45 | $144 |
| Auto-Owners Insurance | 8.9 | $30 | $127 |
| Progressive | 9 | $53 | $192 |
| Farmers | 8.6 | $99 | $220 |
| Allstate | 8.8 | $88 | $263 |
Keep reading: Cheap Car Insurance
Unless stated otherwise, the following cost tables show average rates for the driving profile of a 35-year-old married driver with good credit and a clean driving record.
How Much Is Car Insurance in Memphis, Tenn.?
per month or $609 per year. This is about 2% less than the national average of $52 per month or $625 per year. Similarly, full-coverage insurance costs $165 per month or $1,978 per year on average, which is about 2% less expensive than the national average of $167 per month or $2,008 per year for full coverage.
Cheapest Liability Car Insurance in Memphis, Tenn.
Auto-Owners Insurance offers the cheapest liability insurance with average rates of $30 per month or $355 per year. USAA is the second-cheapest option in Memphis with average rates of $32 per month or $382 per year.
Liability coverage is the minimum coverage required by the state of Tennessee. According to Tennessee law, all drivers must either meet or exceed the following state-minimum insurance requirements:
- $50,000 bodily injury liability per accident
- $25,000 bodily injury liability per person
- $15,000 property damage liability per accident
| Car Insurance Company | Monthly Average | Annual Average |
|---|---|---|
| Auto-Owners Insurance | $30 | $355 |
| USAA | $32 | $382 |
| State Farm | $35 | $424 |
| Tennessee Farmers Mutual | $38 | $456 |
| Erie Insurance | $43 | $514 |
| Geico | $45 | $538 |
| Travelers | $45 | $539 |
| Progressive | $53 | $637 |
| Allstate | $88 | $1,051 |
| Farmers | $99 | $1,192 |
Cheapest Full-Coverage Car Insurance in Memphis, Tenn.
A full-coverage car insurance policy can be pricey in Memphis. Full-coverage policies include liability plus comprehensive coverage and collision coverage, which protect against damage to your vehicle in a variety of situations. USAA is the cheapest full-coverage option with average rates of $117 per month or $1,400 per year.
| Car Insurance Company | Monthly Average | Annual Average |
|---|---|---|
| USAA | $117 | $1,400 |
| Auto-Owners Insurance | $127 | $1,524 |
| State Farm | $136 | $1,627 |
| Tennessee Farmers Mutual | $137 | $1,650 |
| Travelers | $144 | $1,727 |
| Erie Insurance | $149 | $1,792 |
| Geico | $163 | $1,957 |
| Progressive | $192 | $2,306 |
| Farmers | $220 | $2,635 |
| Allstate | $263 | $3,161 |
Memphis Car Insurance Quotes by Driver Profile
Auto insurers look at different parts of drivers’ profiles to set their rates. Memphis drivers can count on their age, location, credit score and driving history to be major factors in their final premium cost. Some companies are cheaper for young drivers in their teens and 20s, while other companies are better for drivers that have gotten a DUI or too many speeding tickets.
That’s why this section will take a deeper dive into the cheapest average auto insurance rates for different ages, driving histories, credit standings and ZIP codes in Memphis.
Memphis Car Insurance Cost by Age
Due to their increased likelihood of being involved in accidents or breaking traffic laws, teenagers are charged the highest rates for auto insurance coverage. Our data shows 16-year-olds pay about $273 per month or $3,279 per year for car insurance in Memphis.
As drivers reach their 20s, the cost of car insurance decreases and continues to decrease as they grow older. The table below displays the average minimum-coverage car insurance expenses in Memphis for different age brackets.
| Driver Age | Average Monthly Minimum-Coverage Rate | Average Annual Minimum-Coverage Rate |
|---|---|---|
| 16 | $273 | $3,279 |
| 25 | $58 | $695 |
| 35 | $51 | $609 |
| 45 | $49 | $584 |
| 55 | $45 | $540 |
Cheapest Car Insurance in Memphis, Tenn.: Teen Drivers
Car insurance for teens is expensive, but some providers tend to be more affordable than others. Our data shows Erie Insurance is the cheapest car insurance company for teen drivers with minimum-coverage rates as low as $132 per month or $1,587 per year.
Geico, Tennessee Farmers Mutual and State Farm also offer affordable premiums for Memphis teens.
| Car Insurance Company | Average Monthly Rate | Average Annual Rate |
|---|---|---|
| Erie Insurance | $132 | $1,587 |
| Geico | $142 | $1,706 |
| Tennessee Farmers Mutual | $145 | $1,743 |
| State Farm | $148 | $1,779 |
| Auto-Owners Insurance | $148 | $1,780 |
| USAA | $182 | $2,184 |
| Travelers | $190 | $2,279 |
| Progressive | $355 | $4,259 |
| Allstate | $558 | $6,698 |
| Farmers | $731 | $8,777 |
Memphis Car Insurance Cost by Credit Score
Tennessee is among the majority of states that allow car insurance providers to use drivers’ credit ratings when deciding on what their premiums will be. Those with lower credit scores will be charged higher rates for their car insurance, while the opposite is true for those with better scores.
Cheapest Car Insurance in Memphis, Tenn.: Poor Credit
Our rate data shows Tennessee Farmers Mutual is the cheapest option for car insurance for bad credit in Memphis. The company offers minimum-coverage policies to drivers with poor credit for rates of $44 per month or $526 per year. This is 34% more than the overall state average for minimum coverage for good credit.
| Car Insurance Company | Average Monthly Rate | Average Annual Rate |
|---|---|---|
| Tennessee Farmers Mutual | $44 | $526 |
| USAA | $53 | $640 |
| Geico | $64 | $768 |
| Travelers | $74 | $894 |
| Auto-Owners Insurance | $82 | $979 |
| Progressive | $83 | $1,002 |
| Erie Insurance | $88 | $1,062 |
| State Farm | $113 | $1,350 |
| Allstate | $134 | $1,606 |
| Farmers | $145 | $1,738 |
Memphis Car Insurance Cost by Driving Record
Drivers can expect spiked auto insurance rates if they’ve gotten speeding citations, had at-fault accidents or had DUI convictions put on their driving records in recent years. On average, speeding can increase your rates by 88%, an at-fault accident by 130%, and a DUI by 141%.
But the exact price increase will differ among companies. Our research shows that State Farm is the most favorable option for motorists with driving infractions on their record. The table below shows average rates by company for drivers who have either a speeding ticket, accident or DUI on their record.
| Car Insurance Company | Average Monthly Rate | Average Annual Rate |
|---|---|---|
| State Farm | $41 | $486 |
| Tennessee Farmers Mutual | $45 | $545 |
| USAA | $50 | $600 |
| Travelers | $60 | $721 |
| Auto-Owners Insurance | $62 | $744 |
| Erie Insurance | $62 | $747 |
| Progressive | $69 | $826 |
| Geico | $72 | $867 |
| Allstate | $122 | $1,461 |
| Farmers | $138 | $1,655 |
Keep reading: Auto insurance rates for high-risk drivers
Cheapest Car Insurance in Memphis, Tenn.: Speeding Ticket
According to our data, Tennessee Farmers Mutual offers the cheapest rates to drivers who have a speeding ticket on their records — $38 per month or $457 per year. USAA follows close behind with an average monthly rate of $39, while State Farm, Erie Insurance and Geico round out the top five options for cheap speeding ticket car insurance in Memphis.
| Car Insurance Company | Average Monthly Rate | Average Annual Rate |
|---|---|---|
| Tennessee Farmers Mutual | $38 | $457 |
| USAA | $39 | $465 |
| State Farm | $39 | $471 |
| Erie Insurance | $48 | $572 |
| Geico | $50 | $605 |
| Auto-Owners Insurance | $51 | $608 |
| Travelers | $56 | $673 |
| Progressive | $68 | $820 |
| Allstate | $98 | $1,181 |
| Farmers | $129 | $1,551 |
Cheapest Car Insurance in Memphis, Tenn.: At-Fault Accident
At-fault car accidents tend to earn higher rates in car insurance coverage than speeding tickets do. Tennessee Farmers Mutual and State Farm are the cheapest options here with average rates of about $38 per month and $43 per month, respectively. You can see some auto insurance companies charge significantly more for this amount for coverage after an accident.
| Car Insurance Company | Average Monthly Rate | Average Annual Rate |
|---|---|---|
| Tennessee Farmers Mutual | $38 | $457 |
| State Farm | $43 | $518 |
| USAA | $49 | $593 |
| Auto-Owners Insurance | $54 | $647 |
| Travelers | $59 | $704 |
| Erie Insurance | $62 | $747 |
| Geico | $76 | $916 |
| Progressive | $80 | $963 |
| Farmers | $146 | $1,750 |
| Allstate | $146 | $1,754 |
Cheapest Car Insurance in Memphis, Tenn.: DUI
Committing a DUI offense in Memphis is a significant violation that may lead to an escalation in your car insurance premiums by several hundred dollars annually. State Farm is very cheap compared to other companies — with average car insurance rates of $39 per month or $471 per year for drivers with a DUI.
Progressive, Tennessee Farmers Mutual and USAA are also good options with rates under $62 per month on average.
| Car Insurance Company | Average Monthly Rate | Average Annual Rate |
|---|---|---|
| State Farm | $39 | $471 |
| Progressive | $58 | $694 |
| Tennessee Farmers Mutual | $60 | $722 |
| USAA | $62 | $743 |
| Travelers | $66 | $786 |
| Erie Insurance | $77 | $922 |
| Auto-Owners Insurance | $81 | $977 |
| Geico | $90 | $1,079 |
| Allstate | $121 | $1,448 |
| Farmers | $139 | $1,665 |
Memphis Car Insurance Cost by ZIP Code
Insurance claim rates differ across different areas of the city, influencing your insurance costs. Below, you can see certain ZIP codes in Memphis can be up to 9.4% cheaper or 5.0% more expensive than the city average.
| Memphis ZIP Code | Average Monthly Rate | Average Annual Rate | Change From Memphis Average |
|---|---|---|---|
| 38016 | $46 | $551 | -9% |
| 38134 | $48 | $575 | -6% |
| 38116 | $52 | $620 | 2% |
| 38118 | $52 | $623 | 2% |
| 38109 | $52 | $626 | 2% |
| 38128 | $52 | $627 | 2% |
| 38127 | $53 | $639 | 4% |
Cheap Car Insurance in Memphis, Tenn.: Conclusion
Auto coverage rates in Memphis are already 33% lower than the state average and 2% lower than the national average, but there are still companies offering car insurance premiums at even cheaper prices on average.
Auto-Owners Insurance provides the lowest minimum coverage rate in the area at around $30 each month. Additionally, USAA offers Memphis drivers highly affordable rates, charging $127 each month.
Compare free quotes to find the company that meets your Tennessee car insurance needs at the best rate. You can get auto insurance quotes online or from insurance agents.
Compare Auto Insurance Policies
Answer a few simple questions and we’ll take care of the rest.
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Cheapest Auto Insurance in Memphis, Tenn.: FAQ
Our data shows a minimum coverage auto insurance policy in Memphis, Tenn., costs $51 per month or $609 per year on average. If you want full coverage, you’ll pay an average of $165 per month or $1,978 per year.
Full-coverage car insurance in Memphis, Tenn., is about 2% less expensive than the national average while minimum-coverage insurance is 3% less expensive than the national average.
*Cost data comes from Quadrant Information Services and is accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
