The best car insurance in Memphis, TN

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Lena BorrelliLena BorrelliInsurance ExpertLena Borrelli is a freelance contributor at Policygenius. With a diverse professional background, Lena spent time in finance, web marketing, and hospitality before settling into full-time life as a freelance writer.&Rachael BrennanRachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.
Expert reviewedExpert reviewedThis article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.Learn more about oureditorial review process.

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Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

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The average cost of car insurance in Memphis is $1,700 per year, which is $371 more expensive per year than the statewide average cost of car insurance in Tennessee.

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Because of the above-average rates in Memphis, it's important to compare rates from multiple insurers to find the most affordable option for you. Policygenius can help you easily compare rates to find the best car insurance for your budget.

Key takeaways

  • USAA is the cheapest car insurance company in Memphis at $924 per year, on average

  • USAA and State Farm provide the lowest average rates for Memphis drivers with bad credit

  • Memphis drivers are required to carry a minimum amount of coverage that includes $25,000 for each injury or death per accident, $50,000 for total injuries or deaths per accident, and $15,000 for property damage per accident

Cheapest car insurance companies in Memphis, TN

When calculating a car insurance premium, insurers use a specific set of individual rate factors to determine the amount of risk that you present as a driver. This includes personal details like your age and gender, as well as your driving record and credit score.

In our analysis of the average car insurance rates for the Memphis area, we found USAA to be the cheapest car insurance company in Tennessee.

Company

Average cost

JD Power Rating

USAA

$924

890

State Farm

$1,103

882

Auto-Owners Insurance

$1,196

865

GEICO

$1,498

874

Travelers

$1,554

854

Cheapest car insurance rates by ZIP code in Memphis, TN

Another factor that impacts your car insurance rates is where you live. Memphis specifically has a high number of traffic fatalities compared to other cities in Tennessee, and with 18-wheelers regularly dotting the local highways, there is also a high amount of transient traffic. The city is also prone to harsh winters with snow and ice that can bring roads to a standstill while threatening damage to your vehicle.

Additionally, specific neighborhoods in Memphis may be more susceptible to certain risks, such as flooding, vandalism, or theft. Insurance companies account for this additional risk with increased premiums, so consider what risks impact your neighborhood, so you know how to find the right coverage at a price you can afford.

ZIP code

Average cost

38016

$1,527

38133

$1,536

38018

$1,545

38119

$1,556

38120

$1,557

38137

$1,570

38117

$1,587

38125

$1,587

38134

$1,607

38157

$1,684

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Choosing the right car insurance company in Memphis, TN

The average cost of car insurance in Memphis is $371 more than Tennessee's average rate. The higher insurance rates reinforce the need to choose the right car insurance company, so you can find the most affordable policy. Make sure to compare rates from multiple insurance companies since rates can vary significantly, even across a single city. Policygenius can help you compare car insurance options to make sure you find a policy with the coverage you need at an affordable price.

Car insurance rates for drivers with driving violations in Memphis, TN

Insurance companies are careful to check your driving record to understand what kind of driver you are. Certain driving offenses will also cost you more when you have them on your record. When you have a hit and run or reckless driving violation, you could face average rates over $3,000 with a policy from Auto-Owners Insurance. To find the best car insurance rates in Memphis, always be sure to shop your options, especially when you have driving violations on your record.

Violation

USAA

State Farm

Auto-Owners Insurance

GEICO

Travelers

At-fault accident

$1,417

$1,325

$2,145

$2,690

$2,295

DUI

$1,872

$1,223

$3,017

$2,831

$2,512

Suspended license

$1,805

$1,223

$3,017

$3,995

$2,512

Open container

$1,310

$1,223

$1,583

$2,831

$2,169

Expired registration

$1,173

$1,223

$1,231

$1,742

$2,169

Driving without lights

$1,173

$1,223

$1,231

$1,785

$2,169

Running a red light

$1,173

$1,223

$1,231

$1,785

$2,201

Following too closely

$1,173

$1,223

$1,231

$1,785

$2,169

Hit and run

$1,943

$1,223

$3,017

$3,279

$2,512

Not-at-fault accident

$985

$1,120

$1,231

$1,483

$1,677

Passing a school bus

$1,310

$1,223

$1,755

$1,785

$2,512

Reckless driving

$1,310

$1,223

$3,017

$3,279

$2,512

Speeding

$1,173

$1,223

$4,164

$3,279

$2,512

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Cheapest car insurance for drivers with bad credit in Memphis, TN

Another factor that impacts the cost of your car insurance is your credit score. Car insurance companies use your payment history to determine whether you make regular and timely payments. Drivers with a poor credit score may be more likely to have a high financial burden, and greater difficulty paying their car insurance premiums. To cover the additional risk, car insurance providers may charge those drivers higher rates for policy.

Company

Rates for drivers with bad credit

USAA

$1,749

Tennessee Farmers Mutual Insurance

$2,133

GEICO

$2,289

Grange Insurance

$2,403

Nationwide

$2,515

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Buying car insurance in Memphis, TN

Drivers in Memphis are required to maintain a minimum amount of car insurance in order to legally operate a vehicle on Tennessee roads. Under Tennessee law, the party found at fault for an accident bears the financial responsibility of losses incurred. This is why Tennessee is known as an at-fault state and why a certain amount of insurance is required by law.

If you are a driver in Memphis, you must carry minimum liability insurance that includes the following coverage:

  • $25,000 for each injury or death per accident

  • $50,000 for total injuries or deaths per accident

  • $15,000 for property damage per accident

There may be additional stipulations that affect the amount of coverage you must buy for your vehicle. If you currently loan or lease your vehicle, you may be required by your lender to carry additional coverage in order to protect the full value of the car. Known as gap insurance, this is a way to protect yourself from liability if you experience a total loss where the replacement value exceeds your policy value. Regardless of whether additional coverage is required, it is always recommended that drivers consider more than just the minimum amount of coverage so you do not risk financial trouble should a loss exceed your coverage.

How to get cheap car insurance in Memphis, TN

Many different kinds of car insurance discounts are available based on your needs.

  • Driver discounts: You can save money based on the type of driver you are. Special savings are often available for military members, seniors, and new homeowners.

  • Bundle: It’s popular for drivers to bundle home and auto insurance policies from the same provider to save big, but you can also bundle other types of insurance, such as renters, health, and life insurance.

  • Driving record: You can earn lower rates when you are a safe driver, remain claim-free, or successfully complete an approved defensive driver course.

  • Vehicle discounts: Your car could earn you money, too, when it has safety features like air bags and an anti-theft device.

Frequently asked questions

How much is car insurance in Tennessee?

The average cost of car insurance in Tennessee is $1,329 per year, although the cost of your auto insurance may be more or less, depending on where exactly you live and other individual factors.

How much does Memphis car insurance cost?

The average cost of car insurance in Memphis is $1,700 per year. However, always be sure to shop and compare multiple quotes so you can find the best car insurance companies for your needs.

What is the cheapest car insurance company in Memphis?

The cheapest car insurance company in Memphis is USAA with an average premium of $924 per year. However, car insurance rates are based on a series of different risk factors, such as where you live and your driving record.

How much car insurance do Memphis drivers need?

Memphis drivers are required by law to carry a minimum coverage amount of $25,000 for each injury or death per accident, $50,000 for total injuries or deaths per accident, and $15,000 for property damage per accident.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: $50,000 per person/$100,000 per accident

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: $50,000 per person/$100,000 per accident

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer.

Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Authors

Lena Borrelli is a freelance contributor at Policygenius. With a diverse professional background, Lena spent time in finance, web marketing, and hospitality before settling into full-time life as a freelance writer.

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

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