The best car insurance in Memphis, TN

By

Lena Borrelli

Lena Borrelli

Insurance Expert

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.

Published November 11, 2021

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Memphis drivers pay an average car insurance rate of almost $1,700 per year even though the average cost of car insurance in Tennessee is $1,329 per year. Because of the above-average rates in Memphis, it's important to compare policies from multiple insurers to find the most affordable option for you.

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Key Takeaways

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

  • USAA and GEICO 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

$980

881

Auto-Owners Insurance

$1,236

890

GEICO

$1,241

871

Erie

$1,534

880

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

$1,512

38018

$1,532

38103

$1,705

38104

$1,731

38105

$1,730

38106

$1,763

38107

$1,752

38108

$1,769

Choosing the right car insurance company in Memphis, TN

The average cost of car insurance in Memphis is over $300 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 of almost $4,000 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

Erie

At-fault Accident

$1,417

$1,177

$2,801

$2,225

$2,177

DUI

$1,872

$1,086

$3,893

$2,327

$2,591

Driving with a suspended license

$1,805

$1,086

$3,893

$3,274

$2,177

Driving with an open container

$1,310

$1,086

$2,096

$2,327

$1,766

Driving with expired registration

$1,173

$1,086

$1,261

$1,441

$1,766

Driving without Lights

$1,173

$1,086

$1,261

$1,484

$1,766

Failure to show documents

$1,173

$1,086

$1,261

$1,441

$1,766

Failure to stop at a red light

$1,173

$1,086

$1,261

$1,484

$1,766

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

GEICO

$1,891

Tennessee Farmers Mutual Insurance

$2,129

Grange Insurance

$2,422

Nationwide

$2,502

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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 $1,690 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: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • 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.