BestCar InsuranceMemphisThe Best Car Insurance in Memphis, TN, for 2023
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In Memphis, MoneyGeek found that State Farm is the best auto insurance provider overall. However, the best provider for you depends on your circumstance. MoneyGeek’s analysis includes the best insurers for both young and old drivers, drivers with violations and military drivers. For more affordable options, MoneyGeek also identified the cheapest car insurance companies in Memphis.
BestCar InsuranceMemphisThe Best Car Insurance in Memphis
Overall - State Farm
Minimum Coverage - State Farm
Young Drivers - Erie
Senior Drivers - State Farm
Driving Violations - State Farm
Military - USAA
Best Car Insurance Companies in Memphis: Overall
To find the best auto insurance companies in Memphis, MoneyGeek scored and ranked each provider based on their average rates, claims ratings and user satisfaction. Based on these factors, the top insurers in Memphis are:
- State Farm: 84 out of 100
- Erie: 83 out of 100
For military families, USAA is the best auto insurance provider in Tennessee, scoring 98 out of 100. USAA’s policies are exclusively for active-duty military members, veterans and their eligible family members, which is why MoneyGeek excluded USAA from the overall analysis.
The Top Car Insurance Companies in Memphis
1
State FarmOverall
Score:84
In Memphis, State Farm ranks first in affordability and customer satisfaction, ranking them the top among auto insurance providers. On average, State Farm’s policies cost an average of $941 per year. They offer an optional Rideshare insurance add-on, which is rarely offered amongst providers.
More About State Farm
State Farm stands as the best auto insurer in Memphis, ranking highly in affordability and customer satisfaction. Drivers can supplement their policies with State Farm’s rideshare insurance, which ensures that their personal auto insurance coverage still stays in effect even while working for a ridesharing company. Aside from liability insurance, all other coverages are extended once the ridesharing app is on and you are available for hire.
Read MoneyGeek's State Farm auto Insurance Review2
Erie
Score:83
Erie is the second-best provider in Memphis, ranking highly in claims ratings and customer satisfaction. Policies from Erie cost an average of $951 per year. They offer a unique better car replacement coverage, which other providers rarely offer.
More About Erie
On top of great customer service, Erie offers policyholders a unique better car replacement coverage. If your car is less than two years old, this can help replace your new car with the latest-year model if it gets totaled. Even if your car isn’t new, Erie’s new car replacement coverage will still replace your car with a model two years newer than your current if your car is totaled in a covered event.
Read MoneyGeek's Erie auto Insurance ReviewRESOURCES ON CAR INSURANCE IN MEMPHIS, TENNESSEE
MoneyGeek also found the cheapest insurers in Tennessee if you're looking for an affordable auto insurance provider. We looked at:
Best Cheap Car Insurance for Minimum Coverage in Memphis
For drivers who are only interested in minimum-liability policies, MoneyGeek examined the best provider following the minimum car insurance requirements in Tennessee, which is set by insurance laws. The two top-rated insurance companies in Memphis are:
- State Farm: 85 out of 100
- GEICO: 85 out of 100
MoneyGeek’s score is based on drivers with different backgrounds and driving histories. This includes young and old drivers and drivers with violations.
MoneyGeek’s Pick: State Farm
pros
Minimum coverage policies cost an average of $441 per year
Offers discounts for bundling, being a good student and having a new vehicle
MoneyGeek satisfaction score of 4.5 out of 5
MoneyGeek claims rating of 4 out of 5
cons
Does not offer discounts for going paperless or paying in full
COMPANY HIGHLIGHTS
To help make policies more affordable, State Farm offers a few common discounts, including bundling, multiple car and safe driving. A safe driving discount, for instance, can help you lower your premium if you are insured with State Farm for at least three continuous years without any violations.
One of State Farm’s rarer coverage options is a new vehicle discount, which can grant you savings on medical payments coverage if your vehicle was made in 1994 or later. The company also offers a defensive driving discount, which reduces your premiums if you take an accredited defensive driving course.
Best Car Insurance for Young Drivers in Memphis
For policyholders with young drivers on their policy, MoneyGeek identified the best providers in the city that can balance both customer satisfaction and cost.
Based on these factors, the best auto insurance companies in Memphis for young drivers are:
- Erie: 97 out of 100
- GEICO: 92 out of 100
MoneyGeek’s ratings are based on a blend of different drivers, taking into account varying policy coverages and driving histories for 18-year-olds. Keep in mind that car insurance for students and car insurance for young drivers is more expensive given that these driver groups carry increased risk.
MoneyGeek’s Pick: Erie
pros
An affordable full coverage policy for a safe driver is $2,382 per year
Offers distant student, driver’s education and young safe driver discounts
MoneyGeek satisfaction score of 4.5 out of 5
MoneyGeek claims rating of 5 out of 5
cons
No discounts for being a good student
COMPANY HIGHLIGHTS
Adding a young driver to your policy can significantly increase your premiums, but Erie offers the best and most affordable option in Memphis. A company that can balance both customer service and costs can help alleviate the stress and difficulty of filing a claim.
Erie also offers young and student driver-related discounts to help make policies more affordable. For instance, their young driver discount grants savings to unmarried individuals under 21 who still reside with their parents. Policyholders can also acquire Erie’s accident forgiveness coverage, which can help reduce the risk of a premium hike so long as you remain claims-free for at least three years.
Best Car Insurance for Senior Drivers in Memphis
Using a senior driver profile and examining a company’s affordability, customer satisfaction and financial stability, MoneyGeek identified that the top-rated auto insurers in Memphis are:
- State Farm: 88 out of 100
- Erie: 86 out of 100
Scores were analyzed based on a blend of average rates for different policy coverages and driver histories for 70-year-old drivers.
Note that auto insurance for seniors is typically more expensive than for middle-aged drivers due to the increased risk of a crash, so it’s important to compare rates and offers between providers.
MoneyGeek’s Pick: State Farm
pros
Affordable full coverage at an average of $915 per year for safe drivers
Discount available for defensive driving
MoneyGeek satisfaction score of 4.5 out of 5
MoneyGeek claims rating of 4 out of 5
cons
No discounts specifically for being a senior driver
Does not offer unique coverages
COMPANY HIGHLIGHTS
Senior car insurance is the same as a typical policy, but insurers often charge more. Fortunately, State Farm offers an affordable policy for seniors with great customer service and a few discount options to help save on costs.
State Farm’s defensive driving discount can help seniors who have taken an accredited driver’s education course save on premiums. Seniors can also supplement their protection by getting State Farm’s roadside assistance coverage, which can help pay for towing costs and the delivery of gas, oil or battery while on the road. Driver’s can also take advantage of State Farm’s rental car and travel reimbursement coverage.
Best Car Insurance With a Driving Violation in Memphis
Drivers in Memphis with a violation on their record may have a hard time finding good insurance, which is why MoneyGeek analyzed the best companies based only on the profile of a driver with an at-fault accident on their record.
The best car insurance companies in Memphis for those with an accident on their record are:
- State Farm: 90 out of 100
- Erie: 90 out of 100
MoneyGeek’s ratings are based on a blend of different policy limits and coverages and driver ages.
Auto insurance for drivers with a bad record can be more expensive, but the actual cost will depend on the violation.
MoneyGeek’s Pick: State Farm
pros
Full coverage policy costs an affordable average of $1,114 per year
Offers many common discounts to help save on policies
MoneyGeek satisfaction score of 4.5 out of 5
MoneyGeek claims rating of 4 out of 5
cons
Does not offer accident forgiveness coverage
COMPANY HIGHLIGHTS
Drivers with a violation on their record should opt for companies that can offer them great service and savings. State Farm offers just that, ranking highly in customer satisfaction and affordability.
Getting one of State Farm’s optional coverages, such as roadside assistance, can help drivers worried about getting into an accident. Discounts offered by State Farm can also ease the significant premium increase that drivers with violations face. For instance, drivers can get a discount for bundling, having new or multiple cars and having an anti-theft system installed.
Best Car Insurance With a Military Background in Memphis
In Memphis, USAA offers the best auto insurance policy for military members. The company has an excellent balance between affordability and customer service, earning a MoneyGeek score of 100.
However, USAA's products are only available to active military members and veterans and eligible family members. You cannot purchase a USAA policy if you are not a service member or are not related to one.
MoneyGeek's scores for USAA take into account both young and older drivers and drivers with violations and different backgrounds.
MoneyGeek’s Pick: USAA
pros
Offers an affordable full coverage policy at an average of $661 per year
Has five common discounts, including a safe driver discount
MoneyGeek satisfaction score of 4.5 out of 5
MoneyGeek claims rating of 5 out of 5
cons
Only offers three of the seven common coverages and is missing new or better car replacement coverages
Policies are only available for military members, veterans and eligible family members
COMPANY HIGHLIGHTS
USAA consistently ranks as one of the top insurance providers across the country due to its affordability and service ratings.
Policyholders can enhance their protection with coverages such as roadside assistance, rental car and travel reimbursement and accident forgiveness. For example, rental car or travel reimbursement can help pay for the cost of getting to and from locations if your car is being repaired or totaled.
USAA offers five out of nine of the most commonly used discounts, such as bundling, multiple car, good student, safe driving and defensive driving. You can also get a discount for storing an insured car with USAA and staying with USAA for a set length of time.
Methodology
MoneyGeek evaluated ratings from industry leaders such as J.D. Power, AM Best and the National Association of Insurance Commissioners (NAIC) to identify the best auto insurance companies in Memphis, Tennessee.
Considering cost differences and quality of service differences, MoneyGeek determined which company had the highest MoneyGeek score based on a particular driver profile. Each driver category is weighted differently later on.
Weightings for MoneyGeek scores are as follows:
- General customer and claims satisfaction (20%): Using J.D. Power customer and claims satisfaction surveys, each worth 10%, MoneyGeek rated Memphis insurers on a scale of one to five.
- Affordability (70%): Based on a five-point scale, MoneyGeek rated the affordability of insurers in Memphis. The overall affordability score is calculated based on factors such as age, driving record and insurance coverage limits.
- Financial stability (10%): AM Best's financial strength ratings were used to determine an insurer's ability to pay claims during hard financial conditions.
MoneyGeek analyzed a full coverage policy considering these limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability
- Comprehensive and collision coverage with a $1,000 deductible
MoneyGeek gathered insurance quotes for a 40-year-old male driver in Memphis who drives a Toyota Camry with a clean driving record. Quadrant Information Services provided average quotes for full coverage policies. Review MoneyGeek's auto insurance methodology to learn more about how we collect and analyze data.
About Mark Fitzpatrick
sources
- Erie. "Auto Insurance." Accessed May 11, 2022.