Compare the Cheapest Car Insurance Quotes in Memphis, TN

The average auto insurance rate in Memphis is $1,177 annually, slightly higher than the state average. The cheapest widely-available insurance provider for Memphis drivers is GEICO, which has an average premium of $877. MoneyGeek analyzed the cheapest across coverage levels and driving history. Additionally, MoneyGeek ranked insurers to find the best companies that balance quality and affordability.

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Last Updated: 5/16/2022
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Car insurance prices depend on your coverage preferences, profile and driving history. GEICO is Memphis’ cheapest full coverage and state minimum car insurance provider. Meanwhile, Erie is the most affordable insurer for drivers with a speeding ticket. USAA offers the cheapest options for drivers who are in the military. MoneyGeek’s best-rated auto insurance overall in Memphis is Erie, as it balances cost and customer service.

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The Cheapest and Best Car Insurance in Memphis

The Cheapest Car Insurance Companies in Memphis

A full coverage car insurance policy includes liability, comprehensive and collision coverages. It financially protects the driver from most circumstances with its wide coverage.

MoneyGeek’s research shows these insurers offer the cheapest full coverage policies for an average driver in Memphis:

  • GEICO: $877 per year
  • State Farm: $941 per year

USAA is an affordable option for military members and their families at an average premium of $661 per year. It’s the cheapest provider in Memphis, and it’s 153.5% less expensive than Farmers, the city’s most expensive insurer.

Cheapest Car Insurance in Memphis
Full Coverage 100/300/100
  • Company
    100/300/100per year
  • 1.
    USAA
    $661
  • 2.
    GEICO
    $877
  • 3.
    State Farm
    $941
  • 4.
    Erie
    $951
  • 5.
    Tennessee Farmers
    $1,073
  • 6.
    Progressive
    $1,116
  • 7.
    Travelers
    $1,202
  • 8.
    Allstate
    $1,269
  • 9.
    MetLife
    $1,328
  • 10.
    Nationwide
    $1,336
  • 11.
    Farmers
    $1,677

The car insurance rates in this study are for a 40-year-old male driver in Memphis with a full coverage policy, following MoneyGeek’s methodology.

A full coverage auto insurance policy includes comprehensive coverage, collision coverage and the state’s minimum required coverages. It provides extensive financial protection in case of an accident. However, because of its increased coverage, it’s more expensive than a minimum coverage policy.

  • Comprehensive Coverage: Covers expenses from damage caused by events other than collision. These losses may be due to weather events like hail, in addition to falling trees, theft and fire.
  • Collision Coverage: Covers vehicle repairs if you’re in an accident.

If you have an older vehicle, remember that a full coverage insurance policy can be more expensive than your car’s actual replacement value. If that’s the case, liability-only or state minimum insurance is recommended to obtain the cheapest rates possible.

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Insurance Rates

Cheapest Car Insurance in Memphis for Minimum Coverage

If you’re looking for the cheapest car insurance offers in Memphis, a state minimum policy is an ideal option. While minimum coverage policies are significantly more affordable than full coverage, they offer much less protection in the event of an accident because they don’t have comprehensive and collision coverages.

MoneyGeek’s study found that these companies have the cheapest state minimum policies in Memphis:

  • GEICO: $409 per year
  • Tennessee Farmers: $415 per year

At $357 annually, USAA offers the cheapest state minimum policies in Memphis for eligible military members and their families. It’s $539 less expensive than the city’s priciest state minimum provider, Farmers.

You can see how liability coverage affects car insurance rates in the table below.

Cheapest Minimum Liability Car Insurance in Memphis
State Minimum

It’s a requirement in Tennessee that drivers have a minimum coverage policy that covers bodily injury liability, property damage liability, uninsured motorist bodily injury and uninsured motorist property damage.

A minimum coverage policy is the cheapest available car insurance in Memphis, and buying it will lead to savings in your insurance premiums. However, in case of an accident, you may end up paying much more.

In Tennessee, liability insurance only covers $25,000 for bodily injuries per person. If you’re in an accident and the injured party’s medical expenses reach $35,000, just that $25,000 will be covered by the insurer. You’ll be responsible for paying the remaining $10,000 yourself.

Tennessee Minimum Liability Requirements

  • Item
    Description
  • Bodily Injury and Property Damage
    $25,000 per person, $50,000 per accident and $15,000 for property damage. A more protective level is 100/300/100.

Cheapest Car Insurance in Memphis if You Have Driving Violations

If you get a speeding ticket, your car insurance premiums can go up. The same is true if you’re charged with a DUI, an at-fault accident or other driving violations. By improving your driving history, your rates may be lowered, but that takes time.

That means your best option right now is to compare car insurance offers to find the lowest rates. MoneyGeek’s research shows these companies offer the cheapest car insurance policies in Chicago for drivers with a bad driving record:

  • Cheapest after a ticket: Erie, $982 per year
  • Cheapest after an at-fault accident: Tennessee Farmers, $1,073 per year
  • Cheapest after a DUI: State Farm, $1,027 per year
Cheapest Car Insurance in Memphis With a Violation
Speeding Ticket

Average Cost of Car Insurance in Memphis

Memphis$1,177
Tennessee$1,018
U.S.$1,424

The average car insurance rate in Memphis is $1,177 per year. In comparison, the annual average cost in Tennessee is $1,018, while the average cost nationwide is $1,424. The average cost of car insurance in Memphis is 15.6% more expensive than the typical cost in the rest of the state, but it is still 17.4% cheaper than the national average.

Car insurance rates vary depending on many factors, and you can find the best and most personalized auto coverage rates by requesting and comparing personalized car insurance quotes.

Personalized Quotes to Get You the Cheapest Car Insurance in Memphis

There are several factors that affect your profile and your personalized insurance rate. Aside from your coverage level, your ZIP code, driving history, make and model of vehicle and credit history will also greatly affect your profile. Even teenage drivers will have a different rate compared to other classes of drivers.

To have an idea of how your profile will affect your car insurance rates, it is advisable to get personalized car insurance quotes in Memphis on a regular basis. By doing so, you will also have the opportunity to see if there are discounts, savings or rebates available to you.

Compare Car Insurance Rates in Memphis

Ensure you're getting the best rate for your car insurance. Compare quotes from the top insurance companies.

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Insurance Rates

The Best Car Insurance Companies in Memphis

MoneyGeek ranked the best car insurance companies in Memphis to help you find a provider that offers both affordability and quality customer service.

Our study shows that overall the best car insurance companies for most Memphis drivers are:

  • Erie: MoneyGeek score of 93 out of 100
  • Auto-Owners Insurance Co: MoneyGeek score of 90 out of 100

USAA earned the highest score in Memphis following MoneyGeek’s rating system. However, because only active military members, veterans and their families are eligible to be insured through the company, we did not list it as best overall.

To determine scores out of 100, MoneyGeek uses various factors, which include J.D. Power customer satisfaction, affordability and insurer financial stability ratings.


1
USAA
Score:95

4/5

Affordability

5/5

Claims Ratings

4/5

User Satisfaction

A++

Financial Stability

2
Erie
Score:92.5

4/5

Affordability

5/5

Claims Ratings

4/5

User Satisfaction

A+

Financial Stability

3
Auto-Owners Insurance Co
Score:90

4/5

Affordability

3/5

Claims Ratings

4/5

User Satisfaction

A++

Financial Stability

4
GEICO
Score:85

3/5

Affordability

3/5

Claims Ratings

3/5

User Satisfaction

A++

Financial Stability

5
State Farm
Score:82.5

3/5

Affordability

3/5

Claims Ratings

4/5

User Satisfaction

A

Financial Stability

6
Nationwide
Score:80

2/5

Affordability

3/5

Claims Ratings

3/5

User Satisfaction

A+

Financial Stability

7
Travelers
Score:80

2/5

Affordability

3/5

Claims Ratings

2/5

User Satisfaction

A++

Financial Stability

8
MetLife
Score:80

3/5

Affordability

3/5

Claims Ratings

2/5

User Satisfaction

A+

Financial Stability

9
Safeco
Score:77.5

3/5

Affordability

2/5

Claims Ratings

3/5

User Satisfaction

A

Financial Stability

10
Progressive
Score:77.5

3/5

Affordability

2/5

Claims Ratings

2/5

User Satisfaction

A+

Financial Stability

11
Allstate
Score:75

2/5

Affordability

2/5

Claims Ratings

2/5

User Satisfaction

A+

Financial Stability

12
Liberty Mutual
Score:75

2/5

Affordability

3/5

Claims Ratings

2/5

User Satisfaction

A

Financial Stability

13
National General
Score:72.5

3/5

Affordability

2/5

Claims Ratings

2/5

User Satisfaction

A-

Financial Stability

Average Cost of Car Insurance by Postal Code

Your ZIP code is another factor that will make a difference in your auto insurance rates. In some areas where there are higher cases of car thefts and accidents, it will cost you more to get car insurance. In Memphis, ZIP codes have slight differences in average annual premiums, ranging from $1,170 to $1,186 on average. The most expensive ZIP code for auto insurance is 38127, but rates in this area are only about $16 higher than those in 38116.

If you get your auto insurance in Memphis, you can expect to pay a higher price than in any city in Tennessee. Moreover, the highest insurance rates in Tennessee are all located in the Memphis metro area.

  • Zip Code
    State Minimumper year
  • 38116
    $1,170
  • 38109
    $1,173
  • 38128
    $1,179
  • 38127
    $1,186

Factors That Impact Insurance Costs in Memphis

In addition to individual driver needs and history, location-specific factors like the percentage of uninsured motorists and the rate of fatal accidents also contribute to car insurance rates in Memphis. How Memphis ranks compared to the 300 most populous cities in the United States can have a significant impact on premium costs.

accident2 icon
Most Accidents With Fatalities16th/300
handcuffs2 icon
Most Car Thefts237th/300
uninsured icon
Most Uninsured Motorists by State5th/50
insurance2 icon
Personal Injury Protection RequiredNo
rain icon
Most Annual Rainfall25th/300
umbrella icon
Most Rainy Days129th/300

Methodology and Assumptions

MoneyGeek’s average premium rates for Memphis are based on 100/300/100 comprehensive collision coverage with a $1,000 deductible for a 40-year-old male driver. The average driver profiled drives a 2010 Toyota Camry LE and has no tickets or accidents on their record. Additional premiums are added based on coverage type, location and driving record. Learn more about MoneyGeek’s data and methodology here.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.