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.
Compare the Cheapest Car Insurance Quotes in Memphis, TN
The Cheapest and Best Car Insurance in Memphis
The Cheapest Car Insurance Companies in Memphis
The cheapest companies in Memphis for a full coverage auto insurance policy are:
- USAA: $661 per year (only available to current and former military members)
- GEICO: $877 per year
Among the car insurance companies in Memphis, USAA offers the cheapest average annual rate at $661. However, USAA only provides insurance for those in the military and their family members. The second cheapest average annual rate is $877 from GEICO. Meanwhile, Farmers is offering the most expensive annual average at $1,677, which is roughly $500 more expensive than the city average.
Although these auto insurance rates can be used for reference, it is important to know that these prices will vary from person to person. There are other factors that will significantly impact your insurance rates, such as your ZIP code and driving history.
For this study, MoneyGeek gathered insurance rates for a 40-year-old male driver with a full coverage policy, which includes liability insurance and comprehensive and collision insurance.
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Average Cost of Car Insurance in Memphis
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 quotes
The Best Car Insurance Companies in Memphis
MoneyGeek ranked auto insurance carriers in Memphis based on the cost of premiums and the quality of service. The best car insurers in the city based on MoneyGeek’s study for most drivers are:
- Erie: MoneyGeek score of 93 out of 100
- Auto-Owners Insurance Co: MoneyGeek score of 90 out of 100
USAA received the highest score in Memphis by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
MoneyGeek’s scoring system includes J.D. Power user satisfaction, affordability and financial stability.
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.
Shopping around for car insurance in Memphis could save you $300, which is enough to buy:
Cheapest Car Insurance in Memphis by Coverage Amount
The cost of auto insurance is affected by various factors. In Memphis and elsewhere, the amount of coverage you buy plays a big role in determining how much your annual premium will be. A policy only meeting state minimums costs $585 on average in Memphis. A full coverage policy averages $1,177 per year, which is $591 more.
Tennessee Minimum Liability Requirements
- 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.
The minimum coverage required per state will obviously cost less than getting full-coverage insurance. However, there are some locations where there is only a small pricing difference between the minimum and full coverage. For instance, in Memphis, GEICO’s state minimum liability-only policy costs an average of $409 per year.
However, there is a 50/100/50 option for both liability-only and full coverage, which covers $50,000 for injury expenses for a single person, $100,000 for all injuries per vehicle and $50,000 for property damage. GEICO has a plan that is only an average of $73 more expensive at $482 if you get a 50/100/50 liability-only policy. For the 50/100/50 full-coverage option, the cost is significantly higher at roughly $802 per year. However, since it covers both the third party and the driver, it may be an upgrade to consider.
Average Car Insurance Premiums: Liability-Only vs. Full Coverage
- CompanyState Minimumper year50 / 100 / 50per year
- 5.Tennessee Farmers$415$477
- Company50 / 100 / 50per year100 / 300 / 100per year
- 5.Tennessee Farmers$990$1,073
Cheapest Car Insurance in Memphis if You Have Driving Violations
Driving history is a factor that will greatly affect your auto insurance rate. For instance, if you have a speeding ticket or an at-fault accident on your record, your insurance will cost more. Similarly, a DUI can increase your annual insurance rate. Car insurance in Memphis for those with no violations costs an average of $877 from GEICO. If you have a speeding ticket and have a plan with GEICO, you will have to pay an average of $130 more than the $877 average. A DUI on your record will significantly increase that cost, averaging out to be an additional expense of $682 more than a driver with a clean record.
If you want to save a significant amount on your auto insurance rate, it is important to have a clear driving history.
- CompanySpeeding Ticketper yearAt-Fault Accidentper yearDUIper year
- 5.Tennessee Farmers$1,073$1,073$1,709
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 CodeState Minimumper year
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.
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.
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