Cheapest Car Insurance Companies in Memphis, TN (2024 Rates)


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ByMark Fitzpatrick
Edited byJonathan Ramos
ByMark Fitzpatrick
Edited byJonathan Ramos

Updated: May 20, 2024

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The most affordable car insurance for you depends on your driving record and preferences. Auto-Owners Insurance is the cheapest choice for sports car drivers and those seeking minimum coverage in Memphis.

For full coverage, State Farm is the cheapest option and the most reasonable for drivers with violations, young adults and seniors. Nationwide offers the most affordable rates for teens, while Tennessee Farm Bureau is the cheapest option for those with poor credit. Military drivers and their families can find the lowest rates from USAA.

MoneyGeek also identified the providers offering the best balance of quality and affordable car insurance in Memphis.

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2024

Cheapest Car Insurance in Memphis, TN

Why Trust MoneyGeek? We thoroughly analyzed auto insurance providers in Memphis, using data and information from the Tennessee Department of Commerce and Insurance and Quadrant Information Services.

59,840Quotes Analyzed
 
16Companies Compared

Cheapest Minimum Coverage Car Insurance in Memphis

According to our evaluation, the cheapest auto insurers for minimum coverage policies in Memphis are:

  • Auto-Owners Insurance: $299 per year
  • State Farm: $318 per year

Progressive charges the highest average rates for minimum coverage at $660 per year. As of October 2022, Auto-Owners Insurance also offers the cheapest auto insurance in Tennessee, starting at approximately $205 per year.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Minimum Coverage
Auto-Owners Insurance CoAnnual Premium$299Monthly Premium$25
State FarmAnnual Premium$318Monthly Premium$26
ErieAnnual Premium$388Monthly Premium$32
Tennessee Farm BureauAnnual Premium$406Monthly Premium$34
WestfieldAnnual Premium$440Monthly Premium$37
Cincinnati InsuranceAnnual Premium$448Monthly Premium$37
GEICOAnnual Premium$476Monthly Premium$40
ChubbAnnual Premium$498Monthly Premium$42
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All minimum coverage auto insurance policies in Tennessee must provide coverage for bodily injuries and property damage with the following limits:

  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

If you have a liability-only policy and are found at fault in an accident, your insurance company will cover damages to the other driver and their passengers, up to $50,000 in medical expenses but only $25,000 per individual. You will be responsible for any costs that exceed these limits.

Cheapest Full Coverage Car Insurance in Memphis

If you're looking for full coverage in Memphis, the cheapest companies are:

  • State Farm: $743 per year
  • Auto-Owners Insurance: $746 per year

Progressive charges the highest premiums in Memphis, starting at around $1,617 annually. As of October 2022, Auto-Owners Insurance offers the cheapest full coverage car insurance in Tennessee at just $608 per year. It's worth noting that insurance premiums can vary significantly by location, explaining why Memphis residents may face higher rates than those in neighboring cities.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Full Coverage
State FarmAnnual Premium$743Monthly Premium$62
Auto-Owners Insurance CoAnnual Premium$746Monthly Premium$62
ErieAnnual Premium$919Monthly Premium$77
WestfieldAnnual Premium$996Monthly Premium$83
Cincinnati InsuranceAnnual Premium$1,040Monthly Premium$87
NationwideAnnual Premium$1,066Monthly Premium$89
AllstateAnnual Premium$1,087Monthly Premium$91
Tennessee Farm BureauAnnual Premium$1,106Monthly Premium$92

While minimum coverage car insurance only provides liability coverage, a full coverage policy includes comprehensive and collision protection.

  • Collision insurance: Covers damages to your vehicle sustained in at-fault accidents, including collisions with objects or other vehicles.
  • Comprehensive insurance: Provides financial protection for non-collision-related incidents, including severe weather events, vandalism and theft.

Full coverage policies are generally recommended for most drivers as they offer protection for a broader range of incidents, but they may not be cost-effective for those who own older vehicles with lower values.

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Cheapest Car Insurance in Memphis After a Driving Offense

State Farm offers the cheapest auto insurance in Memphis for drivers with offenses:

  • Speeding ticket: State Farm ($815 per year)
  • At-fault accident: State Farm ($887 per year)
  • DUI: State Farm ($815 per year)

Progressive charges the highest annual rates for drivers with speeding tickets or at-fault accidents on their record, at $2,134 and $2,927, respectively. Chubb is the most expensive for drivers with a DUI, averaging around $5,057 per year. Remember that a poor driving record can significantly increase your auto insurance expenses. Even if you find the most affordable quotes for drivers with violations, they may still exceed those available to safe drivers.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Full Coverage
Incident:
Incident:Speeding
State FarmAnnual Premium$815Monthly Premium$68
ErieAnnual Premium$953Monthly Premium$79
Auto-Owners Insurance CoAnnual Premium$1,073Monthly Premium$89
Tennessee Farm BureauAnnual Premium$1,106Monthly Premium$92
WestfieldAnnual Premium$1,196Monthly Premium$100
AllstateAnnual Premium$1,217Monthly Premium$101
Cincinnati InsuranceAnnual Premium$1,237Monthly Premium$103
NationwideAnnual Premium$1,252Monthly Premium$104

Driving offenses often lead to higher auto insurance rates, with the severity of the violation impacting the extent of the price hike. In Memphis, a speeding ticket can cause average annual premiums to rise by $242, while a DUI can result in a much higher increase of $988 per year.

While premiums are more likely to increase after a driving offense, finding affordable car insurance with a bad driving record is still possible.

Cheapest Car Insurance in Memphis for Teens and Their Families

The companies offering the most affordable auto insurance for teens on a family policy in Memphis are:

  • Nationwide: $1,681 per year for female teens; $1,923 for male teens
  • State Farm: $1,913 per year for female teens
  • Allstate: $2,140 per year for male teens

Progressive has the highest rates in Memphis, charging $3,849 annually for girls and $4,159 for boys. Insurance companies often charge higher rates for male teens as they are generally considered riskier drivers than their female counterparts. For example, male teens insured by Nationwide in Memphis may pay $243 more. However, this gap in rates usually diminishes by early adulthood.

Data filtered by:Results filtered by:
Age:
Age:16
Gender:
Gender:Female
NationwideFamily Plan Annual Premium$1,681Individual Plan Monthly Premium$6,262
State FarmFamily Plan Annual Premium$1,913Individual Plan Monthly Premium$6,225
AllstateFamily Plan Annual Premium$2,031Individual Plan Monthly Premium$11,166
FarmersFamily Plan Annual Premium$2,616Individual Plan Monthly Premium$15,360
TravelersFamily Plan Annual Premium$2,637Individual Plan Monthly Premium$8,767
Auto-Owners Insurance CoFamily Plan Annual Premium$3,007Individual Plan Monthly Premium$9,182
GEICOFamily Plan Annual Premium$3,325Individual Plan Monthly Premium$10,740
ProgressiveFamily Plan Annual Premium$3,849Individual Plan Monthly Premium$18,014

Including your teen in a family policy could save you thousands of dollars. MoneyGeek's analysis shows that adding a 16-year-old male to a family's auto insurance policy in Memphis costs $2,273 per year, which is $2,890 less than buying a separate policy. It's important to compare options and various quotes to find the cheapest auto insurance for teens.

Cheapest Car Insurance in Memphis for Military Drivers

These providers offer the most affordable full coverage car insurance to veterans, active military members and their families:

  • USAA: $613 per year
  • State Farm: $743 per year

For minimum coverage policies, military drivers can find the cheapest car insurance with USAA at $245, followed by Auto-Owners Insurance at $299 per year.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Full Coverage
USAAAnnual Premium$613Monthly Premium$51
State FarmAnnual Premium$743Monthly Premium$62
Auto-Owners Insurance CoAnnual Premium$746Monthly Premium$62
ErieAnnual Premium$919Monthly Premium$77
WestfieldAnnual Premium$996Monthly Premium$83
Cincinnati InsuranceAnnual Premium$1,040Monthly Premium$87
NationwideAnnual Premium$1,066Monthly Premium$89
AllstateAnnual Premium$1,087Monthly Premium$91

How to Compare Cheap Memphis Car Insurance Quotes Online

Getting an online quote from one insurance provider can take about 15 minutes. If you plan to compare rates from different insurers, prepare to spend a considerable amount of time providing your personal information.

You can use MoneyGeek's car insurance calculator for a quick estimate. It will determine an average quote based on your age, vehicle type, coverage preferences and driving history. Rest assured that we won't disclose your information to auto insurance companies.

Car Insurance Calculator

MoneyGeeks's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.

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Rates updated:

Jun 13, 2024

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Cheapest Car Insurance in Memphis for Young Adults

The following companies offer the cheapest car insurance for young adults in Memphis:

  • State Farm: $950 per year
  • Auto-Owners Insurance: $1,075 per year

Progressive offers the most expensive coverage, with a premium of $2,082 per year. While 25-year-olds pay less than teens, their annual insurance rates are still higher than the average 40-year-old driver. In Memphis, younger drivers spend an average of $1,405 per year, which is $300 more than middle-aged drivers, who pay around $1,105 annually.

Data filtered by:Results filtered by:
Age Group:
Age Group:22-29
Coverage:
Coverage:Full Coverage
State FarmAnnual Premium$950Monthly Premium$79
Auto-Owners Insurance CoAnnual Premium$1,075Monthly Premium$90
AllstateAnnual Premium$1,172Monthly Premium$98
ErieAnnual Premium$1,223Monthly Premium$102
WestfieldAnnual Premium$1,276Monthly Premium$106
NationwideAnnual Premium$1,279Monthly Premium$107
Cincinnati InsuranceAnnual Premium$1,315Monthly Premium$110
Grange InsuranceAnnual Premium$1,323Monthly Premium$110

Cheapest Car Insurance in Memphis for Seniors

The following insurers provide the cheapest full coverage car insurance in Memphis for senior drivers:

  • State Farm: $680 per year
  • Auto-Owners Insurance: $710 per year

American National P&C has the highest rates, averaging $1,473 per year. Senior drivers in Memphis typically pay slightly less, around $1,054 per year, compared to 40-year-old drivers who pay $1,105, representing a $51 difference. However, other affordable auto insurance providers for senior drivers are worth considering if you wish to explore more options.

Data filtered by:Results filtered by:
Age Group:
Age Group:60 +
Coverage:
Coverage:Full Coverage
State FarmAnnual Premium$680Monthly Premium$57
Auto-Owners Insurance CoAnnual Premium$710Monthly Premium$59
Cincinnati InsuranceAnnual Premium$847Monthly Premium$71
ErieAnnual Premium$913Monthly Premium$76
Tennessee Farm BureauAnnual Premium$964Monthly Premium$80
NationwideAnnual Premium$982Monthly Premium$82
WestfieldAnnual Premium$1,011Monthly Premium$84
FarmersAnnual Premium$1,074Monthly Premium$90

Cheapest Car Insurance in Memphis for Poor Credit

The following insurers offer the cheapest rates for drivers with bad credit in Memphis:

  • Tennessee Farm Bureau: $1,278 per year
  • Nationwide: $1,313 per year

Progressive is the most expensive auto insurance provider in our city-wide comparison, with an average annual rate of $2,657. Drivers in Memphis with poor credit usually face an additional $771 for their car insurance compared to those with good credit, roughly a 70% increase. However, you can compare rates to find affordable car insurance with a bad credit history.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Full Coverage
Tennessee Farm BureauAnnual Premium$1,278Monthly Premium$106
NationwideAnnual Premium$1,313Monthly Premium$109
Grange InsuranceAnnual Premium$1,506Monthly Premium$126
AllstateAnnual Premium$1,697Monthly Premium$141
Cincinnati InsuranceAnnual Premium$1,723Monthly Premium$144
FarmersAnnual Premium$1,729Monthly Premium$144
GEICOAnnual Premium$1,754Monthly Premium$146
WestfieldAnnual Premium$1,816Monthly Premium$151

Auto insurance companies typically view drivers with poor credit as more likely to file claims, which results in higher premium costs. Nonetheless, there are strategies to receiving lower rates, like securing discounts, comparing carriers and bundling your home and car coverage. Improving your credit score over time will help you get cheaper insurance rates.

Cheapest Car Insurance in Memphis for Sports Cars

The following providers offer the cheapest car insurance for sports car drivers in Memphis:

  • Auto-Owners Insurance: $765 per year
  • State Farm: $916 per year

Progressive charges the most expensive premiums in Memphis, averaging around $1,908 per year.

The type of car you drive can significantly impact your insurance cost. Drivers in Memphis who own a Toyota Camry or a similar standard car typically pay around $1,105 for auto insurance, while Ford Mustang owners spend about $1,212. This is a difference of approximately $106, representing a percentage difference of around 10%.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Coverage:
Coverage:Full Coverage
Auto-Owners Insurance CoAnnual Premium$765Monthly Premium$64
State FarmAnnual Premium$916Monthly Premium$76
FarmersAnnual Premium$1,051Monthly Premium$88
AllstateAnnual Premium$1,102Monthly Premium$92
TravelersAnnual Premium$1,124Monthly Premium$94
NationwideAnnual Premium$1,251Monthly Premium$104
GEICOAnnual Premium$1,340Monthly Premium$112

We collected rates for a Ford Mustang to examine auto insurance costs for sports cars, but the rates can differ significantly based on the make and model of your vehicle. In Memphis, luxury, sports or electric vehicle drivers generally pay a higher average premium for car insurance, which is consistent with nationwide trends.

Average Cost of Car Insurance in Memphis

Car insurance in Memphis costs around $1,105 per year, which is $160 cheaper than the national average car insurance rate of $1,265 per year but $206 more expensive than the annual cost of car insurance in Tennessee, which is about $899. Among Tennessee cities, like Knoxville ($838), Clarksville ($853) and Chattanooga ($858), Memphis has the highest car insurance rates.

These rates are calculated based on a full coverage policy that includes bodily injury liability limits of $100,000 per person and $300,000 per accident, as well as property damage liability of $100,000 per accident. It's important to remember that your location is of many factors that affect car insurance rates.

KnoxvilleFull Coverage Average Annual Premium$838Minimum Coverage Average Annual Premium$365
MurfreesboroFull Coverage Average Annual Premium$841Minimum Coverage Average Annual Premium$368
ClarksvilleFull Coverage Average Annual Premium$853Minimum Coverage Average Annual Premium$373
ChattanoogaFull Coverage Average Annual Premium$858Minimum Coverage Average Annual Premium$379
Nashville-DavidsonFull Coverage Average Annual Premium$913Minimum Coverage Average Annual Premium$407
MemphisFull Coverage Average Annual Premium$1,105Minimum Coverage Average Annual Premium$496

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.