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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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%.

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.

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.