Who Has Affordable Memphis Auto Insurance for College Students?

The words “bargain” and “auto insurance” really shouldn’t be used together, specifically when comparison shopping for the best price on coverage for college students. Let’s introduce you to some things that influence insurance premiums, and see how we can help you lower the cost of your next policy.

The vehicle model you are trying to insure is a large consideration when consumers are trying to find the cheapest insurance for college students. Vehicles with reasonable performance levels, advanced safety features, or a track record of few liability claims will cost quite a bit less to insure than higher performance models. The information below shows car insurance premiums for the most cost-effective automobiles to buy insurance for.

Cheapest Vehicles to Insure in Memphis, TN
Vehicle Estimated Cost for Full Coverage
Ford Escape XLS 4WD $3,773
Honda CR-V EX-L 2WD $3,831
Jeep Wrangler Sport 4WD 2-Dr $3,866
Toyota Prius $4,168
Honda Odyssey EX $4,426
Ford Focus SE 4-Dr Sedan $4,434
Ford Edge SEL 2WD $4,426
Chevrolet Equinox LT AWD $4,484
Toyota RAV4 4WD $4,492
Chevrolet Impala LT $4,484
GMC Sierra SL Extended Cab 2WD $4,493
Volkswagen Jetta S 4-Dr Sedan $4,484
Ford F-150 FX4 4WD $4,541
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Prices based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in vehicle location which can increase or decrease premium rates considerably.

Based on these rates, makes and models like the Ford Escape, Honda CR-V, and Jeep Wrangler are a few of the most economical vehicles to insure for students in college. The price of auto insurance will be higher anyway because of the fact that there is more risk for college students, but overall those specific models will most likely have the best rates that you are likely to find.

For students in college, one of the big things that help determine the price you pay for insurance is where your residence is. Areas with more people or higher crime rates will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims tend to receive cheaper rates.

The following table ranks the priciest cities in Tennessee for college students to purchase car insurance in. Memphis ranks #1 with the annual price of $1,505 for the average policyholder, which is approximately $125 monthly.

How much is car insurance in Memphis?
Rank City Annual Rate
1 Memphis $1,505
2 Bartlett $1,363
3 Collierville $1,349
4 Germantown $1,320
5 Jackson $1,266
6 Oak Ridge $1,247
7 Nashville $1,201
8 Spring Hill $1,193
9 Columbia $1,190
10 La Vergne $1,186
11 Murfreesboro $1,183
12 Knoxville $1,182
13 Clarksville $1,170
14 Maryville $1,160
15 Smyrna $1,159
16 Chattanooga $1,149
17 Cookeville $1,147
18 Brentwood $1,144
19 Franklin $1,140
20 Morristown $1,137
21 Hendersonville $1,136
22 Cleveland $1,124
23 Gallatin $1,121
24 Kingsport $1,057
25 Johnson City $1,031
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Annual rates are comparative as vehicle location can increase or decrease premiums considerably.

Finding out which insurers offer the best insurance rates for college students takes a tad more effort than just comparing rates from one or two companies. Every insurance company has a proprietary method to set policy rates, so let’s take a look at the most affordable insurance companies in Memphis, TN.

Best Car Insurance Prices for College Students

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What’s the cheapest car insurance in Tennessee?
Rank Company Cost Per Year
1 Utica National $744
2 Cincinnati Insurance $858
3 Auto-Owners $861
4 Penn National $908
5 Tennessee Farmers $923
6 USAA $929
7 Erie $957
8 Allied $1,029
9 Nationwide $1,042
10 Westfield $1,047
11 GEICO $1,144
12 Travelers $1,165
13 Progressive $1,178
14 Shelter $1,199
15 State Farm $1,213
16 Direct General $1,214
17 State Auto $1,217
18 The Hartford $1,258
19 Chubb $1,277
20 21st Century $1,300
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Utica National generally has some of the best car insurance rates in Memphis at around $744 a year. Cincinnati Insurance, Auto-Owners, Penn National, and Tennessee Farmers also are some of the cheapest Memphis, TN car insurance companies.

In this example, if you are a policyholder with Auto-Owners and switched to Utica National, you may realize annual savings of approximately $117. Drivers with Penn National might save as much as $164 a year, and Tennessee Farmers customers might realize rate reductions of up to $179 a year.

Bear in mind that those policy rates are averaged for all drivers and vehicles in Tennessee and and are not calculated with a specific zip code for college students. So the car insurance company that is best suited for you may not even be in the list above. That underscores the importance of why you need to compare rates from multiple companies using your own driver data and vehicle information.

Get discount Memphis car insurance

Save on insurance for students in college in MemphisInsurance providers that provide policies for college students may also give you premium discounts that could potentially reduce rates by as much as 25% or more if you meet specific criteria. A list of insurance companies and a summarized list of policyholder discounts include:

The information below illustrates the difference between insurance costs with and without discounts applied to the rates. The premiums are based on a female driver, no claims or driving violations, Tennessee state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with vehicle safety, passive restraint, paperless filing, paid-in-full, continuous coverage, and good student discounts applied. In this example, the average amount saved each year on insurance for college students is 21% or $247.

The information below shows how choosing a deductible can change premium costs when getting quotes for cheap insurance for college students. The premiums assume a married female driver, comprehensive and collision coverage, and no discounts are applied to the premium.

The data above shows that a 50-year-old driver could lower their policy premium by $198 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $300 by switching to a $1,000 deductible. Younger drivers, like the 20-year-old category, could roll back prices as much as $490 or even more by choosing larger deductibles on their policy. When increasing deductibles, it will be necessary to have plenty of money set aside to allow you to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.

A good deal can quickly turn bad

Tennessee insurance rates are based on many factors which can significantly increase or decrease your annual premium. Simply having another birthday, increasing deductibles, or getting a speeding ticket may generate price changes that may make certain companies cheaper in comparison to the competition.

In addition to those changes, insurance companies change their prices every year to adjust for heavy claims or excess profits. A period of increased losses can cause rate hikes, while better underwriting may produce more affordable Memphis car insurance rates.

The bar chart below demonstrates which company has the cheapest car insurance in Memphis, TN for a 40-year-old male driver with no accidents, a clean driving record, and solid credit. If we estimate rates based on his current situation, Utica National quotes the lowest car insurance rates in Memphis at $1,043 annually. This is $285 less than the average rate paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also make the list of the most affordable Memphis, TN auto insurance companies.

Now we will pretend the driver from above some claims, a lower credit rating, and a few blemishes on his driving record. Since each company has their own unique process to set premium rates, comparing prices will most likely result in a completely different list of companies as shown below.

Erie now has the cheapest rate in Memphis, TN with Nationwide, Allied, Westfield, and GEICO now rounding out the top five. This example demonstrates why it is crucial to do a thorough rate comparison when trying to get the best auto insurance rates for college students.

Insurance rates can be determined by many risk factors and can increase or decrease at any time, so the best company the last time you shopped your coverage around may now cost much more than other companies.