The words “low-priced” and “insurance” really don’t belong together, in particular when comparison shopping for the cheapest coverage for welfare recipients. Let’s start off by going over some things that determine auto insurance rates, and find out if you can lower the price of your next policy.
For drivers on welfare, one of the more important things that are looked at to help calculate the amount you pay for auto insurance is the neighborhood you call home. Areas with increased crime or more people tend to have more expensive car insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims get the luxury of paying less.
The information below rates the most expensive areas in Tennessee for welfare recipients to buy car insurance in. Memphis comes in at #1 with an annual cost of $1,490 for car insurance, which is approximately $124 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Memphis | $1,490 |
| 2 | Bartlett | $1,377 |
| 3 | Collierville | $1,363 |
| 4 | Germantown | $1,320 |
| 5 | Jackson | $1,305 |
| 6 | Oak Ridge | $1,247 |
| 7 | Knoxville | $1,218 |
| 8 | Maryville | $1,208 |
| 9 | Nashville | $1,201 |
| 10 | Clarksville | $1,194 |
| 11 | Spring Hill | $1,193 |
| 12 | Columbia | $1,190 |
| 13 | La Vergne | $1,186 |
| 14 | Smyrna | $1,183 |
| 15 | Franklin | $1,175 |
| 16 | Cookeville | $1,171 |
| 17 | Hendersonville | $1,170 |
| 18 | Murfreesboro | $1,159 |
| 19 | Chattanooga | $1,149 |
| 20 | Brentwood | $1,133 |
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Rate information is estimated as the garaging address in Memphis can raise or lower rates considerably.
The make and model of vehicle that needs insurance is a significant factor when comparison shopping for cheaper coverage for welfare recipients. Vehicles with lots of speed or power, poor passenger safety features, or an increased likelihood of liability claims will cost much more to insure than safer, lower-performance models. The next list features coverage premiums for the cheapest automobiles to buy coverage for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Explorer XLT 2WD | $1,696 |
| Ford Fusion S 4-Dr Sedan | $1,789 |
| Toyota RAV4 Limited 4WD | $1,799 |
| Toyota Camry LE | $1,789 |
| Nissan Altima 2.5 4-Dr Sedan | $1,795 |
| Honda Civic EX 4-Dr Sedan | $1,847 |
| Honda CR-V LX 4WD | $1,856 |
| Ford Escape XLS 2WD | $1,865 |
| Honda Accord EX 4-Dr Sedan | $1,856 |
| Hyundai Elantra SE Touring Station Wagon | $1,878 |
| Ford Edge SE 2WD | $1,903 |
| Chevrolet Malibu LTZ | $1,917 |
| Ford F-250 XL 2WD | $1,920 |
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Data variables include single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, multi-policy, homeowner, claim-free, and multi-vehicle. Premium costs do not factor in specific location information which can influence insurance rates substantially.
Looking at the numbers, cars like the Ford Explorer, Ford Fusion, and Toyota RAV4 are likely to be some of the cheapest vehicles to insure for drivers on welfare.
Figuring out which company quotes the cheapest car insurance rates for welfare recipients will involve a bit more work than just comparing a company or two. Each insurer has their own guidelines to determine premium rates, so we need to take a look at the car insurance companies with the overall cheapest rates in Tennessee.
It’s important to know that Memphis, TN car insurance rates are influenced by many factors that control your annual premium. Simply having a birthday, marrying your spouse, or getting a ticket for careless driving can produce rate changes that can make some companies much cheaper than others.
Best Cheap Insurance Rates in Tennessee
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $760 |
| 2 | Auto-Owners | $827 |
| 3 | Cincinnati Insurance | $884 |
| 4 | Tennessee Farmers | $933 |
| 5 | Penn National | $935 |
| 6 | USAA | $957 |
| 7 | Erie | $967 |
| 8 | Nationwide | $1,012 |
| 9 | Westfield | $1,037 |
| 10 | Allied | $1,060 |
| 11 | GEICO | $1,110 |
| 12 | Travelers | $1,177 |
| 13 | Progressive | $1,178 |
| 14 | Shelter | $1,199 |
| 15 | State Farm | $1,201 |
| 16 | Direct General | $1,238 |
| 17 | State Auto | $1,254 |
| 18 | The Hartford | $1,258 |
| 19 | Chubb | $1,277 |
| 20 | 21st Century | $1,300 |
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Utica National may have some of the lowest car insurance rates in Memphis at around $760 each year. Auto-Owners, Cincinnati Insurance, Tennessee Farmers, and Penn National also are some of the best Memphis, TN insurance companies.
As shown in the rates above, if you are insured with Auto-Owners and switched to Utica National, you might achieve annual savings of around $67. Customers with Cincinnati Insurance might save as much as $124 a year, and Tennessee Farmers policyholders might cut rates by $173 a year.
To get a quick, customized rate comparison, click here or quote prices from the following companies.
It’s important to note that these policy prices are averaged for all types of insureds and vehicles and and are not figured with a specific zip code for welfare recipients. So the auto insurance company that fits your age and vehicle best may not even be in the list above. That affirms the importance of why you need to compare as many prices as possible using your own driver data and vehicle information.
The diagram below illustrates how choosing a deductible can influence insurance prices when quoting cheap insurance for welfare recipients. The prices are based on a single male driver, comprehensive and collision coverage, and no additional discounts are factored in.
The chart above illustrates that a 50-year-old driver could lower their car insurance rates by $238 a year by changing from a $100 deductible to a $500 deductible, or save $360 by switching to a $1,000 deductible. Even younger insureds, like the age 20 example, could lower their rates up to $778 or even more just by choosing higher deductibles.
When using a larger deductible, it is necessary to have enough savings set aside to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Poor driving habits will raise your car insurance rates
The common sense way to earn good car insurance rates in Memphis for drivers on welfare is to be a careful driver and not get tickets or have accidents. The information below illustrates how speeding tickets and at-fault accidents increase insurance costs for each different age category. The premium estimates are based on a single male driver, full physical damage coverage, $1,000 deductibles, and no discounts are factored in.
The data above shows the average cost of an auto insurance policy in Memphis per year with no accidents or violations is $1,620. Receive one speeding ticket and the average cost swells to $1,830, an increase of $210 each year. Then throw in two accidents along with the one speeding ticket and the annual cost of car insurance for welfare recipients goes up to an average of $3,800. That’s an increase of $2,180, or $182 per month, just for being a little careless behind the wheel!
How to find more affordable insurance for welfare recipients
It’s not impossible to find cheaper rates, and here are some penny-pinching solutions that can help Memphis drivers get cheaper coverage.
- Maintain a safe distance and avoid accidents
- Buying your home and auto policies from the same company can earn a discount
- Do not insure for full coverage
- Safe vehicles generally have lower rates
- Try to pay small claims out-of-pocket
- Save money by observing traffic laws and speed limits
- Ensure you have the best deal by shopping around regularly
The last suggestion is highly vital, as was emphasized in this article. Car insurance rates vary greatly, so don’t be unwilling to switch carriers if you can save money.
Brand loyalty is not necessarily bad, but is isn’t recommended if that faithfulness ends up costing you big bucks every year. If you have a few minutes, compare rates to find cheaper car insurance for welfare recipients in Memphis.