Who Has Affordable Car Insurance for Drivers Under 21 in Memphis?

For minors, one of the largest factors that aid in calculating auto insurance rates is where you live in Memphis. Regions with more people or even just more weather-related claims tend to have higher auto insurance costs, whereas areas with lower vehicle theft rates and fewer weather claims benefit from lower prices.

The table below lists the most expensive cities in Tennessee for drivers under 21 in which to buy car insurance. Memphis is listed at #1 having an annual price of $1,460 for the average policyholder, which is around $122 each month.

How much does car insurance cost in Memphis, TN?
Rank City Premium Per Year
1 Memphis $1,460
2 Bartlett $1,419
3 Germantown $1,374
4 Collierville $1,363
5 Jackson $1,266
6 Oak Ridge $1,223
7 Knoxville $1,218
8 Maryville $1,208
9 Spring Hill $1,205
10 Nashville $1,201
11 Murfreesboro $1,194
12 Clarksville $1,194
13 Columbia $1,190
14 Cookeville $1,182
15 Franklin $1,175
16 La Vergne $1,162
17 Morristown $1,159
18 Chattanooga $1,149
19 Smyrna $1,148
20 Brentwood $1,133
Compare Rates Now Go

Prices are approximated as specific Memphis zip code can lower or raise premiums significantly.

The make and model of vehicle driven is one of the primary factors when shopping around for the most affordable auto insurance for drivers under 21. Vehicles with lower acceleration and performance, modern passenger safety features, or a low likelihood of having liability claims will cost substantially less to insure than higher performance models.

The list below outlines insurance prices for a selection of the cheaper vehicles to insure.

Cheapest Vehicles to Insure in Memphis, TN
Make and Model Estimated Cost for Full Coverage
Hyundai Elantra GLS Touring Station Wagon $4,135
Ford Escape XLT 2WD $4,141
Honda CR-V EX 4WD $4,197
Toyota Prius $4,565
Ford Edge SEL AWD $4,850
Chevrolet Silverado LS Regular Cab 2WD $4,892
Volkswagen Jetta LE 4-Dr Sedan $4,912
Toyota RAV4 Limited 4WD $4,918
Dodge Grand Caravan Hero $4,912
Chevrolet Impala LT $4,919
Chevrolet Malibu LS $4,912
Ford Explorer Limited 2WD $4,972
Toyota Tacoma Double Cab 4WD $4,977
Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr $4,975
Toyota Corolla LE $5,220
Toyota Camry SE $5,226
Honda Odyssey EX-L $5,220
Nissan Rogue SL 2WD $5,263
Ford Fusion SE 4-Dr Sedan $5,280
Jeep Grand Cherokee Limited 2WD $5,290
Chevrolet Equinox LTZ AWD $5,280
GMC Sierra SLE Crew Cab 4WD $5,286
Honda Civic Hybrid 4-Dr Sedan $5,280
Start Your Quote Go

Data 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 claim-free, and safe-driver. Estimates do not factor in specific location information which can increase or decrease premiums significantly.

Based upon the table data, we can assume that cars like the Hyundai Elantra, Ford Escape, and Honda CR-V should be the cheaper vehicles to insure for minors. The price for an auto insurance policy will be more expensive just due to the fact that there is more liability exposure for drivers under 21, but generally speaking those particular models will tend to have the lowest prices possible.

Rate increases following a ticket or accident

A great way to snag low car insurance premiums in Tennessee for minors is to drive carefully and avoid accidents and traffic violations. The illustration below shows how violations and accidents can influence premium costs for different insured age categories. The data assumes a single male driver, full physical damage coverage, $250 deductibles, and no discounts are applied.

In the example above, the average cost of auto insurance per year with no violations or accidents is $1,681. Add in one speeding ticket and the average cost hikes up to $1,892, an increase of $211 each year. Then add one accident along with the one speeding ticket and the yearly cost of car insurance for drivers under 21 jumps again to an average of $2,487. That’s an increase of $806, or $67 per month, just for being a little careless behind the wheel!

Rate difference between full and liability-only coverage

Paying less for car insurance is the goal of the majority of people, and one easy way to pay lower rates for insurance for drivers under 21 is to not pay for full coverage. The chart below shows the comparison of insurance costs with full physical damage coverage compared to only buying liability only. Data assumes no claims or violations, $1,000 deductibles, marital status is single, and no discounts are applied to the premium.

If averaged for all ages, physical damage coverage on your policy costs $1,318 per year over liability only. Many drivers may wonder when is the right time to remove full coverage. There is no definitive guideline to eliminate full coverage, but there is a general guideline you can use. If the annual cost of your full coverage insurance is more than around 10% of the settlement you would receive from your company, then it may be the right time to buy liability only.

For example, let’s assume your vehicle’s replacement cost is $3,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most you would get paid by your company is $2,000 after you pay the deductible. If it’s costing you more than $200 annually for your policy with full coverage, then it may be the right time to buy liability only.

Who has the cheapest Memphis car insurance?

Memphis, TN car insurance rates are influenced by many factors which can substantially decrease or increase your annual premium. Simply getting older, increasing liability limits, or getting a speeding ticket can produce rate changes that can now make some companies cheaper than before.

Not only may your situation change, but insurers modify rates multiple times each year as an adjustment for underwriting gains or losses. Significantly higher losses can cause a rate increase, while a better claims history can cause lower-priced Memphis car insurance rates.

The bar chart below demonstrates which company has the cheapest car insurance in Memphis, TN for a 30-year-old female driver with a clean driving record, no accidents, and a decent credit rating. If we estimate rates based on her current risk profile, Utica National may have the most affordable car insurance rates in Memphis at $1,060 per year. This is $268 less than the average rate paid by Tennessee drivers of $1,328. Cincinnati Insurance, Auto-Owners, Penn National, and USAA are the remaining best Memphis, TN auto insurance companies.

In this example, we will give the driver in the first example a claim, poor credit, and a speeding ticket. Because each insurer uses their own formula to establish rates, analyzing rates could result in a slightly different list of affordable companies as shown below.

Erie now has the cheapest car insurance in Memphis with Allied, Nationwide, Westfield, and GEICO completing the list. This example illustrates why Memphis drivers need to shop around to find the most affordable car insurance quotes for drivers under 21. Prices consist of many different factors and change frequently, so the most economical company the last time you shopped around may now be quite expensive.