Who Has Affordable Car Insurance Rates for First-time Drivers in Memphis?

The words “cheap” and “insurance” really should not be used together, in particular when comparison shopping for the best price on coverage for first-time drivers. In an attempt to save some money, let’s teach you some things that impact insurance premiums, and figure out some ideas to shave a little off your next policy.

Shopping around for cheap insurance is confusing at best, and finding out which company offers the lowest-priced car insurance rates for first-time drivers requires even more perseverance.

Each insurer has a unique formula for determining rates in each state, so first let’s look at the rankings for the overall cheapest car insurance companies in Memphis, TN.

Best Car Insurance Prices for Inexperienced Drivers

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Rankings for the cheapest Tennessee auto insurance companies
Rank Company Cost Per Year
1 Utica National $744
2 Auto-Owners $852
3 Cincinnati Insurance $876
4 Penn National $926
5 USAA $929
6 Tennessee Farmers $961
7 Erie $967
8 Nationwide $1,012
9 Westfield $1,047
10 Allied $1,060
11 GEICO $1,122
12 Travelers $1,177
13 Progressive $1,178
14 State Farm $1,201
15 Direct General $1,201
16 State Auto $1,204
17 The Hartford $1,208
18 Shelter $1,223
19 21st Century $1,300
20 Chubb $1,329
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Utica National may offer some of the most affordable car insurance rates in Memphis at around $744 per year. This is $584 less than the average price paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also are some of the more affordable Memphis, TN auto insurance companies.

As shown in the rates above, if you are a customer of Penn National and switched to Auto-Owners, you could realize savings of in the vicinity of $74. Drivers with USAA may save as much as $77 a year, and Tennessee Farmers policyholders might cut rates by $109 a year.

Bear in mind that those premiums are averaged for all insureds and vehicles and and are not calculated with an exact vehicle garaging location for first-time drivers. So the company that has the lowest price for you may not even be in the top 30 companies shown above. That underscores the importance of why you need to get quotes using your own driver information and specific vehicle type.

One of the more important things that are looked at to determine the amount you pay each year for auto insurance is where you keep your car. Regions with larger populations or more claims tend to have higher rates, whereas areas with less congestion have the benefit of cheaper car insurance.

The next table shows the highest-priced areas in Tennessee for first-time drivers in which to buy car insurance. Memphis makes the list at #1 with the annual price of $1,460 for car insurance, which is around $122 monthly.

How much does auto insurance cost in Memphis?
Rank City Average Per Year
1 Memphis $1,460
2 Bartlett $1,419
3 Germantown $1,360
4 Collierville $1,349
5 Jackson $1,266
6 Oak Ridge $1,223
7 Knoxville $1,218
8 Columbia $1,214
9 Maryville $1,196
10 La Vergne $1,186
11 Nashville $1,165
12 Franklin $1,164
13 Clarksville $1,158
14 Spring Hill $1,157
15 Gallatin $1,155
16 Murfreesboro $1,148
17 Smyrna $1,148
18 Cookeville $1,147
19 Brentwood $1,144
20 Morristown $1,137
21 Hendersonville $1,136
22 Chattanooga $1,115
23 Cleveland $1,091
24 Johnson City $1,041
25 Kingsport $1,026
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Rates are comparative as the specific geographic location can impact premium rates noticeably.

Buying coverage from the top company can be a challenge considering how many companies are available to choose from in Memphis. The ranking data shown below can help you decide which insurers you want to consider when trying to find cheaper insurance for first-time drivers.

The rankings below are for companies that write coverage in many states, so companies that focus mainly on Tennessee business will not be included in this list. If you’d like to compare prices from many more Tennessee auto insurance companies, click here.

Best Car Insurance Companies for First-time Drivers in Tennessee
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
Travelers 93 98 99 88% A++ 95.1
USAA 83 99 100 91% A++ 94.1
AAA Insurance 91 95 92 90% A 93.3
Nationwide 85 95 97 89% A+ 92.4
Allstate 77 100 97 88% A+ 90.7
State Farm 80 94 96 88% A++ 90.6
The Hartford 88 93 91 87% A+ 90.4
Safeco Insurance 91 95 85 88% A 90.2
Progressive 88 94 83 88% A+ 90.1
American Family 91 86 95 83% A 89.7
Esurance 86 90 94 90% A+ 89.5
The General 86 93 89 84% A- 88.2
GEICO 79 89 95 87% A++ 87.8
Titan Insurance 86 82 92 86% A+ 86.5
21st Century 86 82 90 84% A 86.4
Liberty Mutual 79 87 95 78% A 85.3
Erie Insurance 87 84 85 85% A+ 85.3
Farmers Insurance 77 80 80 84% A 80.3
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Data Source: Insure.com Best Car Insurance Companies

Drive responsibly or pay higher rates

The ideal way to earn the best car insurance rates in Tennessee for new drivers is to be a good driver and avoid getting tickets or having accidents. The diagram below highlights how speeding tickets and at-fault collisions influence insurance costs for different categories of driver ages. The prices are based on a single female driver, comprehensive and collision coverage, $1,000 deductibles, and no other discounts are factored in.

In the chart above, the average cost of auto insurance in Memphis per year with no violations or accidents is $1,164. Get written up for one speeding ticket and the average cost jumps to $1,320, an increase of $156 each year. Then include two accidents along with the one speeding ticket and the annual cost of car insurance for first-time drivers goes up to an average of $2,785. That’s an increase of $1,621, or $135 per month, just for a couple of infractions!

The Memphis car insurance agencies listed below can most likely help you decide which policy fits your needs best, as lots of drivers aren’t clear which coverage they need and would like to get some guidance when buying car insurance for new drivers. It can be challenging to find the best coverage on your own, and agents can provide you satisfaction knowing you have suitable coverage if you have an accident. To locate a Memphis car insurance agency by location nearest to you, click the link at the bottom or click here to compare price quotes now.

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How to find low-cost car insurance for first-time drivers

The list below summarizes a few penny-pinching ideas that can help drivers get more affordable coverage.

The last idea is extremely vital, as we pointed out in this piece. Insurance rates vary considerably, so drivers shouldn’t be resistant to change to a new company if a better rate can be found. Having a favorite company is great, but it’s not recommended if that loyalty ends up costing a wad of cash every year. It only takes a couple minutes to compare rates and find cheaper auto insurance for first-time drivers in Memphis.