You have seen the captivating commercials from insurers like Nationwide and Liberty Mutual that promise huge savings, so you should just pick the company with the best ad, right?
It’s not that easy, however, as there are a whole bunch of unknown elements like if you have ever had a coverage lapse, whether you just want liability only, and whether you are male or female, that all help calculate your car insurance rates. The information below will cover some of these criteria and educate you enough to have a good beginning to your quest for cheaper car insurance in Tennessee.
Finding dependable, cheap auto insurance is not easy, and figuring out which companies offer the best insurance rates for good students may require additional perseverance.
Every insurance company has their own guidelines to determine premium rates, so we’ll go over the overall cheapest insurance companies in Memphis.
Cheap Insurance Rates for Students
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Utica National has some of the best car insurance rates in Memphis at around $737 annually. This is $591 less than the average price paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA would also make the list of some of the best Memphis, TN insurance companies.
In the above example, if you are currently insured with Penn National and switched to Auto-Owners, you may realize annual savings of approximately $47. Customers with USAA may save as much as $96 a year, and Erie policyholders might see rate reductions of $96 a year.
Be aware that those premiums are averages across all drivers and vehicles in Tennessee and are not factoring in a specific vehicle garaging location for good students. So the car insurance company that fits your age and vehicle best may not even be in the top 30 companies in the list above. That helps illustrate why you need to quote rates from many companies using your own personalized driver profile and vehicle information.
For student drivers, one of the largest factors that are used to help calculate car insurance rates is where you live. More populated areas are more likely to pay higher prices, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower rates.
The table below lists the most expensive places in Tennessee for good students to purchase auto insurance in. Memphis comes in at #1 with the yearly price of $1,446 for the average policy, which is about $121 each month.
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Table data uses comparative as vehicle location can revise premiums substantially.
The information below demonstrates how deductible levels can affect insurance costs when getting quotes for cheap insurance for good students. Data assumes a married female driver, full physical damage coverage, and no discounts are taken into consideration.
The chart above illustrates that a 30-year-old driver could cut expenses by $320 a year by increasing from a $100 deductible to a $500 deductible, or save $482 by using a $1,000 deductible. Even younger drivers, like the Age 20 category, could drop their prices as much as $682 every year by using higher deductibles when buying full coverage. When increasing deductibles, it will be important to have additional savings on hand to satisfy the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
Discounts on Memphis auto insurance
Insurers that provide coverage for good students may also provide special discounts that could reduce prices by 35% or more if you meet specific criteria. The best insurance companies and some of the discounts are:
- Progressive discounts include continuous coverage, multi-vehicle, homeowner, multi-policy, good student, and online quote discount.
- MetLife may have discounts that include good driver, defensive driver, multi-policy, accident-free, good student, and claim-free.
- Mercury Insurance offers discounts for multi-car, low natural disaster claims, age of vehicle, accident-free, multi-policy, good student, and type of vehicle.
- Nationwide offers premium reductions for multi-policy, accident-free, easy pay, Farm Bureau membership, family plan, and anti-theft.
- GEICO may offer discounts for defensive driver, anti-lock brakes, multi-policy, air bags, and anti-theft.
- AAA has discounts for AAA membership discount, good driver, education and occupation, multi-car, good student, anti-theft, and multi-policy.
The information below illustrates the comparison of insurance premiums with and without discounts applied. Data assumes a female driver, no tickets, no at-fault accidents, Tennessee state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, paperless filing, vehicle safety, continuous coverage, paid-in-full, and good student discounts applied. When these discounts are applied, the average savings per year on insurance for good students is 28% or $751.
Cost comparison with and without full coverage
Lowering the price of insurance should be important to most people, and a great way to find cheaper insurance for good students is to only buy liability insurance. The information below visualizes the comparison of car insurance costs when comparing full coverage to liability only. The information is based on no violations or accidents, $500 deductibles, drivers are single, and no discounts are taken into consideration.
If we average all the age groups together, comprehensive and collision coverage on your policy costs an additional $1,366 per year over having just liability coverage. That is a large expense and it proposes the question if it’s a good idea to buy full coverage. There is no exact formula that is best for determining when to drop comprehensive and collision coverage on your policy, but there is a broad guideline. If the yearly cost of comp and collision coverage is 10% or more of the replacement cost of your vehicle minus the policy deductible, then you might want to consider buying only liability coverage.
There are some cases where dropping full coverage is not advised. If you haven’t paid off your loan, you are required to maintain full coverage in order to keep the loan. Also, if your savings is not enough to buy a different vehicle if your current one is totaled, you should not consider dropping full coverage.
The agencies below can most likely provide answers to your questions and help you determine which car insurance company is the best fit, as many people would rather get some professional input when trying to find lower insurance rates for student drivers. It can be time-consuming to find the best coverage on your own, and getting advice from a licensed agent can give you peace of mind knowing you have decent coverage if you have a claim.
To locate a Memphis auto insurance agent in your neighborhood, click the button at the bottom of the list.
GEICO Insurance Agent
420 S Germantown Pkwy #109 – Cordova, TN 38018 – (901) 761-5240
Oseman Insurance Agency
6750 Poplar Ave #410 – Memphis, TN 38138 – (901) 562-0151
Nationwide Insurance: Bennita J Wade Agency
1503 Union Ave Ste 220 – Memphis, TN 38104 – (901) 276-8571
How to find low-cost insurance for good students
The list below summarizes some of the recommended penny-pinching ideas that can help you quote cheap coverage.
- Higher physical damage deductibles lower rates
- Pay lower rates with good credit
- You will pay more if you get tickets or have at-fault accidents
- Vehicles with safetly features generally cost less to insure
- Staying accident-free helps keep rates low
- Drop full coverage on older vehicles
- Look for cheaper rates once a year by shopping around
That last tip is very necessary, as we pointed out in the article above. Insurance prices in Memphis vary considerably, so don’t be afraid to switch companies if you can save money. Having brand loyalty is commendable, but it’s not recommended if your bullheadedness ends up costing you lots of hard earned cash every month. It only takes a couple minutes to compare rates and find cheaper car insurance for good students.