What Auto Insurance is Cheapest for Drivers Under 25 in Memphis?

The vehicle model that needs insurance is one of the largest considerations when trying to find economical coverage for drivers under 25. Vehicles with economical engines, a plethora of safety features, or a low likelihood of liability claims will cost quite a bit less to insure than adrenaline junky models. The next table estimates insurance prices for a number of the most economical automobiles to insure in Tennessee.

Cheapest Vehicles to Insure in Memphis, TN
Make and Model Estimated Cost for Full Coverage
Ford Escape Limited 2WD $3,866
Honda CR-V EX-L 2WD $3,872
Honda Accord EX-L 4-Dr Sedan $4,150
Hyundai Elantra SE Touring Station Wagon $4,159
Jeep Wrangler Sport Islander Package 4WD 2-Dr $4,186
Toyota Prius $4,208
Dodge Grand Caravan CV $4,243
Ford F-150 XL Crew Cab 4WD $4,301
Ford Focus S 4-Dr Sedan $4,470
Ford Edge SEL 2WD $4,478
Chevrolet Impala LT $4,528
Toyota RAV4 Limited 4WD $4,535
Ford Explorer Eddie Bauer AWD $4,585
Toyota Tacoma Double Cab TRD Off-Road Package 4WD $4,592
Ford F-350 XL Super Cab 2WD $4,640
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Data rating is 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. Rate quotes do not factor in Memphis, TN location which can decrease or increase coverage rates greatly.

Based upon the table data, you can see that cars like the Ford Escape, Honda CR-V, and Honda Accord are going to be the cheapest vehicles to insure for drivers age 25 and younger. Auto insurance rates will be higher anyway just due to the fact that there is more inherent risk for drivers under 25, but generally speaking those specific models will most likely have the best rates that you are likely to find.

Figuring out which company has the lowest-priced insurance rates for drivers under 25 requires a little more sweat in order to find the best policy. Each auto insurer uses a different method to establish rates, so let’s take a look at the most affordable insurance companies in Memphis.

Best Cheap Insurance Rates for Young Drivers

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Tennessee car insurance ranked by cost per year
Rank Company Cost Per Year
1 Utica National $737
2 Cincinnati Insurance $858
3 Auto-Owners $861
4 USAA $919
5 Tennessee Farmers $923
6 Penn National $926
7 Erie $987
8 Nationwide $1,002
9 Westfield $1,047
10 Allied $1,060
11 GEICO $1,122
12 Progressive $1,178
13 Shelter $1,199
14 State Auto $1,204
15 Travelers $1,213
16 State Farm $1,213
17 Direct General $1,251
18 The Hartford $1,258
19 Chubb $1,277
20 21st Century $1,313
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Utica National may have some of the best car insurance rates in Memphis at around $737 per year. Cincinnati Insurance, Auto-Owners, USAA, and Tennessee Farmers also rank well as some of the cheapest Memphis, TN auto insurance companies.

In the above example, if you are currently insured with Cincinnati Insurance and switched to Utica National, you might see yearly savings of around $121. Customers with Auto-Owners may save as much as $124 a year, and USAA insureds might realize rate reductions of up to $182 a year.

To compare your rates to other Tennessee insurance companies, click here to get a free quote or visit several of the following companies.

Remember that these prices are averages for all drivers and vehicles in Tennessee and and are not calculated with an exact vehicle garaging location for drivers under 25. So the company that is best for you may not even be in the top 30 companies in the list above. That helps illustrate why you need to get auto insurance quotes using your own individual information.

One of the many criteria that are looked at to help calculate insurance cost is your zip code. Cities with larger populations or higher claim trends tend to have more expensive auto insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims can boast about having cheaper rates.

The information below lists the highest-priced places in Tennessee for drivers under 25 to purchase car insurance in. Memphis shows up at #1 with an annual rate of $1,505 for the average policy, which is approximately $125 per month.

How much does car insurance cost in Memphis, TN?
Rank City Annual Rate
1 Memphis $1,505
2 Bartlett $1,363
3 Collierville $1,363
4 Germantown $1,320
5 Jackson $1,292
6 Oak Ridge $1,210
7 Columbia $1,190
8 La Vergne $1,186
9 Smyrna $1,183
10 Knoxville $1,182
11 Franklin $1,175
12 Gallatin $1,167
13 Nashville $1,165
14 Maryville $1,160
15 Morristown $1,159
16 Murfreesboro $1,159
17 Clarksville $1,158
18 Hendersonville $1,158
19 Spring Hill $1,157
20 Chattanooga $1,149
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Rate quotes are comparative as the specific geographic location can raise or lower coverage rates considerably.

Cost difference between full coverage and liability

Reducing premiums for insurance is probably important to most vehicle owners, and one way to buy cheaper insurance for drivers under 25 is to not buy comprehensive and collision coverage. The information below shows the comparison of auto insurance costs with liability coverage only compared to full coverage. Data assumes no driving violations, no at-fault accidents, $250 deductibles, drivers are single, and no discounts are applied.

On average, physical damage insurance costs an extra $2,030 per year over and above liability only. That proposes the question if buying full coverage is worth the money. There isn’t a written rule of when to exclude physical damage insurance, but there is a general guideline. If the annual cost of having full coverage is 10% or more of the settlement you would receive from your company, then you might consider buying liability only.

For example, let’s pretend your vehicle’s claim settlement value is $7,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most you would receive is $6,000 after you pay the deductible. If it’s costing in excess of $600 a year for your policy with full coverage, then you may want to consider only buying liability coverage.

The information below highlights how deductible choice can increase or decrease insurance prices when researching cheap insurance for drivers under 25. The data is based on a single female driver, full coverage, and no policy discounts are applied.

The data above shows that a 50-year-old driver could reduce rates by $230 a year by increasing from a $100 deductible up to a $500 deductible, or save $346 by choosing a $1,000 deductible. Even younger drivers, such as the Age 20 example, could save $580 every year just by choosing higher deductibles.

When increasing deductibles, it will be required to have enough savings set aside to enable you to pay the extra out-of-pocket expense that is associated with using high deductibles.

Why you should be shopping around

Memphis insurance rates are influenced by many factors that control the policy price. Simply having a birthday, having a teen driver, or having an at-fault accident can trigger changes in premium resulting in some companies being cheaper than others.

Also, auto insurance companies file new Tennessee auto insurance rates without warning in order to remain profitable. A period of higher than normal claims can cause more expensive prices, while better underwriting can produce lower-priced Memphis car insurance rates.

As an example, the chart below shows which companies have the cheapest car insurance in Memphis, TN for a 45-year-old female driver with no accidents or violations, and a good credit history. When quoting prices based on her current situation, Utica National may have the cheapest car insurance rates in Memphis at $1,007 per year. This is $321 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and Tennessee Farmers are the rest of the best Memphis, TN auto insurance companies.

In the next rate comparison, we’ll give the driver from the first rate comparison a claim, bad credit, and an imperfect driving record. Because each insurer uses their own formula to determine rates, getting updated rate quotes could now result in a new list of the cheapest car insurance companies in Memphis as shown below.

Erie now has the cheapest insurance rate in Memphis, TN with Nationwide, Allied, Westfield, and GEICO now being in the top five. This shows why Memphis drivers need to compare as many rates as possible to find affordable insurance quotes for drivers under 25. Auto insurance prices are influenced by many risk factors and change dramatically, so the best company three years ago may now be one of the higher cost companies.