What Insurance is Cheapest for Inexperienced Drivers in Memphis?

One of the many criteria that determine the price you pay for insurance is where you keep your car. Areas with more people or more claims are more likely to have higher rates, whereas more rural areas have the luxury of lower rates.

The illustration below ranks the most costly cities in Tennessee for inexperienced drivers to buy an auto insurance policy in. Memphis comes in at #1 with the yearly price of $1,446 for coverage, which is about $121 each month.

How much is car insurance in Memphis?
Rank City Premium Per Year
1 Memphis $1,446
2 Bartlett $1,377
3 Collierville $1,363
4 Germantown $1,360
5 Jackson $1,305
6 Columbia $1,226
7 Nashville $1,213
8 Oak Ridge $1,210
9 Knoxville $1,194
10 Maryville $1,172
11 Cookeville $1,171
12 Clarksville $1,170
13 Murfreesboro $1,159
14 Morristown $1,159
15 Spring Hill $1,157
16 La Vergne $1,151
17 Chattanooga $1,149
18 Smyrna $1,148
19 Brentwood $1,144
20 Franklin $1,140
21 Hendersonville $1,136
22 Gallatin $1,121
23 Cleveland $1,091
24 Kingsport $1,057
25 Johnson City $1,031
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Table data uses comparative as vehicle location can impact prices significantly.

The car, truck, or SUV on the policy is probably the most important factor when shopping for affordable insurance for inexperienced drivers. Vehicles with lower performance, good crash test ratings, or a track record of few liability claims will cost significantly less to insure than high performance models. The table below ranks auto insurance rates for the most budget-friendly automobiles to buy insurance for.

Cheapest Vehicles to Insure in Memphis, TN
Make, Model, and Trim Level Estimated Cost for Full Coverage
Honda CR-V LX 4WD $1,669
Ford Focus SE 4-Dr Sedan $1,939
Ford Escape XLT 4WD $1,954
Ford Explorer Limited AWD $2,015
Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr $2,048
Toyota Prius $2,118
GMC Sierra SL Crew Cab 2WD $2,126
Toyota Tacoma 2WD $2,224
Honda Accord LX-S 2-Dr Coupe $2,227
Hyundai Elantra SE Touring Station Wagon $2,233
Chevrolet Malibu Hybrid $2,265
Dodge Grand Caravan CV $2,297
Ford F-150 XL Crew Cab 4WD $2,347
Nissan Altima 3.5 SR 2-Dr Coupe $2,368
Ford Edge SEL 2WD $2,376
Toyota Corolla XLE $2,382
Ford Fusion SE 4-Dr Sedan $2,426
Toyota Camry LE $2,433
Jeep Grand Cherokee Limited 4WD $2,426
Chevrolet Impala LT $2,432
Toyota RAV4 Limited 2WD $2,426
Honda Odyssey Touring $2,436
Chevrolet Equinox LS AWD $2,426
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Data assumes 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-vehicle, claim-free, multi-policy, and homeowner. Prices do not factor in specific garaging location which can alter coverage prices greatly.

Looking at the data, models like the Honda CR-V, Ford Focus, Ford Escape, and Ford Explorer are going to be the most budget-friendly vehicles to insure for new drivers.

Finding decent, cheap insurance is confusing at best, and determining which companies have the most affordable insurance rates for inexperienced drivers will require even more work. Each company has their own process for determining prices, so first we will examine the insurance companies with the most affordable rates in Memphis, TN.

It’s a good idea to be aware that Memphis insurance rates are calculated based on many things that can increase the cost of coverage. Simply improving your credit score, moving to a new city, or getting a driving violation can trigger price changes resulting in some rates now being much higher than others.

Cheap Insurance Rates for Newbies

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Rankings for the cheapest Tennessee auto insurance companies
Rank Company Cost Per Year
1 Utica National $767
2 Auto-Owners $827
3 Cincinnati Insurance $884
4 Penn National $926
5 USAA $947
6 Tennessee Farmers $961
7 Erie $997
8 Nationwide $1,002
9 Allied $1,018
10 Westfield $1,069
11 GEICO $1,110
12 Travelers $1,165
13 Shelter $1,199
14 State Farm $1,213
15 Progressive $1,214
16 State Auto $1,217
17 Direct General $1,238
18 The Hartford $1,245
19 21st Century $1,274
20 Chubb $1,316
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Utica National offers some of the lowest car insurance rates in Memphis at around $767 annually. Auto-Owners, Cincinnati Insurance, Penn National, and USAA are also some of the best Memphis, TN auto insurance companies.

As shown in the table above, if you currently buy coverage from USAA and switched to Auto-Owners, you might realize a yearly price reduction of around $120. Insureds with Tennessee Farmers could save as much as $134 a year, and Erie insureds might reduce prices by as much as $170 a year.

It’s important to note that these premium estimates are averages across all insureds and vehicles and are not factoring in a specific location for inexperienced drivers. So the auto insurance company that fits you best may not even be in the top 30 companies shown above. That points out the importance of why you need to get quotes using your own driver information and specific vehicle type.

The diagram below illustrates how your choice of deductibles can raise or lower premium costs when getting quotes for cheap insurance for inexperienced drivers. The prices are based on a married female driver, full coverage, and no discounts are applied.

A 40-year-old driver could lower rates by $266 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $402 by changing to a $1,000 deductible. Young drivers, like the age 20 example, could roll back prices as much as $658 every year just by choosing larger deductibles. If you do decide to increase your deductibles, it will be important to have additional savings on hand to offset the extra out-of-pocket expense that comes with higher deductibles.

Impact of citations and accidents on insurance rates

The easiest way to obtain the cheapest insurance prices in Tennessee for new drivers is to be an attentive driver and not get tickets or have accidents. The information below illustrates how violations and at-fault accidents can drive up car insurance costs for different age groups. The prices are based on a single male driver, full coverage, $250 deductibles, and no discounts are applied.

The data in the chart shows the average cost of an auto insurance policy per year with no accidents and a clean driving record is $1,521. Get written up for two speeding tickets and the average cost increases to $2,012, an increase of $492 each year. Then add one accident along with the two speeding tickets and the annual cost of insurance for inexperienced drivers goes up to an average of $2,504. That’s an increase of $983, or $82 per month, just for a couple of infractions!

Selecting a highly-rated insurer can be challenging considering how many different companies insure vehicles in Memphis. The information displayed below could help you choose which providers you want to consider when trying to find cheaper insurance for inexperienced drivers.

These ratings only include companies who write in the majority of U.S. states, so smaller companies are not included in the list. To get price quotes from these companies and more, click here.

Top 10 Major Auto Insurance Providers in Memphis Ranked by Customer Satisfaction

  1. USAA – 91%
  2. AAA Insurance – 90%
  3. Esurance – 90%
  4. Nationwide – 89%
  5. Travelers – 88%
  6. Progressive – 88%
  7. Safeco Insurance – 88%
  8. State Farm – 88%
  9. Allstate – 88%
  10. The Hartford – 87%

Top 10 Major Auto Insurance Providers in Memphis Ranked by A.M. Best Rating

  1. Travelers – A++
  2. USAA – A++
  3. GEICO – A++
  4. State Farm – A++
  5. Esurance – A+
  6. Progressive – A+
  7. Titan Insurance – A+
  8. The Hartford – A+
  9. Allstate – A+
  10. Nationwide – A+

How to find budget-friendly car insurance for inexperienced drivers

Lowering your rates is not difficult, and here are some of the better money-saving ideas that can help Memphis drivers locate cheaper car insurance.

The last item on the list is notably valuable, as was pointed out in the prior article. Prices charged by car insurance companies in Memphis fluctuate constantly, so drivers shouldn’t be reluctant to buy a policy from a new company if you find a better deal. Staying with the same car insurance company is fine, but it’s not a great idea if that loyalty results in overpaying potentially thousands of dollars a year. In less than five minutes you could compare rates and find cheaper car insurance for inexperienced drivers.