Finding reliable, low-cost car insurance is confusing at best, and determining which insurers offer the cheapest insurance rates for 18 year olds requires a bit more work. Every car insurance company uses their own calculation for setting prices, so let’s take a look at the overall cheapest insurance companies in Memphis, TN.
It’s important that readers know that Memphis, TN insurance rates are based on many factors which can substantially decrease or increase the cost of having a policy. This price variation is why it is important to take the time to shop around when trying to find the cheapest auto insurance rates for 18 year olds. Car insurance prices can be determined by many risk factors and change substantially, so the best option two years ago may now cost much more than other companies.
Best Insurance Companies for Teens
|Rank||Company||Cost Per Year|
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Utica National may have some of the lowest car insurance rates in Memphis at around $760 annually. This is $568 less than the average premium paid by Tennessee drivers of $1,328. Cincinnati Insurance, Auto-Owners, Penn National, and USAA would also be considered some of the cheapest Memphis, TN insurance companies.
As shown above, if you are insured with Penn National and switched to Utica National, you could realize yearly savings of about $148. Customers with USAA could save as much as $187 a year, and Tennessee Farmers insureds might reduce prices by as much as $201 a year.
It’s important to note that these policy rates are averages across all drivers and vehicles and are not factoring in an exact zip code location for 18 year olds. So the company that is best suited for you may not even be in the top 30 companies shown above. That helps illustrate why you need to get car insurance quotes using your own specific driver information and vehicle.
For teen drivers, one of the more important considerations that determine the annual cost of car insurance is your zip code in Memphis. Areas with high crime rates or more dense population will most likely have higher rates, whereas areas with less congestion have the benefit of cheaper car insurance.
The following table lists the most expensive cities in Tennessee for 18 year olds to purchase car insurance in. Memphis makes the list at #1 with an annual cost of $1,460 on average, which is around $122 each month.
|Rank||City||Average Per Year|
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Price information shown is approximated as the specific zip code location can modify prices noticeably.
The type of vehicle on the policy is one of the largest factors that determines whether or not you can buy cheaper insurance for 18 year olds. Vehicles with lower acceleration and performance, advanced safety features, or a track record of few liability claims will cost quite a bit less to insure than adrenaline junky models.
The next list outlines insurance premiums for a selection of the most economical vehicles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Honda Accord EX 4-Dr Sedan||$5,827|
|Honda CR-V EX 2WD||$5,836|
|Ford Escape XLT 4WD||$5,892|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$6,459|
|Dodge Grand Caravan SE||$6,524|
|Ford F-150 STX Regular Cab 4WD||$6,534|
|Ford Explorer XLT 2WD||$6,524|
|Toyota Tacoma 4WD||$6,534|
|Chevrolet Impala LS||$6,848|
|Ford Focus SE 4-Dr Sedan||$6,855|
|Toyota RAV4 Limited 4WD||$6,913|
|Volkswagen Jetta LE 4-Dr Sedan||$6,920|
|Chevrolet Equinox LT 2WD||$6,913|
|Jeep Grand Cherokee Laredo 2WD||$6,921|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$6,981|
|Ford Edge Sport AWD||$7,299|
|Honda Odyssey EX-L||$7,304|
|Hyundai Elantra GLS 4-Dr Sedan||$7,299|
|Nissan Altima 2.5 S 4-Dr Sedan||$7,309|
|Toyota Corolla S||$7,299|
|Chevrolet Malibu LTZ||$7,367|
|GMC Sierra SLT Extended Cab 2WD||$7,374|
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Table data represents single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium amounts do not factor in specific zip code location which can lower or raise premium rates greatly.
By looking at the data, vehicles like the Honda Accord, Honda CR-V, Ford Escape, Toyota Prius, and Jeep Wrangler are likely to be some of the most economical vehicles to insure for teen drivers. The price for car insurance will tend to be higher because of the fact that there is more exposure for 18 year olds, but generally speaking those particular vehicles will tend to have the lowest prices compared to other types of vehicles.
Memphis insurance companies ranked
Picking the top insurer can be a challenge considering how many companies are available to choose from in Memphis. The ranking data shown next could help you choose which car insurance companies you want to consider shopping prices with. The ratings below only include major nationwide insurance companies, so smaller companies are not taken into consideration for the list.
Top 10 Major Auto Insurance Providers in Memphis Ranked by A.M. Best Rating
- Travelers – A++
- USAA – A++
- GEICO – A++
- State Farm – A++
- Esurance – A+
- Progressive – A+
- Titan Insurance – A+
- The Hartford – A+
- Allstate – A+
- Nationwide – A+
Top 10 Major Auto Insurance Providers in Memphis Ranked by Claims Service
- State Farm
- Liberty Mutual
- American Family
- AAA Insurance
- Titan Insurance
Impact of citations and accidents on insurance rates
In a perfect world, the best way to find the most affordable insurance premiums for teen drivers is to drive safe and avoid accidents and violations. The information below highlights how speeding tickets and at-fault collisions raise insurance costs for different age groups. The rate quotes are based on a single female driver, full coverage, $500 deductibles, and no discounts are factored in.
The data charted above shows the average cost of auto insurance in Tennessee per year with no accidents and a clean driving record is $1,731. Get two speeding tickets and the average cost increases to $2,317, an increase of $586 each year. Next add one accident along with the two speeding tickets and the yearly cost of insurance for 18 year olds increases to an average of $2,915. That’s an increase of $1,184, or $99 per month, just for being a little careless behind the wheel!
Are you paying too much for car insurance in Memphis?
Memphis insurance rates are based on many factors that can increase the policy premium. Simply having a birthday, getting married, or having an accident may prompt premium changes that can make some companies cheaper than others.
Not only may things change on your end, but companies modify pricing as needed to ensure their profitability. Higher than usual claims can result in rate hikes, while better underwriting can produce cheaper Memphis car insurance rates.
The chart below compares the cheapest car insurance in Memphis, TN for a 40-year-old male driver with no violations or accidents, and solid credit. If we estimate prices based on his current situation, Utica National may offer the lowest car insurance rates in Memphis at $1,081 per year. This is $247 less than the average policy premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, USAA, and Penn National are also on the list of the top five cheapest Memphis, TN auto insurance companies.
In this next rate comparison, we will give the driver in the first example an accident claim, less-than-perfect credit, and a speeding ticket. Due to the fact that every insurance company uses their own method for filing rates in each state, comparing prices could now result in a different list of the cheapest companies as shown below.
Erie now has the lowest price on auto insurance in Memphis, TN with Nationwide, Allied, Westfield, and GEICO also being competitive. This demonstrates why it is crucial to do a thorough rate comparison to get the cheapest car insurance quotes for 18 year olds.
Insurance prices are made up of many factors and can change substantially, so the most economical option the last time you shopped around may now be quite expensive.
If you have coverage questions and would like to have the advice of a professional agent when shopping for cheaper insurance for teen drivers, the agencies below can most likely help you decide which auto insurance policy fits you best. To find an auto insurance agency nearest to you, click the button link following the list or click here to compare rates now.
Clay and Land Insurance, Inc.
866 Ridgeway Loop Rd #200 – Memphis, TN 38120 – (901) 767-3600
Farmers Insurance: Candace Hall
1444 E Shelby Dr #329 – Memphis, TN 38116 – (901) 345-2615
Farmers Insurance: Calvit Ratcliffe
5865 Ridgeway Center Pkwy #300 – Memphis, TN 38120 – (901) 761-6083