You’ve seen the catchy commercials from insurers like State Farm, Liberty Mutual, and Farmers that make promises of dirt cheap rates. So drivers just need to pick the one with the catchiest commercial, right?
It’s not quite that easy, unfortunately, as there are a ton of unknown elements such as your marital status, your age, any driving violations you may have, and whether you want full coverage, that all impact the cost of your policy. This article delves into the best ways to avoid overpriced car insurance and educate you enough to have a good start in finding the cheapest car insurance in Tennessee.
One of the many criteria that aid in calculating auto insurance rates is the neighborhood you call home in Memphis. Areas with more people or higher crime rates tend to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper car insurance.
The illustration below sorts the most expensive areas in Tennessee for 20 year old guys to purchase auto insurance in. Memphis comes in at #1 with a yearly cost of $1,446 for the average policyholder, which is approximately $121 monthly.
|Rank||City||Average Per Year|
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Premium amounts are comparative as zip code location can decrease or increase auto insurance rates substantially.
The vehicle model that is being insured is probably the biggest factor that determines if you can find low-cost coverage for 20 year old guys. Vehicles with limited speed and performance, a plethora of safety features, or a track record of few liability claims will cost much less to insure than higher performance models. The table below shows insurance rates for a number of the most affordable vehicles to buy insurance for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$4,048|
|Honda CR-V EX-L 4WD||$4,110|
|Ford Escape Limited 4WD||$4,411|
|Hyundai Elantra SE Touring Station Wagon||$4,418|
|Ford F-150 XL Regular Cab 4WD||$4,510|
|Ford Edge Limited 2WD||$4,750|
|Toyota Tacoma 2WD||$4,756|
|Honda Odyssey EX W/Rear Entertainment||$4,750|
|Chevrolet Impala LT||$4,812|
|Chevrolet Malibu Hybrid||$4,817|
|Toyota RAV4 Sport 2WD||$4,812|
|Ford Fusion S 4-Dr Sedan||$4,817|
|Chevrolet Equinox LS 2WD||$4,812|
|Dodge Grand Caravan Crew||$4,871|
|Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr||$4,878|
|Ford Explorer Limited 2WD||$4,871|
|Honda Civic LX 4-Dr Sedan||$5,051|
|Toyota Camry XLE||$5,113|
|Toyota Corolla S||$5,123|
|Nissan Altima 2.5 S 4-Dr Sedan||$5,113|
|Nissan Rogue SL 2WD||$5,155|
|GMC Sierra SL Crew Cab 4WD||$5,172|
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Table data represents single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include claim-free, and safe-driver. Price information does not factor in vehicle garaging location which can lower or raise insurance rates considerably.
Looking at the data, we can expect makes and models like the Honda Accord, Honda CR-V, Ford Escape, and Hyundai Elantra are most likely to be some of the cheaper vehicles to insure for young men. The price of auto insurance will tend to be higher just due to the fact that there is more claim risk for 20 year old guys, but in general those makes and models will have the lowest insurance prices compared to other types of vehicles.
Establishing which company quotes the cheapest car insurance rates for 20 year old guys may require a bit more work in order to find the best policy. Each auto insurance company uses a little different formula to set their prices, so let’s take a look at the overall cheapest car insurance companies in Tennessee.
We do need to point out that Tennessee car insurance rates are impacted by many factors which can significantly increase or decrease the cost of having a policy. Simply getting older, becoming a homeowner, or getting a few speeding tickets may prompt premium changes that can make some companies much cheaper than others.
Find the Cheapest Car Insurance for Men Age 20
Utica National has some of the best car insurance rates in Memphis at around $767 each year. Auto-Owners, Cincinnati Insurance, Penn National, and Tennessee Farmers are also some of the cheaper Memphis, TN auto insurance companies.
As shown above, if you currently buy coverage from Penn National and switched to Auto-Owners, you could earn yearly savings of approximately $74. Insureds with Tennessee Farmers might save as much as $90 a year, and USAA insureds might lower prices by $96 a year.
Be aware that those policy prices are averaged for all insureds and vehicles and are not factoring in an exact zip code location for 20 year old guys. So the car insurance company that has the lowest price for you may not even be in the list above. That points out the importance of why you need to get quotes using your own driver information and specific vehicle type.
Discounts on Memphis car insurance
Auto insurance companies that offer cheap quotes for 20 year old guys may also offer policy discounts that could reduce prices by 25% or more if you qualify for them. Companies and a partial list of their discounts are shown below.
- Progressive offers premium reductions for continuous coverage, multi-policy, online signing, multi-vehicle, homeowner, and good student.
- Farmers Insurance offers discounts for electronic funds transfer, switch companies, alternative fuel, business and professional, and multi-car.
- Farm Bureau may offer discounts for multi-policy, youthful driver, good student, multi-vehicle, driver training, safe driver, and 55 and retired.
- State Farm includes discounts for good driver, multiple policy, safe vehicle, defensive driving training, good student, and multiple autos.
- GEICO policyholders can earn discounts including good student, seat belt use, anti-lock brakes, defensive driver, daytime running lights, and five-year accident-free.
- SAFECO offers discounts including multi-car, teen safety rewards, accident prevention training, bundle discounts, and anti-theft.
- Liberty Mutual has discounts for new vehicle discount, new graduate, newly retired, exclusive group savings, and multi-car.
The chart below shows the difference between premium costs with and without discounts applied to the premium. The rates are based on a female driver, no claims or driving citations, Tennessee state minimum liability limits, full physical damage coverage, and $250 deductibles.
The first bar for each age group shows the average rate with no discounts. The second shows the rates with paid-in-full, passive restraint, anti-theft, vehicle safety, paperless filing, and continuous coverage discounts applied. When these discounts are applied, the average savings per year on car insurance for 20 year old guys is 21% or $409.
The diagram below illustrates how your deductible choice can change annual premium costs when quoting cheap insurance for 20 year old guys. The premium estimates are based on a married female driver, full physical damage coverage, and no additional discounts are factored in.
The data above shows that a 40-year-old driver could lower their policy premium by $198 a year by increasing from a $100 deductible to a $500 deductible, or save $300 by using a $1,000 deductible. Young drivers, like the Age 20 chart data, can save up to $490 each year just by choosing larger deductibles.
When raising deductibles, it is necessary to have additional savings on hand to cover the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Irresponsible driving raises your rates
In a perfect world, the ideal way to snag cheap car insurance prices for young men is to drive attentively and avoid tickets and accidents. The illustration below illustrates how violations and accidents can drive up auto insurance rates for different age categories. The premiums are based on a married female driver, comp and collision included, $500 deductibles, and no discounts are applied.
In the previous chart, the average cost of a car insurance policy in Tennessee per year with no accidents or violations is $1,396. Add in one speeding ticket and the average cost swells to $1,628, an increase of $232 each year. Now get one accident along with the one speeding ticket and the annual cost of car insurance for 20 year old guys goes up to an average of $2,281. That’s an increase of $885, or $74 per month, just for not paying attention while driving!
Here’s why price comparisons are so important
Tennessee car insurance rates are impacted by many factors which can significantly increase or decrease the price of your policy. Improving your credit rating, getting divorced, or getting into an accident can trigger rate changes that can now make some companies cheaper than before. And not only may your rating factors change, but car insurance companies change prices at least once a year to help ensure profitability. Unexpectedly high claims can result in higher prices, while better underwriting can produce cheaper Memphis car insurance rates.
To illustrate this point, the chart below demonstrates which company has the cheapest car insurance in Memphis, TN for a 40-year-old female driver with a good driving record, no prior claims, and solid credit. If we look at prices based on her current risk profile, Utica National may offer the best car insurance rates in Memphis at $1,049 a year. This is $279 less than the average rate paid by Tennessee drivers of $1,328. Cincinnati Insurance, Auto-Owners, Penn National, and Tennessee Farmers are the remainder of the most affordable Memphis, TN auto insurance companies.
Now let’s give the driver from the above example a claim surcharge, less-than-perfect credit, and a couple of points charged on her driving record. Since each company has a unique approach to determining premium rates, getting updated rate quotes may now present a different set of the cheapest companies as shown below.
Erie now has the cheapest insurance rate in Memphis with Nationwide, Westfield, Allied, and GEICO also having competitive pricing. This demonstrates why it is critical to perform a complete rate comparison when trying to find the most budget-friendly auto insurance quotes for 20 year old guys. Rates are made up of many things and change frequently, so the best option two years ago may now be quite expensive.