Who Has the Cheapest Auto Insurance Rates for Good Drivers in Memphis?

The words “bargain” and “auto insurance” really shouldn’t be used in the same sentence, especially when you are looking for the lowest insurance prices for good drivers. In an attempt to save some money, let’s teach you some of the things that have an effect on insurance rates, and come up with some ways to cut the cost of the next policy you buy.

One of the many criteria that aid in calculating the annual cost of car insurance is where you call home. Areas with more people or higher crime rates tend to have more expensive auto insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates have the luxury of cheap car insurance rates.

The information below lists the highest-priced areas in Tennessee for good drivers to purchase a policy in. Memphis comes in at #1 with an annual cost of $1,490 on average, which is about $124 monthly.

How much is car insurance in Memphis?
Rank City Annual Premium
1 Memphis $1,490
2 Bartlett $1,377
3 Germantown $1,374
4 Collierville $1,323
5 Jackson $1,292
6 Knoxville $1,230
7 Oak Ridge $1,223
8 Nashville $1,213
9 Smyrna $1,194
10 Clarksville $1,194
11 Cookeville $1,182
12 Columbia $1,178
13 Franklin $1,175
14 Brentwood $1,168
15 Gallatin $1,167
16 La Vergne $1,162
17 Maryville $1,160
18 Murfreesboro $1,159
19 Hendersonville $1,158
20 Spring Hill $1,157
21 Morristown $1,125
22 Cleveland $1,124
23 Chattanooga $1,115
24 Johnson City $1,073
25 Kingsport $1,068
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Price information shown is approximated as zip code location can influence auto insurance rates considerably.

Buying cheap insurance is easier said than done, and determining which companies have the most affordable auto insurance rates for good drivers will take a little more work. Each insurer has a different process for setting rates, so we’ll take a look at the most competitive auto insurance companies in Memphis, TN.

It’s important that readers know that Memphis, TN auto insurance rates are influenced by many factors that can increase the cost of your policy. Improving your credit score, having a teenage driver, or getting a couple of tickets can trigger rate changes that can make some companies more expensive than others.

Best Auto Insurance Prices for Good Drivers

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Cheapest Tennessee car insurance ranked by price
Rank Company Cost Per Year
1 Utica National $737
2 Auto-Owners $836
3 Cincinnati Insurance $858
4 Penn National $935
5 USAA $947
6 Erie $957
7 Tennessee Farmers $961
8 Allied $1,018
9 Westfield $1,037
10 Nationwide $1,042
11 GEICO $1,122
12 Progressive $1,178
13 State Farm $1,213
14 Travelers $1,213
15 Direct General $1,214
16 Shelter $1,223
17 State Auto $1,241
18 The Hartford $1,245
19 21st Century $1,300
20 Chubb $1,316
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Utica National quotes some of the cheapest car insurance rates in Memphis at around $737 each year. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also are some of the most economical Memphis, TN car insurance companies.

In the rate table above, if you currently buy coverage from Cincinnati Insurance and switched to Utica National, you may see a yearly price reduction of in the neighborhood of $121. Tennessee drivers with Penn National could save as much as $198 a year, and USAA policyholders might cut rates by $210 a year.

To find out how much you can save, click here to get a free quote or click through to the companies below.

Understand that those policy prices are averaged across all drivers and vehicles and and are not calculated with a vehicle location for good drivers. So the insurer that fits your age and vehicle best may not even be in the top 30 companies shown above. That emphasizes why you need to compare prices as often as possible using your own personalized driver profile and vehicle information.

The make and model of vehicle you are insuring is probably the biggest factor when quoting low-cost car insurance for good drivers. Vehicles with lots of horsepower, a lack of safety features, or a history of substantial liability claims will cost more to insure than safer, lower-performance models. The data below ranks insurance costs for a selection of the cheaper vehicles to buy coverage for.

Cheapest Vehicles to Insure in Memphis, TN
Vehicle Make and Model Estimated Cost for Full Coverage
Honda Accord LX-P 4-Dr Sedan $1,520
Ford Escape XLS 4WD $1,527
Honda CR-V EX 2WD $1,711
Nissan Altima 2.5 4-Dr Sedan $1,800
Toyota RAV4 Sport 2WD $1,807
Jeep Wrangler Sport Islander Package 4WD 2-Dr $1,825
Toyota Prius $1,850
Chevrolet Silverado LS Regular Cab 4WD $1,886
Toyota Camry XLE $1,897
Honda Odyssey EX-L $1,905
Dodge Grand Caravan CV $1,931
Ford Explorer XLT 4WD $1,938
Volkswagen Jetta 2.0T 4-Dr Sedan $1,934
Jeep Grand Cherokee Limited 2WD $1,944
Chevrolet Equinox LTZ 2WD $1,934
Chevrolet Impala LT $1,972
Ford F-150 STX Super Cab 4WD $1,978
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Premium data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, homeowner, multi-policy, claim-free, and multi-vehicle. Premium costs do not factor in specific location which can modify auto insurance rates considerably.

Looking at the data, you can conclude that models like the Honda Accord, Ford Escape, Honda CR-V, and Nissan Altima are going to be some of the cheaper vehicles to insure for safe drivers.

Get discounts on Memphis insurance

Discounts on auto insurance for good driversInsurance companies that offer coverage for good drivers may provide rate discounts that could reduce prices by as much as 35% if you are eligible for them. A list of auto insurance companies and a selection of discounts can be found below.

The diagram below shows the difference between premium costs with and without discounts applied to the premium. The data is based on a female driver, no claims or driving citations, Tennessee state minimum liability limits, comp and collision included, and $100 deductibles.

The first bar for each age group shows the price with no discounts. The lower bar shows the rates with vehicle safety, homeowner, multiple vehicle, claim-free, passive restraint, and multiple policy discounts applied. When discounts are applied, theamount saved on auto insurance for good drivers is 28% or $583.

Finding the highest-rated insurance provider can be challenging considering how many choices you have in Memphis. The ranking information shown below may help you analyze which auto insurers to look at when comparing rate quotes. These rankings are for the largest companies in America, so companies that focus mainly on Tennessee business are not factored into the list.

Top 10 Large Auto Insurers Overall in Memphis

  1. Travelers
  2. USAA
  3. AAA Insurance
  4. Nationwide
  5. Allstate
  6. State Farm
  7. The Hartford
  8. Safeco Insurance
  9. Progressive
  10. American Family

Why you should be shopping around

Memphis auto insurance rates are based on many factors that may substantially change the policy price. Turning one year older, buying another vehicle, or getting a DUI can trigger changes in premium that may make certain companies more affordable than the competition.

In addition, insurers modify rates multiple times each year in order to offset underwriting gains or losses. Unexpectedly high claims can cause higher rates, while better underwriting can result in lower-cost Memphis car insurance rates.

To illustrate this example, the chart below shows rates for the cheapest car insurance in Memphis, TN for a 40-year-old male driver with a good driving record, no prior claims, and a good credit history. If we compare prices based on his personal risk profile, Utica National might offer the cheapest car insurance rates in Memphis at $1,034 per year. This is $294 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and Tennessee Farmers are the remainder of the cheapest Memphis, TN auto insurance companies.

Now let’s give the driver from the first example a chargeable claim, slightly worse credit, and a stop sign violation. Due to the fact that every insurance company uses their own method for determining prices, analyzing rate quotes could result in a different set of the cheapest car insurance companies in Memphis as shown below.

Erie now has the lowest price on auto insurance in Memphis, TN with Nationwide, Westfield, Allied, and GEICO also being competitive. This example illustrates why it is crucial to do a thorough rate comparison to find the most economical insurance rates for good drivers. Auto insurance prices are influenced by many risk factors and change dramatically, so the most economical company the last time you checked may now be quite expensive.

How to find cheaper auto insurance for good drivers

The list below summarizes many thrifty suggestions that can help Memphis drivers locate cheaper coverage.

That last piece of advice is remarkably critical, as was pointed out in the prior information. Coverage prices can change considerably based on profitability, so don’t be hesitant to change to a new company if you can find a cheaper rate. Staying with the same company for years is fine, but we do not recommend it if that stubbornness costs you several hundred dollars every year. It takes less than five minutes to shop around to find cheaper insurance for good drivers in Memphis.