The words “low-priced” and “auto insurance” really shouldn’t be used in the same sentence, especially when you are looking for the best car insurance for a school permit. Let’s lead off by showing you a few of the factors the can have a considerable influence on auto insurance rates, and find out if you can slash the price of your next policy.
One of the more important things that are looked at to help calculate the amount you pay each year for auto insurance is the neighborhood you call home. Cities with more crime and/or more people will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims can boast about having cheaper rates.
The table below shows the highest-priced places in Tennessee for a school permit to buy an auto insurance policy in. Memphis is ranked #1 with an annual cost of $1,460 for the average policy, which is about $122 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Memphis | $1,460 |
| 2 | Bartlett | $1,363 |
| 3 | Germantown | $1,360 |
| 4 | Collierville | $1,349 |
| 5 | Jackson | $1,266 |
| 6 | Knoxville | $1,230 |
| 7 | Oak Ridge | $1,223 |
| 8 | Columbia | $1,214 |
| 9 | Clarksville | $1,206 |
| 10 | Spring Hill | $1,205 |
| 11 | Nashville | $1,201 |
| 12 | Maryville | $1,196 |
| 13 | Murfreesboro | $1,183 |
| 14 | Smyrna | $1,183 |
| 15 | Cookeville | $1,171 |
| 16 | Chattanooga | $1,161 |
| 17 | Morristown | $1,159 |
| 18 | La Vergne | $1,151 |
| 19 | Brentwood | $1,144 |
| 20 | Franklin | $1,140 |
| 21 | Hendersonville | $1,124 |
| 22 | Gallatin | $1,121 |
| 23 | Cleveland | $1,102 |
| 24 | Johnson City | $1,063 |
| 25 | Kingsport | $1,037 |
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Annual rates are comparative as the specific geographic location can modify premiums considerably.
The make and model of vehicle that is being insured is one of the biggest factors when consumers are trying to find the most economical coverage for a school permit. Vehicles with lower performance, an excellent safety record, or a low likelihood of having liability claims will cost less to insure than fast, unsafe models.
The next table ranks insurance premiums for a selection of the more affordable automobiles to insure in Tennessee.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $6,578 |
| Honda CR-V LX 4WD | $6,587 |
| Hyundai Elantra SE Touring Station Wagon | $7,036 |
| Toyota Prius | $7,097 |
| Chevrolet Silverado LS Regular Cab 4WD | $7,340 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $7,347 |
| Ford F-150 XLT Regular Cab 4WD | $7,398 |
| Ford Explorer XLT 4WD | $7,403 |
| Honda Civic DX 4-Dr Sedan | $7,740 |
| Ford Edge Limited 2WD | $7,750 |
| Chevrolet Impala LS | $7,740 |
| Toyota Camry LE | $7,798 |
| GMC Sierra SLE Crew Cab 2WD | $7,803 |
| Toyota RAV4 Limited 4WD | $7,798 |
| Chevrolet Equinox LT 2WD | $7,808 |
| Chevrolet Malibu Hybrid | $7,798 |
| Toyota Tacoma Double Cab 4WD | $7,807 |
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Table data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in vehicle location which can affect rates greatly.
Looking at the numbers, we can tell that cars like the Ford Escape, Honda CR-V, and Hyundai Elantra are most likely to be some of the more affordable vehicles to insure for a learners permit. The price of auto insurance will be more costly just due to the fact that there is more risk for a school permit, but in general those makes and models will probably have the lowest prices that you are likely to find.
Does full coverage make sense?
Finding the cheapest insurance is probably important to most drivers, and one easy way to buy cheap insurance for a school permit is to not buy comprehensive and collision coverage. The illustration below compares premium costs with full physical damage coverage and with liability coverage only. The data assumes no violations or accidents, $250 deductibles, drivers are not married, and no additional discounts are factored in.
As an average, physical damage coverage on your policy costs an extra $2,030 per year more than just insuring for liability. That raises the question if physical damage coverage is worth the money. There is no definitive rule of when to stop paying for full coverage on your policy, but there is a general guideline. If the annual cost of having full coverage is more than 10% of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.
There are some situations where buying only liability insurance is not recommended. If you still have a loan on your vehicle, you are required to maintain full coverage in order to satisfy the requirements of the loan. Also, if your finances do not allow you to purchase a different vehicle if your current one is damaged, you should keep full coverage on your policy.
Which insurance company is best in Memphis?
Choosing a high-quality company is hard considering how many choices there are in Tennessee. The ranking data shown next could help you pick which car insurance companies to look at purchasing a policy from.
The ratings below are only comprised of large nationwide companies, so companies that only write business in Tennessee or surrounding areas are not factored into these rankings. If you wish to compare rates from the insurers below and more, follow this link.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
| 21st Century | 86 | 82 | 90 | 84% | A | 86.4 |
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Data Source: Insure.com Best Car Insurance Companies
How to get discounts on Memphis auto insurance
Insurance companies that provide policies for a school permit may also offer special discounts that can reduce rates by 35% or more if you qualify for them. Companies and some of their more popular discounts are shown below.
- Progressive may have discounts that include continuous coverage, online quote discount, multi-vehicle, homeowner, online signing, good student, and multi-policy.
- AAA has savings for good student, education and occupation, pay-in-full, multi-policy, AAA membership discount, multi-car, and anti-theft.
- Farmers Insurance offers discounts for distant student, pay in full, switch companies, alternative fuel, early shopping, and homeowner.
- GEICO has discounts for anti-lock brakes, air bags, multi-vehicle, membership and employees, and good student.
- Esurance offers premium reductions for online shopper, paid-in-full, homeowner, Switch & Save, and anti-lock brakes.
- SAFECO may include discounts for multi-car, anti-theft, bundle discounts, homeowner, and anti-lock brakes.
- State Farm policyholders can earn discounts including driver’s education, passive restraint, Steer Clear safe driver discount, defensive driving training, student away at school, and Drive Safe & Save.
The example below shows the difference between insurance prices with and without discounts applied. The data is based on a female driver, no claims or driving violations, Tennessee state minimum liability limits, full physical damage coverage, and $500 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second shows the rates with paid-in-full, passive restraint, continuous coverage, paperless filing, anti-theft, and vehicle safety discounts applied. When discounts are applied, theaverage amount saved on insurance for a school permit is 28% or $464.