You have most likely watched the commercials from car insurance companies like Nationwide, State Farm, and GEICO guaranteeing the cheapest rates, so drivers just need to pick the one with the best commercial, right?
It’s not that simple, unfortunately, as there are a whole bunch of unknown factors like how many years you have been driving, how well you maintain your credit, the type of vehicle you drive, and whether you are a man or a woman, that all impact the cost of coverage. This article will discuss some of these things and educate you enough to have some help in finding cheaper rates.
The type of vehicle on the policy is one of the largest considerations in finding low-priced insurance for 16 year olds. Vehicles with lots of speed or power, poor crash test ratings, or high incidents of liability claims will cost much more to insure than safer models. The information below features auto insurance premiums for the more affordable vehicles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $6,250 |
| Honda Accord EX 4-Dr Sedan | $6,260 |
| Ford Escape Limited 2WD | $6,304 |
| Toyota Prius | $6,742 |
| Ford F-150 STX Regular Cab 2WD | $6,978 |
| Volkswagen Jetta SE 2.5 Station Wagon | $7,121 |
| Chevrolet Impala LS | $7,360 |
| Ford Edge Limited 2WD | $7,369 |
| Toyota Tacoma 2WD | $7,360 |
| Chevrolet Equinox LT 2WD | $7,414 |
| Chevrolet Malibu LS | $7,424 |
| Toyota RAV4 Limited 4WD | $7,414 |
| Dodge Grand Caravan SXT | $7,471 |
| Ford Explorer Eddie Bauer 4WD | $7,481 |
| Honda Civic VP 4-Dr Sedan | $7,738 |
| Hyundai Elantra Blue 4-Dr Sedan | $7,744 |
| Toyota Camry SE | $7,792 |
| Honda Odyssey EX-L | $7,800 |
| Toyota Corolla XLE | $7,792 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $7,807 |
| Find Cheaper Rates Go | |
Prices based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in specific zip code location which can revise auto insurance rates greatly.
Looking at the numbers, you can figure that models like the Honda CR-V, Honda Accord, and Ford Escape are going to be a few of the most economical vehicles to insure for new drivers. The price for an auto insurance policy will tend to be more expensive anyway because of the fact that there is a higher risk for 16 year olds, but overall those specific models will most likely have the best rates possible.
For new drivers, one of the more important criteria that are used to help calculate auto insurance rates is where you normally keep your vehicle in Memphis. Areas with more people or even just a higher incidence of claims will most likely have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower rates.
The following table sorts the most costly cities in Tennessee for 16 year olds in which to purchase auto insurance. Memphis is ranked at #1 with an annual rate of $1,490 for the average insurance policy, which is around $124 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Memphis | $1,490 |
| 2 | Bartlett | $1,363 |
| 3 | Collierville | $1,363 |
| 4 | Germantown | $1,334 |
| 5 | Jackson | $1,253 |
| 6 | Oak Ridge | $1,247 |
| 7 | Knoxville | $1,230 |
| 8 | Nashville | $1,213 |
| 9 | Murfreesboro | $1,194 |
| 10 | Columbia | $1,178 |
| 11 | Franklin | $1,175 |
| 12 | Hendersonville | $1,170 |
| 13 | Clarksville | $1,170 |
| 14 | Brentwood | $1,168 |
| 15 | La Vergne | $1,162 |
| 16 | Maryville | $1,160 |
| 17 | Smyrna | $1,159 |
| 18 | Morristown | $1,159 |
| 19 | Spring Hill | $1,157 |
| 20 | Cookeville | $1,136 |
| 21 | Chattanooga | $1,127 |
| 22 | Gallatin | $1,121 |
| 23 | Cleveland | $1,091 |
| 24 | Johnson City | $1,073 |
| 25 | Kingsport | $1,068 |
| Find Cheaper Rates Go | ||
Price information shown is approximated as the specific zip code location can impact price quotes substantially.
Comparing rates for budget insurance is tough enough, and figuring out which company has the cheapest insurance rates for 16 year olds takes more quotes for comparison. Every insurance company has a proprietary formula to set policy rates, so to begin we’ll rank the insurance companies with the overall cheapest rates in Memphis, TN.
We do need to point out that Memphis, TN insurance rates are influenced by many factors which can substantially change the price you have to pay for coverage. Improving your credit score, getting divorced, or having an accident can cause premium changes that can cause some rates to be much higher than others.
Best Car Insurance Prices for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $744 |
| 2 | Auto-Owners | $861 |
| 3 | Cincinnati Insurance | $876 |
| 4 | USAA | $919 |
| 5 | Penn National | $935 |
| 6 | Tennessee Farmers | $961 |
| 7 | Erie | $987 |
| 8 | Nationwide | $1,042 |
| 9 | Allied | $1,060 |
| 10 | Westfield | $1,079 |
| 11 | GEICO | $1,122 |
| 12 | Travelers | $1,165 |
| 13 | Shelter | $1,187 |
| 14 | State Farm | $1,201 |
| 15 | Progressive | $1,226 |
| 16 | Direct General | $1,238 |
| 17 | State Auto | $1,254 |
| 18 | The Hartford | $1,258 |
| 19 | Chubb | $1,277 |
| 20 | 21st Century | $1,300 |
| Compare Rates Now Go | ||
Utica National may offer some of the cheapest car insurance rates in Memphis at around $744 per year. Auto-Owners, Cincinnati Insurance, USAA, and Penn National also qualify as some of the best Memphis, TN insurance companies.
As the example above demonstrates, if you are a policyholder with Penn National and switched to Auto-Owners, you might see annual savings of around $74. Drivers with Tennessee Farmers might save as much as $100 a year, and Erie policyholders might reduce prices by as much as $126 a year.
If you want to find out if you’re overpaying, click here to start your free quote or quote rates from the companies below.
Remember that these policy prices are averages across all insureds and vehicles and do not factor in an exact zip code location for 16 year olds. So the car insurance company that is most affordable for your situation may not even be in the top 30 companies in the list above. That point stresses why you need to get quotes using your own driver and vehicle profiles.
Discount Memphis auto insurance
Car insurance companies that sell policies for 16 year olds may have special discounts that could lower prices by as much as 30% if you are eligible for them. A list of companies and their offered discounts include:
- Progressive offers premium reductions for online signing, online quote discount, good student, homeowner, and continuous coverage.
- AAA includes discounts for AAA membership discount, multi-car, pay-in-full, anti-theft, and good driver.
- Farmers Insurance policyholders can earn discounts including mature driver, youthful driver, homeowner, bundle discounts, multi-car, and switch companies.
- GEICO may include discounts for defensive driver, membership and employees, emergency military deployment, daytime running lights, good student, five-year accident-free, and multi-vehicle.
- Esurance offers discounts for anti-theft, anti-lock brakes, multi-policy, renters, paid-in-full, and online quote.
- SAFECO offers discounts including teen safety rewards, drive less, anti-lock brakes, teen safe driver, bundle discounts, anti-theft, and multi-car.
- State Farm may have discounts that include good student, good driver, Drive Safe & Save, Steer Clear safe driver discount, multiple policy, and driver’s education.
The diagram below illustrates the comparison of auto insurance costs with and without discounts applied to the policy premium. The data is based on a male driver, no claims, a clean driving record, Tennessee state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with vehicle safety, paperless filing, good student, paid-in-full, continuous coverage, and passive restraint discounts applied. With discounts applied, theaverage amount saved on insurance for 16 year olds is 28% or $745.
The example below shows how different deductible levels can raise or lower annual premium costs when trying to find cheap insurance for 16 year olds. The data assumes a married male driver, comprehensive and collision coverage, and no discounts are applied.
The chart above illustrates that a 30-year-old driver could reduce rates by $300 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $450 by switching to a $1,000 deductible. Youthful drivers, like the 20-year-old category, have the ability to save up to $914 each year by using a higher deductible. If you do make the decision to raise your deductibles, it is a good idea to have additional funds in a savings account to offset the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
How accidents and violations affect rates
The ideal way to obtain cheap insurance premiums in Tennessee for new drivers is to be a good driver and avoid accidents and traffic citations. The illustration below demonstrates how traffic citations and at-fault claims can drive up insurance prices for different age groups. The rates are based on a single female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are applied.
In the example above, the average cost of an auto insurance policy in Tennessee per year with no accidents or violations is $1,446. Receive two speeding tickets and the average cost increases to $1,939, an increase of $492 each year. Then add two accidents along with the two speeding tickets and the yearly cost of insurance for 16 year olds goes up to an average of $3,750. That’s an increase of $2,304, or $192 per month, just for not driving safely!
Compare quotes and save
Tennessee insurance rates are influenced by many factors which can significantly increase or decrease the price you have to pay. Simply having another birthday, getting married, or getting a ticket for careless driving may generate price changes resulting in some companies being more affordable than competitors.
Also, companies file new Tennessee car insurance rates without warning in order to remain profitable. An extended period of higher than normal claims can cause higher priced premiums, while long-term profits can result in lower-cost Memphis car insurance rates.
To help illustrate this point, the graph below shows rates for the cheapest car insurance in Memphis, TN for a 30-year-old female driver with no accidents or violations, and good financial standing. Based on her current risk profile, Utica National offers the best car insurance rates in Memphis at $1,059 a year. This is $269 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA round out the rest of the best Memphis, TN auto insurance companies.
Now let’s give the driver in the first example a claim or two, a little lower credit rating, and a few traffic violations. Because each company has a proprietary method for setting prices, comparing prices could now result in a new list of affordable Memphis car insurance companies as shown below.
Tennessee Farmers now has the best car insurance rate in Memphis, TN with Westfield, Nationwide, Allied, and GEICO also being competitive. This example shows why it is crucial to compare rates when trying to get affordable auto insurance quotes for 16 year olds. Rates are calculated by many things and change frequently, so the cheapest option when you bought your policy may now be quite expensive.