How Much are Memphis Car Insurance Quotes for 16 Year Olds?

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.

Cheapest Vehicles to Insure in Memphis, TN
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
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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.

How much is car insurance in Memphis?
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
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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

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What’s the cheapest car insurance in Tennessee?
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
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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

Save on insurance for new drivers in MemphisCar 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:

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.