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The average car insurance cost in Memphis, Tennessee is $1,725 per year, according to 2022 Insure.com data. This is $352 more than the average auto insurance cost in Tennessee and $43 more than the national average, as analyzed by Insure.com.

Average cost in MemphisAverage cost in TennesseeNational average cost
$1,725$1,373$1,682

The rates can vary wildly depending on where they are filed. City demographics, including population density and average resident age, will affect how much money you spend on premiums which could make it cheaper or more expensive than other areas with different factors like accident rates, theft and vandalism rates, etc.

The article covers information on – the cheapest car insurance providers in Memphis, the average car insurance rates by age, gender and how much is car insurance in Memphis based on coverage limits. Whether you’re a new driver or have been driving for years, this article can help you find the best deal on cheap car insurance in Memphis. Read on to learn more.

Cheap car insurance companies in Memphis

USAA offers the cheapest car insurance in Memphis, at an average of $1,082 per year with full coverage limits of 100/300/100. USAA offers car insurance only to members of the military, veterans and their immediate families.

The second cheapest company in Memphis is Geico, offering car insurance rates at $1,324 per year.

As mentioned earlier, car insurance rates vary from one company to another because the factors used to calculate rates vary by insurer. Therefore, comparing quotes from multiple insurers is recommended to find cheap car insurance rates in Memphis before deciding on the policy that matches your requirements.

The table below lists the average annual and monthly costs for the various car insurance companies providing coverage in Memphis, Tennessee:

Company NameAverage annual costAverage monthly cost
USAA$1,082$90
Geico$1,324$110
Auto-Owners$1,326$111
Nationwide$1,369$114
State Farm$1,508$126
Travelers$1,567$131
Erie Insurance$1,680$140
Farmers Insurance$2,105$175
Allstate$2,403$200
Progressive$2,513$209

Read about the best car insurance companies for 2022.

Average car insurance cost in Memphis by coverage limits

In Memphis, the average car insurance rates based on coverage types are as follows:

  • State minimum coverage: $527 per year (limits are 25/50/25)
  • Liability only coverage: $653 per year (limits are 50/100/50)
  • Full coverage: $1,725 per year (limits are 100/300/100)
  • Non-owners coverage: $443 per year

In most states, drivers must have the state minimum coverage to drive legally, but these vary by state. However, state minimum coverage does not cover any vehicles listed on your policy in an at-fault accident.

To avoid compromising on the coverage and pay out-of-pocket expenses, it is better to have full coverage or non-owner coverage if you don’t own a car but borrow or rent one frequently.

Average car insurance rates by gender in Memphis

The average car insurance rate for a female driver in Memphis, Tennessee, is $1,738 per year.

While the rate for a male driver is $1,725 per year, which is $13 less than what female drivers pay, according to a 2022 rate analysis by Insure.com.

Women are considered to be safer drivers than men, and statistics have proved this, according to the Insurance Information Institute. They often pay less for auto insurance because of their lower rate of severe accidents than men.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Memphis

In Memphis, car insurance rates are the highest for teens, at $7,327 per year or $611 per month. The rates are higher for teenagers (16- to 19-year-olds) as they are more prone to road accidents due to their lack of experience on the road, according to the Insurance Information Institute. There are driving laws for teens to help them drive better. Also, teen insurance rates can be lowered by adding teens to a parent’s auto insurance policy.

Car insurance rates are bound to decrease as teens grow older and earn a good driving record. Young adults pay $3,055 per year for their car insurance which is $4272 less than what the teens pay for their insurance policy.

The car insurance rates in Memphis for adult and senior drivers are $1,780 and $1,738 per year respectively.

The car insurance rates for adults and seniors are lower than those for teens and young adults. “This is because they are more likely to obey the speed limits and follow the rules of the road,” says the Insurance Information Institute.

Read more on auto insurance for seniors.

The table below depicts the average annual rates for drivers of different age groups:

Age groupAverage annual rates
Teens (16- to 19-year-olds)$7,327
Young adults (20- to 24-year-olds)$3,055
Adults (25- to 55-year-olds)$1,780
Seniors (60- to 75-year-olds)$1,738

Car insurance rate trends in Memphis

If we look at the car insurance rates trends in Memphis, Tennessee, it was on an upward swing from 2016 to 2019. From 2019 to 2022, the rates decreased overall by 10%, or $200.

The table below shows the trend for three years:

2016 rates2019 rates2022 rates
$1,557$1,925$1,725

Conclusion

In conclusion, the insurance rates in Memphis, are higher than the average insurance cost in Tennessee. Shopping around and taking advantage of available discounts, drivers in Memphis can find affordable car insurance options. Additionally, many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

Methodology

Insure.com, with the help of Quadrant Information Services, gathered data for car insurance rates in Memphis, Tennessee. The averages are rounded to their nearest sums. The data is based on the sample profile of a 40-year-old male driver who commutes 12 miles to work. All rates are based on the profile of a driver with a clean driving record, good insurance score, and full coverage policy.

The coverage limit for a full coverage policy is 100/300/100 liability with a $500 comprehensive and Collision deductible.

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