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Based on an analysis by Insure.com, the typical car insurance expense in Memphis, Tennessee is $2,161 annually. Furthermore, car insurance premiums in Memphis are $484 more than compared to the state average in Tennessee and $266 more than the national average.

Graph
Table
City average ratesState average ratesNational average cost
$2,161$1,677$1,895

Car insurance premiums differ widely depending on the location, city demographics, population density, average resident age, accident rates, and theft and vandalism.

This article looks at the most affordable car insurance companies in Memphis, the average car insurance rates by age and gender, and the costs in Memphis based on coverage limits.

Whether you’re a new or experienced driver, this article will guide you in finding the most affordable car insurance in Memphis. Keep reading to learn more.

Key Takeaways

  • The annual cost of car insurance in Memphis, Tennessee is $2,161.
  • Farm Bureau Insurance of Tennessee provides the most affordable car insurance in Memphis at $1,666 annually.
  • Young adults in Memphis can expect to pay approximately $3,420 annually for car insurance.

Cheap car insurance companies in Memphis

Farm Bureau Insurance of Tennessee provides the best value for car insurance in Memphis with coverage limits of 100/300/100, costing $1,666 annually.

A close second is Travelers, which offers car insurance at $1,751 per year.

Affordable car insurance providers in Memphis

Graph
Table
Company NameAverage annual costAverage monthly cost
Farm Bureau Insurance of Tennessee$1,666$139
Travelers$1,751$146
Erie Insurance$2,040$170
Progressive$2,045$170
Nationwide$2,065$172
State Farm$2,112$176
Geico$2,137$178
Farmers$2,676$223
Allstate$3,783$315
USAA$1,336$111

Read about the best car insurance companies.

Average car insurance cost in Memphis by coverage limits

The average car insurance rates in Memphis by coverage type are as follows:

  • State minimum coverage: $616 per year (limits of 25/50/25)
  • Liability-only coverage: $785 per year (limits of 50/100/50)
  • Full coverage: $2,161 per year (limits of 100/300/100)
  • Non-owners coverage: $529 per year

In many states, drivers are legally required to maintain state minimum coverage. However, these requirements vary by state. However, the state minimum coverage does not protect vehicles listed on your policy in an at-fault accident.

It’s advisable to choose full coverage to avoid the risk of inadequate coverage and out-of-pocket expenses. You can also choose non-owners coverage if you often borrow or rent vehicles and don’t own one yourself.

Average car insurance rates by gender in Memphis

In Memphis, Tennessee, the average annual car insurance premium for female drivers is $2,173 per year.

While the average annual cost for male drivers is $2,149 per year, which is $24 less than what female drivers pay, according to a rate analysis by Insure.com.

According to the Insurance Information Institute, statistics demonstrate that women are generally regarded as safer drivers than men. 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 $6,707 per year or $559 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 $3,420 per year for their car insurance which is $3,287 less than what the teens pay for their insurance policy.

The car insurance rates in Memphis for adult and senior drivers are $2,144 and $2,094 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:

Car insurance rates by age groups in Memphis

Graph
Table
Teens (16- to 19-year-olds)Young adults (20- to 24-year-olds)Adults (25- to 55-year-olds)Seniors (60- to 75-year-olds)
$6,707$3,420$2,144$2,094

Examining car insurance rate trends in Memphis, Tennessee, we observe a upward trend from 2022 to 2023. Subsequently, from 2022 to 2023, the rates experienced increase overall, with an increase of 25% or $429.

The table below shows the trend for last four years:

How car insurance rates are changing in Memphis

Graph
Table
2016 rates2019 rates2022 rates2023 rates
$1,570$1,942$1,732$2,161

Conclusion

In conclusion, Memphis’s car insurance rates are higher than the average insurance rates in Tennessee. Drivers in Memphis can find affordable car insurance options by shopping around and taking advantage of available discounts. Moreover, many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

Methodology

Insure.com team worked with Quadrant Information Service to get car insurance data. To determine the average premiums, our team of data analysts and expert editors have analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits:

  • $100,000 bodily injury per person
  • $300,000 bodily injury per accident
  • $100,000 property damage per accident
  • $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your individual rates may vary.

How much is car insurance in other cities

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Prachi Singh
Contributing Researcher

 
  

Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.

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