Average car insurance cost in Memphis, Tennessee

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Based on our data, Memphis drivers pay an average of $2,950 annually for car insurance. It’s $736 more than the Tennessee state average and $437 more than the national average.

Insurance rates can vary significantly depending on where you live. Factors such as population density and accident and theft rates influence premium costs, making some areas more expensive or affordable than others.

Understanding how rates in Memphis compare to state and national averages can help you spot a good deal, or know when it’s time to shop around. Below, we’ll break down local trends, show how rates vary, and explain how to save.

Cheap car insurance companies in Memphis

Travelers provides the lowest full coverage car insurance rate in Memphis, with an annual premium of $1,978 for the liability limits of $100,000 per person, $300,000 per accident and $100,000 for property damage.

GEICO also offers cheap full coverage car insurance rates at an average annual cost of $2,485.

Every insurance company calculates premiums differently based on its unique underwriting guidelines. This means prices can vary widely, so getting quotes from multiple insurers is one of the best ways to find affordable coverage tailored to you.

Below is a breakdown of average yearly and monthly car insurance rates from different insurers in Memphis.

Read about the best car insurance companies.

Average car insurance cost in Memphis by coverage limits

Here’s a breakdown of average car insurance rates in Memphis by coverage type.

• State minimum coverage: $748 per year (limits are $25,000 bodily injury liability per person, $50,000 total bodily injury liability per accident and $25,000 property damage liability per accident).
• Liability only coverage: $951 per year (limits are $50,000 bodily injury liability per person, $100,000 total bodily injury liability per accident and $50,000 property damage liability per accident).
• Full coverage: $2,950 per year (limits are $100,000 bodily injury liability per person, $300,000 total bodily injury liability per accident and $100,000 property damage liability per accident).
• Non-owners coverage: $599 per year

Most states require drivers to purchase minimum liability insurance to drive legally, but the minimum required limits vary. This coverage helps pay for injuries or damage you cause to others in an accident.

However, a liability-only policy won’t cover damage to your car or medical expenses if you’re at fault. You’ll need to add collision and comprehensive coverage to your policy to protect your car.

Average car insurance rates by gender in Memphis

In Memphis, female drivers pay an average of $2,945 per year for car insurance. In comparison, male drivers pay $2,954 annually, which is $9 more than what female drivers pay. Most states consider gender when calculating premiums. However, states such as California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania don’t allow insurers to use gender as a rating factor to determine insurance rates.

According to the Insurance Information Institute, or Triple-I, women tend to be safer drivers than men and are less likely to be involved in severe accidents. Insurers account for this risk by charging male drivers higher premiums.

Read more on how gender affects car insurance rates.

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Average car insurance rates by age in Memphis

Teen drivers in Memphis face the highest car insurance rates, at $11,002 per year or $917 per month. According to the Insurance Information Institute, insurance costs are higher for teens aged 16 to 19 due to their increased risk of accidents and limited driving experience. On average, teen drivers pay $6,191 more for car insurance than young adults.

Car insurance premiums typically drop as teens age and gain more experience behind the wheel. On average, young adults (ages 20 to 24) pay $4,811 annually for coverage – that’s $6,191 less than what teens usually pay.

Adults between 25 and 55 and senior drivers between 60 and 75 in Memphis pay an average of $2,935 and $2,852 per year for car insurance, respectively.

Read more on auto insurance for seniors.

Below you’ll find average annual full coverage car insurance rates for drivers of different age groups.

Car insurance rate trends in Memphis

Car insurance rates in Memphis saw an upward trend between 2023 to 2025. During this period, average premiums Increased by 37% – a change of about $789.

The graph below tracks insurance costs from 2022 to 2025, highlighting long-term trends that help explain today’s rate changes.

How drivers can save on insurance even with higher rates

Drivers in Memphis pay higher than the state average for car insurance. The good news? You can often cut costs by comparing quotes from several insurers and using discounts – like bundling policies, safe driver rewards, or low-mileage savings.

Methodology

Insure.com commissioned car insurance rates in 2025 from Quadrant Information Services. To determine the average premiums, our team of data analysts and expert editors 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 rates may vary.

Shivani Gite

Contributing Writer

 

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Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.