Average car insurance cost in Memphis, TN

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According to data from Insure.com, the average annual cost of car insurance in Memphis, Tennessee is $2,161. The auto insurance rates in Memphis is $484 more than the state average and $266 more than the national average.

Car insurance premiums vary significantly based on where they are filed. Factors such as city demographics, population density and average resident age, accident rates, theft, and vandalism rates will influence the amount of premiums you pay.

This article talks in detail about the most affordable car insurance companies in Memphis, the average car insurance rates by age and gender, and how much car insurance cost in Memphis depending on coverage limits. Whether you’re a new driver or an experienced one, this article will help you to find the most affordable car insurance in Memphis. Keep reading to learn more.

Cheap car insurance companies in Memphis

Farm Bureau Insurance of Tennessee offers the cheapest car insurance in Memphis, at an average of $1,666 per year with full coverage limits of 100/300/100.

The second cheapest company in Memphis is Travelers, offering car insurance rates at $1,751 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:

Read about the best car insurance companies.

Average car insurance cost in Memphis by coverage limits

In Memphis, the average car insurance rates the coverage levels are as follows:

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

In most states, drivers are required to have state minimum coverage to drive legally, although these requirements vary by state. However, it’s important to note that state minimum coverage does not provide coverage for any vehicles listed on your policy in the event of an at-fault accident.

To prevent compromising on coverage and out-of-pocket expenses, it’s advisable to opt for full coverage or non-owner coverage if you frequently borrow or rent a car but do not own one.

Average car insurance rates by gender in Memphis

Based on an analysis by Insure.com, female drivers in Memphis, Tennessee pay an average annual car insurance premium of $2,173. In comparison, male drivers pay $2,149 annually, which is $24 less than what female drivers pay.

According to the Insurance Information Institute, statistics indicate that women are generally considered safer drivers than men. Also, women pay less for car insurance due to the lower rate of severe accidents.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Memphis

Car insurance rates in Memphis, are highest for teens at $6,707 per year or $559 per month. According to the Insurance Information Institute, the rates are higher for teens (16- to 19-year-olds) as they are more prone to road accidents due to their lack of experience on the road. To address this, there are specific driving laws for teens to help them drive better. Additionally, parents can potentially reduce teen insurance rates by adding them to their existing auto insurance policy.

As teens age and build a positive driving history, it’s common for car insurance rates to decline. Young adults typically pay $3,420 annually for their car insurance, which is $3,287 less than what teens pay for their insurance coverage.

In Memphis, adult drivers pay an average of $2,144 per year for car insurance, while senior drivers pay $2,094 annually.

The rates for adults and seniors are notably lower compared to the rates for teens and young adults as they are more likely to obey the speed limits and follow the rules of the road, as per 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 rate trends in Memphis

Examining the trends in car insurance rates in Memphis, Tennessee it was on an upward swing from 2022 to 2023. From 2022 to 2023 rates increase overall by 25%, or $429.

The table below shows the trend for last four years:

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. Many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

• Insurance Information Institute. “What determines the price of my auto insurance policy,” Accessed September 2024.
• Insurance Information Institute. “Auto insurance for teen drivers,” Accessed September 2024.
• Insurance Information Institute. “Senior driving safety and tips,” Accessed September 2024.

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.

Prachi Singh

Contributing Researcher

 

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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.