The words “bargain” and “auto insurance” really shouldn’t be used together, specifically when comparison shopping for the best price on coverage for college students. Let’s introduce you to some things that influence insurance premiums, and see how we can help you lower the cost of your next policy.
The vehicle model you are trying to insure is a large consideration when consumers are trying to find the cheapest insurance for college students. Vehicles with reasonable performance levels, advanced safety features, or a track record of few liability claims will cost quite a bit less to insure than higher performance models. The information below shows car insurance premiums for the most cost-effective automobiles to buy insurance for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $3,773 |
| Honda CR-V EX-L 2WD | $3,831 |
| Jeep Wrangler Sport 4WD 2-Dr | $3,866 |
| Toyota Prius | $4,168 |
| Honda Odyssey EX | $4,426 |
| Ford Focus SE 4-Dr Sedan | $4,434 |
| Ford Edge SEL 2WD | $4,426 |
| Chevrolet Equinox LT AWD | $4,484 |
| Toyota RAV4 4WD | $4,492 |
| Chevrolet Impala LT | $4,484 |
| GMC Sierra SL Extended Cab 2WD | $4,493 |
| Volkswagen Jetta S 4-Dr Sedan | $4,484 |
| Ford F-150 FX4 4WD | $4,541 |
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Prices based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in vehicle location which can increase or decrease premium rates considerably.
Based on these rates, makes and models like the Ford Escape, Honda CR-V, and Jeep Wrangler are a few of the most economical vehicles to insure for students in college. The price of auto insurance will be higher anyway because of the fact that there is more risk for college students, but overall those specific models will most likely have the best rates that you are likely to find.
For students in college, one of the big things that help determine the price you pay for insurance is where your residence is. Areas with more people or higher crime rates will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims tend to receive cheaper rates.
The following table ranks the priciest cities in Tennessee for college students to purchase car insurance in. Memphis ranks #1 with the annual price of $1,505 for the average policyholder, which is approximately $125 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Memphis | $1,505 |
| 2 | Bartlett | $1,363 |
| 3 | Collierville | $1,349 |
| 4 | Germantown | $1,320 |
| 5 | Jackson | $1,266 |
| 6 | Oak Ridge | $1,247 |
| 7 | Nashville | $1,201 |
| 8 | Spring Hill | $1,193 |
| 9 | Columbia | $1,190 |
| 10 | La Vergne | $1,186 |
| 11 | Murfreesboro | $1,183 |
| 12 | Knoxville | $1,182 |
| 13 | Clarksville | $1,170 |
| 14 | Maryville | $1,160 |
| 15 | Smyrna | $1,159 |
| 16 | Chattanooga | $1,149 |
| 17 | Cookeville | $1,147 |
| 18 | Brentwood | $1,144 |
| 19 | Franklin | $1,140 |
| 20 | Morristown | $1,137 |
| 21 | Hendersonville | $1,136 |
| 22 | Cleveland | $1,124 |
| 23 | Gallatin | $1,121 |
| 24 | Kingsport | $1,057 |
| 25 | Johnson City | $1,031 |
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Annual rates are comparative as vehicle location can increase or decrease premiums considerably.
Finding out which insurers offer the best insurance rates for college students takes a tad more effort than just comparing rates from one or two companies. Every insurance company has a proprietary method to set policy rates, so let’s take a look at the most affordable insurance companies in Memphis, TN.
Best Car Insurance Prices for College Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $744 |
| 2 | Cincinnati Insurance | $858 |
| 3 | Auto-Owners | $861 |
| 4 | Penn National | $908 |
| 5 | Tennessee Farmers | $923 |
| 6 | USAA | $929 |
| 7 | Erie | $957 |
| 8 | Allied | $1,029 |
| 9 | Nationwide | $1,042 |
| 10 | Westfield | $1,047 |
| 11 | GEICO | $1,144 |
| 12 | Travelers | $1,165 |
| 13 | Progressive | $1,178 |
| 14 | Shelter | $1,199 |
| 15 | State Farm | $1,213 |
| 16 | Direct General | $1,214 |
| 17 | State Auto | $1,217 |
| 18 | The Hartford | $1,258 |
| 19 | Chubb | $1,277 |
| 20 | 21st Century | $1,300 |
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Utica National generally has some of the best car insurance rates in Memphis at around $744 a year. Cincinnati Insurance, Auto-Owners, Penn National, and Tennessee Farmers also are some of the cheapest Memphis, TN car insurance companies.
In this example, if you are a policyholder with Auto-Owners and switched to Utica National, you may realize annual savings of approximately $117. Drivers with Penn National might save as much as $164 a year, and Tennessee Farmers customers might realize rate reductions of up to $179 a year.
Bear in mind that those policy rates are averaged for all drivers and vehicles in Tennessee and and are not calculated with a specific zip code for college students. So the car insurance company that is best suited for you may not even be in the list above. That underscores the importance of why you need to compare rates from multiple companies using your own driver data and vehicle information.
Get discount Memphis car insurance
Insurance providers that provide policies for college students may also give you premium discounts that could potentially reduce rates by as much as 25% or more if you meet specific criteria. A list of insurance companies and a summarized list of policyholder discounts include:
- Farm Bureau discounts include renewal discount, multi-policy, 55 and retired, youthful driver, good student, and safe driver.
- Liberty Mutual has savings for preferred payment discount, multi-policy, safety features, newly retired, new graduate, new move discount, and teen driver discount.
- State Farm offers premium reductions for passive restraint, Drive Safe & Save, student away at school, accident-free, multiple policy, and Steer Clear safe driver discount.
- Auto-Owners Insurance may include discounts for good student, paperless, safe vehicle, teen driver, company car, mature driver, and multi-policy.
- GEICO may offer discounts for seat belt use, defensive driver, membership and employees, daytime running lights, emergency military deployment, federal employee, and multi-policy.
- SAFECO policyholders can earn discounts including bundle discounts, accident prevention training, drive less, teen safety rewards, homeowner, anti-theft, and multi-car.
The information below illustrates the difference between insurance costs with and without discounts applied to the rates. The premiums are based on a female driver, no claims or driving violations, Tennessee state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with vehicle safety, passive restraint, paperless filing, paid-in-full, continuous coverage, and good student discounts applied. In this example, the average amount saved each year on insurance for college students is 21% or $247.
The information below shows how choosing a deductible can change premium costs when getting quotes for cheap insurance for college students. The premiums assume a married female driver, comprehensive and collision coverage, and no discounts are applied to the premium.
The data above shows that a 50-year-old driver could lower their policy premium by $198 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $300 by switching to a $1,000 deductible. Younger drivers, like the 20-year-old category, could roll back prices as much as $490 or even more by choosing larger deductibles on their policy. When increasing deductibles, it will be necessary to have plenty of money set aside to allow you to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
A good deal can quickly turn bad
Tennessee insurance rates are based on many factors which can significantly increase or decrease your annual premium. Simply having another birthday, increasing deductibles, or getting a speeding ticket may generate price changes that may make certain companies cheaper in comparison to the competition.
In addition to those changes, insurance companies change their prices every year to adjust for heavy claims or excess profits. A period of increased losses can cause rate hikes, while better underwriting may produce more affordable Memphis car insurance rates.
The bar chart below demonstrates which company has the cheapest car insurance in Memphis, TN for a 40-year-old male driver with no accidents, a clean driving record, and solid credit. If we estimate rates based on his current situation, Utica National quotes the lowest car insurance rates in Memphis at $1,043 annually. This is $285 less than the average rate paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also make the list of the most affordable Memphis, TN auto insurance companies.
Now we will pretend the driver from above some claims, a lower credit rating, and a few blemishes on his driving record. Since each company has their own unique process to set premium rates, comparing prices will most likely result in a completely different list of companies as shown below.
Erie now has the cheapest rate in Memphis, TN with Nationwide, Allied, Westfield, and GEICO now rounding out the top five. This example demonstrates why it is crucial to do a thorough rate comparison when trying to get the best auto insurance rates for college students.
Insurance rates can be determined by many risk factors and can increase or decrease at any time, so the best company the last time you shopped your coverage around may now cost much more than other companies.