For high mileage drivers, one of the more important components that determine the cost of insurance is where your car is garaged in Memphis. Areas with increased crime or more people are more likely to pay higher prices, whereas areas with fewer weather claims and lower vehicle theft rates have the enjoyment of a little cheaper coverage.
The table below ranks the most expensive areas in Tennessee for high mileage drivers to buy an auto insurance policy in. Memphis is ranked #1 with an annual cost of $1,460 for the average insured, which is approximately $122 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Memphis | $1,460 |
| 2 | Bartlett | $1,377 |
| 3 | Collierville | $1,323 |
| 4 | Germantown | $1,320 |
| 5 | Jackson | $1,305 |
| 6 | Oak Ridge | $1,260 |
| 7 | Columbia | $1,226 |
| 8 | Knoxville | $1,218 |
| 9 | Clarksville | $1,194 |
| 10 | La Vergne | $1,186 |
| 11 | Cookeville | $1,182 |
| 12 | Nashville | $1,177 |
| 13 | Franklin | $1,175 |
| 14 | Maryville | $1,172 |
| 15 | Morristown | $1,171 |
| 16 | Spring Hill | $1,169 |
| 17 | Chattanooga | $1,161 |
| 18 | Murfreesboro | $1,159 |
| 19 | Hendersonville | $1,158 |
| 20 | Gallatin | $1,155 |
| Find Cheaper Rates Go | ||
Rate information is estimated as the specific geographic location can decrease or increase premiums significantly.
Locating affordable auto insurance is hard enough, and finding out which company offers the lowest-priced car insurance rates for high mileage drivers involves even more diligence. Each insurance company has a different process for determining rates, so we’ll take a look at the car insurance companies with the overall best prices in Memphis, TN.
It’s important that readers know that Tennessee car insurance rates are impacted by many factors that may substantially change the policy price. That is why it is so important to take the time to shop around to get the most economical insurance rates for high mileage drivers. Insurance prices consist of many risk factors and change frequently, so the best price three years ago may now be quite expensive.
Lowest Insurance Price Quotes in Tennessee
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $760 |
| 2 | Auto-Owners | $861 |
| 3 | Cincinnati Insurance | $876 |
| 4 | Tennessee Farmers | $923 |
| 5 | Penn National | $926 |
| 6 | USAA | $929 |
| 7 | Erie | $967 |
| 8 | Allied | $1,029 |
| 9 | Westfield | $1,037 |
| 10 | Nationwide | $1,042 |
| 11 | GEICO | $1,144 |
| 12 | Travelers | $1,165 |
| 13 | State Farm | $1,201 |
| 14 | Progressive | $1,226 |
| 15 | Shelter | $1,235 |
| 16 | Direct General | $1,238 |
| 17 | State Auto | $1,254 |
| 18 | The Hartford | $1,258 |
| 19 | Chubb | $1,290 |
| 20 | 21st Century | $1,300 |
| Compare Rates Now Go | ||
Utica National has some of the most affordable car insurance rates in Memphis at around $760 each year. Auto-Owners, Cincinnati Insurance, Tennessee Farmers, and Penn National also make the cut as some of the lowest-priced Memphis, TN insurance companies.
As shown above, if you currently buy coverage from Penn National and switched to Auto-Owners, you might achieve an annual premium reduction of upwards of $65. Insureds with USAA could save as much as $68 a year, and Erie insureds might lower prices by up to $106 a year.
Be aware that those estimates are averages across all types of drivers and the different vehicles they drive and do not take into consideration a specific zip code for high mileage drivers. So the car insurance company that is best for you may not even be in the top 30 companies in the list above. That emphasizes why you need to get quotes using your own personalized driver profile and vehicle information.
The example below highlights how deductible choice can increase or decrease premium costs when researching cheap insurance for high mileage drivers. The premiums are based on a single female driver, full coverage, and no discounts are applied to the premium.
A 40-year-old driver could reduce rates by $310 a year by increasing from a $100 deductible to a $500 deductible, or save $466 by using a $1,000 deductible. Younger drivers, like the 20-year-old example, could drop their prices up to $794 every year just by choosing larger deductibles.
When raising deductibles, it is important to have plenty of savings on hand to allow you to pay the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Full coverage rates compared to liability-only
Saving money when shopping for car insurance is important to most people, and one of the easiest ways to save on the cost of insurance for high mileage drivers is to buy only liability coverage. The example below shows the comparison of car insurance rates when comparing full coverage to liability only. The premiums assume no violations or accidents, $100 deductibles, marital status is single, and no additional discounts are factored in.
If the expense is averaged for all age categories, full coverage costs an additional $1,659 per year over and above liability coverage. A very common question is if paying for full coverage is worth it. There is no set rule for excluding full coverage, but there is a general school of thought. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost minus the deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s assume your vehicle’s settlement value is $8,500 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, the most your company will settle for is $7,500 after paying your policy deductible. If premium cost is more than $750 a year to have full coverage, then you may want to consider only buying liability coverage.
Why you should be comparing rates
Tennessee car insurance rates are impacted by many things that may substantially change the price you pay for coverage. Improving your credit rating, filing a claim, or getting a reckless driving citation may prompt premium changes that can make some companies much cheaper than others. In addition to those changes, companies file new Tennessee auto insurance rates as needed in order to offset underwriting gains or losses. A period of increased losses can cause higher priced premiums, while a better loss history can cause cheaper Memphis car insurance rates.
As an example, the data below demonstrates which company has the cheapest car insurance in Memphis, TN for a 30-year-old female driver with no accidents or violations, and good financial standing. When quoting prices based on her personal risk profile, Utica National might offer the cheapest car insurance rates in Memphis at $1,049 annually. This is $279 less than the average policy premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and Tennessee Farmers are the rest of the best Memphis, TN auto insurance companies.
The next chart shows rates after we give the driver from the first example some claims, poor credit, and a blemish on her driving record. Since each insurance company has a different formula to determining premium rates, comparing rates may now show a significantly different list of the cheapest Memphis car insurance companies as shown below.
Erie now has the best insurance rate in Memphis with Nationwide, Allied, Westfield, and Auto-Owners now being in the top five. This example shows why it is important to compare many different companies when trying to find the most economical insurance quotes for high mileage drivers.
Insurance prices are influenced by many different factors and change dramatically, so the most affordable company a year ago may now be quite expensive.
How to find the cheapest car insurance for high mileage drivers
It’s not impossible to find cheaper rates, and here are some of the recommended thrifty suggestions that can help drivers quote more affordable coverage.
- Be a cautious driver
- Prevent price hikes by avoiding at-fault accidents
- Buy a safer vehicle
- Clean up your credit rating
- Higher comprehensive and collision coverage deductibles will save money
- Compare prices frequently to find the best deal
The final tip is remarkably valuable, as we stressed in this write-up. Coverage prices change a lot, so don’t hesitate to buy from a new company if you find a better deal.
Many consumers stick with the same company and that’s fine, but it isn’t a good idea if that devotion results in you overpaying thousands of dollars over several years. In just a few minutes you could shop around and find cheaper car insurance for high mileage drivers in Memphis.