Who Has Affordable Auto Insurance for Teenagers in Memphis?

One of the many factors that are used to help calculate the annual cost of car insurance is where your car is garaged. Areas with high crime rates or more dense population tend to have higher auto insurance costs, whereas areas with less crime or weather claims have the benefit of cheaper car insurance.

The following table shows the most costly cities in Tennessee for teenagers to purchase auto insurance in. Memphis ranks #1 with a yearly cost of $1,460 on average, which is about $122 each month.

How much does car insurance cost in Memphis, TN?
Rank City Annual Premium
1 Memphis $1,460
2 Germantown $1,374
3 Bartlett $1,363
4 Collierville $1,349
5 Jackson $1,292
6 Oak Ridge $1,260
7 Clarksville $1,206
8 Spring Hill $1,205
9 Nashville $1,201
10 La Vergne $1,197
11 Maryville $1,196
12 Columbia $1,190
13 Murfreesboro $1,183
14 Knoxville $1,182
15 Cookeville $1,171
16 Brentwood $1,168
17 Smyrna $1,148
18 Morristown $1,137
19 Gallatin $1,133
20 Franklin $1,129
21 Cleveland $1,124
22 Hendersonville $1,124
23 Chattanooga $1,115
24 Johnson City $1,041
25 Kingsport $1,037
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Rate information is estimated as the specific geographic location can raise or lower auto insurance rates greatly.

Finding out which companies offer the lowest-priced insurance rates for teenagers calls for a little more work in order to find the best policy. Every insurance company uses their own method to determine rates, so let’s take a look at the insurance companies with the overall best prices in Memphis.

It’s important to know that Tennessee insurance rates are influenced by many factors that control the price you pay for coverage. Simply getting older, buying a different home, or getting a few speeding tickets can cause premium changes that can now make some companies more affordable than others.

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Utica National normally has some of the best car insurance rates in Memphis at around $744 annually. Auto-Owners, Cincinnati Insurance, Tennessee Farmers, and Penn National also make the cut as some of the more affordable Memphis, TN auto insurance companies.

As the rates illustrate above, if you are a customer of Tennessee Farmers and switched to Auto-Owners, you could realize an annual savings of in the vicinity of $71. Insureds with Penn National may save as much as $74 a year, and USAA insureds might realize rate reductions of up to $77 a year.

These premium estimates are averaged for all insureds and vehicles and and are not calculated with an exact zip code location for teenagers. So the company that is best for you may not even be in the top 30 companies shown above. That helps illustrate why you need to compare prices as often as possible using your own individual information.

The vehicle model needing coverage is one of the main factors when comparison shopping for low-priced auto insurance for teenagers. Vehicles with high performance engines, a lack of safety features, or a track record of large liability claims will cost quite a bit more to insure than safer, lower-performance models.

The next table estimates car insurance costs for some of the cheapest automobiles to buy insurance for.

Cheapest Vehicles to Insure in Memphis, TN
Vehicle Insured Estimated Cost for Full Coverage
Honda CR-V EX 2WD $6,639
Honda Accord LX 4-Dr Sedan $6,647
Ford Escape XLS 4WD $6,639
Hyundai Elantra SE Touring Station Wagon $7,142
Toyota Prius $7,211
Ford Explorer XLT 2WD $7,445
Ford F-150 STX Super Cab 4WD $7,515
Volkswagen Jetta 2.0T Station Wagon $7,645
Chevrolet Impala LS $7,810
Ford Edge SEL AWD $7,817
Toyota RAV4 Limited 4WD $7,879
Chevrolet Malibu Hybrid $7,888
Chevrolet Equinox LT 2WD $7,879
Dodge Grand Caravan SXT $7,949
Toyota Tacoma Double Cab 4WD $7,959
Toyota Corolla LE $8,313
Toyota Camry SE $8,322
GMC Sierra 2500HD SLE Regular Cab 4WD $8,382
Honda Odyssey Touring $8,388
Jeep Grand Cherokee Limited 2WD $8,382
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Data variables include single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in the specific area where the vehicle is garaged which can affect coverage rates noticeably.

Based on these rates, makes and models like the Honda CR-V, Honda Accord, Ford Escape, and Hyundai Elantra are most likely going to be a few of the most economical vehicles to insure for teen drivers. Auto insurance rates will tend to be more expensive anyway just due to the fact that there is more claim exposure for teenagers, but overall those particular models will have the least expensive rates available.

Memphis insurance companies

Finding the highest-rated auto insurance company can be difficult considering how many companies sell insurance in Tennessee. The rank data in the next section could help you analyze which coverage providers you want to consider when trying to find cheaper insurance for teenagers. The rankings below are only comprised of the largest companies in the United States, so companies that focus mainly on Tennessee business are not taken into consideration for the list.

Top Insurance Companies for Teenagers in Tennessee
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
Travelers 93 98 99 88% A++ 95.1
USAA 83 99 100 91% A++ 94.1
AAA Insurance 91 95 92 90% A 93.3
Nationwide 85 95 97 89% A+ 92.4
Allstate 77 100 97 88% A+ 90.7
State Farm 80 94 96 88% A++ 90.6
The Hartford 88 93 91 87% A+ 90.4
Safeco Insurance 91 95 85 88% A 90.2
Progressive 88 94 83 88% A+ 90.1
American Family 91 86 95 83% A 89.7
Esurance 86 90 94 90% A+ 89.5
The General 86 93 89 84% A- 88.2
GEICO 79 89 95 87% A++ 87.8
Titan Insurance 86 82 92 86% A+ 86.5
21st Century 86 82 90 84% A 86.4
Liberty Mutual 79 87 95 78% A 85.3
Erie Insurance 87 84 85 85% A+ 85.3
Farmers Insurance 77 80 80 84% A 80.3
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Data Source: Insure.com Best Car Insurance Companies

Full coverage rates vs. liability-only

Saving money when shopping for insurance is probably important to most vehicle owners, and a good way to find cheap insurance for teenagers is to buy liability only. The information below shows the difference between insurance costs with full coverage and liability only. The rate quotes are based on no driving violations, no at-fault accidents, $250 deductibles, single status, and no discounts are factored in.

If averaged out across all ages, full coverage on your policy costs $1,521 per year more than just buying liability only. That amount may make you wonder if buying full coverage is worth the expense. There is no clear-cut formula for eliminating full coverage, but there is a guideline you can consider. If the yearly cost of comp and collision coverage is more than around 10% of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.

How to find cheaper car insurance for teenagers

Lowering your rates is not difficult, and here are some of the recommended thrifty ideas that can help drivers get cheaper car insurance.

That final tip is especially valuable, as was affirmed in the article above. Rates in Memphis can change considerably based on profitability, so drivers shouldn’t be reluctant to buy from a new company if a better deal can be had. We understand brand loyalty, but it’s not recommended if that inflexibility results in costing you a small fortune. In less than five minutes you could compare rates and find cheaper car insurance for teenagers.

If you have questions and prefer to get some professional input when trying to find lower insurance rates for teenagers, the agents shown below are a good start to answer your questions and help you decide which coverages are best. To locate a Memphis auto insurance agent close to where you live, click the link after the list.

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