The words “cheap” and “insurance” really should not be used together, in particular when comparison shopping for the best price on coverage for first-time drivers. In an attempt to save some money, let’s teach you some things that impact insurance premiums, and figure out some ideas to shave a little off your next policy.
Shopping around for cheap insurance is confusing at best, and finding out which company offers the lowest-priced car insurance rates for first-time drivers requires even more perseverance.
Each insurer has a unique formula for determining rates in each state, so first let’s look at the rankings for the overall cheapest car insurance companies in Memphis, TN.
Best Car Insurance Prices for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $744 |
| 2 | Auto-Owners | $852 |
| 3 | Cincinnati Insurance | $876 |
| 4 | Penn National | $926 |
| 5 | USAA | $929 |
| 6 | Tennessee Farmers | $961 |
| 7 | Erie | $967 |
| 8 | Nationwide | $1,012 |
| 9 | Westfield | $1,047 |
| 10 | Allied | $1,060 |
| 11 | GEICO | $1,122 |
| 12 | Travelers | $1,177 |
| 13 | Progressive | $1,178 |
| 14 | State Farm | $1,201 |
| 15 | Direct General | $1,201 |
| 16 | State Auto | $1,204 |
| 17 | The Hartford | $1,208 |
| 18 | Shelter | $1,223 |
| 19 | 21st Century | $1,300 |
| 20 | Chubb | $1,329 |
| Quote Your Rates Go | ||
Utica National may offer some of the most affordable car insurance rates in Memphis at around $744 per year. This is $584 less than the average price paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also are some of the more affordable Memphis, TN auto insurance companies.
As shown in the rates above, if you are a customer of Penn National and switched to Auto-Owners, you could realize savings of in the vicinity of $74. Drivers with USAA may save as much as $77 a year, and Tennessee Farmers policyholders might cut rates by $109 a year.
Bear in mind that those premiums are averaged for all insureds and vehicles and and are not calculated with an exact vehicle garaging location for first-time drivers. So the company that has the lowest price for you may not even be in the top 30 companies shown above. That underscores the importance of why you need to get quotes using your own driver information and specific vehicle type.
One of the more important things that are looked at to determine the amount you pay each year for auto insurance is where you keep your car. Regions with larger populations or more claims tend to have higher rates, whereas areas with less congestion have the benefit of cheaper car insurance.
The next table shows the highest-priced areas in Tennessee for first-time drivers in which to buy car insurance. Memphis makes the list at #1 with the annual price of $1,460 for car insurance, which is around $122 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Memphis | $1,460 |
| 2 | Bartlett | $1,419 |
| 3 | Germantown | $1,360 |
| 4 | Collierville | $1,349 |
| 5 | Jackson | $1,266 |
| 6 | Oak Ridge | $1,223 |
| 7 | Knoxville | $1,218 |
| 8 | Columbia | $1,214 |
| 9 | Maryville | $1,196 |
| 10 | La Vergne | $1,186 |
| 11 | Nashville | $1,165 |
| 12 | Franklin | $1,164 |
| 13 | Clarksville | $1,158 |
| 14 | Spring Hill | $1,157 |
| 15 | Gallatin | $1,155 |
| 16 | Murfreesboro | $1,148 |
| 17 | Smyrna | $1,148 |
| 18 | Cookeville | $1,147 |
| 19 | Brentwood | $1,144 |
| 20 | Morristown | $1,137 |
| 21 | Hendersonville | $1,136 |
| 22 | Chattanooga | $1,115 |
| 23 | Cleveland | $1,091 |
| 24 | Johnson City | $1,041 |
| 25 | Kingsport | $1,026 |
| Compare Rates Now Go | ||
Rates are comparative as the specific geographic location can impact premium rates noticeably.
Buying coverage from the top company can be a challenge considering how many companies are available to choose from in Memphis. The ranking data shown below can help you decide which insurers you want to consider when trying to find cheaper insurance for first-time drivers.
The rankings below are for companies that write coverage in many states, so companies that focus mainly on Tennessee business will not be included in this list. If you’d like to compare prices from many more Tennessee auto insurance companies, click here.
| 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 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Drive responsibly or pay higher rates
The ideal way to earn the best car insurance rates in Tennessee for new drivers is to be a good driver and avoid getting tickets or having accidents. The diagram below highlights how speeding tickets and at-fault collisions influence insurance costs for different categories of driver ages. The prices are based on a single female driver, comprehensive and collision coverage, $1,000 deductibles, and no other discounts are factored in.
In the chart above, the average cost of auto insurance in Memphis per year with no violations or accidents is $1,164. Get written up for one speeding ticket and the average cost jumps to $1,320, an increase of $156 each year. Then include two accidents along with the one speeding ticket and the annual cost of car insurance for first-time drivers goes up to an average of $2,785. That’s an increase of $1,621, or $135 per month, just for a couple of infractions!
The Memphis car insurance agencies listed below can most likely help you decide which policy fits your needs best, as lots of drivers aren’t clear which coverage they need and would like to get some guidance when buying car insurance for new drivers. It can be challenging to find the best coverage on your own, and agents can provide you satisfaction knowing you have suitable coverage if you have an accident. To locate a Memphis car insurance agency by location nearest to you, click the link at the bottom or click here to compare price quotes now.
- Ron Willis – State Farm Insurance Agent
3486 Poplar Ave #102 – Memphis, TN 38111 – (901) 454-7912 - Oseman Insurance Agency
6750 Poplar Ave #410 – Memphis, TN 38138 – (901) 562-0151 - Zach Jaworski – State Farm Insurance Agent
6060 Primacy Pkwy #221 – Memphis, TN 38119 – (901) 794-3691
Find a Memphis, TN insurance agent near you
How to find low-cost car insurance for first-time drivers
The list below summarizes a few penny-pinching ideas that can help drivers get more affordable coverage.
- Vehicles with safetly features generally cost less to insure
- Pay cheaper rates with good credit scores
- Being accident-free can lower rates significantly
- Raise your deductibles
- Violations like speeding or DUI increase rates
- Remove physical damage coverage on older vehicles
- Shop around once a year for cheaper rates
The last idea is extremely vital, as we pointed out in this piece. Insurance rates vary considerably, so drivers shouldn’t be resistant to change to a new company if a better rate can be found. Having a favorite company is great, but it’s not recommended if that loyalty ends up costing a wad of cash every year. It only takes a couple minutes to compare rates and find cheaper auto insurance for first-time drivers in Memphis.