The words “bargain” and “auto insurance” really shouldn’t be used together, in particular when looking for the best price on coverage for drivers with good credit. In an attempt to save some money, let’s introduce you to a few of the things that have an impact on car insurance premiums, and figure out some ideas to slash the price of your next policy.
For financially responsible drivers, one of the more important components that help determine auto insurance rates is the neighborhood you call home in Memphis. Cities with more crime and/or more people will most likely have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates profit from lower rates.
The illustration below rates the priciest cities in Tennessee for drivers with good credit in which to purchase auto insurance. Memphis comes in at #1 with a yearly premium of $1,505 for the average insurance policy, which is approximately $125 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Memphis | $1,505 |
| 2 | Germantown | $1,374 |
| 3 | Bartlett | $1,363 |
| 4 | Collierville | $1,363 |
| 5 | Jackson | $1,266 |
| 6 | Oak Ridge | $1,260 |
| 7 | Nashville | $1,213 |
| 8 | Clarksville | $1,206 |
| 9 | Knoxville | $1,182 |
| 10 | Cookeville | $1,182 |
| 11 | Columbia | $1,178 |
| 12 | Franklin | $1,175 |
| 13 | Maryville | $1,172 |
| 14 | Morristown | $1,171 |
| 15 | Brentwood | $1,168 |
| 16 | La Vergne | $1,162 |
| 17 | Smyrna | $1,159 |
| 18 | Spring Hill | $1,157 |
| 19 | Murfreesboro | $1,148 |
| 20 | Gallatin | $1,133 |
| Compare Prices Now Go | ||
Rate information is comparative as vehicle location can revise auto insurance rates noticeably.
Finding decent, affordable auto insurance is difficult, and figuring out which companies quote the most affordable insurance rates for drivers with good credit takes additional perseverance. Every insurance company has a unique approach for setting prices, so let’s take a look at the most affordable insurance companies in Tennessee.
Find Cheaper Auto Insurance for High Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $767 |
| 2 | Auto-Owners | $836 |
| 3 | Cincinnati Insurance | $876 |
| 4 | Penn National | $908 |
| 5 | USAA | $929 |
| 6 | Tennessee Farmers | $951 |
| 7 | Erie | $957 |
| 8 | Nationwide | $1,032 |
| 9 | Allied | $1,049 |
| 10 | Westfield | $1,069 |
| 11 | GEICO | $1,122 |
| 12 | Travelers | $1,201 |
| 13 | The Hartford | $1,208 |
| 14 | State Farm | $1,213 |
| 15 | Direct General | $1,214 |
| 16 | Progressive | $1,226 |
| 17 | Shelter | $1,235 |
| 18 | State Auto | $1,241 |
| 19 | 21st Century | $1,313 |
| 20 | Chubb | $1,329 |
| Find Cheaper Rates Go | ||
Utica National normally has some of the cheapest car insurance rates in Memphis at around $767 per year. This is $561 less than the average price paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA would also be considered some of the most economical Memphis, TN car insurance companies.
As the example above demonstrates, if you are a policyholder with Cincinnati Insurance and switched to Utica National, you could realize yearly savings of about $109. Policyholders with Penn National may save as much as $141 a year, and USAA policyholders might realize rate reductions of up to $162 a year.
Remember that these premiums are averages across all ages of drivers and types of vehicles and are not factoring in a vehicle location for drivers with good credit. So the car insurance company that has the cheapest rates for you may not even be in the list above. That illustrates why you need to quote rates from many companies using your own specific driver information and vehicle.
Cautious Memphis drivers save money
In a perfect world, the ideal way to receive the best insurance prices in Tennessee for financially responsible drivers is to drive safely and not receive tickets or have accidents. The illustration below illustrates how violations and at-fault claims raise insurance prices for different age groups. The rate quotes are based on a single male driver, comp and collision included, $500 deductibles, and no discounts are applied to the premium.
The chart shows that the average cost of car insurance in Memphis per year with a clean driving record and no accidents is $1,366. Get two speeding tickets and the average cost rises to $1,802, an increase of $436 each year. Now add in two accidents along with the two speeding tickets and the annual cost of insurance for drivers with good credit goes up to an average of $3,505. That’s an increase of $2,139, or $178 per month, just for not being a responsible driver!
Full coverage rates vs. liability-only
Saving on insurance is important to most drivers, and one of the easiest ways to buy cheaper insurance for drivers with good credit is to not insure for full coverage. The illustration below compares insurance premiums with and without full coverage. The prices are based on a clean driving record, no claims, $1,000 deductibles, single status, and no policy discounts are applied.
If all age groups are averaged, physical damage insurance costs $1,620 per year more than buying just liability insurance. Many of you may wonder if paying for full coverage is worth it. There is no definitive formula that is best for determining when to drop full coverage, but there is a guideline you can use. If the annual cost of coverage is more than around 10% of the replacement cost minus the deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s book value is $11,000 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $10,000 after paying your policy deductible. If you are paying more than $1,000 a year for full coverage, then you might consider buying liability only.
Insuring your vehicle with the highest-rated insurance company can be a challenge considering how many choices drivers have in Tennessee. The company rank data listed below can help you analyze which auto insurers to look at purchasing a policy from. These rankings are only comprised of the largest auto insurers in America, so companies with more of a regional focus are not included in these rankings.
Top 10 Large Car Insurance Companies Overall in Memphis
- Travelers
- USAA
- AAA Insurance
- Nationwide
- Allstate
- State Farm
- The Hartford
- Safeco Insurance
- Progressive
- American Family
Top 10 Large Car Insurance Companies in Memphis Ranked by Value
- Travelers
- American Family
- Safeco Insurance
- AAA Insurance
- The Hartford
- Progressive
- Erie Insurance
- Esurance
- 21st Century
- Titan Insurance
How to find the cheapest car insurance for drivers with good credit
The list below shows many thrifty suggestions that can help drivers quote cheap coverage.
- Drive safely
- Buy vehicles with five-star safety ratings
- Raise your physical damage coverage deductibles
- Good credit scores may lower your rates
- Staying accident-free helps keep rates low
- Don’t waste money on full coverage for older vehicles
- Compare prices frequently to find the best deal
The last suggestion is extremely necessary, as we noted in the article above. Rates can be adjusted at any time, so drivers shouldn’t be reluctant to buy from a different company if you can find a cheaper rate. Having a favorite company is fine, but it’s not recommended if that loyalty ends up costing potentially thousands of dollars a year. It only takes a couple minutes to shop around and find cheaper auto insurance for drivers with good credit in Memphis.