Wouldn’t it be great if we could tell you instantly one specific company that has the cheapest policy rates for young drivers? It’s not that easy, however, as there are a lot of unknown aspects such as your gender, when you were born, and your credit rating, that all influence how much you pay for auto insurance. The information below will cover the different ways you can keep rates low and will hopefully give the reader some help in finding cheaper rates.
Trying to buy low-cost insurance is challenging, and determining which companies have the best car insurance rates for young drivers will involve additional perseverance.
Every car insurance company has a unique approach for filing rates in each state, so let’s take a look at the car insurance companies with the most affordable rates in Memphis, TN. It’s important to know that Tennessee car insurance rates are impacted by many factors that will increase or decrease the price of coverage. Events such as a birthday, buying a different vehicle, or having an accident can trigger price changes that can now make some companies cheaper than others.
Cheap Insurance Rates for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $737 |
| 2 | Auto-Owners | $836 |
| 3 | Cincinnati Insurance | $850 |
| 4 | Penn National | $899 |
| 5 | USAA | $929 |
| 6 | Tennessee Farmers | $951 |
| 7 | Erie | $957 |
| 8 | Nationwide | $1,012 |
| 9 | Allied | $1,060 |
| 10 | Westfield | $1,079 |
| 11 | GEICO | $1,110 |
| 12 | Travelers | $1,165 |
| 13 | The Hartford | $1,208 |
| 14 | State Farm | $1,213 |
| 15 | Progressive | $1,226 |
| 16 | Shelter | $1,235 |
| 17 | Direct General | $1,238 |
| 18 | State Auto | $1,241 |
| 19 | 21st Century | $1,313 |
| 20 | Chubb | $1,316 |
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Utica National may have some of the most affordable car insurance rates in Memphis at around $737 per year. This is $591 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also qualify as some of the lowest-priced Memphis, TN car insurance companies.
As depicted above, if you are insured with USAA and switched to Auto-Owners, you could see yearly savings of in the vicinity of $93. Policyholders with Tennessee Farmers may save as much as $115 a year, and Erie customers might reduce prices by as much as $121 a year.
These prices are averaged across all drivers and vehicles in Tennessee and are not factoring in a specific vehicle garaging location for young drivers. So the car insurance company that has the lowest price for you may not even be in the top 30 companies shown above. That emphasizes why you need to get quotes using your own driver and vehicle profiles.
The vehicle you are trying to insure is a significant factor that determines whether or not you find affordable car insurance for young drivers. Vehicles with lower performance, advanced safety features, or a track record of few liability claims will cost substantially less to insure than adrenaline junky models. The next list presents car insurance rates for a number of the cheaper automobiles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $7,349 |
| Ford Escape XLS 4WD | $7,355 |
| Honda CR-V EX 4WD | $7,419 |
| Honda Accord EX-L 4-Dr Sedan | $7,869 |
| Toyota Prius | $7,939 |
| Chevrolet Silverado LS Regular Cab 4WD | $8,194 |
| Toyota Tacoma 4WD | $8,264 |
| Ford F-150 STX Regular Cab 4WD | $8,273 |
| Volkswagen Jetta 2.0T Station Wagon | $8,389 |
| Chevrolet Impala LS | $8,644 |
| Dodge Grand Caravan Hero | $8,714 |
| Toyota Camry LE | $8,724 |
| Toyota RAV4 4WD | $8,714 |
| Chevrolet Equinox LS 2WD | $8,719 |
| Ford Explorer Eddie Bauer AWD | $8,783 |
| Honda Odyssey EX-L | $9,164 |
| Ford Edge Sport AWD | $9,169 |
| Nissan Altima 2.5 S 4-Dr Sedan | $9,164 |
| Toyota Corolla LE | $9,173 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $9,222 |
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Data based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in garaging location in Memphis, TN which can decrease or increase coverage rates noticeably.
Looking at the numbers, we can expect vehicles like the Hyundai Elantra, Ford Escape, and Honda CR-V will definitely be a few of the most economical vehicles to insure for youthful drivers. Car insurance rates will be more expensive because of the fact that there is more inherent risk for young drivers, but overall those specific models will tend to have the cheapest auto insurance rates possible.
For youthful drivers, one of the big criteria that are used to help calculate the price you pay for insurance is where you normally keep your vehicle in Memphis. More densely populated places tend to have more expensive auto insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates profit from lower rates.
The following table rates the most expensive cities in Tennessee for young drivers to purchase auto insurance in. Memphis comes in at #1 with an annual rate of $1,490 for the average insured, which is about $124 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Memphis | $1,490 |
| 2 | Bartlett | $1,405 |
| 3 | Germantown | $1,360 |
| 4 | Collierville | $1,349 |
| 5 | Jackson | $1,253 |
| 6 | Knoxville | $1,230 |
| 7 | Oak Ridge | $1,223 |
| 8 | Clarksville | $1,206 |
| 9 | Maryville | $1,196 |
| 10 | Spring Hill | $1,193 |
| 11 | Columbia | $1,190 |
| 12 | Murfreesboro | $1,183 |
| 13 | Nashville | $1,177 |
| 14 | Cookeville | $1,171 |
| 15 | Brentwood | $1,168 |
| 16 | Smyrna | $1,159 |
| 17 | La Vergne | $1,151 |
| 18 | Franklin | $1,140 |
| 19 | Morristown | $1,137 |
| 20 | Hendersonville | $1,136 |
| 21 | Gallatin | $1,133 |
| 22 | Chattanooga | $1,115 |
| 23 | Cleveland | $1,102 |
| 24 | Kingsport | $1,037 |
| 25 | Johnson City | $1,031 |
| Compare Prices Now Go | ||
Information shown are estimated as specific Memphis zip code can affect rates noticeably.
Buying coverage from the right insurance company can be a challenge considering how many companies there are in Memphis. The company information in the lists below can help you select which car insurance providers to look at comparing price quotes from.
The rankings below are only comprised of the largest companies in America, so companies with more of a regional focus are not taken into consideration for the list. If you’d like to compare prices from these and other top-rated companies, click this link.
Top 10 Large Auto Insurance Companies in Memphis Ranked by A.M. Best Rating
- Travelers – A++
- USAA – A++
- GEICO – A++
- State Farm – A++
- Esurance – A+
- Progressive – A+
- Titan Insurance – A+
- The Hartford – A+
- Allstate – A+
- Nationwide – A+
Top 10 Large Auto Insurance Companies in Memphis Ranked by Customer Service
- USAA
- Travelers
- AAA Insurance
- Nationwide
- Safeco Insurance
- Progressive
- State Farm
- The Hartford
- The General
- Esurance
Cost difference between full coverage and liability
Reducing premiums for car insurance is probably important to the majority of vehicle owners, and one of the quickest ways to pay less for insurance for young drivers is to not pay for full coverage. The illustration below illustrates the difference between insurance premiums when comparing full coverage to liability only. The data assumes no claims or driving citations, $250 deductibles, single marital status, and no other discounts are factored in.
Averaged for all ages 20 through 70, physical damage coverage costs $1,521 per year more than just buying liability insurance. Many drivers will wonder if buying full coverage is a waste of money. There is no definitive formula to drop full coverage, but there is a guideline you can consider. If the yearly cost of full coverage is 10% or more of the replacement cost minus the deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s replacement cost is $5,000 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, the most you would receive is $4,000 after paying your deductible. If it’s costing you more than $400 a year for comprehensive and collision coverage, then it could be time to drop full coverage.
Here’s why price comparisons are so important
Memphis car insurance rates are determined by lots of factors which can substantially decrease or increase the policy price. Simply getting older, adding a teenager to your policy, or getting a DUI may generate price changes resulting in some companies being cheaper than competitors.
Not only may your situation change, but companies file new Tennessee auto insurance rates without warning to adjust for gains or losses. Heavy losses may result in higher prices, while a profitable period can cause cheaper Memphis car insurance rates.
For example, the bar chart below analyzes the cheapest car insurance in Memphis, TN for a 35-year-old male driver with a good driving record, no prior claims, and good credit. If we compare prices based on his current risk profile, Utica National might quote the cheapest car insurance rates in Memphis at $1,070 annually. This is $258 less than the average price paid by Tennessee drivers of $1,328. Cincinnati Insurance, Auto-Owners, Penn National, and Tennessee Farmers are the remaining cheapest Memphis, TN auto insurance companies.
Now we will give the driver from the first example a chargeable accident, a lower credit score, and a blemish on his driving record. Due to the fact that every insurance company has a proprietary method for determining prices, getting updated rate quotes most likely will result in a substantially altered list of the cheapest Memphis car insurance companies as shown below.
Erie now has the lowest price on auto insurance in Memphis with Nationwide, Westfield, Allied, and GEICO completing the list. This example proves why it is critical to compare as many rates as possible to find affordable insurance quotes for young drivers. Prices consist of many factors and can increase or decrease at any time, so the most economical option the last time you compared rates may now be quite expensive.
How to find the cheapest insurance for young drivers
The list below details some money-saving suggestions that can help Tennessee drivers quote more affordable car insurance.
- Do not get into accidents
- Home or renters coverage can save on auto insurance
- Higher credit scores may earn you cheaper rates
- Buy a safer vehicle
- Full coverage may not be needed on older vehicles
- Compare rates regularly to ensure the best deal
That last piece of advice is very necessary, as was discussed in the prior article. Auto insurance rates can be modified anytime, so drivers shouldn’t be resistant to switch to a new company if a better rate can be found.
Staying with the same car insurance company is fine, but it isn’t a good idea if that faithfulness ends up costing you thousands of dollars over several years. If you have a few minutes, now is a great time to compare rates to find cheaper car insurance for young drivers in Memphis.