One of the many criteria that determine the price you pay for insurance is where you keep your car. Areas with more people or more claims are more likely to have higher rates, whereas more rural areas have the luxury of lower rates.
The illustration below ranks the most costly cities in Tennessee for inexperienced drivers to buy an auto insurance policy in. Memphis comes in at #1 with the yearly price of $1,446 for coverage, which is about $121 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Memphis | $1,446 |
| 2 | Bartlett | $1,377 |
| 3 | Collierville | $1,363 |
| 4 | Germantown | $1,360 |
| 5 | Jackson | $1,305 |
| 6 | Columbia | $1,226 |
| 7 | Nashville | $1,213 |
| 8 | Oak Ridge | $1,210 |
| 9 | Knoxville | $1,194 |
| 10 | Maryville | $1,172 |
| 11 | Cookeville | $1,171 |
| 12 | Clarksville | $1,170 |
| 13 | Murfreesboro | $1,159 |
| 14 | Morristown | $1,159 |
| 15 | Spring Hill | $1,157 |
| 16 | La Vergne | $1,151 |
| 17 | Chattanooga | $1,149 |
| 18 | Smyrna | $1,148 |
| 19 | Brentwood | $1,144 |
| 20 | Franklin | $1,140 |
| 21 | Hendersonville | $1,136 |
| 22 | Gallatin | $1,121 |
| 23 | Cleveland | $1,091 |
| 24 | Kingsport | $1,057 |
| 25 | Johnson City | $1,031 |
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Table data uses comparative as vehicle location can impact prices significantly.
The car, truck, or SUV on the policy is probably the most important factor when shopping for affordable insurance for inexperienced drivers. Vehicles with lower performance, good crash test ratings, or a track record of few liability claims will cost significantly less to insure than high performance models. The table below ranks auto insurance rates for the most budget-friendly automobiles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $1,669 |
| Ford Focus SE 4-Dr Sedan | $1,939 |
| Ford Escape XLT 4WD | $1,954 |
| Ford Explorer Limited AWD | $2,015 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $2,048 |
| Toyota Prius | $2,118 |
| GMC Sierra SL Crew Cab 2WD | $2,126 |
| Toyota Tacoma 2WD | $2,224 |
| Honda Accord LX-S 2-Dr Coupe | $2,227 |
| Hyundai Elantra SE Touring Station Wagon | $2,233 |
| Chevrolet Malibu Hybrid | $2,265 |
| Dodge Grand Caravan CV | $2,297 |
| Ford F-150 XL Crew Cab 4WD | $2,347 |
| Nissan Altima 3.5 SR 2-Dr Coupe | $2,368 |
| Ford Edge SEL 2WD | $2,376 |
| Toyota Corolla XLE | $2,382 |
| Ford Fusion SE 4-Dr Sedan | $2,426 |
| Toyota Camry LE | $2,433 |
| Jeep Grand Cherokee Limited 4WD | $2,426 |
| Chevrolet Impala LT | $2,432 |
| Toyota RAV4 Limited 2WD | $2,426 |
| Honda Odyssey Touring | $2,436 |
| Chevrolet Equinox LS AWD | $2,426 |
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Data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, multi-vehicle, claim-free, multi-policy, and homeowner. Prices do not factor in specific garaging location which can alter coverage prices greatly.
Looking at the data, models like the Honda CR-V, Ford Focus, Ford Escape, and Ford Explorer are going to be the most budget-friendly vehicles to insure for new drivers.
Finding decent, cheap insurance is confusing at best, and determining which companies have the most affordable insurance rates for inexperienced drivers will require even more work. Each company has their own process for determining prices, so first we will examine the insurance companies with the most affordable rates in Memphis, TN.
It’s a good idea to be aware that Memphis insurance rates are calculated based on many things that can increase the cost of coverage. Simply improving your credit score, moving to a new city, or getting a driving violation can trigger price changes resulting in some rates now being much higher than others.
Cheap Insurance Rates for Newbies
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $767 |
| 2 | Auto-Owners | $827 |
| 3 | Cincinnati Insurance | $884 |
| 4 | Penn National | $926 |
| 5 | USAA | $947 |
| 6 | Tennessee Farmers | $961 |
| 7 | Erie | $997 |
| 8 | Nationwide | $1,002 |
| 9 | Allied | $1,018 |
| 10 | Westfield | $1,069 |
| 11 | GEICO | $1,110 |
| 12 | Travelers | $1,165 |
| 13 | Shelter | $1,199 |
| 14 | State Farm | $1,213 |
| 15 | Progressive | $1,214 |
| 16 | State Auto | $1,217 |
| 17 | Direct General | $1,238 |
| 18 | The Hartford | $1,245 |
| 19 | 21st Century | $1,274 |
| 20 | Chubb | $1,316 |
| Quote Your Rates Go | ||
Utica National offers some of the lowest car insurance rates in Memphis at around $767 annually. Auto-Owners, Cincinnati Insurance, Penn National, and USAA are also some of the best Memphis, TN auto insurance companies.
As shown in the table above, if you currently buy coverage from USAA and switched to Auto-Owners, you might realize a yearly price reduction of around $120. Insureds with Tennessee Farmers could save as much as $134 a year, and Erie insureds might reduce prices by as much as $170 a year.
It’s important to note that these premium estimates are averages across all insureds and vehicles and are not factoring in a specific location for inexperienced drivers. So the auto insurance company that fits you best may not even be in the top 30 companies shown above. That points out the importance of why you need to get quotes using your own driver information and specific vehicle type.
The diagram below illustrates how your choice of deductibles can raise or lower premium costs when getting quotes for cheap insurance for inexperienced drivers. The prices are based on a married female driver, full coverage, and no discounts are applied.
A 40-year-old driver could lower rates by $266 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $402 by changing to a $1,000 deductible. Young drivers, like the age 20 example, could roll back prices as much as $658 every year just by choosing larger deductibles. If you do decide to increase your deductibles, it will be important to have additional savings on hand to offset the extra out-of-pocket expense that comes with higher deductibles.
Impact of citations and accidents on insurance rates
The easiest way to obtain the cheapest insurance prices in Tennessee for new drivers is to be an attentive driver and not get tickets or have accidents. The information below illustrates how violations and at-fault accidents can drive up car insurance costs for different age groups. The prices are based on a single male driver, full coverage, $250 deductibles, and no discounts are applied.
The data in the chart shows the average cost of an auto insurance policy per year with no accidents and a clean driving record is $1,521. Get written up for two speeding tickets and the average cost increases to $2,012, an increase of $492 each year. Then add one accident along with the two speeding tickets and the annual cost of insurance for inexperienced drivers goes up to an average of $2,504. That’s an increase of $983, or $82 per month, just for a couple of infractions!
Selecting a highly-rated insurer can be challenging considering how many different companies insure vehicles in Memphis. The information displayed below could help you choose which providers you want to consider when trying to find cheaper insurance for inexperienced drivers.
These ratings only include companies who write in the majority of U.S. states, so smaller companies are not included in the list. To get price quotes from these companies and more, click here.
Top 10 Major Auto Insurance Providers in Memphis Ranked by Customer Satisfaction
- USAA – 91%
- AAA Insurance – 90%
- Esurance – 90%
- Nationwide – 89%
- Travelers – 88%
- Progressive – 88%
- Safeco Insurance – 88%
- State Farm – 88%
- Allstate – 88%
- The Hartford – 87%
Top 10 Major Auto Insurance Providers 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+
How to find budget-friendly car insurance for inexperienced drivers
Lowering your rates is not difficult, and here are some of the better money-saving ideas that can help Memphis drivers locate cheaper car insurance.
- Increase your physical damage deductibles
- Avoid accidents and claims
- Increase your credit score
- Drive vehicles with five-star safety ratings
- Save money by obeying traffic laws and keeping a clean driving record
- Do not waste money insuring older vehicles for full coverage
- Compare prices frequently to find the best deal
The last item on the list is notably valuable, as was pointed out in the prior article. Prices charged by car insurance companies in Memphis fluctuate constantly, so drivers shouldn’t be reluctant to buy a policy from a new company if you find a better deal. Staying with the same car insurance company is fine, but it’s not a great idea if that loyalty results in overpaying potentially thousands of dollars a year. In less than five minutes you could compare rates and find cheaper car insurance for inexperienced drivers.