Comparing rates for low-cost insurance is not always easy, and deciding which company has the cheapest auto insurance rates for a learners permit will require more quotes for comparison. Each company has a different formula for establishing rates, so first we will examine the lowest cost auto insurance companies in Memphis.
It’s important that you understand Memphis, TN auto insurance rates are impacted by many things that can increase the cost of coverage. That is why consumers need to perform a complete rate comparison when trying to find cheap insurance quotes for a learners permit. Auto insurance prices are calculated by many factors and can increase or decrease at any time, so the cheapest option a year ago may now be quite expensive.
Best Insurance Companies in Tennessee
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $737 |
| 2 | Cincinnati Insurance | $850 |
| 3 | Auto-Owners | $852 |
| 4 | Tennessee Farmers | $923 |
| 5 | USAA | $929 |
| 6 | Penn National | $935 |
| 7 | Erie | $997 |
| 8 | Allied | $1,029 |
| 9 | Nationwide | $1,042 |
| 10 | Westfield | $1,069 |
| 11 | GEICO | $1,156 |
| 12 | State Farm | $1,177 |
| 13 | Shelter | $1,187 |
| 14 | Travelers | $1,201 |
| 15 | State Auto | $1,217 |
| 16 | Progressive | $1,226 |
| 17 | The Hartford | $1,245 |
| 18 | Direct General | $1,251 |
| 19 | 21st Century | $1,261 |
| 20 | Chubb | $1,316 |
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Utica National normally has some of the lowest car insurance rates in Memphis at around $737 each year. Cincinnati Insurance, Auto-Owners, Tennessee Farmers, and USAA also are some of the most economical Memphis, TN auto insurance companies.
In the rate table above, if you have coverage with Tennessee Farmers and switched to Utica National, you might realize a yearly price reduction of around $186. Insureds with USAA might save as much as $192 a year, and Penn National policyholders might see rate reductions of $198 a year.
If you want to see how much you could save, click here to get a free quote or quote prices from the following companies.
It’s important to note that these estimates are averaged across all insureds and vehicles and are not factoring in an exact vehicle garaging location for a learners permit. So the auto insurance company that fits you best may not even be in the top 30 companies in the list above. That’s why you need to get quotes using your own driver information and specific vehicle type.
For new drivers, one of the largest criteria that aid in calculating the cost of insurance is where you choose to live. Areas with increased crime or more people tend to have more expensive car insurance rates, whereas areas with lower crime rates and fewer weather claims benefit from having to pay less for coverage.
The following table lists the most costly cities in Tennessee for a learners permit to purchase auto insurance in. Memphis is ranked at #1 with an annual premium of $1,505 for the average policy, which is approximately $125 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Memphis | $1,505 |
| 2 | Bartlett | $1,377 |
| 3 | Germantown | $1,374 |
| 4 | Collierville | $1,349 |
| 5 | Jackson | $1,266 |
| 6 | Oak Ridge | $1,223 |
| 7 | Nashville | $1,213 |
| 8 | Maryville | $1,196 |
| 9 | Knoxville | $1,194 |
| 10 | Murfreesboro | $1,194 |
| 11 | Columbia | $1,190 |
| 12 | La Vergne | $1,186 |
| 13 | Cookeville | $1,182 |
| 14 | Brentwood | $1,179 |
| 15 | Franklin | $1,175 |
| 16 | Chattanooga | $1,161 |
| 17 | Smyrna | $1,159 |
| 18 | Clarksville | $1,158 |
| 19 | Spring Hill | $1,157 |
| 20 | Morristown | $1,125 |
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Premium amounts are comparative as specific Memphis zip code can affect premiums substantially.
The make and model of vehicle requiring insurance is one of the largest factors when shopping for economical insurance for a learners permit. Vehicles with high performance features, poor crash test ratings, or high incidents of liability claims will cost significantly more to insure than safer, lower-performance models. The list below showcases auto insurance costs for a handful of the more affordable automobiles to insure in Tennessee.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $6,578 |
| Ford Escape Limited 2WD | $6,636 |
| Toyota Prius | $7,097 |
| Ford Edge SE 2WD | $7,340 |
| Dodge Grand Caravan SE | $7,398 |
| Volkswagen Jetta SE 2.5 Station Wagon | $7,497 |
| Ford Focus SE 4-Dr Sedan | $7,740 |
| Honda Odyssey EX | $7,746 |
| Toyota RAV4 2WD | $7,798 |
| Toyota Tacoma Double Cab 4WD | $7,806 |
| Jeep Grand Cherokee Laredo 4WD | $7,798 |
| Ford Fusion S 4-Dr Sedan | $7,805 |
| Ford F-150 Lariat Super Cab 2WD | $7,859 |
| Ford Explorer Eddie Bauer AWD | $7,864 |
| Hyundai Elantra Blue 4-Dr Sedan | $8,140 |
| Toyota Camry SE | $8,198 |
| Chevrolet Impala LTZ | $8,203 |
| Toyota Corolla XLE | $8,198 |
| Chevrolet Malibu LTZ | $8,259 |
| Chevrolet Equinox LTZ AWD | $8,267 |
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Cost estimates assume single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in the specific area where the vehicle is garaged which can impact premiums substantially.
Looking at the data, models like the Honda CR-V, Ford Escape, and Toyota Prius are most likely to be the more affordable vehicles to insure for new drivers. The price for an auto insurance policy will be more costly just due to the fact that there is more claim exposure for a learners permit, but generally speaking those makes and models will probably have the cheapest car insurance rates possible.
Get discount Memphis auto insurance rates
Auto insurance companies that offer quotes for a learners permit may additionally offer special discounts that may potentially lower prices by as much as 35% or more if you meet specific eligibility requirements. A list of companies and some of the discounts are included below.
- GEICO offers discounts including multi-vehicle, multi-policy, driver training, seat belt use, good student, anti-theft, and military active duty.
- MetLife discounts include claim-free, good driver, accident-free, multi-policy, defensive driver, good student
- Progressive has discounts for good student, homeowner, continuous coverage, online quote discount, online signing, and multi-vehicle.
- Travelers policyholders can earn discounts including early quote, multi-policy, good student, save driver, and new car.
- SAFECO may have discounts that include multi-car, accident prevention training, safe driver, homeowner, anti-theft, and teen safety rewards.
- AAA offers discounts for anti-theft, pay-in-full, AAA membership discount, good driver, multi-policy, and good student.
The example below visualizes the comparison of insurance prices with and without discounts applied. Data assumes a male driver, no driving violations, no at-fault accidents, Tennessee state minimum liability limits, full coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The lower bar shows the rates with paid-in-full, passive restraint, paperless filing, anti-theft, continuous coverage, and vehicle safety discounts applied. When these discounts are applied, theamount saved on auto insurance for a learners permit is 28% or $680.
Poor driving habits will raise your auto insurance rates
A great way to earn low auto insurance prices for new drivers is to be a good driver and have a clean driving record. The example below illustrates how traffic citations and at-fault claims can drive up car insurance costs for different insured age categories. The premiums assume a married male driver, full coverage, $250 deductibles, and no discounts are applied to the premium.
In the previous example, the average cost of an auto insurance policy per year with no accidents or violations is $1,300. Add in one speeding ticket and the average cost increases to $1,492, an increase of $192 each year. Then add two accidents along with the one speeding ticket and the annual cost of auto insurance for a learners permit jumps again to an average of $3,149. That’s an increase of $1,849, or $154 per month, just for a couple of infractions!
Low rates today, overpriced tomorrow
Memphis, TN auto insurance rates are determined by lots of factors which can significantly increase or decrease the price you have to pay. Simply turning a year older, buying higher coverage limits, or getting a DUI can produce rate changes resulting in some companies being cheaper than others. In addition to those changes, insurers change their prices at least once a year to adjust for unexpected claims or profits. Higher than normal claim frequency or severity may result in additional price hikes, while long-term profits may result in lower-cost Memphis car insurance rates.
For example, the bar chart below shows rates for the cheapest car insurance in Memphis, TN for a 30-year-old female driver with a clear driving record, no claims, and a decent credit rating. Based on her personal risk profile, Utica National may offer the best car insurance rates in Memphis at $1,120 per year. This is $208 less than the average policy premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and Tennessee Farmers round out the rest of the top five cheapest Memphis, TN auto insurance companies.
The chart below compares rates after we give the driver in the first example a claim or two, a lower credit rating, and a couple of points charged on her driving record. Since every car insurance company uses a different method for setting rates, comparing quotes most likely will result in a slightly different list of affordable companies as shown below.
Erie now has the best car insurance rate in Memphis, TN with Nationwide, Allied, Westfield, and GEICO also having competitive pricing. This example proves why Tennessee drivers need to compare as many rates as possible to find affordable auto insurance rates for a learners permit.
Car insurance prices are influenced by many different factors and change frequently, so the best company six months ago may now be an over-priced policy.