It’s impossible to miss the commercials from insurers like Farmers, Progressive, and The General that say if you switch you’ll get the cheapest rates, so drivers just need to choose the one with the most memorable commercial, right?
Regrettably, it’s not quite that easy, as there are many unknown factors like how experienced of a driver you are, if you need full coverage or liability-only, and if you are a good driver. This article will detail the best ways to maintain low rates and will give you a solid foundation to find cheaper car insurance in Memphis.
Determining which companies quote the lowest-priced auto insurance rates for low income drivers may require a little more effort than just comparing rates from one or two companies. Every insurance company has a proprietary formula for setting rates, so to begin we’ll rank the auto insurance companies with the most affordable rates in Memphis.
It’s important that you understand Tennessee auto insurance rates are determined by lots of factors that control the price of coverage. Improving your credit score, having a teenage driver, or getting caught speeding can trigger price changes that can now make some companies more affordable than before.
Best Insurance Companies in Tennessee
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $744 |
| 2 | Auto-Owners | $836 |
| 3 | Cincinnati Insurance | $884 |
| 4 | USAA | $919 |
| 5 | Penn National | $926 |
| 6 | Tennessee Farmers | $951 |
| 7 | Erie | $997 |
| 8 | Nationwide | $1,042 |
| 9 | Westfield | $1,047 |
| 10 | Allied | $1,060 |
| 11 | GEICO | $1,110 |
| 12 | Progressive | $1,178 |
| 13 | Shelter | $1,199 |
| 14 | State Farm | $1,201 |
| 15 | Direct General | $1,201 |
| 16 | State Auto | $1,204 |
| 17 | The Hartford | $1,208 |
| 18 | Travelers | $1,213 |
| 19 | 21st Century | $1,300 |
| 20 | Chubb | $1,316 |
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Utica National quotes some of the most affordable car insurance rates in Memphis at around $744 per year. This is $584 less than the average policy premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, USAA, and Penn National are also some of the best Memphis, TN insurance companies.
As the example above demonstrates, if you are a customer of USAA and switched to Utica National, you may see a yearly price reduction of upwards of $175. Policyholders with Penn National may save as much as $182 a year, and Tennessee Farmers customers might cut rates by $207 a year.
To get a quick, customized rate comparison, click here to start a quote or quote prices from the following companies.
Be aware that those estimates are averages across all insureds and vehicles and do not factor in a specific zip code for low income drivers. So the company that has the cheapest price for you may not even be in the top 30 companies shown above. That is why you need to compare prices as often as possible using your own individual information.
The vehicle that needs insurance is one of the biggest factors when trying to find the lowest-priced auto insurance for low income drivers. Vehicles with high performance engines, poor safety features, or high incidents of liability claims will cost substantially more to insure than more economical and safe models. The next list estimates coverage rates for a number of the most economical automobiles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $1,555 |
| Jeep Wrangler Sport 4WD 2-Dr | $1,614 |
| Toyota Prius | $1,722 |
| Honda Accord LX-P 4-Dr Sedan | $1,778 |
| Toyota Tacoma 2WD | $1,807 |
| Ford Escape Limited 2WD | $1,818 |
| Toyota RAV4 Limited 2WD | $1,841 |
| Chevrolet Impala LT | $1,849 |
| Honda Odyssey EX-L W/Navigation | $1,937 |
| Ford F-150 STX Regular Cab 2WD | $1,959 |
| Chevrolet Equinox LTZ AWD | $1,974 |
| Jeep Grand Cherokee Limited 2WD | $1,980 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,974 |
| Toyota Corolla XRS | $1,984 |
| Hyundai Elantra SE Touring Station Wagon | $2,073 |
| GMC Sierra 2500HD SLE Regular Cab 2WD | $2,107 |
| Toyota Camry Hybrid | $2,115 |
| Dodge Grand Caravan Hero | $2,110 |
| Toyota Camry LE | $2,119 |
| Ford Fusion S 4-Dr Sedan | $2,110 |
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Data variables include 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. Rates do not factor in specific zip code location which can affect coverage rates substantially.
Based upon the table data, you can conclude that cars like the Honda CR-V, Jeep Wrangler, Toyota Prius, and Honda Accord are going to be the less-costly vehicles to insure for poor drivers.
For poor drivers, one of the more important factors that are used to help calculate insurance cost is where you keep your car. Cities with more crime and/or more people are more likely to pay higher prices, whereas areas with less people or fewer weather incidents can boast about having cheaper rates.
The following table shows the highest-priced places in Tennessee for low income drivers in which to buy car insurance. Memphis comes in at #1 having an annual price of $1,446 for the average policy, which is about $121 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Memphis | $1,446 |
| 2 | Bartlett | $1,363 |
| 3 | Collierville | $1,363 |
| 4 | Germantown | $1,360 |
| 5 | Oak Ridge | $1,260 |
| 6 | Jackson | $1,253 |
| 7 | Columbia | $1,190 |
| 8 | Knoxville | $1,182 |
| 9 | Morristown | $1,171 |
| 10 | Spring Hill | $1,169 |
| 11 | Gallatin | $1,167 |
| 12 | Nashville | $1,165 |
| 13 | Maryville | $1,160 |
| 14 | Hendersonville | $1,158 |
| 15 | Clarksville | $1,158 |
| 16 | La Vergne | $1,151 |
| 17 | Murfreesboro | $1,148 |
| 18 | Smyrna | $1,148 |
| 19 | Brentwood | $1,144 |
| 20 | Cookeville | $1,136 |
| 21 | Franklin | $1,129 |
| 22 | Chattanooga | $1,127 |
| 23 | Cleveland | $1,091 |
| 24 | Johnson City | $1,073 |
| 25 | Kingsport | $1,026 |
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Premium costs are comparative as specific Memphis garaging address can impact prices noticeably.
Accidents and violations increase rates
In a perfect world, the ideal way to obtain the best auto insurance rates for poor drivers is to be a cautious driver and avoid getting tickets or having accidents. The information below demonstrates how speeding tickets and at-fault fender-benders can raise auto insurance rates for different age categories. The premium estimates are based on a single female driver, comp and collision included, $1,000 deductibles, and no discounts are applied to the premium.
The data in the chart shows the average cost of auto insurance in Memphis per year with a clean driving record and no accidents is $1,164. Receive one speeding ticket and the average cost increases to $1,320, an increase of $156 each year. Next add one accident along with the one speeding ticket and the yearly cost of auto insurance for low income drivers goes up to an average of $1,749. That’s an increase of $584, or $49 per month, just for not driving carefully!
Discount Memphis auto insurance
Car insurance companies that offer quotes for low income drivers may also offer rate discounts that may potentially lower prices by 30% or more if you meet specific eligibility requirements. Popular auto insurance companies and a selection of discounts include:
- GEICO includes discounts for military active duty, federal employee, anti-theft, daytime running lights, driver training, defensive driver, and air bags.
- SAFECO may offer discounts for multi-car, anti-theft, homeowner, accident prevention training, teen safety rewards, safe driver, and drive less.
- State Farm policyholders can earn discounts including passive restraint, safe vehicle, defensive driving training, anti-theft, good driver, driver’s education, and Steer Clear safe driver discount.
- MetLife discounts include good driver, claim-free, good student, multi-policy, and accident-free.
- 21st Century offers discounts for anti-lock brakes, defensive driver, good student, student driver, and driver training.
- Progressive has discounts for online signing, multi-vehicle, homeowner, good student, multi-policy, and online quote discount.
The illustration below compares auto insurance costs with and without some available policy discounts. The data assumes a male driver, a clean driving record, no claims, Tennessee state minimum liability limits, full physical damage coverage, and $500 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with safe-driver, multiple policy, claim-free, vehicle safety, homeowner, and anti-theft discounts applied. When these discounts are applied to the policy premium, the average savings per year on auto insurance for low income drivers is 28% or $377.
Buying coverage from a good quality insurance provider can be a challenge considering how many different insurance companies sell coverage in Memphis. The company ratings shown below could help you pick which car insurance companies you want to consider when comparing rate quotes.
The rankings below are only made up of companies that insure vehicles across America, so companies that only write business in Tennessee or surrounding areas are not included in the list. To get price quotes from these and other companies in Tennessee, follow this link.
| 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 |
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Data Source: Insure.com Best Car Insurance Companies
How to find low-cost car insurance for low income drivers
Below you’ll find some of the better penny-pinching solutions that can help Tennessee drivers get cheaper auto insurance.
- Higher physical damage deductibles lower rates
- The safer your car, the less it costs to insure
- Drop full coverage on older vehicles
- Prevent price hikes by avoiding at-fault accidents
- Do not get traffic citations
- Drivers with good credit ratings often pay less
- Compare prices as often as possible
The last tip in the list is certainly valuable, as was emphasized in the prior article. Car insurance prices adjust frequently, so don’t be hesitant to buy a policy from a new company if a better deal can be had.
Having brand loyalty is commendable, but is isn’t recommended if that dedication is costing thousands of dollars over the life of your policy. It only takes a couple minutes to compare prices and find cheaper auto insurance for low income drivers in Memphis.