For good drivers, one of the big components that help determine car insurance rates is where you keep your car. Areas with increased crime or more people are more likely to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims can boast about having cheaper rates.
The table below lists the highest-priced areas in Tennessee for safe drivers to buy auto insurance in. Memphis ranks #1 with the annual price of $1,505 for coverage, which is around $125 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Memphis | $1,505 |
| 2 | Germantown | $1,374 |
| 3 | Bartlett | $1,363 |
| 4 | Collierville | $1,349 |
| 5 | Jackson | $1,292 |
| 6 | Oak Ridge | $1,260 |
| 7 | Clarksville | $1,206 |
| 8 | Spring Hill | $1,205 |
| 9 | Knoxville | $1,194 |
| 10 | Murfreesboro | $1,194 |
| 11 | Columbia | $1,190 |
| 12 | La Vergne | $1,186 |
| 13 | Smyrna | $1,183 |
| 14 | Cookeville | $1,182 |
| 15 | Nashville | $1,177 |
| 16 | Maryville | $1,172 |
| 17 | Gallatin | $1,167 |
| 18 | Hendersonville | $1,158 |
| 19 | Brentwood | $1,144 |
| 20 | Morristown | $1,137 |
| 21 | Franklin | $1,129 |
| 22 | Chattanooga | $1,127 |
| 23 | Cleveland | $1,102 |
| 24 | Johnson City | $1,041 |
| 25 | Kingsport | $1,037 |
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Rate quotes are approximated as specific location information can alter rates considerably.
Comparing rates for cheap car insurance is confusing at best, and finding out which company quotes the lowest-priced car insurance rates for safe drivers may require even more shopping around. Each company has their own unique process for determining rates in each state, so let’s begin by taking a look at the car insurance companies that tend to be cheaper in Memphis, TN.
Keep in mind that Memphis, TN car insurance rates are influenced by many factors which can substantially change the policy price. That is why it is important to spend some time comparing rates to find affordable car insurance rates for safe drivers. Insurance prices can be determined by many different factors and change frequently, so the best price two years ago may now not even be in the top five.
Cheap Insurance Rates for Safe Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $737 |
| 2 | Auto-Owners | $852 |
| 3 | Cincinnati Insurance | $876 |
| 4 | Penn National | $908 |
| 5 | USAA | $919 |
| 6 | Tennessee Farmers | $961 |
| 7 | Erie | $967 |
| 8 | Allied | $1,029 |
| 9 | Nationwide | $1,032 |
| 10 | Westfield | $1,069 |
| 11 | GEICO | $1,122 |
| 12 | State Farm | $1,177 |
| 13 | Progressive | $1,178 |
| 14 | Travelers | $1,213 |
| 15 | Shelter | $1,235 |
| 16 | Direct General | $1,251 |
| 17 | State Auto | $1,254 |
| 18 | The Hartford | $1,258 |
| 19 | Chubb | $1,277 |
| 20 | 21st Century | $1,300 |
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Utica National quotes some of the most affordable car insurance rates in Memphis at around $737 each year. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also qualify as some of the cheapest Memphis, TN car insurance companies.
In the above rates, if you are a customer of Penn National and switched to Auto-Owners, you might see a yearly price reduction of upwards of $56. Drivers with USAA could save as much as $67 a year, and Tennessee Farmers policyholders might reduce rates by $109 a year.
To find out how your current rates compare, click here to begin a quote or visit any of the companies below.
It’s important to note that these estimates are averages across all insureds and vehicles and and are not figured with an exact zip code location for safe drivers. So the auto insurance company that fits you best may not even be in the list above. That affirms the importance of why you need to get rate quotes from many companies using your own specific driver and vehicle information.
Types of discounts on Memphis insurance rates
Auto insurance companies that sell policies for safe drivers may provide special discounts that can reduce rates by as much as 30% if you meet eligibility requirements. Popular car insurance companies and a selection of discounts can be read below.
- Farmers Insurance offers discounts including teen driver, good student, distant student, homeowner, youthful driver, and switch companies.
- Esurance has discounts for good student, Switch & Save, safety device, anti-theft, and multi-car.
- State Farm offers discounts for good driver, Steer Clear safe driver discount, defensive driving training, driver’s education, accident-free, multiple autos, and multiple policy.
- GEICO includes discounts for defensive driver, multi-policy, military active duty, air bags, federal employee, anti-theft, and seat belt use.
- Allstate offers premium reductions for eSmart discount, good student, anti-theft, FullPay discount, good payer, and auto/life discount.
The illustration below visualizes the comparison of insurance prices with and without discounts applied to the rates. The data assumes a female driver, no claims or driving violations, Tennessee state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with multiple policy, anti-theft, vehicle safety, accident-free, marriage, and defensive driving course discounts applied. When discounts are applied, the average amount saved each year on car insurance for safe drivers is 27% or $480.
Cost comparison with and without full coverage
Paying less for car insurance is important to most people, and a good way to buy cheap insurance for safe drivers is to not insure for full coverage. The illustration below shows the difference between car insurance costs with full coverage and liability only. The prices are based on no claims or driving citations, $500 deductibles, marital status is single, and no additional discounts are factored in.
As an overall average, physical damage coverage on your policy costs an additional $1,366 per year more than carrying just liability coverage. That raises the question if you should buy full coverage at all. There is no definitive formula of when to eliminate full coverage, but there is a guideline you can consider. If the annual cost of your full coverage insurance is more than 10% of any settlement you would receive from your insurance company, then it might be time to consider dropping full coverage.
There are some circumstances where dropping physical damage coverage is not a good idea. If you haven’t paid off your loan, you are required to maintain full coverage as part of the loan requirements. Also, if your finances do not allow you to purchase a different vehicle if your current one is damaged, you should not drop full coverage.
Careless Memphis drivers pay higher rates
One of the best ways to obtain cheap car insurance premiums for good drivers is to drive safe and avoid accidents and traffic violations. The example below highlights how speeding tickets and fender-benders can influence car insurance costs for each different age group. The rate quotes are based on a married female driver, full coverage, $250 deductibles, and no other discounts are factored in.
The data above shows the average cost of car insurance per year with no violations or accidents is $1,560. Get one speeding ticket and the average cost surges to $1,817, an increase of $257 each year. Then include two accidents along with the one speeding ticket and the annual cost of car insurance for safe drivers jumps again to an average of $4,056. That’s an increase of $2,496, or $208 per month, just for a couple of infractions!
If you like to get help from a professional when trying to find lower insurance rates for safe drivers, the insurance agencies listed below can probably answer your questions and help you decide which coverages and limits you need.
To locate an agency closest to you, click the button at the bottom of the list or click here to get price quotes now.
- Nationwide Insurance: Tri-State Insurance Agency Inc
5545 Murray Ave Ste 107 – Memphis, TN 38119 – (901) 767-3379 - Sneed Insurance
6645 Stage Rd #200 – Memphis, TN 38134 – (901) 372-4580 - Denise Perino – State Farm Insurance Agent
5384 Knight Arnold Rd – Memphis, TN 38115 – (901) 362-6552 - Nationwide Insurance: Daysha J Palacio-Miller
1850 Poplar Crest Cove Ste 102 – Memphis, TN 38119 – (901) 762-8585 - Ron Willis – State Farm Insurance Agent
3486 Poplar Ave #102 – Memphis, TN 38111 – (901) 454-7912