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Drivers in Memphis will be happy to know that they pay average car insurance rates below the national average. With minimum coverage averaging $472 per year and full coverage around $1,659, finding affordable, comprehensive coverage for your car may be possible with a bit of research and comparison shopping.
Bankrate reviewed several insurance companies to find cheap carriers that also offer strong customer service ratings, financial strength indicators and a wide selection of policy options. This list may help you find the cheapest car insurance in Memphis without skimping on quality.
Best cheap car insurance companies in Memphis
According to proprietary rate data sourced from Quadrant Information Services, State Farm, Geico and USAA may offer some of the cheapest car insurance premiums in Memphis.
However, we know that affordable rates likely aren’t your only consideration when looking for the best car insurance. For this reason, our insurance editorial staff also evaluated other important metrics, including coverage options, discounts, digital tools and customer satisfaction scores issued in the 2022 J.D. Power U.S. Auto Insurance Study. Using these metrics, we assigned each carrier a Bankrate Score out of 5.0 points. With this information, we hope to provide our readers with a complete snapshot of an insurance company to help them choose the best option for their needs.
|Insurance company||Bankrate Score||J.D. Power score (Southeast region)||Average annual premium for full coverage||Average annual premium for minimum coverage|
*Not officially ranked by J.D. Power due to eligibility restrictions.
State Farm offers some of the cheapest car insurance in Tennessee without sacrificing coverage options. Policyholders can enhance their coverage with rideshare insurance, rental car reimbursement and roadside assistance. State Farm sells policies through a local agent network but also offers a comprehensive website and app for policy management. State Farm’s digital tools helped the company score near the top of the J.D. Power 2022 U.S. Insurance Digital Experience Study. However, it may be worth mentioning that policyholders are unable to purchase accident forgiveness with State Farm. Instead, this benefit must be earned through long-term safe driving habits.
Learn more: State Farm Insurance review
Thanks to Geico’s generally low rates, long list of discounts and financial strength rating of A++ (Superior) from AM Best, Geico earned a spot on our list of cheapest car insurance companies in Memphis. Geico also won the 2023 Bankrate Award for best car insurance company overall. Among the company’s many savings opportunities, you could get a potential discount for being a government employee, a military member, taking an online defensive driving class, or being affiliated with a fraternity, sorority, or professional group. However, Geico’s coverage options are a bit sparse compared to other major carriers. For instance, gap insurance is not available.
Learn more: Geico Insurance review
USAA consistently ranks high among customer service ratings while offering numerous coverage options and competitive rates. If you are an active member of the military, a veteran or immediate family member of one, USAA could be one of the best car insurance companies in Memphis for you. Although there are not as many discounts offered compared to other companies, many of the discounts are tailored to the needs of the military community. For instance, you may be eligible for a discount if you garage your vehicle on a military base.
Learn more: USAA Insurance review
Drivers looking for cheap car insurance companies in Memphis that also offer robust coverage options might find Travelers appealing. Policyholders can customize their policy by adding new car replacement, gap insurance, rideshare coverage and accident forgiveness. The company also provides named non-owner policies for those that need them. However, drivers who value customer service may want to do further research as Travelers fell far below the industry average in the J.D. Power U.S. 2022 Auto Claims Satisfaction Study.
Learn more: Travelers Insurance review
Although not as well-known as others on this list, Erie is a regional carrier specializing in a robust local agent network. Erie places high in customer satisfaction ratings as well as cheap car insurance rates in Memphis. The company also offers pet coverage, a rate lock feature to protect your premiums and personal item coverage not typically covered under car insurance. However, since Erie primarily operates via its local agency network, around-the-clock customer service is unavailable.
Learn more: Erie Insurance review
How to get and keep the cheapest car insurance in Memphis
After finding cheap rates in Memphis, you might be wondering how to keep those low rates over time. The tips below might help you keep your premiums manageable without sacrificing necessary coverage.
Shop around: Many insurance professionals agree that comparing rates at every (or every other) renewal may be a good idea. Rates frequently fluctuate, so requesting quotes from multiple car insurance companies before your renewal (or after major life events like a marriage or a move) may help ensure that your current company is still offering you a competitive rate.
Consider your needs: Car insurance isn’t a set-it-and-forget-it product. As your vehicle ages, you may want to consider what coverage options make the most sense for your needs. For instance, some people remove full coverage from their cars once it reaches a certain age and depreciates in value. However, this practice could be risky, as removing coverage (or raising deductibles) may force you to pay a hefty out-of-pocket expense after an accident. When in doubt, a conversation with your agent could offer more clarity on coverage adjustments.
Practice safe driving habits: Most of the largest car insurance companies offer discounts for drivers who remain ticket- and accident-free. On top of these discounts, safe driving may lead your company to underwrite your policy more favorably, which could result in a lower base premium. If you need encouragement to clean up your driving habits, telematics could provide some positive reinforcement. Many car insurance companies in Memphis offer a discount for drivers who install a telematics device in their vehicles and drive safely.
Frequently asked questions
Choosing the best car insurance company is a matter of personal preference and individual circumstances. In addition to rates, many drivers choose to consider customer service ratings and a company’s financial strength. Additionally, reading company reviews and speaking with friends and family already insured with a company might help paint a complete picture of a carrier when requesting car insurance quotes.
At a minimum, you need $25,000/$50,000 in bodily injury and $25,000 in property damage liability coverage to drive in Memphis. Tennessee is not a no-fault state, so buying minimum coverage may be a risky financial decision. Without full coverage, you could be responsible for any damage to your own vehicle if you are found at-fault in an accident.
Memphis is Tennessee’s second-largest city, and large cities with a high population density tend to have a higher frequency of accidents. Memphis could also have more instances of theft and vandalism compared to suburban and rural areas of Tennessee. Since these factors contribute to a higher risk of a claims payout, car insurance companies may charge more expensive premiums to compensate. However, the average cost of car insurance in Memphis is still lower than the national average, which sits at $2,014 per year for full coverage and $622 for minimum coverage.
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.