Best cheap car insurance in Memphis for 2024

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 2023 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.

*Not officially ranked by J.D. Power due to eligibility restrictions.

State Farm

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. 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

Geico

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

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

Travelers

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 below the industry average in the J.D. Power U.S. 2023 Auto Claims Satisfaction Study.

Learn more: Travelers Insurance review

Erie

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: Insurance experts recommend regularly comparing rates, either annually or biennially, to ensure that you are getting the best available protection. Given the frequent fluctuations in rates, getting quotes from multiple auto insurance providers before your renewal or following significant life events such as marriage or relocation may help confirm that your existing company is offering you a competitive rate.

Consider your needs: Car insurance isn’t a one-time decision. As your car gets older, it may be a good idea to think about what coverage makes the most sense for you. Some people drop full coverage once their car gets older and loses value. But be careful, because doing so may come with risks. Having less coverage (or higher deductibles) could mean shelling out a lot of money if there’s an accident. If you’re unsure, talk to your agent to figure out the best way to adjust your coverage.

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

Methodology

Bankrate utilizes Quadrant Information Services to analyze the latest rates in May 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate changes filed by insurance companies that affect our profile. These revised rates are then weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. 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 2022 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.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Age: Rates were calculated by evaluating our base profile with the ages 20-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Teens: Rates were determined by adding a 16- or 18-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.

Bankrate Score

Our 2024 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.

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. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average 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, Demotech 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.