Best cheap car insurance in Memphis for 2021

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BBQ, blues and blue-suede shoes are only a few of the treasures you’ll find in Tennessee’s second-largest city. If you’re looking for the best cheap car insurance in Memphis, you’ll be able to find that too. With minimum coverage averaging $533 per year and full coverage around $1,734, finding affordable, comprehensive coverage for your car is possible with a bit of research and comparison shopping.

Bankrate reviewed several insurance companies, including customer service ratings, financial strength indicators and a wide selection of policy options to compare which carriers offer the best car insurance in Memphis at the most affordable rates.

Best car insurance companies in Memphis

We took a closer look at the carriers offering the most amount of coverage options, financial strength ratings, as well as strength with customer service in the Southeast region. Here is a snapshot of the best car insurance companies in the Memphis-area.

Insurance company J.D. Power customer satisfaction score Average annual premium for minimum coverage Average annual premium for full coverage
Erie 871 / 1000 $478 $2,021
Geico 857 / 1000 $273 $1,087
State Farm 835 / 1000 $450 $1,462
USAA 909 / 1000 $406 $1,335

Erie

Although not as well-known as others on this list, Erie is a regional carrier specializing in a strong, local agent network. Erie places high in customer satisfaction ratings as well as cheap car insurance rates in Memphis. Erie offers personal item coverage not typically covered under car insurance, pet coverage and a rate lock feature to protect your premiums.

Learn more: Erie Insurance review

Geico

Geico combines financial strength, a long history, numerous discounts and plenty of coverage options making it a top contender for the best car insurance in Memphis. Whether you are looking for discounts, specific customization options such as mechanical breakdown or strong customer satisfaction ratings, Geico delivers among all these categories. Mobile users can also benefit from Geico’s award-winning app, which allows you to access your policy from anywhere and track claims.

Learn more: Geico Insurance review

State Farm

State Farm offers a wide variety of coverage options to customize your policy to your exact driving needs. Whether you need rideshare insurance, rental car reimbursement or the bare minimum coverage, you can find it through State Farm’s wide local agent network. If you prefer the app, website and customer service team are all available for quotes, policy purchases and policy management.

The strength of State Farm is another advantage for the carrier. Not only is it the largest insurance provider in the U.S., it offers Memphis drivers lower-than-average car insurance premiums without sacrificing benefits.

Learn more: State Farm Insurance review

USAA

USAA consistently ranks high among customer service ratings, while offering numerous coverage options along with competitive rates. If you are an active member of the military, a veteran or immediate family member of one, you can qualify for membership with this carrier. Although there are not as many discounts offered versus other carriers, there are ones unique to military members. For instance, you are eligible for a discount if you are deployed and your car is parked in your garage during deployment.

Learn more: USAA Insurance review

Cheapest car insurance in Memphis

Overall, Tennesseans pay an average of $369 per year for minimum coverage and $1,364 for full. With the average cost of minimum insurance coverage in Memphis around $533 per year, and full coverage around $1,733, the rates are above-average for the state. This makes it important to review as many car insurance reviews in Memphis as possible.

Fortunately, many of the best carriers featured happen to be the cheapest, showing it is possible to combine affordable rates with quality consumer care and financial strength. Geico is the least expensive on the list and also scores impressively with the JD Power customer satisfaction rankings. If you meet the eligibility criteria, USAA offers competitive pricing as well, plus access to unique discounts for military members. State Farm provides cheap rates in Memphis along with the ability to work through an agent or one of the many digital assets.

Auto-Owners and Erie are the regional providers offering highly competitive premiums and strong customer service ratings, but these companies do not offer as many digital assets as the national carriers. To get the lowest rates possible with Erie, you need to work with one of the local insurance agents and review all available discounts.

Insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Geico $273 $1,087
USAA $406 $1,335
State Farm $450 $1,462
Auto-Owners $457 $1,241
Erie $478 $2,021

Memphis insurance requirements

Residents in Tennessee, including Memphis, are required to carry minimum car insurance coverage. This must include:

  • Bodily injury liability coverage of $25,000 per person and $50,000 per accident
  • Property damage liability coverage of $15,000 per accident

Although these are the minimum coverages, insurance experts recommend carrying more for liability if possible. Tennessee is not considered a no-fault state, which means you are financially responsible for what your insurance does not cover.

For instance, the bodily injury liability minimum is $50,000 per accident, but if you are involved in a crash ruled your fault and there are serious injuries to several people, the $50,000 would not be enough to cover medical expenses most likely. You would be responsible for the additional amount above your insurance limit.

Also, Tennessee is the 5th worst state for having uninsured motorists, so adding protection against this to your policy is strongly recommended.

Car insurance discounts in Memphis

Cheap car insurance in Memphis is possible by taking advantage of as many discounts offered.

  • Policy bundling: One of the best ways to save money on your premiums. By choosing the same carrier for both your renters/homeowners and car insurance, you can save as much as 25% on your annual rate.
  • Defensive driving: Memphis offers several state-approved defensive driving courses. Not only do these teach you safety and traffic rules, but can lower your insurance premiums.
  • Safe driver: If you maintain an accident-free record, your premiums should benefit. Several carriers offer significant discounts if you remain accident-free, such as Geico which offers a 26% discount for a safe driving record.
  • Good grades: If you are a student in the Memphis-area and meet the grade requirements, you may qualify for a good student discount.

Frequently asked questions

What is the best car insurance company?

Choosing the best car insurance company is a matter of personal preference and what works for your driving needs. Not only should rates be considered, but so should customer service ratings and the company’s financial strength. Bankrate has evaluated several of these categories and determined Amica is one of the best car insurance companies to choose from.

How much car insurance do I need in Memphis?

At a minimum, you need $25,000/$50,000 in bodily injury and $15,000 in property damage liability coverage to drive in Memphis. Because Tennessee is not a no-fault state, taking on the minimum is a risky financial decision since you are responsible for any amount your insurance coverage does not pay.

How can I save on car insurance in Memphis?

Drivers without accidents and tickets typically save the most when purchasing car insurance in Memphis. Having a clean driving record makes you eligible for other perks, like accident forgiveness, which can help you keep the cheapest rates even if you are in an at-fault accident.

Methodology

Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Written by
Sara Coleman
Insurance Contributor
Sara Coleman has three years of experience in writing for insurance domains such as Bankrate, The Simple Dollar, Reviews.com, Coverage.com and numerous other personal finance sites. She writes about insurance products such as auto, homeowners, renters and disability.