Cheapest Car Insurance Quotes in Memphis, TN (2023)

Memphis motorists pay an average of $200 per month for car insurance — nearly 12% more than the Tennessee state average of $178. The higher average rate could be due, at least in part, to the elevated accident rates in Shelby County, where Memphis is located. Shelby had the highest number of accidents and the highest number of accident fatalities in the state in 2022, according to data from the Tennessee Department of Safety and Homeland Security.^[1]

Still, Memphis drivers can find a competitive car insurance rate by comparison shopping among multiple insurance companies. For example, Mile Auto offers liability-only coverage for as little as $65 per month.

How much does car insurance cost in Memphis?

Many factors besides location can affect your car insurance costs, so it’s a good idea to consider policies from more than one insurance company. Insurify data analysts looked at the latest insurance rates in Memphis to identify the cheapest quotes.

• Mile Auto, a pay-per-mile insurer, has the cheapest liability-only coverage in Memphis at an average of $651 per month.

• Mile Auto also offers the cheapest full-coverage insurance, at an average of $914 per month.

• Young drivers in Memphis may find the best deal with Mile Auto as well. The insurer’s average monthly quote for young drivers is $133.

Learn More: Cheapest Car Insurance in Tennessee

Average cost of auto insurance in Memphis

Tennessee is the 17th-cheapest state for car insurance, and although Memphis drivers pay a bit more than the state average for car insurance, they can still find competitive quotes from top companies.

The table below shows overall average monthly car insurance rates by company for Memphis drivers, based on Insurify data. Keep in mind, your actual rate can vary based on a number of factors.

Average car insurance premiums in Memphis by marital status

Although recent research by AAA showed that married people, on average, make more trips and drive more minutes and miles than widowed people,^[2] being married can lower your car insurance rates.

When two (or more) people are on a policy together, insurance companies typically consider the credit scores and driving habits of everyone on the policy. That means one spouse might benefit from the good credit score and driving history of the other spouse. The couple may also qualify for a multi-policy discount if they both have cars.

In Memphis, single drivers pay about 4% more per month, on average, than married motorists — $263 per month versus $252.

Cheapest car insurance in Memphis: Mile Auto

In Memphis, Mile Auto offers the lowest average monthly rate for liability-only car insurance, at just $65. Also called “minimum coverage,” liability insurance only protects drivers and passengers in the other car if you’re involved in an accident and found at fault.

Mile Auto also has the lowest average monthly rate —$91 — for full-coverage insurance, which typically includes collision and comprehensive. 

If you prefer a traditional insurance policy over pay-per-mile, consider regional insurance company Grange Insurance, with an average full-coverage quote of $135 per month. Grange sells auto policies in Georgia, Illinois, Iowa, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and Wisconsin.^[3]

How much car insurance do you need in Memphis?

Like most states, Tennessee requires its residents to insure every motor vehicle they drive or park on the state’s roads. To meet legal requirements for driving in Memphis and elsewhere in the state, you’ll need to purchase a minimum amount of liability insurance:^[4]

• $25,000 per person bodily injury liability coverage

• $50,000 per accident bodily injury liability coverage

• $15,000 property damage coverage

Failing to purchase the minimum required amount can put you at risk of fines and penalties. And, depending on your situation, it may make sense to purchase more than the state minimum requirements. For example, if you have a high-value vehicle, or you lease or finance your car, you may need full coverage, which includes collision and comprehensive insurance.

Tennessee DMV information

Motor vehicle services fall under the authority of the Tennessee Department of Safety and Homeland Security.^[5] Many services are available online, including driver’s license renewals and change of address. For in-person services, you may need an appointment, so it’s a good idea to check the state’s website before visiting a DMV location.

How to get cheap car insurance in Memphis

Many factors that affect car insurance rates are out of your control, including population density, traffic patterns, and claims history in your area. But you can take steps to reduce the cost of car insurance in Memphis, including:

• Stay safe. Practice safe driving habits that can help you avoid moving violations like a speeding ticket, DUI, or accident. Your driving record significantly affects your car insurance premium.

• Look for discounts. Insurance companies typically offer a range of discounts that you may qualify for. You might be eligible for a multi-car discount if you insure more than one vehicle on the same policy, a good student discount if you have a teen or college student with good grades, or even a discount for having certain safety features on your car.

• Consider bundling. When you buy your car insurance and homeowners or renters insurance from the same company, it’s called bundling, and many insurers offer discounts for this practice.

• Comparison shop. Comparing car insurance quotes from multiple companies is the best way to find an affordable premium for the coverages you need.

Learn More: Compare Home and Auto Insurance Bundles

How age affects car insurance rates in Memphis 

Because age can influence the amount of driving experience you have, insurance companies generally charge higher premiums for younger, newer drivers than they do for older, more experienced motorists.

The following table, based on Insurify data, provides insight into how age can affect car insurance rates in Memphis.

Cheapest car insurance for young drivers in Memphis

Young drivers — teenagers and people younger than 25 — typically have the highest insurance rates. In Memphis, Mile Auto has the cheapest average rate for young drivers at $133. This is more than 53% higher than the company’s average rate for middle-aged drivers. Young drivers may be able to lower their rates with a good student discount.

Cheapest car insurance for middle-aged drivers in Memphis

When you reach your late 20s and 30s, your car insurance rate will likely drop, especially if you’ve maintained a clean driving record and built a good credit score. In Memphis, Mile Auto also has the lowest monthly average rate for middle-aged drivers at just $77. Grange Insurance, which offers traditional car insurance policies, in contrast to Mile Auto’s pay-per-mile model, clocks in at just $93 per month.

Cheapest car insurance for senior drivers in Memphis

Senior drivers typically drive the fewest miles per year and have decades of driving experience. Their insurance rates usually reflect this, and seniors in Memphis enjoy some of the lowest car insurance rates available in the city.

Again, Mile Auto has the lowest average quote at $55, and its pay-per-mile model might make the most sense for seniors who tend to drive less. National General also offers a competitive rate of $83 per month.

How credit scores affect cheap car insurance in Memphis

Your credit doesn’t just affect your ability to get a loan or credit card at an affordable rate. It can also affect your car insurance rates. Data suggests a correlation between credit scores and the likelihood of filing a claim, so generally drivers with poor scores will have higher insurance rates than those with good credit scores.

Some states prohibit or restrict the use of credit scores in car insurance decisions, but Tennessee allows it.^[6]

The following table shows the relation of credit scores and average monthly car insurance rates for Memphis drivers.

Check Out: Car Insurance Rates by Credit Tier

How driving habits can affect car insurance rates in Memphis

Your driving record is the factor that has the greatest influence over your car insurance rates. A clean record free of accidents and driving infractions usually means you’re less likely to file a claim than someone with blemishes on their driving history.

The following tables provide some insight into how different driving infractions can affect car insurance rates in Memphis.

Cheapest car insurance with an accident in Memphis: Certainly

An at-fault accident can significantly increase your insurance costs. This is in part because you filed a claim that cost your insurance company money, and also because people who have filed claims for accidents in the past are more likely to file again in the future.

In Memphis, an at-fault accident may raise your rates as little as $17 or as much as $477 per month. Certainly — a regional insurer who writes policies in Arizona, Illinois, Ohio, Tennessee, and Wisconsin^[7] — has the lowest average rates for Memphis drivers with an at-fault accident, at $170 per month.

Cheapest car insurance with a DUI in Memphis: National General

Driving under the influence of alcohol or another substance is a serious violation. Tennessee levels significant penalties against intoxicated driving, including losing your license for up to a year, a fine of up to $1,500, restitution to anyone injured because of your DUI, participation in a treatment program, and up to 11 months, 29 days incarceration for a first offense.BB 

Based on Insurify data, fewer companies seem willing to insure Memphis drivers with a DUI. Among those who do write policies for drivers with a DUI, National General has the lowest average monthly rate at $130.

Cheapest car insurance with a speeding ticket in Memphis: Certainly

A speeding ticket may seem like a minor offense, but getting one can adversely affect your insurance costs. Speeding can lead to serious accidents; 11,258 traffic deaths in 2020 were due to speeding, according to the National Highway Transportation Safety Administration.^[8]

Certainly has the cheapest car insurance for Memphis drivers with speeding tickets on their record, at $153. 

Car insurance in other Tennessee cities

Car insurance rates can vary widely based on location, even within the same state. Check out car insurance rates in some other Tennessee cities:

• Cheap Auto Insurance Quotes in Nashville, TN

• Cheap Auto Insurance Quotes in Knoxville, TN

• Cheap Auto Insurance Quotes in Chattanooga, TN

• Cheap Auto Insurance Quotes in Murfreesboro, TN

• Cheap Auto Insurance Quotes in Smyrna, TN

Memphis driving conditions

Although Memphis has ample road infrastructure, in 2022 the city made headlines for problems with reckless drivers and speeding. Consequently, speed bumps can be found throughout the metropolitan area. And state lawmakers, especially those in Shelby County where Memphis is located, have called on the state legislature to allow law enforcement to confiscate the vehicles of anyone driving recklessly.

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