Cheap Car Insurance in Memphis, TN, Starting at $30 (2024)

Situated along the Mississippi River in southwest Tennessee, Memphis is a densely populated city with a population of more than 600,000. Known as the birthplace of blues, soul, and rock n’ roll music, Memphis also draws more than 10 million tourists each year.

With so many people living and driving in close proximity, the rate of car accidents increases, which causes insurers to raise car insurance rates. The monthly average cost of car insurance in Memphis is $180 — higher than the statewide average of $130 per month and the national monthly average of $160.

Here’s what you should know about finding the cheapest car insurance options in Memphis.

3 of the cheapest car insurance companies in Memphis

The best car insurance company for you depends on your coverage needs and financial situation. The cheapest insurer may not always be the best insurer — consider factors like how often you drive and who else may be driving your vehicle.

State Farm is a good all-around insurer, offering cheap rates and a variety of discounts and coverages. USAA is the best insurance company for active military members, veterans, and their families. It offers a variety of coverages and excellent customer service. Mile Auto offers pay-as-you-drive car insurance, which is ideal for people who don’t drive frequently.

Best insurer for cheap rates: State Farm

Best insurer for military members and families: USAA

Best insurer for low-mileage drivers: Mile Auto

How to get the cheapest car insurance in Memphis

Insurance companies consider many different factors when setting car insurance premiums. While not everything is within your control, below are steps you could take to land cheaper car insurance rates in the Memphis area:

• Get multiple quotes. Shopping around to check rates with at least three insurance companies can help you uncover affordable insurance deals for the coverage you need.

• Consider pay-per-mile insurance. If you live in a walkable or public transportation-accessible area, using your car less often and paying for insurance per mile could help you land savings.

• Look for discounts. Insurers offer a wide variety of discounts that can lower your rates. For example, bundling your car insurance with a renters insurance or homeowners insurance policy could lower your rate. Paying your insurance in full or signing up for paperless billing may also qualify you for insurance discounts.

• Enroll in safe driving courses and programs. Some insurers lower your rate if you take driver courses or enroll in programs that monitor your driving habits and reward you with discounts for safe driving. If you’re a cautious driver, consider looking for insurance companies with apps that track your driving and give you perks for good driving habits

Cheapest liability-only car insurance in Memphis: State Farm

Liability-only car insurance covers property damage and bodily injury for third parties if you’re at fault in an accident. It can be a cheaper option since it doesn’t cover your own injuries or property damage.^[1]

The average rate for liability-only policies in Memphis is $115 per month. Below are the cheapest car insurance companies in Memphis for liability-only coverage.

Cheapest full-coverage car insurance in Memphis: State Farm

Full-coverage car insurance is a policy that includes liability protection in addition to comprehensive and collision coverage. Collision coverage pays for car repairs (up to your limit) if you get into an accident with another car or object, while comprehensive protection covers loss caused by other events, like theft or vandalism.^[1]

For full coverage, Memphis drivers pay an average of $244 per month. Below are the cheapest full-coverage options in Memphis.

Car insurance requirements in Tennessee

Tennessee drivers must have at least liability coverage that includes protection for bodily injury and property damage.^[2] Here’s the minimum car insurance you need to carry:

You may want to consider carrying more than the minimum required insurance coverage if you drive frequently. Some other insurance coverages to consider include:

• 

  Collision coverage

  Collision coverage reimburses you for damage to your vehicle from a collision with another vehicle or object.

• 

  Comprehensive coverage

  Comprehensive coverage reimburses you for theft or damage to your vehicle due to events other than a collision, such as hail, theft, and vandalism.

  See Also

  Cheapest car insurance in Memphis, TN for 2024

• 

  Medical payments coverage

  Medical payments insurance covers healthcare costs if you or your passengers are injured in an accident.

Cheapest car insurance for Memphis drivers with an incident

Incidents on your driving record can raise your insurance rates because they indicate that you’re a higher-risk driver than someone with a clean driving record. You can still find cheap car insurance with prior driving incidents on record with the right insurers.

Cheapest car insurance for drivers with a speeding ticket: State Farm

How much your insurance rates increase after getting a speeding ticket can depend on how fast you were going, your history of speeding tickets, and where you were speeding. For example, speeding in a school or construction zone can result in a higher ticket and harsher repercussions than speeding in other areas.

Memphis-based drivers with a speeding ticket pay a monthly average of $347 for full coverage. Below are average monthly rates for car insurance in Memphis for drivers with speeding tickets.

Cheapest car insurance for drivers with an at-fault accident: State Farm

An at-fault accident is an accident in which you cause damage. In most cases, your insurance rates will increase when you’re at fault. But the amount your insurance rates increase can vary by insurance company and the severity of the accident.

In Memphis, the average rate for full-coverage insurance for drivers with an accident on their record is $363. Below are the cheapest insurance companies for drivers in Memphis with at-fault accidents on their records.

Cheapest car insurance for drivers with a DUI: State Farm

Drivers charged with driving under the influence (DUI) in Tennessee may pay fines, face up to 11 months in jail, and be ordered to install an ignition interlock device in their vehicle.^[3] Aside from the legal ramifications of a DUI, car insurance premiums almost always increase — and in some cases, insurance companies can cancel or refuse to renew your policy altogether.

The average cost of full-coverage car insurance in Memphis for drivers with a DUI conviction is $411. If you’re shopping for insurance with a DUI, here are the cheapest options in Memphis.

Cheapest car insurance for seniors: State Farm

In general, rates for drivers tend to decrease around age 35 but increase around age 70. That’s because visual impairments, memory loss, and confusion can cause some seniors to get into more accidents, making older drivers a greater potential risk behind the wheel.

Memphis seniors pay an overall average of $125 per month for car insurance. Insurance rates for seniors vary by company, and below are the cheapest insurance options in Memphis.

Cheapest car insurance for teens: State Farm

Car insurance rates for teenagers and young adults typically skew much higher than for adults because teens have less experience behind the wheel, and limited driving history puts them at a higher risk for accidents.

Teen drivers in Memphis pay an overall average of $296 per month for car insurance.

But teens still have plenty of ways to save on car insurance, including:

• Stay on their parents’ policy. Adding children to a parents’ policy is typically less expensive than purchasing a policy individually for a teen driver.

• Apply for student discounts. Some insurance companies offer good student discounts for students who maintain a certain GPA. Enrolling your teen in a defensive driving course is another strategy that could help lower their rate.

• Drive a safe vehicle. Teens that ride in new cars with certain safety features —like alarms or other anti-theft devices —may qualify for lower car insurance rates.^[4]

Below are the cheapest insurance options for teens in the Memphis area.

Memphis car insurance quotes by credit tier

In Tennessee, insurance companies can consider your credit history during underwriting to determine your insurance rate.^[5] They use your credit score along with other factors to calculate a risk score to measure your likelihood of filing a claim.

In general, insurers consider drivers with excellent or good credit lower risk, which often means better insurance rates, while drivers with poor credit often pay more for car insurance. Below are average insurance rates by credit tier in Memphis.

Is car insurance more expensive in Memphis?

Memphis has some of the highest average car insurance costs in Tennessee, with an average monthly full-coverage rate of $180. Variables that may contribute to the high insurance rates in the city are the high reports of car thefts and car accidents in the area.^[6][7] But factors like your credit and driving history can also contribute to your rates.

More cities in Tennessee

Here’s how average monthly car insurance quotes differ in other Tennessee cities compared to Memphis.

Memphis car insurance FAQs

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

• Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
• Property damage limits between $10,000 and $50,000
• No additional coverage

Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:

• Comprehensive coverage with a $1,000 deductible
• Collision coverage with a $1,000 deductible

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

1. Insurance Information Institute. "Auto insurance basics—understanding your coverage."
2. Tennessee Department of Revenue. "Why You Should Have Auto Insurance."
3. Tennessee Department of Safety & Homeland Security. "DUI Offenses."
4. Insurance Information Institute. "Auto insurance for teen drivers."
5. Tennessee Insurance Depot. "Does Your Credit Score Affect Your Insurance Rates?."
6. Action News 5. "Over 6,000 cars stolen in Memphis in 2023."
7. ABC 24. "Shelby County roadways are the deadliest in the state of Tennessee."

Taylor Medine is a writer who's covered personal financial topics from budgeting and saving to paying down debt for more than eight years. She got her start demystifying intimidating money topics for the everyday consumer on a personal blog, and has since been published on Bankrate, Experian, Forbes Advisor, The Balance, Business Insider, Credit Karma, and more. Follow her on Twitter @taytalksmoney.