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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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John Leach is a licensed insurance agent who reviews and fact-checks articles for Compare.com. John has several years of experience reviewing and editing various insurance topics, and he also holds a valid personal lines producer license from the California Department of Insurance (NPN #20461358).
He’s also an alumnus of the University of California, Santa Barbara, where he earned a bachelor’s degree in linguistics.
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Finding affordable car insurance in Memphis can feel overwhelming, especially since rates are higher than average. Our data shows that the average driver in Memphis pays $155 per month for car insurance.
Local factors like population density and crime rates likely contribute to the city’s higher prices — Memphis ranks as Tennessee’s second most populated city.[1] Still, many companies offer policies well below the citywide average.
For example, State Farm, USAA, and GEICO offer the lowest average rates, with State Farm offering the cheapest of any area insurer.
In this article, we’ll break down the cheapest insurers for different driver types, how to pick the right company, and tips for saving on car insurance in Memphis.
State Farm offers Memphis’ lowest average rate, at $32 per month.
Memphis drivers pay an average of $103 per month for liability coverage and $207 for full coverage.
Tennessee requires drivers to have at least 25/50/15 in liability insurance and 25/50 in uninsured motorist coverage.
Regardless of average rates in Memphis, you can still find ways to save on your car insurance. Several companies offer rates well below the citywide average.
The table below shows the cheapest insurers in Memphis, according to Compare.com data.
Company  | Average Monthly Premium |
|---|---|
| State Farm | $32 |
| USAA | $38 |
| GEICO | $42 |
| Auto-Owners | $43 |
| Travelers | $43 |
| Erie | $46 |
| Mile Auto | $56 |
| Allstate | $59 |
| Farmers | $63 |
| Nationwide | $77 |
| Progressive | $85 |
| Direct Auto | $88 |
| Chubb | $91 |
| Root | $110 |
| Safeco | $113 |
| Dairyland | $119 |
| State Auto | $120 |
| The General | $134 |
| Elephant | $137 |
| National General | $141 |
| GAINSCO | $144 |
| Bristol West | $179 |
| Foremost | $179 |
| Liberty Mutual | $186 |
State Farm offers the cheapest average car insurance rate, at $32 per month.
But these broad averages are just that — averages. In the following sections, we’ll break down the cheapest companies by various rating factors, including coverages and driver types.
While the above companies are a good starting point, your personal rates can vary widely based on factors like your age, driving record, address, and more. That’s why it’s so important to compare rates for drivers with a similar profile.
The table below shows the cheapest companies for different driver profiles and coverages, according to our data.
Driver/Coverage Type | Cheapest Insurer | Insurer’s Average Monthly Premium |
|---|---|---|
| State-minimum coverage | State Farm | $32 |
| Full coverage | State Farm | $63 |
| Teens | State Farm | $58 |
| Seniors | State Farm | $23 |
| Drivers with a speeding ticket | State Farm | $42 |
| Drivers with an at-fault accident | State Farm | $43 |
| Drivers with a DUI | State Farm | $53 |
| Drivers with excellent credit | State Farm | $30 |
| Drivers with poor credit | State Farm | $44 |
We’ve included further breakdowns for each driver type in the subsections below.
Policies in Memphis start as low as $32 per month.
Tennessee requires all drivers to have a minimum amount of liability coverage (we’ll cover this in more detail later). State-minimum coverage pays for repair costs and medical expenses for the other driver when you cause an accident.
The average rate for minimum coverage in Memphis is $103 per month, according to Compare.com data. But most experts recommend purchasing more coverage than the state requires to protect your assets in case of a serious accident.[2]
But if you need only bare-bones coverage that meets Tennessee’s minimum requirement, the chart below highlights the five cheapest companies in the city, according to our data.
Most drivers should consider full coverage for more robust protection. It typically includes comprehensive and collision coverage in addition to the state’s minimum requirements.
Plus, if you finance or lease your car, your lender or leasing company will require you to purchase full coverage.[3]
The average rate for full coverage in Memphis is $207 per month. But even with higher rates, several insurers tend to offer full coverage for close to the average liability price in Memphis.
The chart below shows the five cheapest insurers in Memphis for full coverage, according to Compare.com data.
Teens have some of the most expensive rates of any age group, largely due to their lack of driving experience and higher likelihood of accidents. In fact, they’re nearly three times as likely to be in a fatal crash as drivers age 20 or older, according to the Centers for Disease Control and Prevention (CDC).[4]
Nationwide, the average teen pays nearly double that of someone 20 or older, according to our data. The average rate for teens in Memphis is $277 per month, but it’s still possible for teen drivers to find a good deal.
Here are the five cheapest insurers in Memphis for teens, according to Compare.com data.
Seniors tend to have the cheapest rates of any age group. That’s because older drivers typically have more experience, drive fewer miles, and are less likely to engage in risky behaviors, according to the Insurance Institute for Highway Safety (IIHS).[5]
Memphis seniors pay a monthly average rate of $115. Even though rates are already low, you can likely find a better deal from several companies.
The chart below shows the five cheapest companies in Memphis for seniors, according to Compare.com data.
If a cop writes you a speeding ticket, expect your rates to go up the next time your policy renews. Tickets signal risky driving behavior, which indicates a higher likelihood of future claims.[6]
Our research shows just one speeding ticket causes average rates to increase by 28% nationwide.
In Memphis, drivers with a recent ticket pay an average rate of $219 per month, but several insurers offer lower rates.
Check out the five cheapest car insurance companies in Memphis for people with a recent ticket, according to Compare.com data.
Worse than a ticket, causing an accident can lead to a substantial rate increase since it also indicates to insurers that you’re more likely to file a claim later.
Our research shows that a single at-fault accident causes average rates to increase by 33% nationwide.
The average rate for people with a recent accident in Memphis is $228 per month, but you can often find a better deal with one of the five companies in the chart below.
A DUI conviction can skyrocket your premium more than a ticket or a car accident. Insurance companies view DUIs as extremely high-risk behaviors and will raise your rates to offset that risk.
Average rates increase by an average of 59% nationwide after a DUI conviction, according to our data.
A DUI conviction can make it difficult to find coverage at all, as some insurers may refuse to cover drivers with DUI convictions. Fortunately, some insurers specialize in high-risk drivers, like people with DUIs.
The average rate for Memphis drivers with a DUI is $259 per month, but you ’re not necessarily stuck with sky-high rates.
The chart below highlights the five cheapest insurers in Memphis for people with DUIs, according to Compare.com data.
Some insurance companies look at your credit history when calculating your rates. Insurers use something called a credit-based insurance score to determine your likelihood of defaulting on your bill or filing claims in the future.[7]
Drivers with poor credit pay 40% more than people with excellent credit scores, according to our data. The average rate for people with poor credit in Memphis is $194 per month. But not all companies use credit — some actually offer extremely affordable rates, regardless of your credit history.The following chart shows the five cheapest insurers in Memphis for drivers with bad credit.
Compare personalized quotes from Memphis’ top insurers.
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Tennessee, like nearly every U.S. state, requires all drivers to have car insurance to be roadworthy. Here’s what you need to meet the state’s requirements:[8]
Bodily injury liability: $25,000 per person and $50,000 per accident
Property damage liability: $15,000 per accident
The state doesn’t require drivers to have uninsured motorist coverage, but you should consider it to protect yourself against hit-and-runs and drivers who don’t have enough coverage.
Most experts recommend buying coverage above the state’s minimum limits. After all, minimum liability limits might not be enough to cover all damages in a serious accident, potentially leaving you financially exposed to costs beyond your policy limits.
The Tennessee Department of Revenue suggests that drivers consider higher liability limits to better protect their assets. If you finance or lease your car, your lender will require you to purchase comprehensive and collision coverage.
Here are answers to some commonly asked questions about car insurance in Memphis.
Memphis drivers pay an average monthly rate of $155 for car insurance, according to our data. Liability-only car insurance costs $103 per month, while full coverage averages $207 per month.
Yes, car insurance costs more in Memphis. The average rate in Memphis is $155 per month, compared to the national average of $150 per month. Still, many factors affect how much you pay, including your address, driving history, age, and more. Always shop around and compare rates for the best deal.
State Farm offers the lowest average rate in Memphis, at $32 per month, according to Compare.com data.
Our editorial team created this article with the help of highly trained generative AI tools. Additionally, multiple insurance experts — including at least one licensed agent — have rigorously reviewed, fact-checked, and edited every word and data point you see here.
We write, edit, and review all the content on Compare.com according to our strict editorial standards, regardless of how we created it. Learn more about our editorial process.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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