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Last updated: August 30, 2025Best Cheap Car Insurance in Memphis
USAA offers the cheapest auto insurance in Memphis at $1,451 for full coverage and $440 for minimum coverage.
Best for Customer Satisfaction
Editor's Rating: 5/5
Average Cost in Memphis
- Full Coverage Monthly: $176
- Minimum Coverage Monthly: Data unavailable
Best Local Provider
Average Cost in Memphis
- Full Coverage Monthly: $188
- Minimum Coverage Monthly: Data unavailable
Best for Military and Veterans
Editor's Rating: 5/5
Average Cost in Memphis
- Full Coverage Monthly: $121
- Minimum Coverage Monthly: $37
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Key Takeaways
- Car insurance in Memphis is more expensive than the Tennessee average. Full coverage insurance in the city costs an average of $2,544 annually, while minimum coverage costs an average of $821 annually.
- Erie, Tennessee Farm Bureau, State Farm, and USAA are top auto insurance providers in Memphis for both affordability and customer satisfaction.
- Average rates are helpful as they can give you an idea of what you can expect to pay, but your rates will likely be different, depending on individual factors like your driving history, age, and car make and model.
Our Top Picks for the Best Cheap Auto Insurance in Memphis
- Best for Customer Satisfaction: Erie
- Best Local Provider: Tennessee Farm Bureau
- Best for Military/Veterans: USAA
- Cheapest: Travelers
- Best Major Insurer: State Farm
Compare the Best Cheap Auto Insurance in Memphis
| Company | Full Coverage Annual Avg. | Minimum Coverage Annual Avg. | Southeast Customer Satisfaction (J.D. Power) |
|---|---|---|---|
| Erie | $2,106 | Data unavailable | Above average |
| Tennessee Farm Bureau | $2,259 | Data unavailable | Above average |
| USAA | $1,451 | $440 | Above average |
| Travelers | $1,677 | $501 | Below average |
| State Farm | $2,170 | $609 | Above average |
| Memphis | $2,544 | – |
Best Cheap Providers in Memphis
The absolute cheapest auto insurance providers are not always the best when taking customer service into account. Luckily, there are several providers in Memphis that have both affordable rates and strong customer satisfaction records.
1. Best for Customer Satisfaction - Erie
What We Like Most:
- Rated #1 in the Southeast on J.D. Power
- A- on CRASH Network (#6 of 97 insurers nationally)
- Rate Lock option
Why we chose it
Erie is a regional insurer that operates in 12 states, including Tennessee. It is consistently very highly rated in various industry customer satisfaction metrics. It took the top spot in J.D. Power’s 2025 Auto Insurance Study for the Southeast region with a score of 718 out of 1,000. Erie also offers a unique Rate Lock feature, which allows customers to lock in their rates to avoid annual rate increases, as long as no major changes are made, such as adding a new driver to the policy.
Who it’s best for
Erie is ideal for drivers willing to potentially pay a bit more in exchange for excellent service. It’s also best for those who don’t mind working with a local agent and a below-average digital user experience.
Memphis pricing
| Erie | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $176 | Data unavailable |
| Annually | $2,106 | Data unavailable |
| Difference from Memphis average | -17% | – |
2. Best Local Provider - Tennessee Farm Bureau
What We Like Most:
- #2 in the Southeast on J.D. Power
- Headquartered in Tennessee
- Member perks
Why we chose it
Tennessee Farm Bureau is a Tennessee-specific insurance company that is associated with the American Farm Bureau Federation. It provides standard auto insurance coverages at below-average rates in Memphis. It also offers highly localized and personalized service through its network of agents and ranked second in J.D. Power’s Auto Insurance Study.
Who it’s best for
Tennessee Farm Bureau is best for drivers who are already Farm Bureau members or don’t mind applying for membership. It requires an annual fee, but also provides other perks and discounts in exchange. It’s not ideal for drivers looking for add-on coverages beyond the standard options.
Memphis pricing
| Tennessee Farm Bureau | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $188 | Data unavailable |
| Annually | $2,259 | Data unavailable |
| Difference from Memphis average | -11% | – |
3. Best for Military/Veterans - USAA
What We Like Most:
- Cheapest average rates in Memphis
- Highly rated by third parties
- Financial services, including auto loans
Why we chose it
USAA provides top-notch services and support for the military community. For those eligible, USAA is hard to beat for car insurance. It offers the cheapest average rates in Memphis for both full coverage and minimum coverage and has an excellent customer service record.
Who it’s best for
USAA is only available to active military duty personnel, veterans, and their families. It’s best for those who want to take advantage of its great rates and military-specific offerings.
Memphis pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $121 | $37 |
| Annually | $1,451 | $440 |
| Difference from Memphis average | -43% | -46% |
4. Cheapest - Travelers
What We Like Most:
- Cheap rates in Memphis
- No membership requirements
- Accepts drivers with violations
Why we chose it
Travelers has the cheapest average rates in Memphis after USAA — and unlike USAA, it’s widely available with no eligibility restrictions. It also has cheaper-than-average rates in Tennessee for certain high-risk drivers, like those with poor credit, speeding tickets, or at-fault accidents, and the lowest rates in the state for drivers with a DUI.
Who it’s best for
Travelers is best for drivers on a budget — including those with clean records and violations alike. It’s likely not best for those who prioritize customer service, as it scored below average regionally on J.D. Power’s Auto Insurance Study.
Memphis pricing
| Travelers | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $140 | $42 |
| Annually | $1,677 | $501 |
| Difference from Memphis average | -34% | -39% |
5. Best Major Insurer - State Farm
What We Like Most:
- Local Memphis agents
- Above-average on J.D. Power
- Offers rideshare coverage
Why we chose it
State Farm offers below-average rates in Memphis and also ranked above average in J.D. Power’s 2025 study. While it’s not as affordable as the other companies on this list, on average, and doesn’t quite have the same customer satisfaction ratings, it has the advantage of being a major national insurer, which may appeal more to certain drivers.
Who it’s best for
State Farm is a good choice for drivers who value the convenience and reputation of a nationally established insurance company. It’s also ideal for rideshare drivers as, unlike the other companies listed here, it offers rideshare coverage.
Memphis pricing
| State Farm | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $181 | $51 |
| Annually | $2,170 | $609 |
| Difference from Memphis average | -15% | -28% |
Memphis Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Southeast1 | CRASH Network Report Card2 | J.D. Power Claims Satisfaction3 | NAIC Complaint Index4 |
|---|---|---|---|---|
| Erie | 718 | A- | 733 | 1.12 |
| Tennessee Farm Bureau | 696 | Not rated | Not rated | 0.27 |
| USAA | 749 | D+ | 726 | 2.74 |
| Travelers | 606 | C | 684 | 1.99 |
| State Farm | 677 | C- | 710 | 3.31 |
| Average | 667 | C+ | 697 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share. The lower the score, the better |
*USAA technically doesn’t qualify to rank on J.D. Power studies due to its eligibility restrictions.
Cheapest Full Coverage Car Insurance in Memphis
USAA offers the cheapest full coverage rates in Memphis, with an average annual premium of $1,451 — that’s 43 percent cheaper than the city average. USAA is only available to members of the military community. For non-military drivers, Travelers and Auto-Owners have the most affordable rates at $1,677 per year and $1,762 per year, respectively.
| Company | Annual Memphis Average | Monthly Memphis Average |
|---|---|---|
| USAA | $1,451 | $121 |
| Travelers | $1,677 | $140 |
| Auto-Owners | $1,762 | $147 |
| Erie | $2,106 | $176 |
| State Farm | $2,170 | $181 |
| Tennessee Farm Bureau | $2,259 | $188 |
| GEICO | $2,336 | $195 |
| Memphis average | $2,544 | $212 |
| Tennessee average | $1,716 | $143 |
| U.S. average | $2,399 | $200 |
Cheapest Minimum Coverage Car Insurance in Memphis
USAA also has the most affordable minimum coverage auto insurance in Memphis at $440 annually on average. Travelers and State Farm also have average rates significantly lower than the city average.
| Company | Annual Memphis Average | Monthly Memphis Average |
|---|---|---|
| USAA | $440 | $37 |
| Travelers | $501 | $42 |
| State Farm | $609 | $51 |
| GEICO | $645 | $54 |
| Memphis average | $821 | $68 |
| Tennessee average | $587 | $49 |
| U.S. average | $635 | $53 |
How Many Car Accidents Happen in Memphis?
Memphis, TN, is one of the most dangerous cities in the U.S. to drive in and frequently tops lists of cities with the worst drivers in the country. In 2022, it had the highest number of fatal crashes per 100,000 residents at 33.5
In 2023, the latest year for which there is data, there were 249 fatal car accidents in Shelby County, which includes Memphis.6
Minimum Auto Insurance Requirements in Tennessee
Tennessee law requires that drivers carry at least the following minimum coverage auto insurance limits:
- Bodily Injury Liability: $25,000 per person/$50,000 per accident
- Property Damage Liability: $25,000 per accident7
These limits are quite standard relative to other states, but they may not provide enough coverage if you get into an accident. We recommend increasing your liability coverage and adding full coverage to help pay for damage to your own vehicle.
FYI:
Tennessee ranks fourth in the country for the highest rate of uninsured motorists. Over 20 percent of Tennessee drivers — about 1 in 5 — do not have auto insurance. We recommend adding uninsured motorist coverage to your policy, which helps pay for injuries and damages caused by a driver who doesn’t have insurance. If an uninsured driver hits you and you don’t have this coverage, it can be extremely difficult to recover your losses.
Frequently Asked Questions
Who has the cheapest car insurance rates in Tennessee?
The cheapest car insurance rates in Tennessee are from USAA, which has an average annual premium of $1,116 in the state. Erie is the next-cheapest option at $1,262 per year on average.
At what age does car insurance stop being expensive?
Car insurance generally stops being as expensive when a driver hits their late 20s, assuming they have a clean driving record. All other things being equal, teens pay the most, by far, for car insurance. Rates can stay high in a driver’s early 20s, but they usually go down each year and stabilize around 30.
Are regional companies cheaper than national ones in Memphis?
Yes, on average, some regional companies are cheaper than national ones in Memphis. The cheapest average rates are offered by USAA and Travelers, but they are followed by Auto-Owners and Erie, which are regional. State Farm and GEICO are both more expensive on average.
Are older cars cheaper to insure?
Yes, older cars are generally cheaper to insure because they cost less to repair and replace than newer models. There are some exceptions to this, including classic cars, which tend to gain value as they age and require specialized insurance.
Methodology
At AutoInsurance.com, we evaluate auto insurance providers based on four key factors:
- Price (40%): We analyzed average premiums for full and minimum coverage in Memphis for good drivers with good credit. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
- Claims Handling (25%): A good claims handling process from an auto insurer is prompt, transparent, and efficient, with clear communication throughout, fair evaluation of damages, and timely payment or resolution. We assess claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report, and financial strength from sources like AM Best and S&P Ratings. Real-life customer experiences are included when available.
- Customer Experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC complaint index, BBB ratings, and app store reviews.
- Coverage Options (10%): We review each company’s coverage offerings and value providers with options beyond the state required minimums, like accident forgiveness, gap coverage, rideshare coverage, and more.
Read more about our ratings and methodology.
Managing Editor & Industry Analyst
Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.
Citations
Trust Emerges as Top Driver of Customer Satisfaction with Auto Insurance as Prices Continue to Surge, J.D. Power Finds. J.D. Power. (2024, June 11).
https://www.jdpower.com/business/press-releases/2024-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2025. Crash Network. (2025).
https://www.crashnetwork.com/irc/Auto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, J.D. Power Finds. J.D. Power. (2024, Oct 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-studyConsumer Insurance Search Results. NAIC. (2025).
https://content.naic.org/cis_refined_results.htmWhere do most car accidents happen in the U.S.?. Consumer Affairs. (2024, May 30).
https://www.consumeraffairs.com/automotive/where-do-most-car-accidents-happen.htmlFatality and Injury Reporting System Tool (FIRST). NHTSA. (2025).
https://cdan.dot.gov/queryFinancial Responsibility Law. TN Department of Revenue. (2025).
https://www.tn.gov/revenue/title-and-registration/drive-insured-tennessee/why-you-should-have-insurance.htmlFacts + Statistics: Uninsured motorists. Insurance Information Institute. (2025).
https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists
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