Best Cheap Car Insurance in Memphis

• 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.

*USAA technically doesn’t qualify to rank on J.D. Power studies due to its eligibility restrictions.

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.

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.

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

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.

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.