Car insurance in Memphis costs an average of $977 for a six-month policy ($163/month). The cheapest insurer is Auto-Owners at $605 per six months — 38% below the city average. Memphis is the most expensive city for car insurance in all of Tennessee, with rates running 30% higher than the state average.
- Average 6-month premium in Memphis: $977
- Cheapest insurer: Auto-Owners at $605/6 months ($101/month)
- Memphis rates are 30% higher than the Tennessee state average
- 43% of Memphis drivers are uninsured — carry UM/UIM coverage
- Best way to save: Compare at least 5 quotes and bundle your policies
How Much Does Car Insurance Cost in Memphis?
If you're driving around Memphis, you're probably paying more for car insurance than most people in Tennessee — and the rest of the country, for that matter. The average Memphis driver pays $977 for a six-month full coverage policy, which works out to about $163 per month or $1,954 per year.
That's not great news for your wallet. Memphis ranks as the single most expensive city for car insurance in Tennessee, beating out Nashville, Knoxville, and Chattanooga. Your premiums here run about 30% higher than the Tennessee state average of $751 per six months, and 32% above the national average of $742.
Why so expensive? It comes down to a few Memphis-specific factors: the city's elevated crime rates, one of the highest vehicle theft rates in the nation, heavy traffic along I-40 and I-240, and a staggering 43% uninsured motorist rate. Insurance companies price all of that risk into your premium.
The good news? The right insurer and a little comparison shopping can save you hundreds. Let's break down exactly what you'll pay and how to get the best deal.
Memphis Car Insurance Rates by Company
Not all insurers charge the same rates in Memphis — not even close. The difference between the cheapest and most expensive company can be over $250 per six months. Here's how the major insurers stack up for full coverage in Memphis:
| Insurance Company | 6-Month Premium | Monthly Cost |
|---|---|---|
| Auto-Owners Cheapest | $605 | $101 |
| Penn National | $622 | $104 |
| State Farm | $625 | $104 |
| Farm Bureau | $648 | $108 |
| USAA | $650 | $108 |
| Travelers | $859 | $143 |
| Nationwide | $868 | $145 |
| GEICO | $871 | $145 |
Auto-Owners takes the top spot with a 6-month premium of just $605 — that's 38% less than the Memphis average. Penn National and State Farm follow closely, both coming in around $104 per month. If you're eligible for USAA (military members and families), their $650 rate is also well below average.
Auto-Owners earned a MoneyGeek score of 97 out of 100 for Memphis, ranking #1 for both affordability and customer satisfaction. They offer unique perks like diminished value protection and coverage tailored to Memphis-specific risks including theft and storm damage.
Average Car Insurance Cost in Memphis
Here's how Memphis stacks up against the broader Tennessee market and the rest of the country:
| Area | Avg. 6-Month Premium | Monthly Cost |
|---|---|---|
| Memphis, TN | $977 | $163 |
| Tennessee State Average | $751 | $125 |
| National Average | $742 | $124 |
Memphis drivers pay roughly $226 more per six months than the Tennessee average — that's an extra $452 per year just because of where you live. The gap between Memphis and less urban parts of the state is even wider. Drivers in Bristol, Tennessee's cheapest city for car insurance, pay just $37 per month for full coverage compared to Memphis's $163.
Memphis Rates by Coverage Type
If you're trying to keep costs down, here's what you'll pay for minimum vs. full coverage:
- Minimum coverage: $192/6 months ($32/month) with Penn National or Auto-Owners — the cheapest options
- Full coverage: $605/6 months ($101/month) with Auto-Owners
- Bundled home + auto: $508/6 months ($85/month) with State Farm — saving up to 19% over standalone auto
About 28% of Memphis drivers carry only minimum coverage. While that saves money upfront, Tennessee's 25/50/15 minimums leave you financially exposed in a serious accident — especially in a city where 43% of other drivers don't have insurance at all.
Factors Affecting Memphis Insurance Rates
Memphis isn't expensive for car insurance by accident. Several local factors drive up what you pay:
Vehicle Theft and Crime
Memphis ranked #4 nationally for vehicle theft, with 845 thefts per 100,000 residents. The city's property crime rate of 73.27 per 1,000 residents is among the highest in the country. If you're parking on the street in neighborhoods like Downtown, Orange Mound, or Frayser, insurers factor that theft risk directly into your premium.
Memphis has one of the highest auto theft rates in the nation. Consider adding comprehensive coverage even if you're on a tight budget — it covers theft, vandalism, and weather damage. Installing an anti-theft device can also lower your premium by 5-15%.
Traffic and Accident Risk
Memphis was ranked the #1 city in the country where you're most likely to die in a car accident. Heavy interstate traffic on I-40, I-240, and I-55 — plus congestion along Poplar Avenue and Summer Avenue corridors — keeps accident rates elevated. More accidents mean more claims, and more claims mean higher premiums for everyone.
Uninsured Drivers
Here's a statistic that should concern every Memphis driver: 43% of motorists in the city are uninsured. Tennessee overall has the 3rd highest uninsured rate in the country at around 24%, but Memphis is nearly double that. This means if you're hit by an uninsured driver, you'll need your own coverage to pay for repairs and medical bills.
With 43% of Memphis drivers uninsured, adding uninsured/underinsured motorist (UM/UIM) coverage is practically essential. Tennessee doesn't require it, but skipping it in Memphis is a gamble you don't want to take.
Weather Risks
Memphis sits in the Mississippi Delta region, making it vulnerable to severe thunderstorms, tornadoes, and occasional flooding. The city also falls within the New Madrid Seismic Zone. These weather risks contribute to higher comprehensive coverage costs, especially during spring storm season from March through June.
Your ZIP Code Matters
Where you park your car at night significantly affects your rate. The most expensive ZIP code in Memphis is 38126 (South Memphis) at $167/month for full coverage, while 38016 (Cordova area) is the cheapest at $122/month. That's a $45 monthly difference — or $540 per year — just based on your neighborhood.
How to Get Cheap Car Insurance in Memphis
Compare at Least 5 Quotes
Rates in Memphis vary by up to $266 per six months between companies for the same coverage. Auto-Owners charges $605 while GEICO charges $871 — that's a 44% difference. Get quotes from Auto-Owners, State Farm, Farm Bureau, Travelers, and at least one more insurer.
Bundle Home and Auto
Bundling your home and auto insurance saves Memphis drivers 15-25%. State Farm offers the best bundling rate at $508 per six months — that's $117 less than their standalone auto rate. Even renters insurance bundling triggers savings.
Raise Your Deductible
Increasing your deductible from $500 to $1,000 cuts premiums by 10-15% annually. If you have an emergency fund that can cover the higher out-of-pocket cost, this is one of the easiest ways to lower your bill.
Ask About Every Discount
Memphis insurers offer discounts for multi-car policies (10-25% per vehicle), good driving records, paperless billing, paying in full, and anti-theft devices. Stack enough discounts and you can save 30-40% total.
Review Your Coverage Annually
Insurance companies regularly adjust rates based on Memphis area risk data. Your driving record improves after three years without incidents, and vehicle depreciation may mean you're over-insured. A yearly review catches savings you'd otherwise miss.
Travelers offers an IntelliDrive program that can save Memphis drivers up to 30% based on safe driving habits. It's especially useful during those I-40 commutes where defensive driving really pays off — literally.
Tennessee Minimum Insurance Requirements
Tennessee is an at-fault state, meaning the driver who causes an accident is responsible for damages. Here's what the state requires you to carry:
| Coverage Type | Tennessee Minimum | Recommended |
|---|---|---|
| Bodily Injury (per person) | $25,000 | $100,000 |
| Bodily Injury (per accident) | $50,000 | $300,000 |
| Property Damage | $25,000 | $100,000 |
| Uninsured Motorist (UM/UIM) | Not required | $100,000/$300,000 |
| Collision | Not required | $500 deductible |
| Comprehensive | Not required | $500 deductible |
Tennessee's 25/50/25 minimums might seem like enough, but a single serious accident in Memphis can easily exceed $100,000 in medical bills and property damage. With 43% of drivers uninsured, carrying only minimums leaves you dangerously exposed. If you finance or lease your vehicle, your lender will require full coverage anyway.
Memphis Car Insurance Rates by Driver Profile
Rates for Teen and Young Drivers
If you're adding a teen to your policy in Memphis, brace yourself. Teen driver rates here average $1,943 to $3,421 per six months depending on the insurer. Travelers offers the most affordable option for young drivers at $248 per month, followed by Auto-Owners at $272 and Farm Bureau at $289.
The best strategy? Keep your teen on the family policy rather than getting them separate coverage — it saves hundreds. Good student discounts (typically 10-25% off) can help too.
Rates for Senior Drivers
Senior drivers in Memphis catch a break compared to younger demographics. Farm Bureau offers the cheapest rates for drivers 65+ at just $114 per month for full coverage — 42% below the city average. Travelers follows at $143, and Auto-Owners at $145. Completing a defensive driving course can knock another 10% off for three years.
Rates After an At-Fault Accident
An at-fault accident bumps the average Memphis premium from $163 to $244 per month. State Farm is the most forgiving, charging $765 per six months after an accident. Farm Bureau comes in at $36/month for minimum coverage post-accident — the cheapest option if you need to rebuild your record.
Rates With Poor Credit
Drivers with poor credit (300-579) pay 129% more than those with excellent credit in Memphis. USAA offers the best rates for poor-credit drivers at $1,221 per six months, while State Farm's rates skyrocket to $4,053 — making credit score one of the most impactful factors in your Memphis premium.
Top Insurance Agents in Memphis
Working with a local insurance agent can help you navigate Memphis's tricky insurance market and find the best rates for your situation. Here are some of the top-rated agents across different companies in the Memphis area:
Frequently Asked Questions
Auto-Owners offers the cheapest car insurance in Memphis at $605 for a six-month full coverage policy ($101/month). For minimum coverage only, both Penn National and Auto-Owners tie at $192 per six months ($32/month). However, rates vary significantly based on your driving record, age, credit score, and vehicle, so it's essential to compare quotes from multiple insurers.
Memphis has the highest car insurance rates in Tennessee due to several factors: one of the highest vehicle theft rates in the nation (#4 nationally), a 43% uninsured motorist rate, heavy interstate traffic on I-40, I-240, and I-55, elevated crime rates, and severe weather risks including thunderstorms and tornadoes. These risk factors translate directly into higher premiums.
Tennessee requires minimum liability coverage of 25/50/25: $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage. While these are the legal minimums, they often aren't enough to cover a serious accident in Memphis. Experts recommend at least 100/300/100 limits, plus uninsured motorist coverage given the city's high uninsured rate.
The most effective ways to lower your Memphis car insurance include: comparing quotes from at least 5 companies (rates vary by up to 44%), bundling home and auto for 15-25% savings, raising your deductible from $500 to $1,000 for 10-15% off, maintaining a clean driving record, asking about multi-car discounts (10-25%), and installing anti-theft devices. Memphis drivers who stack multiple discounts can save 30-40% total.
While Tennessee doesn't legally require uninsured motorist (UM/UIM) coverage, it's strongly recommended in Memphis where 43% of drivers are uninsured — nearly double the state average. Without UM/UIM coverage, you'd be responsible for your own medical bills and vehicle repairs if hit by an uninsured driver. Given the risk, most insurance experts consider it essential for Memphis drivers.
Methodology
The insurance rates mentioned in this article is based on the average amount for a 30 year old female purchasing 50/100/50 ($50,000 for injury liability for one person, $100,000 for all injuries and $50,000 for property damage in an accident) liability car insurance coverage. The premium rate can be higher or lower than the rates specified depending on the type of coverage one may choose, deductibles applied and the discounts offered by insurance company.