If you’re researching car insurance in Memphis or trying to find cheap car insurance quotes in Memphis while shopping for a policy, you’ll find all the information you need here. We provide average car insurance rates for Memphis listed by ZIP code and company. That way you can get a reference point for how much you can expect to pay. We’ll also explain how coverage works, and how much car insurance you need.
No wonder they sing the blues: Memphis has it bad when it comes to car insurance. Not only does it have Tennessee's highest rates, simply crossing the river to Arkansas or the state line to Mississippi could save you hundreds of dollars a year. (The map below shows how ZIP codes in Memphis and its surroundings compare.)
Regardless of where you live, you can save a considerable amount if you compare car insurance quotes for Memphis. This is why:
No policy is priced the same by multiple insurers.
They also use different formulas when deciding what you pay, which is why the price for the same policy varies by hundreds, or thousands, from one insurer to the next.
For example, Memphis ZIP code 38132, with an average rate of $1,688, is the most expensive in the city, according to a CarInsurance.com analysis. The highest rate from insurers surveyed for that neighborhood ($2,521) was $1,535 more than the lowest ($986), according our rate analysis.
The wide range in rates from different insurers shows why it's wise to compare car insurance rates. Enter your ZIP code in the average rate tool below to see the price for a policy in your neighborhood, as well as the highest and lowest cost fielded from six insurance companies.
Your age, your driving history, your credit and the type of car you drive, among other factors, are all used by insurance companies to calculate how much you pay. But where you live is typically used by insurers as a base line for the process, with other variables either increasing or decreasing that amount. Insurance companies assess ZIP codes’ risk levels based on the number and severity of car insurance claims within the area.
Here's how Memphis’s highest average rate ($1,688) compares to others, for a full coverage policy:
$669 more than the least expensive average rate ($1,019) in the state, Unicoi 37692
$474 more than the state average ($1,214)
$131 more than the average rate for all of Memphis ($1,557)
$333 more than the national average rate ($1,355)
Memphis car insurance requirements
Tennessee state law requires the following minimum car insurance coverage:
Minimum bodily injury liability
Minimum property damage liability
Average car insurance rates in Memphis by ZIP code
Here are the 10 most and least expensive ZIP codes for car insurance in Memphis. You'll see in the chart below that you can save over $1,000 in some cases just by doing a car insurance comparison, no matter which address you call home.
Average annual rate
Average annual rate
*Methodology for rates by ZIP code:
CarInsurance.com commissioned Quadrant Information Services to run auto insurance rates for a 2016 Honda Accord for more than 30,000 ZIP codes in the United States using six large carriers -- Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm. (In cases where an insurer’s rate wasn’t available, another major carrier's rate was substituted.) Averages are based on insurance for a single 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/100 ($100,000 for injury liability for one person, $300,000 for all injuries and $100,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. This hypothetical driver has a clean record and good credit. The rate includes uninsured motorist coverage. Average rates are for comparative purposes. Your own rate will depend on your personal factors and vehicle.
Cheap car insurance: Memphis
Minimum liability coverage limits of 25/50/15 are required to drive in Tennessee. That means your insurance company will pay up to $25,000 per person injured in an accident you cause, up to $50,000 per accident, and up to $15,000 for damage you cause to another car or other property. Buying the state required limits is definitely the cheapest way to go. But your assets and savings aren’t shielded from lawsuits and you won’t be covered for damage to your own car. Additionally, the cost to pay for damages from even a minor accident can easily exceed these limits, leaving you responsible to pay out-of-pocket for repair and medical bills.
How much car insurance should I buy?
Penny Gusner, CarInsurance.com consumer analyst, recommends buying full coverage unless you have an old car or no assets. It does cost more to buy more protection, but as you’ll see below, additional coverage is typically affordable. Based on an analysis outlined below of rate fielded from six major insurers for Memphis ZIP codes, increasing your insurance from the state minimum to full coverage with a $500 deductible costs, on average, $982 more, or $82 a month. But just hiking to higher liability costs just $41 yearly, or $3 a month.
Average Memphis rates for three coverage levels:
State minimum average annual rate: $575
Liability only; 100/50/100 average annual rate: $616
Full coverage of 100/300/100, with comprehensive and collision: $1,557
For more details on how comprehensive insurance, collision coverage and liability work to pay for your injuries and car repairs, as well as damage and injuries you cause to others in an accident, see our Tennessee car insurance page or explanations of the different types of car insurance.
Who has the cheapest Memphis car insurance rates?
Below you'll see average annual rates for Memphis, ranked cheapest to most expensive, for three coverage levels:
State minimum liability requirements
Liability limits of $50,000 per person/$100,000 per accident and $50,000 property damage
Liability of $100,000 per person/$300,000 per accident and $100,000 property damage, with comprehensive and collision at $500 deductible