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In the event of an at-fault vehicle accident, Tennessee’s Financial Responsibility Law mandates that you be financially liable. Unless you qualify for an exception, getting insured by an auto liability insurance policy is the simplest option to maintain your financial responsibility requirements under state law. Because of the differing costs for car insurance in Memphis, Tennessee, it’s crucial to know the factors that influence the rates to effectively shop around for plans from different companies in order to find the best deal.
Factors Affecting the Cost of Car Insurance in Memphis, Tennessee
Here are a few elements that may affect the cost of your car insurance in Memphis, Tennessee:
Auto insurance prices and a driver’s credit score have a strong correlation. Typically, Memphis drivers who upgrade their credit rating from “Very Poor” (300-579) to “Exceptional” (800-850) see a 64% reduction in their vehicle insurance premiums on average. Even shifting from “Very Poor” to “Good” credit is an excellent method of reducing vehicle insurance costs. Improving your score to “Fair” in Memphis saves you $1,796 per year in insurance premiums.
Accident History and Citations
Keep your driving history clean if you really want to maintain low auto insurance premiums. Speeding tickets, DUIs, reckless driving citations, and at-fault accidents can trigger insurance premium increases. Reckless driving and DUIs are among the most costly driving offenses in terms of insurance. Compared to the citywide average, a careless driving ticket in Memphis results in an increase in insurance rates of up to $1,065 per year. A DUI conviction leads to a $907 rate rise, whereas a speeding ticket results in a $425 rate increase.
Gender and Marital Status
The gender and marital status of a driver may affect the vehicle insurance rates they pay in some situations. Married drivers pay less for vehicle insurance than single drivers. In Memphis, married drivers pay an average of $145 less for car insurance than unmarried drivers. Rates for widowed people are likewise significantly lower than for single people. Single drivers in Memphis pay more than widowed drivers.
Another element that influences auto insurance premiums is gender. The cost difference in vehicle insurance between men and women in Memphis is $40 annually, with male drivers paying more.
Drivers in their 50s have the best car insurance rates in Memphis, paying an average of $1,612 per year. Those who are in their 60s pay only a little more ($1,641) than those in their 50s. Teenagers in Memphis pay the highest for car insurance. When Memphis drivers reach their 20s, their insurance prices drop dramatically. The annual cost difference between teen and 20-year-old vehicle insurance rates is $5,190, the biggest disparity between these two age groups.
The area where you live might have a significant effect on your insurance premiums. Prices are frequently driven by variables like crime and traffic. Residing in a high-crime area may see you paying a higher premium. Also, if you spend more time behind the wheel, insurance companies typically consider you more prone to traffic incidents, hence higher premiums.
The Cheapest Car Insurance in Memphis, Tennessee
State minimum coverage is an excellent choice if you’re seeking the lowest auto insurance in Memphis. However, while basic coverage policies like these are less expensive than full coverage, they provide much less protection in the event of an accident because they do not include comprehensive and collision coverages. In Memphis, the lowest auto insurance, offered by Erie, will set you back by $565 per year.
A full-coverage policy provides the most protection, usually including liability, collision, and comprehensive coverage. If you’re looking for the cheapest full coverage for your car, you may have to pay higher premiums. However, you can still land great deals by shopping around. Research shows GEICO has the lowest full coverage policy at $877 per year.
If you’ve been charged with driving violations, your auto insurance costs may increase. If you’ve been prosecuted with an at-fault collision, a DUI, or other driving offenses, you face the same consequences. Your charges may only be reduced if you improve your driving record, but this takes time.
Liability insurance in Tennessee only covers $25,000 per person for bodily injuries. If you’re in an accident and the injured party’s medical bills total more than that, the insurer only reimburses $25,000 of the bill. You would be required to pay the remaining cost out of pocket.
Average Cost of Car Insurance in Memphis
As noted, the average cost of car insurance varies from person to person depending on a number of factors, including the insurance company they get coverage from. Here are a few of the average rates for drivers in Memphis:
- GEICO: $1074
- USAA: $1117
- State Farm: $1368
- Erie: $1518
- Tennessee Farmers: $1630
How To Get the Best Insurance Rates in Memphis, Tennessee
The following suggestions will help you save money on your insurance in Memphis, Tennessee:
- Bundle your insurance plans: You can save a lot of money by bundling your auto insurance plans with other policies you have. If you have home insurance, you can consult an insurance agent to find out how to bring your premiums down.
- Follow up on discounts: Discounts are available from most insurance companies. Check to see if you qualify for any discounts, such as student or military discounted rates.
- Get good grades: You may qualify for a student discount if you earn good grades. Some insurance firms work closely with local institutions to provide reduced prices.
- Avoid traffic violations: Having a spotless driving record ensures that you get lower insurance premiums. If you find yourself in the wrong, you may opt to pay out of pocket rather than making a claim, which may increase your premiums.
Drivers must have a minimum coverage insurance policy in Tennessee that includes bodily injury liability, property damage liability, uninsured motorist bodily injury, and uninsured motorist property damage. The cheapest auto insurance in Memphis is a basic coverage policy, and purchasing one will save you money on your premiums. Shopping around can help you get the best car insurance in Memphis, Tennessee.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.