Study Shows Memphis Has State's Highest Car Insurance Rates

Posted by Louis Goggans on Tue, Jul 1, 2014 at 1:41 PM


A new study reveals that Memphis isn’t the best place to get car insurance if you’re trying to save a few dollars.

Consumer finance company ValuePenguin analyzed car insurance rates in 44 cities across Tennessee. Results of the study revealed that Memphis has the highest rates. In Memphis, a person spends $1,212 a year on average for car insurance.

The ValuePenguin study discovered that the top five cities with the highest insurance rates in Tennessee were all in the Memphis metro area. Aside from Memphis, these areas are Bartlett ($1,049), Germantown ($1,038), Collierville ($1,032), and Dyersburg ($979).

To get quotes from car insurance companies for the study, the company assumed the identity of a 30-year-old male driver who is single. He imaginatively drove a 2010 Toyota Camry that he bought and used to commute to and from his place of employment, according to the study. The driver had no at-fault accidents or violations in the last five years.

ValuePenguin looked at insurance quotes from the 10 top auto insurers that operate throughout Tennessee, averaging rates across the companies to come up with a final number for each city. Those companies included GEICO, State Farm, Nationwide, Allstate, Liberty Mutual, and several others.

The top five cities with the cheapest insurance rates are Bristol ($810), Kingsport ($813), Johnson City ($830), Brentwood ($857), and Gallatin ($871), according to the study.

Brian Quinn, co-founder of ValuePenguin, said the company publishes unique analysis and creates user-friendly tools that help individuals make more informed financial decisions. The company is currently in the process of conducting auto insurance studies for every state in the country.

“We hope that Tennesseeans understand how much average auto insurances prices can vary depending on where they live within the state,” Quinn said. “The majority of the work we do at ValuePenguin is digging into big data related to consumer finance issues. Once we did a handful of the state breakdowns and got great feedback, we realized we needed to do the analysis nationwide.”

According to ValuePenguin’s Tennessee study, cities with expensive auto insurance rates were typically close to high crime areas and/or high population density areas. Cities with cheaper with auto insurance rates normally had a lower population density and lower crime rates.

The five most expensive cities had an average annual rate of $1,062 while the five cheapest areas had yearly annual premiums around $836. The average cost of car insurance in Tennessee was $916 per year, according to the study.

Other cities analyzed in the study include Smyrna, Murfreesboro, Chattanooga, Cleveland, Athens, Knoxville, Columbia, Nashville, Jackson, Union City, and various others.

Comments (8)

Showing 1-8 of 8

Not exactly a shocking revelation. Funny that they don't mention it is also almost certainly a product of the amount of uninsured motorists we have swerving around and driving on a donut while tailgating.

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Posted by Anon on 07/01/2014 at 3:39 PM

Um, duh...

report 1 like, 1 dislike   
Posted by Jacinda Norton on 07/01/2014 at 3:53 PM

No doubt that this "revelation" extends over into homeowners insurance policy rates as well....

report 3 likes, 1 dislike   
Posted by MidTn 37179 on 07/01/2014 at 4:36 PM

Urban myth is now Urban truth.

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Posted by tomguleff on 07/01/2014 at 8:04 PM

If you have experienced the "Memphis driver" syndrome, i.e. the car in the intersection to turn with no blinker, or...well never mind. There should be no surprise about car insurance rates.

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Posted by Rags_to_riches on 07/02/2014 at 6:57 AM

It doesn't surprise me the way people drive in and around this city.

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Posted by ron on 07/03/2014 at 7:44 AM

in some region that money pay for in Memphis is two years so why would i want to pay for car insurance policy in the area.nice post and thanks for educating me.related i give tips on how to get cheap car insurance

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Posted by Esemon Idinye on 09/29/2014 at 11:43 AM

I used to live in the Tri-Cities area and there is no logical reason why their insurance is the cheapest. Them folks can't drive up-ere.

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Posted by Jeff on 09/29/2014 at 1:12 PM
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