Insurance Costs in Memphis, TN
Auto insurance in Memphis averages $1,878 per year for full coverage, which is higher than the national average. Here is a detailed breakdown of what residents pay.
Updated July 2026Auto Insurance in Memphis, TN: What You Need to Know
Memphis residents pay an average of $1,878 per year for full coverage auto insurance, which is 28.0% above the Tennessee state average and 12.2% above the national average.
With a population of 633,104, Memphis is one of the largest cities in Tennessee. Higher population density, more traffic congestion, and increased accident risk all contribute to above-average insurance rates.
Coverage Level Comparison
| Coverage Type | Annual Cost | Monthly Cost |
|---|---|---|
| Full Coverage (100/300/100) | $1,878 | $156 |
| Standard Coverage (50/100/50) | $1,540 | $128 |
| State Minimum (25/50/15) | $789 | $66 |
Homeowners Insurance in Memphis, TN
The average cost of homeowners insurance in Memphis is $2,399 per year ($200/month), which is 31.8% above the national average.
Home insurance costs are influenced by local factors including weather risks (hail, wind, flooding), property values, local building costs, and proximity to fire stations.
Renters Insurance in Memphis, TN
Renters insurance in Memphis averages $204 per year ($17/month). Renters insurance is affordable and protects your personal belongings, provides liability coverage, and may cover temporary living expenses if your rental becomes uninhabitable.
Compare with Other Tennessee Cities
| City | Auto Insurance | Home Insurance |
|---|---|---|
| Nashville | $1,687/yr | $2,253/yr |
| Knoxville | $1,496/yr | $1,919/yr |
| Chattanooga | $1,526/yr | $1,982/yr |
| Clarksville | $1,394/yr | $1,836/yr |
| Murfreesboro | $1,438/yr | $1,919/yr |
| Franklin | $1,291/yr | $2,253/yr |
| Johnson City | $1,350/yr | $1,711/yr |
| Jackson | $1,540/yr | $1,836/yr |
How to Save on Insurance in Memphis
- Shop around. Get quotes from at least 3-5 different insurers. Rates in Memphis can vary by $500 or more between companies for the same coverage.
- Bundle auto and home/renters. Many companies offer 10-25% off when you carry multiple policies.
- Increase your deductible. Raising your deductible from $500 to $1,000 can cut your premium by 15-30%.
- Ask about local discounts. Some insurers offer discounts for anti-theft devices, safe driving courses, or parking in a garage.
- Review coverage annually. Your needs change over time. Make sure you are not paying for coverage you do not need.
Frequently Asked Questions
How much is car insurance in Memphis, TN?
The average cost of car insurance in Memphis, TN is $1,878 per year for full coverage, or about $156 per month. Minimum coverage costs around $789 per year.
Is car insurance expensive in Memphis?
Yes, car insurance in Memphis is above both the state and national averages.
How much is home insurance in Memphis?
Homeowners insurance in Memphis costs an average of $2,399 per year. Your actual cost depends on your home's value, age, construction type, and specific location.