How Much Does Car Insurance Cost for Drivers Under 25 in Tennessee?

The words “low-cost” and “insurance” really shouldn’t be used in the same sentence, especially when trying to find the cheapest car insurance for drivers under 25. To save some money, let’s familiarize you with some things that have an effect on car insurance rates, and come up with some ways to slash the price of your next policy.

When shopping for cheaper auto insurance for drivers age 25 and younger, one of the many things that aid in calculating car insurance rates is where you call home. Cities that have higher claim levels or more people like Memphis, Germantown, and Jackson are more likely to pay higher prices, whereas cities that are not as densely populated benefit from lower rates.

The next table ranks the highest-priced places in Tennessee for drivers under 25 in which to buy car insurance.

Prices are approximated as the specific garaging location can modify premiums substantially.

Buying budget auto insurance is not easy, and determining which companies quote the lowest-priced insurance rates for drivers under 25 will take more quotes for comparison. Policy prices should be a little bit higher than the average price in Tennessee, with the increase attributed to the potential for more claims that goes along with selling coverage for drivers age 25 and younger, but economical insurance should be achievable if you compare enough companies. Every insurance provider has their own guidelines for determining prices, so first let’s look at the rankings for the most affordable insurance companies in Tennessee.

Cheap Insurance Rates for Young Drivers

Compare Rates Now

Utica National normally has some of the best car insurance rates in Tennessee at around $760 a year. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also rank well as some of the lowest-priced Tennessee auto insurance companies.

As illustrated above, if you have coverage with Penn National and switched to Utica National, you might achieve savings of in the neighborhood of $139. Policyholders with USAA may save as much as $187 a year, and Tennessee Farmers insureds might lower prices by $201 a year.

Remember that these estimates are averages for all ages of drivers and types of vehicles and do not factor in a price surcharge for drivers under 25. So the company that has the lowest price for you may not even be in the above list. That is why you need to get rate quotes from many companies using your own personalized driver profile and vehicle information.

The diagram below illustrates how choosing a deductible can influence annual premium costs when researching cheap insurance for drivers under 25. The rate quotes are based on a married female driver, comprehensive and collision coverage, and no discounts are applied.

google.charts.setOnLoadCallback(drawDfdqcibChart);function drawDfdqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘$100 Deductible’,’$250 Deductible’,’$500 Deductible’,’$1,000 Deductible’],[‘Age 20’, 1827,1677,1501,1337],[‘Age 30’, 1283,1173,1047,925],[‘Age 40’, 1267,1159,1037,921],[‘Age 50’, 1113,1021,915,813],[‘Age 60’, 1061,973,871,775],[‘Age 70’, 1135,1041,937,839]]);var options = {title: ‘Impact of Higher Deductibles on Car Insurance Rates in Tennessee’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 700,’chartArea’: {left:100,top:50,’width’: ‘100%’,’height’: ‘80%’},legend: {position: ‘bottom’,textStyle: {fontSize: 12}},bar: {groupWidth: ‘80%’},colors: [‘#6791b9′,’#75a8d8′,’#98bee2′,’#bad4ec’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);formatter.format(data,3);formatter.format(data,4);var chart = new google.visualization.BarChart(document.getElementById(‘qcibdfd’));chart.draw(data, options);}

The chart above illustrates that a 50-year-old driver could pocket $198 a year by changing from a $100 deductible up to a $500 deductible, or save $300 by changing to a $1,000 deductible. Youthful drivers, such as the 20-year-old chart data, could roll back prices as much as $490 every year by choosing larger deductibles on their policy. When using a larger deductible, it will be important to have emergency funds available to be able to cover the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.

Best rates: Allstate, Geico, State Farm, or Progressive

If you want reliable auto insurance, probably the best companies to start with are Allstate, Geico, State Farm, and Progressive. All of them offer physical damage and liability coverage, but each has a slightly different mix of options and features that may affect your buying decision. The following table illustrates pricing and service ratings, plus some optional coverages shoppers can expect to find with each one.