Insurance company

Favorite car insurance company: what to expect (2022)

Advertiser Disclosure

If you live in Tennessee, you may already be familiar with Preferred Auto Insurance Company. But are the auto insurance coverage options and benefits offered by this regional company comparable to those offered by the larger national providers?

Although Preferred Auto Insurance Company is a local provider serving Tennessee and doesn’t find a place on our list of top auto insurance companies in the area, it has been around for over 20 years. In this Preferred Auto Insurance Company review, we analyze the availability of different coverage options, sample costs, company reputation, customer reviews, and more. to help you decide if this is the right provider for you.

We recommend that you obtain several auto insurance quotes before making a decision. To get free quotes from Preferred Auto Insurance Company as well as other great providers in your area, fill out the form above or call our team at (844) 246-8209.

In this article:


Presentation of the preferred car insurance company

Preferred Auto Insurance Company is a small private auto insurance company based in Memphis, Tennessee. It was founded in 2000 and has 18 retail branches. Currently, Preferred Auto specializes in providing non-standard and high-risk auto insurance only in Tennessee.

A quick search online for Preferred Auto Insurance Company may bring up Preferred Auto Insurance Agency as well as Preferred Mutual Insurance Company. However, Preferred Auto Insurance is a separate entity. Preferred Auto Insurance Agency is a full-service insurance agency based in Riverside, California, Preferred Mutual Insurance Company operates in the Northeast (New York, New Jersey, New Hampshire and Massachusetts).


Preferred auto insurance company coverage options

Preferred Auto Insurance Company offers many coverage options. The list below provides highlights, but we recommend speaking to an agent or reviewing the Preferred Auto Insurance Company policy form for more details.

In general, Preferred Auto Insurance Company offers the following types of coverage:

  • Personal injury liability cover: This coverage is mandatory in Tennessee. It covers the other party’s medical expenses after an accident for which you are responsible.
  • Property damage civil liability: This coverage is mandatory in Tennessee. It covers the other party’s repair bills after an accident for which you are responsible.
  • Coverage of medical payments (MedPay): This reimburses funeral and medical expenses for yourself and your passengers due to automobile injuries.
  • Uninsured Motorist Coverage: Uninsured Motorist coverage from Preferred Auto Insurance Company provides benefits for bodily injury and property damage caused by an uninsured motorist after an accident.
  • Full blanket: Comprehensive coverage covers damage to your vehicle from natural causes such as storms and earthquakes, as well as fire, theft, vandalism, etc.
  • Collision coverage: Collision insurance pays to repair damage to your own vehicle after an accident.

You will also receive up to a maximum of $200 for towing and storage costs in the event of a covered accident. If your vehicle was stolen, you may also receive $15 per day up to a maximum of $450 for alternate transportation costs.


Preferred auto insurance company cost and discounts

Preferred Auto Insurance Company offers two types of discounts: owner discounts and transfer discounts (for currently insured customers). We used the online quote tool on the website to analyze the sample plan costs, and this is what we found.

For the purposes of this example, we’ve chosen a 2015 Honda Accord with two drivers in their thirties, married, with current insurance, wanting a six-month plan. The cost would increase if one or both drivers needed an SR-22 certificate.

  • Base premium for liability coverage: $110 for $25,000/$50,000 bodily injury coverage and $208 for $15,000 property damage coverage. This is the minimum auto insurance coverage required in Tennessee under state law.
  • Premium for Underinsured Motorist (UM) coverage: $69 for UM bodily injury coverage of $25,000/$50,000 and $68 for UM property damage coverage of $15,000.
  • Premium for $1,000 medical limit coverage: $25
  • Premium for comprehensive coverage and collision coverage with a deductible of $500: $152 and $507 respectively

Remember that this is just an example and your premiums may be different. Average car insurance payments vary depending on your age, credit history, driving record, violations and other factors.


Customer Reviews for Preferred Auto Insurance Company

Since Preferred Auto Insurance has limited availability, there aren’t many customer reviews online.

The company has registered only one review and one complaint with the Better Business Bureau (BBB) ​​in the past three years. Although not accredited with the BBB, Preferred Auto has an A+ rating, which is a good sign.

Google only offers 30 reviews and a rating of 2.1 out of 5.0 stars. Yelp lists over 25 reviews and a higher rating, at 5.0 stars.

If you’re considering Preferred Auto Insurance Company, we recommend that you call and experience customer service for yourself.


Our favorite car insurance company

If you live in Tennessee and fall into the atypical or high-risk driver category and need auto insurance, Preferred Auto Insurance Company might be one of your options. If you choose the minimum liability insurance coverage, its rates are definitely on the lower end of the spectrum.

However, if you travel a lot and are looking for better customer service, you might want to consider using a larger national provider.

We recommend researching the best coverage and comparing all of your quotes before making a decision. Remember that the lowest quote doesn’t always give you the best coverage. Sometimes it’s worth paying a little more premium to avoid a lot of stress and confusion later. Use the free tool below or call (844) 246-8209 to explore all your options.


Our recommended suppliers

We’ve also reviewed the top auto insurance providers in the country based on different factors, such as availability, coverage options, financial strength, customer satisfaction ratings, and more.

USAA is the best option for military families. Our team gives USAA a perfect 5.0 star rating. It is known for being affordable, available nationwide, and having excellent customer service. USAA not only offers basic auto insurance coverage, but it also offers roadside assistance, rental reimbursement, accident forgiveness, and total loss coverage. For more information on coverage, read our USAA auto insurance review.


Geico is another great option for car insurance. Our team rates Geico 4.5 stars out of 5.0 and the title of Best Overall Insurer. Geico offers competitive pricing, broad coverage options, and good customer service. It also offers great discounts for students, military, and federal employees. For more information, read our review of Geico car insurance.


If you prefer a company with a strong technology presence, you should consider State Farm coverage. State Farm offers several mobile apps that allow you to manage your insurance and get discounts. Their The Drive Safe & Save™ app is a usage-based option that rewards good drivers. They also offer student discounts. Read our State Farm auto insurance review for more information on coverage, costs and more.


Frequently Asked Questions


Methodology

In an effort to provide accurate and unbiased information to consumers, our team of experts collects data from dozens of car insurance providers to compile rankings of the best insurers. Companies receive a score in each of the following categories, along with an overall weighted score of 5.0 stars.

  • Industry Ranking: Insurers with strong financial ratings and customer-focused business practices receive the highest scores in this category.
  • Availablity: We consider availability by state as well as exclusions for specific groups of drivers.
  • Blanket: This rating is based on the types of insurance available, maximum coverage limits and supplemental policies.
  • Cost and discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many auto insurance discount opportunities receive the highest scores.
  • Customer service: We scour customer reviews and consumer feedback studies from experts like JD Power.
  • Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.

Read our other insurance articles: