How Much Is Car Insurance in Tennessee? (2023)

Several variables determine how much you'll pay for car insurance, including age, where you live, driving record, credit score and insurer. Tennessee's full coverage auto insurance yearly rates range from an average of $579 (State Farm) to $1,181 (Progressive). However, a 25-year-old driver buying these same yearly policies will pay $728 from State Farm and $1,526 from Progressive.

The average cost of full coverage auto insurance in Tennessee is approximately $846 per year. However, your age, driving record and the level of coverage you select will significantly affect your premiums. Yearly full coverage rates increase to $1,039 if you receive a speeding ticket and $1,281 if you’re at fault for an accident. Meanwhile, drivers with a DUI pay a yearly average of $1,606.

The average annual cost of auto insurance in Tennessee is $846, which is relatively cheap compared to the national average of $1,054. Low urban population density, vehicle theft rates and cheaper insurers contribute to more affordable insurance costs. If you’re paying high premiums for Tennessee car insurance, it may be due to your age or driving history.

The average cost of auto insurance in Tennessee can be misleading since your rates will vary greatly depending on the insurer you choose. While Allstate offers the most expensive average yearly minimum coverage insurance at $519 ($910 for full coverage), Auto-Owners has the cheapest liability-only policy at $207 ($611 for full coverage).

Full coverage insurance policies are typically more expensive than minimum coverage, but you can still get cheap full coverage policies by shopping around.

The average annual premium for the cheapest liability-only coverage in Tennessee is $340, with premiums rising to $998 for the maximum possible full coverage policy. As your coverage limits increase, so do your costs.

Full coverage, or comprehensive and collision insurance, will significantly increase your annual rates. Consider lowering your premiums by increasing your deductible.

The cheapest liability-only policy will provide Tennessee's minimum necessary coverage. These policies lack collision and comprehensive insurance, with the lowest liability limits. Tennessee law only necessitates coverage for injuries to third parties and damage to their property.

Higher liability limits may be available; insurers often shorten them to 50/100/50 or 100/300/100. For example, a 50/100/50 policy would include the following limits:

• $50,000 bodily harm liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability per accident

The maximum available limits for liability insurance are typically 300/500/300. In addition to liability protection, full coverage insurance includes comprehensive and collision coverage, covering damages to you and your vehicle after a covered accident.

Your age can significantly impact the cost of your vehicle insurance. Tennessee's average full coverage premiums by age group are as follows:

• 22–29: $1,074 per year
• 30–59: $846 per year
• 60+: $796 per year

Drivers under 30 often pay higher insurance costs than those between 30 and 59, while drivers above 60 typically pay lower premiums. New drivers may pay similar premiums to younger drivers due to their limited driving experience.

In Tennessee, the annual full coverage cost to insure a 16-year-old male is $2,301, significantly higher than the average adult rate. Individual premiums are more pricey, costing $5,255 annually.

However, prices typically go down as drivers get older and more experienced. A 19-year-old on a family plan pays $1,754 per year on average, while a 22-year-old driver pays $1,416. Teenage drivers can find cheap auto insurance in Tennessee by comparing policies.

Rates differ significantly by gender in Tennessee. On average, a family plan costs $2,065 per year for a 16-year-old female driver, nearly $236 cheaper than for a 16-year-old male.

Annual full coverage car insurance for a new car in Tennessee costs $1,177, 38% more than the average of $852 for older cars. Due to its high replacement value, theft risk and repair costs, new car insurance is relatively more expensive.

Your insurance company calculates comprehensive and collision repair costs based on your vehicle's actual cash value (ACV). The ACV decreases with age, lowering the insurer payout and car insurance premiums. Drivers of newer vehicles in Tennessee should consider purchasing full coverage insurance since it covers damage to your own vehicle in addition to others.

Auto insurance premiums are generally higher for drivers with violations than for drivers with clean records. The following full coverage rates are average in Tennessee based on driving records:

• Clean record: $846 per year
• Speeding ticket: $1,039 per year
• At-fault accident: $1,281 per year
• DUI: $1,606 per year

Usually, your rate increase depends on how severe the traffic infraction is. A DUI, for instance, carries a much higher average insurance premium than a speeding ticket. By comparing prices from different companies, it's still possible to find cheap auto insurance in Tennessee with a poor driving record.

Credit score may significantly impact your car insurance rates. The average annual premium for Tennessee drivers with poor credit is $1,367, while the cost for drivers with excellent credit is $647. Tennessee drivers can expect to pay the following average rates based on their credit score:

• Excellent: $647 per year
• Good: $775 per year
• Fair: $943 per year
• Below fair: $1,117 per year
• Poor: $1,367 per year

Insurers may treat your credit score differently depending on their policies. The best way for drivers with poor credit to find cheap auto insurance in Tennessee is to shop around and compare rates from various providers.

The cost of auto insurance in Tennessee varies considerably from one city to the next. Full coverage auto insurance costs $1,105 yearly in Memphis, while the same policy costs around $838 in Knoxville. Memphis car insurance premiums are typically more expensive due to higher theft rates and denser populations. These metrics point to filing more insurance claims, resulting in more payouts from insurers.

Insurance costs in Tennessee vary depending on your age, location and your specific needs. Check out MoneyGeek's responses to frequently asked questions about car insurance in the Volunteer State.