How Much Is Car Insurance in Tennessee? Rates by Coverage Level, Age, Driving History and Location

Tennessee’s average car insurance cost is $1,018 per year, placing it among the cheapest in the country vs. a national annual average of $1,424. MoneyGeek reached these figures by contacting companies in many locations to reach an average rate for a sample driver. This guide breaks down average car insurance costs in Tennessee by coverage level, age, driving history, credit score and location.

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The average annual cost of car insurance in Tennessee is $1,018. This rate applies to a 40-year-old driver with a full coverage policy and clean driving record. The same driver profile purchasing a minimum coverage policy pays an average of $504 per year.

Car insurance prices vary depending on your characteristics, especially age. For example, a 16-year-old Tennessean purchasing their own policy pays an average of $2,555 per year. MoneyGeek explores average car insurance costs, along with how premiums vary with different categories and driver profiles.

Average Cost of Car Insurance in Tennessee: Summary

Along with average costs for our sample profile, MoneyGeek considers how Tennessee’s average car insurance costs change with several different factors. In Tennessee, age and credit score most significantly affect premium costs.

Click here to learn more about the average costs of car insurance for a given driver profile.

Average Costs of Car Insurance in Tennessee

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Why Are Car Insurance Rates Cheap in Tennessee?

Tennessee’s car insurance rates are among the nation’s cheapest. At $1,018 per year for a 40-year-old average male driver, rates are $406 cheaper, on average, than the national average rate of $1,424. MoneyGeek’s research reveals that the infrequency of natural disasters in the state contributes to Tennessee's cheap car insurance costs.

Average Cost of Car Insurance in Tennessee: Full Coverage vs. Minimum Coverage

In Tennessee, the average cost of a full coverage car insurance is $1,018, while a state minimum liability policy costs $504. On average, there’s a $515 difference on those policies. All drivers must possess coverage that meets state minimums.

Car insurance costs change significantly with the amount of coverage. The most common policies are liability coverage, collision coverage and comprehensive coverage. Policies with more features and extended coverage generally cost more.

Average Cost of Car Insurance in Tennessee by Coverage Level

Minimum vs. Full Coverage Car Insurance Costs in Tennessee - By Company

Prices also vary significantly by provider. In Tennessee, GEICO provides the cheapest car insurance rates on average, at $369 for minimum coverage and $776 for full coverage. On average, MetLife offers the most expensive rates for minimum coverage at $686, while Farmers provides the most expensive full coverage at $1,291.

USAA offers the most affordable car insurance in the state, but its policies are only available to the military and their families.

Average Annual Costs of Car Insurance in Tennessee - By Company

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How Much Is Car Insurance in Tennessee by Age

In Tennessee, a driver’s age affects the cost of their car insurance. Due to their relative driving inexperience, insurers consider younger drivers risky, leading to higher premiums.

MoneyGeek’s research shows a 16-year-old purchasing their own car insurance policy pays $2,555 on average — $1,536 more than a policy for an average 40-year-old driver. Young Tennesseans can save money by being added to their parent’s car insurance policy.

In addition, insurance providers consider first-time drivers as high-risk individuals due to their lack of experience. New drivers, regardless of age, can expect to pay the same rates as teenagers.

Average Costs of Full Coverage Car Insurance in Tennessee - By Age

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How Does Driving History Affect Car Insurance Costs in Tennessee?

Car insurance is more expensive for people with bad driving records than drivers with clean records. For example, an accident or driving violation on your name can cause insurance companies to increase your rates.

Based on MoneyGeek’s study, a driver with a speeding ticket pays $214 more than someone with no violation, on average. We also discovered that the severity of a violation also contributes to rate increases. Drivers with negative driving records can still find affordable insurance policies by shopping around.

Average Costs of Full Coverage Car Insurance in Tennessee - By Driving History

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  • Driving Violation
    Annual Premium
  • Safe Driver
    $1,018
  • Speeding Ticket
    $1,233
  • At-Fault Accident
    $1,428
  • DUI
    $1,637

Credit Scores and the Cost of Car Insurance in Tennessee

Credit scores also affect how much your car insurance will cost in Tennessee. Our research reveals that drivers with excellent credit pay $183 less per year on average than someone with good credit.

Similarly, poor credit typically makes car insurance more expensive. Compared to drivers with good credit, drivers with poor credit pay an additional $888 per year, on average.

Average Costs of Full Coverage Car Insurance in Tennessee - By Credit Score

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  • Credit Score
    Annual Premium
  • Excellent
    $826
  • Good
    $1,009
  • Fair
    $1,241
  • Below Fair
    $1,512
  • Poor
    $1,897

How Much Is Car Insurance in Your City?

The cost of car insurance differs among states, but it can also significantly vary from city to city within a state.

MoneyGeek's research indicates that, in Tennessee, the city with the cheapest average car insurance rates is Chattanooga, at $800 per year. Meanwhile, Memphis has the most expensive annual average rates, at $1,177. The state’s average car insurance rate is $1,018.

Cities with a higher population density, road accident rate and natural disaster frequency tend to include more expensive car insurance rates.

Average Costs of Full Coverage Car Insurance in Tennessee - By City

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Frequently Asked Questions About Tennessee Car Insurance Rates

To help you learn more about car insurance rates in Tennessee, MoneyGeek answered some frequently asked questions on the topic.

Methodology

MoneyGeek collected car insurance prices across Tennessee with the help of Quadrant Information Services. Our figures apply to a sample 40-year-old driver with a safe record and full coverage, unless altered by coverage level, age, driving violations and credit score.

  • Highway traffic density was calculated with 2019 data from the Federal Highway Administration.
  • Data on uninsured motorists was drawn from 2019 data from the Insurance Research Council.
  • Urban share of population was calculated using the latest data from the U.S. Census Bureau.
  • Data on motor vehicle theft rate was drawn from the FBI Crime in the United States Report for 2019.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.