The Cheapest Car Insurance in Tennessee (April 2023)

Auto-Owners Insurance Co is the cheapest car insurance company for minimum and full coverage policies in Tennessee. It also offers the lowest rates for military members and sports car drivers. State Farm is the most affordable insurer for young drivers, seniors and those with speeding tickets, whereas Tennessee Farm Bureau is the cheapest for drivers with poor credit scores.

The best car insurance companies in Tennessee offer a balance of affordability and quality service.

MoneyGeek found that the cheapest car insurance companies for a minimum coverage policy in Tennessee are:

• Auto-Owners Insurance Co: $205 per year
• State Farm: $216 per year

Allstate offers the most expensive option for minimum coverage at an average cost of $591 per year.

Tennessee’s minimum liability policy only provides coverage for bodily injury liability and property damage liability.

A minimum coverage car insurance policy only covers damages or injuries inflicted on a third party. Damages to your car are not included in the coverage.

Only a full coverage policy with comprehensive and collision insurance covers damages to your car.

MoneyGeek found that the cheapest full coverage car insurance providers in Tennessee are:

• Auto-Owners Insurance Co: $608 per year
• State Farm: $629 per year

GEICO is the most expensive option for full coverage at $1,094 per year.

A full coverage policy usually costs more since it offers comprehensive and collision insurance. A minimum coverage policy from Auto-Owners Insurance is up to $403 cheaper than a full coverage policy from the same company.

A full coverage policy will cover your car for damages caused by both on-road incidents like collisions and off-road incidents like vandalism.

Car insurance rates will largely depend on how much car insurance you need.

For this analysis, MoneyGeek used a sample full coverage policy with the following limits.

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident

To save on premiums, you can opt for lower liability limits, raise your deductible or drop the comprehensive and collision insurance. However, doing so may leave you with insufficient coverage.

Most insurers offer online quotes. However, the process can take up to 15 minutes, and you’ll need to compare rates across multiple websites if you are shopping around.

MoneyGeek’s car insurance calculator allows you to get an estimate without inputting specific personal information. You can also use the calculator to compare quotes from multiple providers to find the best rates for your profile.

MoneyGeek found the following companies offer the cheapest car insurance for teens in Tennessee:

• Nationwide: $1,673 per year for male teens and $1,466 for female teens
• Allstate: $1,779 per year for male teens; State Farm: $1,479 for female teens

Progressive is the most expensive option in Tennessee for teens at an average of $3,006 per year for male teens and $2,766 per year for female teens.

Due to diminishing car insurance rates for teens as they age, 19-year-old drivers have a significantly lower premium than 16-year-old drivers. Tennessee's 19-year-old male drivers can get the cheapest car insurance premiums from Auto-Owners Insurance Co ($1,405 per year).

Teen drivers in Tennessee pay up to $2,890 less per year for car insurance if they’re added to a parent’s policy than if they purchase an individual policy.

Car insurance for teens can be expensive, but families can save by taking advantage of discounts for young drivers. Insurers like Auto-Owners Insurance and State Farm offer good student and distant student discounts that can help to reduce premiums.

Based on MoneyGeek’s analysis, the most affordable car insurance companies in Tennessee for young adults are:

• State Farm: $793 per year
• Auto-Owners Insurance Co: $870 per year

Chubb has the highest rates for drivers in their 20s at an average of $1,430 per year.

Drivers in their 20s usually pay higher rates for car insurance than middle-aged drivers. For instance, State Farm’s policy for a driver in their 20s is up to $164 more expensive than the same policy for a 40-year-old driver.

MoneyGeek analyzed the most affordable car insurance companies for seniors in Tennessee and found that the cheapest providers are:

• State Farm: $559 per year
• Auto-Owners Insurance Co: $571 per year

Allstate is the least affordable option if you are a senior in Tennessee at an average cost of $1,075.

Senior drivers in Tennessee pay slightly less for car insurance than middle-aged drivers. A State Farm full coverage policy is approximately $70 cheaper for seniors. However, rates typically increase as drivers reach their 70s and 80s.

Many insurers offer seniors discounts on their car insurance premiums. You can get the best rates for your profile and specific needs by comparing quotes from multiple insurers to get the most affordable options.

State Farm is the cheapest car insurance company in Tennessee if you have driving violations. State Farm has the most affordable car insurance rates for drivers with a ticket, those with a DUI and those with an at-fault accident violation.

MoneyGeek found that the cheapest car insurance companies for Tennessee drivers with a ticket are:

• State Farm: $674 per year
• Erie: $802 per year

Progressive is the most expensive insurer for drivers with a ticket, at $1,421 per year.

On average, full coverage car insurance in Tennessee costs up to $185 more if you have a speeding ticket than if you are a driver with a clean record.

MoneyGeek analyzed the cheapest auto insurance companies in Tennessee after an at-fault accident and found that the cheapest companies are:

• State Farm: $729 per year
• Tennessee Farm Bureau: $860 per year

Progressive has the most expensive rates for a full coverage policy after a DUI at an average of $1,895 per year.

Car insurance rates in Tennessee increase by up to $434 per year if you have an at-fault accident on your driving record.

MoneyGeek found that the cheapest auto insurance companies in Tennessee after a DUI are:

• State Farm: $674 per year
• Farmers: $1,081 per year

Chubb is the least affordable option for a full coverage policy after a DUI at $3,964 per year.

After a DUI in Tennessee, you will pay up to $766 more per year for car insurance compared with those with a clean record.

The most affordable auto insurance companies in Tennessee for drivers with poor credit ratings (below 580) are:

• Tennessee Farm Bureau: $994 per year
• Grange Insurance: $1,065 per year

State Farm is the most expensive car insurance option for drivers with poor credit at $1,974 per year on average.

If you have poor credit, you will pay an average of $613 more for full coverage car insurance in Tennessee than drivers with good credit (above 750).

Drivers with poor credit are more likely to file claims, so some insurers charge them higher rates. This practice is illegal in some states, but Tennessee law allows it.

You can get better car insurance rates by improving your credit score over time. In the short term, you can save on costs by comparing quotes from different insurers and taking advantage of common discounts like bundling and multiple car discounts.

If you have a sports car in Tennessee, the most affordable car insurance companies are:

• Auto-Owners Insurance Co: $625 per year
• Farmers: $732 per year

Progressive has the highest car insurance rates for a sports car at an average of $1,417 per year.

Sports cars are more costly to insure in Tennessee — up to $134 more per year than a Toyota Camry.

MoneyGeek used a Ford Mustang as its sample sports car in this study, but costs may differ depending on your particular car model.

It is generally more expensive to insure sports, electric and luxury cars; otherwise, model may not be a significant factor. However, this may not be true for all states.

Auto-Owners Insurance Co is the cheapest company for car insurance in Tennessee if you are an active-duty military member or veteran, at $608 per year on average.

USAA also offers affordable policies for military personnel. It has unique coverage benefits and discounts. USAA is available in all states, but only drivers with a military background are eligible.

Car insurance costs can vary widely depending on where you live in Tennessee. Some cities may have a high incidence of traffic accidents, car thefts or other risk factors, making them more expensive for car insurance.

For instance, a full coverage policy from the cheapest provider, Auto-Owners Insurance, costs $795 per year in Memphis but $163 less in Chattanooga.

Cities like Clarksville and Knoxville are cheaper for car insurance than Memphis, even though Auto-Owners Insurance is the cheapest provider in all three cities. The same provider can have varying rates depending on location-specific factors.

Tennessee car insurance laws require all drivers to carry bodily injury liability and property damage liability coverage. Most states require these coverages.

In Tennessee, by law, you only need a state minimum policy with bodily injury liability and property damage coverage. This type of policy is affordable but offers limited protection in case of an accident.

Moneygeek recommends buying as much liability coverage as you can afford to ensure you are fully protected. You may also require additional coverage if you have severe violations like DUIs since Tennessee requires SR-22 insurance.

MoneyGeek recommends getting liability limits of $100,000 for bodily injury per person, $300,000 for bodily injury per accident and $100,000 for property damage per accident. This will ensure you have sufficient coverage.

You may need to purchase comprehensive and collision insurance if you are financing your car. This coverage will pay for any damages to your car resulting from collisions and off-road incidents like vandalism or theft.

You should also consider purchasing full coverage insurance if you drive a valuable car, even if it is not required.

There are generally no car insurance alternatives in Tennessee for individuals, but if you have more than 25 vehicles registered under your name, you can apply for self-insurance. In this case, you must post a $60,000 security bond with the DMV for each car. However, if damages from an accident exceed the security, you are liable for the additional costs.

All drivers in Tennessee must carry the state minimum liability insurance for bodily injury and property damage liability. However, you have the option to increase your liability limits for added protection or purchase full coverage car insurance.

If you are shopping for car insurance in Tennessee and need to learn more about costs and quality, we answered frequently asked questions below.