The Best Cheap Car Insurance in Tennessee for 2021

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In the event you cause a car accident, liability-only car insurance covers third-party medical expenses and damages. Your own expenses are not covered. It can be a good idea to include comprehensive and collision coverage in your car insurance to cover your potential injuries and damages. In most states, there is a mandatory minimum liability requirement. Insurance companies provide the option of higher coverage levels as well. In Tennessee, the cheapest option for most drivers is GEICO, both for the mandated state minimum of 25/50/15 coverage and a higher 50/100/50 coverage level.

Average Cost for Liability Coverage

MoneyGeek determined the best car insurance companies in Tennessee by combining J.D. Power’s auto insurance study scores with AM Best’s financial strength scores. MoneyGeek also used affordability data to establish the most affordable insurance in Tennessee.

MoneyGeek weighed these factors equally to come up with overall car insurance company ratings out of 100. By using these rankings, you can identify the companies with the lowest typical costs in Tennessee.

While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.

Market Share by Company

So who’s the largest insurance company in Tennessee? According to the National Association of Insurance Commissioner, StateFarm was the largest insurer in the state in 2019. The following companies also ranked among the top four largest companies.

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Auto insurance costs vary depending on several personalized factors. MoneyGeek calculated the average rates for a 40-year-old male driving a Toyota Camry with no accident history. Your specific quotes may vary based on your location, credit score, age and more.

• Average Driver: $1,018
• DUI: $1,637
• Speeding Ticket: $1,233
• Poor Credit Score: $1,885
• Seniors: $1,055
• Students: $2,367

Insurance premiums are a direct reflection of how risky an insurance company believes you are. Getting in trouble with the law, especially while behind the wheel and under the influence, is a big red flag for insurance companies and always results in substantial rate increases. According to the Centers for Disease Control and Prevention (CDC), 2,663 people in Tennessee died in alcohol-related crashes between 2009 and 2018. 1.4% of Tennessee drivers admit to driving after drinking too much in the previous 30 days.

Average Car Insurance Rates With a DUI

In Tennessee, a DUI could affect your insurance premiums for up to ten years. Once you’ve received a DUI, you’re considered a “high-risk” driver, but keeping a clean driving record can help you get lower insurance premiums as time goes on. It’s a good idea to research the real costs of a DUI and how to avoid getting one so you know the best plan of action should you find yourself in an unfavorable situation.

Unfortunately, Tennessee continues to see a rise in accidents as a result of distracted driving. According to the Tennessee Highway Safety Office, in 2017, there were 24,700 crashes in the state that were related to distracted driving. Receiving a speeding ticket or distracted driving ticket can add anywhere from three to eight demerit points to your license. The more points you have the higher your insurance premiums will be. If you have a ticket on your record, you can expect to pay the following insurance rate estimates.

Average Car Insurance Rates With a Ticket

We all make mistakes and getting a ticket is not usually the end of the world. The demerit points you receive from a speeding ticket can be removed from your record by taking an online driving class. The key to not having your tickets affect your insurance for a long period of time is to try and avoid getting multiple tickets. The more tickets you receive the more your rates will increase and it will be hard to find affordable car insurance.

Although Tennessee’s average FICO score is 690, that falls just below the national average of 703. A poor credit score can lead to much higher premiums. Insurers have found a link between people with poor credit and the number of claims that are filed. Ultimately, those with poor credit are more likely to file claims and so insurance companies make up for the risks by increasing the price of premiums. The table below provides some examples of the cost of insurance for those who have a low credit score.

Average Car Insurance Rates for Drivers With Bad Credit

A credit score is only one factor that companies take into consideration so rates will vary for drivers with bad credit. Fortunately, it’s possible to raise your credit score so if you’re feeling less than stellar you can always work to increase your score and apply for a cheaper rate.

17% of fatal accidents in Tennessee in 2017 were caused by drivers over the age of 65.

If you’re looking for cheap car insurance in Tennessee for seniors, there are a couple of factors you’ll want to keep in mind. While the state has no additional requirements for senior drivers outside of renewing their license every five years, driving can be negatively affected by the natural changes that come with aging.

Due to those changes, insurance companies pay close attention to senior drivers. A few average monthly costs for seniors are highlighted in the below table.

Average Car Insurance Rates for Seniors

Like all factors that affect insurance rates for seniors, everyone is different so seniors can expect different rates based on their age, driving history, health and the type of vehicle they drive.

Teen drivers in Tennessee do not need their own insurance until they are driving on their own. Once it’s time to insure your teen, there’s a good chance your rates will increase. According to the CDC, motor crashes are the leading cause of death for teens, which directly leads to higher rates.

The good news is there are a few ways to find cheap car insurance for teenagers in Tennessee by opting for a sedan with enhanced crash protection over an SUV or sports car and by adding your child to your policy. Some companies also offer discounts to good students or those who take a defensive driving course.

If your student is heading off to college, there’s a chance your insurance carrier will offer a discount to students who maintain good grades. At the end of the day, teens and student drivers lack the experience to be great drivers on the road, so teaching your teen good driving habits and ensuring they maintain a good driving record can lower rates over time.

The following table shows estimates of what Tennessee parents can expect to pay when adding a young driver to their policy.

Average Car Insurance Rates for Students

Many auto insurance companies in Tennessee will offer military discounts to active-duty personnel and retired veterans. The state is home to hundreds of thousands of active-duty personnel and retired veterans. Rates will vary, so shopping around for quotes is a good idea.

If you know you will be deploying, you can work with your insurance company to temporarily suspend your insurance and pause payments. Military drivers and veterans in Tennessee can register their vehicles at their county clerk’s office. If you’re living out of state, you can mail your registration to any county clerk’s office. Some counties will allow you to renew registration online. Below is a sample of insurance costs for active and retired military members in Tennessee.

Average Rates for Tennessee service members

25 years$1,359
50 years$1,040

25 years$1,268
50 years$1,018

Expert Advice on Finding Cheap Car Insurance in Tennessee

To help you find credible and accurate details on car insurance in Tennessee, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.

1. What are the key factors drivers in Tennessee should look for when searching for the best auto insurance coverage?

   Hank Bahr

   The insurance company should have an A- AmBest rating or higher. AmBest is an independent rating company that rates insurance companies as to management and premium size. It is independent of any insurance company. A favorable consumer report rating is also a plus. Low-cost insurance is not of much value if the insurance company can’t, doesn’t, or is at least reluctant to pay legitimate claims. A “live” insurance agent is the best way to make sure you have someone on your side should a loss occur.

2. What steps can drivers in Tennessee take to find affordable car insurance?

   Hank Bahr

   It is vital to decide how much insurance is needed in each individual situation. A qualified insurance agent can help you with this decision. Once you have determined the limits and coverage you want, request quotes from several different sources. Be sure the agents or companies are quoting the coverages you want. It is alright for them to quote other coverages as well, but you should insist on a quote based on the coverage and limits you requested first.

3. How do regulations and rules in Tennessee impact insurance pricing and how consumers might shop for coverage?

   Hank Bahr

   Regulations and rules apply to both the consumer and seller of insurance. Misrepresenting the facts on an application, age, type of automobile, loss history, etc. by the buyer can negate or severely limit the coverage the buyer thought he/she bought. Not delivering the insurance coverage quoted, changing the price quoted, or misrepresenting material facts by the insurance company can result in penalties and fines inflicted upon insurance agents or companies.

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Hank BahrAdjunct Lecturer at Haslam College of Business at The University of Tennessee, KnoxvilleREAD ANSWERS

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About the Author

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Sara East is a freelance writer and content marketing professional based in Reno, NV. She has more than 10 years marketing experience in public relations, content and digital marketing. Sara has been a published writer for more than 10 years having written articles about finance, business, entrepreneurship, education, travel, real estate, insurance, healthy living, social media, travel and study abroad.

Sara's writing has been published in national news sites including Mashable, The Muse and The Next Web as well as on a variety of blogs. When she's not writing, Sara enjoys spending time with her fur kids exploring the mountains of Reno/Tahoe and enjoying the outdoors.

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