Cheapest Car Insurance in Tennessee (September 2024)

Auto-Owners Insurance Co is the cheapest car insurance company for minimum coverage policies in Tennessee. MoneyGeek also found that Nationwide, Travelers and USAA have the cheapest rates in Tennessee for certain types of drivers.

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: $328 per year
• Westfield: $335 per year

Allstate offers the most expensive option for minimum coverage at an average cost of $708 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:

• Travelers: $847 per year
• Auto-Owners Insurance Co: $869 per year

Progressive is the most expensive option for full coverage at $1,448 per year.

A full coverage policy usually costs more since it includes comprehensive and collision insurance. A full coverage policy from Travelers costs $463 more than its minimum coverage policy. A full coverage policy will cover your car for damages caused by both on-road incidents like collisions and off-road incidents like theft and 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 your premium, you can opt for lower liability limits, raise your deductible for comprehensive or collision coverage or both or drop comprehensive and collision. 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.

Nationwide, Travelers and Auto-Owners Insurance Co offer the cheapest options on average for teens, young adults, and seniors, respectively, in Tennessee.

MoneyGeek found the following companies offer the cheapest full coverage car insurance for teens on a family policy 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 on a family policy 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 from Auto-Owners ($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. Plus, in most cses, a teen under 18 must have a parent or guardian co-sign their policy to legally purchase auto insurance policy.

Car insurance for teens can be expensive, but families can save by taking advantage of discounts for young drivers. Insurers like Auto-Owners 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:

• Travelers: $1,005 per year
• Grange Insurance: $1,172 per year

Progressive has the highest rates for drivers in their 20s at an average of $1,895 per year.

Drivers in their 20s usually pay higher rates for car insurance than middle-aged drivers. On average, drivers in Tennessee in their 20s pay $299 more for full coverage than 40-year-old drivers.

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

• Auto-Owners Insurance Co: $818 per year
• Tennessee Farm Bureau: $848 per year

American National P&C is the least affordable option if you are a senior in Tennessee at an average cost of $1,361.

Senior drivers nationwide usually pay less for car insurance than drivers in their 40s. In Tennessee, a full coverage policy is approximately $63 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 offers the most affordable car insurance rates for a driver with a DUI on their record. Erie is the cheapest provider for drivers with a speeding ticket. Tennessee Farm Bureau is the cheapest provider for those with an at-fault accident or poor credit. Travelers is the cheapest provider for those with sports cars.

MoneyGeek found the cheapest car insurance companies for drivers with speeding tickets are:

• Erie: $953 per year
• Tennessee Farm Bureau: $972 per year

Progressive provides the most expensive policies to drivers with speeding tickets, costing an average of $1,890 annually.

A speeding ticket on your record generally causes your premiums to increase. Drivers with a speeding ticket in Tennessee pay an average of $230 more for a policy than drivers with a clean record.

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

• Tennessee Farm Bureau: $972 per year
• Erie: $1,193 per year

Progressive has the most expensive rates for a full coverage policy after an at-fault accident at an average of $2,522 per year. Car insurance rates in Tennessee increase by up to $543 per year with an at-fault accident on your driving record.

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

• State Farm: $1,261 per year
• Farmers: $1,362 per year

Chubb is the least affordable option for a full coverage policy after a DUI at $4,456 per year. After a DUI in Tennessee, you will pay up to $933 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: $1,124 per year
• Grange Insurance: $1,331 per year

State Farm is the most expensive car insurance option for drivers with poor credit at $3,688 per year on average. If you have a poor credit history, you will pay an average of $818 more for full coverage car insurance in Tennessee than drivers with good credit (above 750).

Drivers with low credit-based insurance scores 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 cars.

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

• Travelers: $847 per year
• Auto-Owners Insurance Co: $890 per year

Progressive has the highest car insurance rates for a sports car at an average of $1,881 per year. Sports cars are more costly to insure in Tennessee — up to $187 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.

For active-duty military members, veterans and their immediate family members, USAA is the cheapest insurer in Tennessee at an average annual premium of $649 for full coverage insurance. It offers unique coverage benefits and discounts and is available in all states.

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, in Chattanooga, a full coverage policy from the cheapest provider, Travelers, costs $879 per year. In Memphis, a full coverage policy from Auto-Owners Insurance Co costs $1,133 per year.

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 (creating a full coverage policy) if you are financing or leasing your car. These coverages 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.