Auto-Owners is the cheapest car insurance company for minimum coverage policies in Tennessee. MoneyGeek also found that Tennessee Farm Bureau, State Farm 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.
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Cheapest Minimum Liability Car Insurance in Tennessee (September 2023)
MoneyGeek found that the cheapest car insurance companies for a minimum coverage policy in Tennessee are:
- Auto-Owners: $263 per year
- Tennessee Farm Bureau: $276 per year
Allstate offers the most expensive option for minimum coverage at an average cost of $640 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.
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Cheapest Full Coverage Car Insurance in Tennessee (September 2023)
MoneyGeek found that the cheapest full coverage car insurance providers in Tennessee are:
- Auto-Owners: $736 per year
- Farmers: $774 per year
GEICO is the most expensive option for full coverage at $1,226 per year.
A full coverage policy usually costs more since it offers comprehensive and collision insurance. A minimum coverage policy from Auto-Owners is up to $473 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.
How to Compare Cheap Tennessee Car Insurance Quotes Online
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.
Auto Insurance Calculator
See how the Average Annual Auto Insurance Rates vary with the options chosen.
Cheapest Car Insurance in Tennessee by Age (September 2023)
Age is one of the biggest factors affecting car insurance rates in Tennessee. MoneyGeek found that Nationwide, Grange Insurance and Auto-Owners offer the cheapest options on average, depending on what age group you and your family belong to.
Cheapest Car Insurance in Tennessee for Teens and Their Families (September 2023)
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 ($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.
On average, car insurance rates for male teens tend to be significantly more expensive than for female teens. This rate difference is not as notable when drivers reach their 20s and beyond.
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.
Cheapest Car Insurance in Tennessee for Young Adults (September 2023)
Based on MoneyGeek’s analysis, the most affordable car insurance companies in Tennessee for young adults are:
- Grange Insurance: $927 per year
- Farmers: $945 per year
Chubb has the highest rates for drivers in their 20s at an average of $1,572 per year.
Drivers in their 20s usually pay higher rates for car insurance than middle-aged drivers. For instance, Grange Insurance’s policy for a driver in their 20s is up to $117 more expensive than the same policy for a 40-year-old driver.
Cheapest Car Insurance in Tennessee for Seniors (September 2023)
MoneyGeek analyzed the most affordable car insurance companies for seniors in Tennessee and found that the cheapest providers are:
- Auto-Owners: $692 per year
- Farmers: $732 per year
Allstate is the least affordable option if you are a senior in Tennessee at an average cost of $1,194.
Senior drivers in Tennessee pay less for car insurance than middle-aged drivers. An Auto-Owners full coverage policy is approximately $44 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.
Cheapest Car Insurance for Higher Risk Drivers (September 2023)
State Farm offers the most affordable car insurance rates for drivers with a DUI on their records, while Tennessee Farm Bureau is the cheapest for drivers with a ticket and an at-fault accident violation.
Cheapest after a ticket: Tennessee Farm Bureau ($860 per year)
Cheapest after an accident: Tennessee Farm Bureau ($860 per year)
Cheapest after a DUI: State Farm ($1,089 per year)
Cheapest for poor credit: Tennessee Farm Bureau ($994 per year)
Cheapest for sports cars: Farmers ($754 per year)
Cheapest Car Insurance in Tennessee After a Ticket
MoneyGeek found that the cheapest car insurance companies for Tennessee drivers with a ticket are:
- Tennessee Farm Bureau: $860 per year
- Erie: $888 per year
Progressive is the most expensive insurer for drivers with a ticket at $1,535 per year.
On average, full coverage car insurance in Tennessee costs up to $202 more if you have a speeding ticket than if you are a driver with a clean record.
Cheapest Car Insurance in Tennessee After an Accident
MoneyGeek analyzed the cheapest auto insurance companies in Tennessee after an at-fault accident and found that the cheapest companies are:
- Tennessee Farm Bureau: $860 per year
- Grange Insurance: $1,110 per year
Cincinnati Insurance has the most expensive rates for a full coverage policy after a DUI at an average of $2,126 per year.
Car insurance rates in Tennessee increase by up to $485 per year if you have an at-fault accident on your driving record.
Cheapest Car Insurance in Tennessee After a DUI
MoneyGeek found that the cheapest auto insurance companies in Tennessee after a DUI are:
- State Farm: $1,089 per year
- Farmers: $1,091 per year
Chubb is the least affordable option for a full coverage policy after a DUI at $4,312 per year.
After a DUI in Tennessee, you will pay up to $856 more per year for car insurance compared with those with a clean record.
Cheapest Car Insurance in Tennessee for Drivers With Poor Credit (September 2023)
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: $1,049 per year
State Farm is the most expensive car insurance option for drivers with poor credit at $3,187 per year on average.
If you have poor credit, you will pay an average of $727 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.
Cheapest Car Insurance in Tennessee for Sports Cars (September 2023)
If you have a sports car in Tennessee, the most affordable car insurance companies are:
- Farmers: $754 per year
- Auto-Owners: $755 per year
Progressive has the highest car insurance rates for a sports car at an average of $1,509 per year.
Sports cars are more costly to insure in Tennessee — up to $175 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.
Cheapest Car Insurance in Tennessee for Military Drivers (September 2023)
USAA offers affordable policies for military personnel at $649 per year. It has unique coverage benefits and discounts. USAA is available in all states, but only drivers with a military background are eligible.
- $649 per year
USAA provides bundling, good student, multiple car and safe driving discounts to its policyholders in Tennessee.
Cheapest Car Insurance in Tennessee by City
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 Knoxville, a full coverage policy from the cheapest provider, Farmers, costs $737 per year. In Memphis, a full coverage policy from Auto-Owners costs $962 per year.
Car Insurance in Tennessee: What You Need to Know
Tennessee car insurance laws require all drivers to carry bodily injury liability and property damage liability coverage. Most states require these coverages.
Tennessee Car Insurance Requirements
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.
Bodily Injury Liability
Tennessee insurance laws require that drivers carry a minimum coverage of $25,000 bodily injury liability per person and $50,000 per accident. Bodily injury coverage covers the cost of any injuries suffered by a third party when you cause an accident. Your insurance company will only cover injuries to others up to the maximum limit specified. Any additional costs will have to be paid for out of pocket.
Property Damage Liability
In Tennessee, you must carry $15,000 in property damage liability coverage per accident. This coverage pays for damages to other people’s property when you cause an accident. Damages to your car are not included.
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.
Car Insurance Alternatives in Tennessee
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.
FAQs About Car Insurance in Tennessee
If you are shopping for car insurance in Tennessee and need to learn more about costs and quality, we answered frequently asked questions below.
Expert Advice on Finding Cheap Car Insurance in Tennessee
To help you find credible and accurate insight on car insurance in Tennessee, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.
- What are the key factors drivers in Tennessee should look for when searching for the best auto insurance coverage?
- What steps can drivers in Tennessee take to find affordable car insurance?
- How do regulations and rules in Tennessee impact insurance pricing and how consumers might shop for coverage?
Adjunct Lecturer at Haslam College of Business at The University of Tennessee, Knoxville
Assistant Professor of Economics at Trevecca Nazarene University
About Mark Fitzpatrick
- Justia. "Tennessee Code: Motor and Other Vehicles." Accessed December 14, 2022.