The Cheapest Car Insurance in Tennessee for 2022

On average, a minimum coverage policy from GEICO costs $433 per year, making it the cheapest car insurance in Tennessee.

MoneyGeek collected quotes from car insurance companies to find the cheapest policies for different driver profiles. Car insurance rates depend on your needs. For instance, seniors may purchase the cheapest policy from State Farm, while young drivers might get lower rates from Progressive. Comparing quotes helps drivers in Tennessee save around $808 per year.

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Last Updated: 12/1/2022
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Finding the right car insurance can be a challenge, especially if you're on a budget. MoneyGeek broke down the cheapest auto companies in Tennessee by city, so you can easily identify one that's right for you. We also provide tips on how to get the best car insurance in Tennessee for your needs.

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Methodology

Why Trust MoneyGeek? Tennessee car insurance rates in this study are based on our analysis of data and information from the Tennessee Department of Insurance and Quadrant Information Services.

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These rates were updated in August 2022 to reflect how car insurance rates in Tennessee have changed up to this month.

3,312

Quotes Analyzed

 
9

Companies Compared

 
23

ZIP Codes

Cheapest Minimum Liability Car Insurance in Tennessee

In an at-fault accident, liability-only coverage covers third-party costs, not your own. This type of coverage is the cheapest car insurance in Tennessee and only meets the state’s minimum requirements.

The cheapest car insurance companies for minimum coverage in Tennessee are:

  • GEICO: $433 per year
  • State Farm: $456 per year

USAA has an even more affordable average annual rate of $380. However, its policies are exclusively for military members and their families. Meanwhile, Farmers is the costliest minimum coverage provider, with average rates of $785 per year.

CHEAPEST MINIMUM CAR INSURANCE IN TENNESSEE

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These prices are only estimates based on rates for an average Tennessee driver and should not be used to compare insurance prices.

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Cheapest Full Coverage Car Insurance in Tennessee

A full coverage policy with comprehensive and collision insurance and higher liability limits can protect you against most on- and off-road accidents in Tennessee. It costs more than minimum liability insurance, but also covers your car. To reduce your premiums, compare car insurance quotes from multiple providers.

The least expensive car insurers for full coverage in Tennessee are:

  • GEICO: $910 per year
  • State Farm: $968 per year

USAA's average rate of $706 per year will likely be the most affordable option for military-affiliated drivers. The most expensive car insurance for full coverage is Farmers, costing $1,514 per year on average.

CHEAPEST FULL COVERAGE CAR INSURANCE IN TENNESSEE

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Please note that your individual costs will vary from these examples. Rates are for a policy with comprehensive and collision insurance with $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident.

How to Compare Cheap Tennessee Car Insurance Quotes Online

You can get a reasonably accurate quote using the online quote tool provided by most insurers in Tennessee.

  • When comparing quotes, use consistent limits. For example, if you get a quote with one carrier for $50,000 in bodily liability insurance per accident, you should use the same number when comparing costs with other providers.
  • Most Tennessee insurance companies allow you to receive quotes online. Compare costs for an average driver by using MoneyGeek's auto insurance calculator. For a more personalized quote, you'll need to provide insurers with your specific needs and driver profile or use MoneyGeek’s price data as a guide to find suitable company websites to review.
  • The three cheapest companies for liability coverage in Tennessee are USAA, GEICO and State Farm. You can begin your research by getting rates from these insurers.

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Cheapest Car Insurance in Tennessee for Young Drivers

Insurers typically charge young drivers higher car insurance rates due to their lack of experience on the road. Fortunately, premiums tend to decrease as drivers age. A 16-year-old driver's auto insurance policy in Tennessee costs an average of $2,948 per year, while a 25-year-old driver pays an average annual rate of $1,240.

Although Progressive provides the cheapest auto insurance for 16-year-old drivers in the state, GEICO provides the most affordable quotes to different age groups within the 16–25 age range.

ANNUAL CAR INSURANCE IN TENNESSEE FOR YOUNG DRIVERS

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  • Age
    Average Cost
    Cheapest Company
    Company Cost
  • $2,948
    Progressive
    $1,966
  • $2,714
    GEICO
    $2,034
  • $2,509
    GEICO
    $1,859
  • $2,801
    GEICO
    $2,050
  • $2,412
    GEICO
    $1,824
  • $1,839
    GEICO
    $1,418
  • $1,677
    GEICO
    $1,271
  • $1,471
    GEICO
    $1,027
  • $1,360
    GEICO
    $969
  • $1,240
    GEICO
    $947

Your premiums will likely increase when you add a teenager to your policy. If your teen is still in school, check whether your auto insurance company gives discounts for maintaining good grades. Ultimately, teens and students lack the expertise necessary to be excellent drivers. Teaching your teens good driving practices and ensuring they keep a clean driving record can help reduce rates over time. GEICO and Progressive provide the best rates for young drivers in Tennessee, ranging from $947 to $2,050, depending on the young driver's profile.

Cheapest Car Insurance in Tennessee for Seniors

Insurers generally charge senior drivers higher rates. In Tennessee, a senior driver pays $1,237 per year for auto insurance, compared to the $1,193 an average 40-year-old driver pays.

The cheapest car insurance companies in Tennessee for senior drivers who want full coverage are:

  • State Farm: $944 per year
  • GEICO: $1,009 per year

If you or a family member is a current or former military member, you can access USAA's coverage, averaging $742 per year for seniors in Tennessee.

CHEAPEST CAR INSURANCE RATES FOR SENIORS

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Tennessee seniors looking for cheap car insurance should consider several factors. The state has no special requirements for senior drivers outside of renewing their license every five years. Yet be aware of the natural changes that come with aging which can negatively affect your driving. In addition, seniors who shop around and compare quotes can save up to $830 in annual premiums.

Cheapest Car Insurance for Drivers With Tickets in Tennessee

Even a minor offense like a ticket can increase your auto insurance prices. In Tennessee, a driver with a speeding ticket pays an average annual rate of $1,445 for car insurance, compared to the average $1,193 a driver with a spotless record pays.

The most affordable full coverage car insurance providers in Tennessee for a driver with a speeding ticket are:

  • GEICO: $1,041 per year
  • State Farm: $1,058 per year

USAA's average annual rate of $836 is typically the cheapest for military members and their families.

AVERAGE CAR INSURANCE RATES WITH A TICKET

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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.

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.

Cheapest Car Insurance for Drivers With a DUI in Tennessee

Driving under the influence (DUI) significantly increases the cost of your Tennessee car insurance. The cost of auto insurance for a Tennessee motorist with a DUI record is $1,919 per year, compared to $1,193 for a driver with a clean record.

The cheapest car insurance companies in Tennessee for a driver with a DUI who wants a full coverage policy are:

  • State Farm: $1,058 per year
  • Progressive: $1,228 per year
AVERAGE CAR INSURANCE RATES WITH A DUI

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Getting in trouble with the law, such as driving under the influence, is a major red flag for insurance companies and always leads to significant premium hikes. After getting a DUI, you’re deemed a "high-risk" driver. Maintaining a clean driving record is the best way to qualify for cheaper insurance rates. However, if you have a DUI, you can still save up to $1,384 on auto insurance premiums by comparing quotes from various carriers.

Cheapest in Tennessee for Drivers With an At-Fault Accident

Drivers deemed "at fault" in an accident in Tennessee will likely have to pay increased premiums. On average, a Tennessee driver with an at-fault accident on their record pays an annual rate of $1,674.

The following companies offer the most affordable car insurance in Tennessee for drivers with a history of at-fault accidents:

  • State Farm: $1,147 per year
  • Tennessee Farmers: $1,211 per year

USAA's offers the lowest premium in the state ($1,007), but the company's policies are only available to military members and their families.

CHEAPEST CAR INSURANCE WITH AN AT-FAULT ACCIDENT

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Cheapest Car Insurance in Tennessee for Drivers With Bad Credit

Drivers with low credit scores in Tennessee tend to pay higher rates than those with good scores. A Tennessee driver with a bad credit score shells out an average of $2,224 for car insurance, compared to $1,193 for a driver with healthy credit.

In Tennessee, the least expensive carriers for a driver with poor credit who wants full coverage are:

  • GEICO: $1,360 per year
  • Tennessee Farmers: $1,400 per year

USAA's $1,166 average annual rate is the cheapest for military drivers with bad credit.

CHEAPEST CAR INSURANCE RATES FOR DRIVERS WITH BAD CREDIT

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Tennessee's average FICO score is 690, but the national average is 703. Those with poor credit are more likely to submit claims, so insurance companies charge them higher premiums.

Your credit score is an important factor insurers consider when setting rates. Fortunately, it’s possible to raise your credit score. In the meantime, Tennessee drivers with poor credit could save up to $1,739 per year on auto insurance premiums by shopping around.

Cheapest Car Insurance in Tennessee for Military Drivers

USAA is the most affordable car insurance company for retired and active-duty military personnel in Tennessee. On average, USAA policies cost $380 annually and are $53 cheaper than GEICO, the runner-up for the state’s lowest rates.

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MoneyGeek Top Pick
USAA
  • Average Rate: $380 per year
  • Ranks cheapest out of 11 insurers

Cheapest Car Insurance in Tennessee by City

The cost of car insurance in Tennessee can vary substantially based on your location within the state. Chattanooga's average full-coverage car insurance rate of $800 per year is the lowest in the state. Memphis, however, features the most expensive average auto insurance costs at $1,177 per year.

Simply click on the name of your city to learn more about its average insurance rates.

AVERAGE INSURANCE RATE BY CITY IN TENNESSEE

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Car Insurance in Tennessee: What You Need to Know

The state of Tennessee penalizes uninsured motorists and revokes their driving licenses if they’re caught driving a car in the state. The only vehicles that don’t need insurance are inoperable ones.

Tennessee Insurance Requirements

In Tennessee, you must provide proof of insurance in the following situations: if a police officer requests it and if you’re involved in a car accident that results in injury, death, or more than $400 in property damage. An ID card (or digital version) is the most commonly-used evidence of insurance, although drivers can also carry an insurance binder or policy declaration page.

Furthermore, liability auto insurance is the cheapest coverage Tennessee drivers can buy. Tennessee state minimum coverage covers $25,000 for one injury or death, $50,000 for all injuries and deaths per accident and $15,000 for property damage per accident.

Rather than purchasing auto insurance, Tennessee residents can post a $60,000 security bond with the DMV for each car they own. However, you are liable for the difference if an accident costs more.

While each state has its own minimum auto insurance requirements, these amounts are sometimes insufficient to cover you in the event of an accident. According to the Insurance Information Institute, the average recommended insurance coverage is $100,000 per injury or death and $300,000 for total injuries or deaths.

Uninsured motorist coverage, collision and comprehensive insurance are additional car insurance policies to consider.

FAQs About Car Insurance in Tennessee

MoneyGeek answers commonly asked questions about car insurance in Tennessee to help consumers make the right choice.

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.

  1. What are the key factors drivers in Tennessee should look for when searching for the best auto insurance coverage?
  2. What steps can drivers in Tennessee take to find affordable car insurance?
  3. How do regulations and rules in Tennessee impact insurance pricing and how consumers might shop for coverage?
Hank Bahr
Hank Bahr

Adjunct Lecturer at Haslam College of Business at The University of Tennessee, Knoxville

Joshua Smith, PhD
Joshua Smith, PhD

Assistant Professor of Economics at Trevecca Nazarene University

About the Author


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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.


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