Cheapest Car Insurance for Low-Income Drivers in Tennessee (October 2024)

The cheapest car insurance company for individual drivers with low income and poor credit history is Tennessee Farm Bureau at $32 per month. For families with low income, the most affordable provider is State Farm at $48 per month.

Tennessee does not offer state-backed car insurance programs for low-income families and individuals. Finding the provider with the most affordable rate is one of their options to manage the cost, and there are also ways to get discounts to help alleviate the cost of car insurance.

While state minimum coverage will help them drive legally, there are downsides to this type of coverage. For example, in an at-fault accident, the minimum coverage may not cover all the costs, leaving the driver responsible for significant expenses.

In Tennessee, car insurance companies do not consider your income when calculating rates. Instead, they look at factors like your age, driving record, credit history and the type of car you drive. At-fault accidents and moving violations also increase your rates. To find the cheapest rates, it's best to compare quotes from several insurance companies. This approach helps you see different options and choose the most affordable one.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, if you rarely drive, pay-per-mile insurance could be the best option for you. MoneyGeek rounded up the cheapest insurers for low-income drivers in Tennessee to help you save.

To legally drive in Tennessee, you're required to have car insurance that meets the state's minimum car insurance requirements. Your policy must include the following liability coverage amounts:

• $25,000 for bodily injury liability per person.
• $50,000 for bodily injury liability per accident.
• $25,000 for property damage liability per accident.

If you're on a tight budget, a liability-only car insurance policy may suffice, covering expenses for the other driver in an accident you cause. However, it won't cover damages to your own vehicle. For more comprehensive protection, including your vehicle's damages, you'll need a full coverage car insurance policy. This includes collision and comprehensive coverages, safeguarding against non-collision incidents like theft, vandalism, or natural disasters.

In Tennessee, where hail and flooding can cause significant vehicle damage, opting for full coverage is wise. Understanding the risks and benefits of each coverage type is crucial to choosing the best policy for your needs.

Credit history is crucial for low-income drivers in Tennessee as it can significantly affect car insurance premiums. A poor credit record can signal higher risk to insurers, resulting in higher premiums. It's essential to understand how your credit-based insurance score impacts your rates.

The cheapest car insurance companies for drivers with low-income and poor credit record in Tennessee are:

• Tennessee Farm Bureau: $388 per year, $32 per month
• Grange Insurance: $597 per year, $50 per month

Drivers with good insurance credit, you can get the cheapest car insurance in Tennessee from:

• Auto-Owners Insurance Co: $328 per year, $27 per month
• Westfield: $335 per year, $28 per month

It's important to get state minimum coverage as driving without insurance in Tennessee is illegal. Penalties include suspension of your driver’s license, vehicle registration, and fines ranging from $175 to $1,000.

Car insurance premiums are not directly tied to your income, but your family situation plays a role. In Tennessee, a single parent with a teen faces an annual premium difference of $336 more than a married couple with a teen. For the latter, insurance can be notably less expensive, saving them $336 per year.

The most affordable car insurance companies for a married couple with a teen in the Volunteer State are:

• State Farm: $574 per year; $48 per month
• Auto-Owners: $615 per year; $51 per month

For a single parent with a teen, the cheapest options are:

• State Farm: $910 per year; $76 per month
• Auto-Owners: $941 per year; $78 per month

Married couples with a teen in Tennessee benefit from lower rates compared to single parents, largely due to insurers viewing them as a lower risk. Keeping a good credit score is key for all drivers looking to secure minimum coverage auto insurance at a more affordable rate.

Car insurance premiums generally decrease as you reach the early senior years, typically around ages 55 to 65, especially if you have a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

• Tennessee Farm Bureau: $370 per year; $31 per month
• Grange Insurance: $594 per year; $50 per month

After the age of 70, car insurance rates typically increase, as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. Tennessee has specific laws and guidelines for seniors getting car insurance, which can be found in the cheapest car insurance for senior drivers section.

Income doesn't directly affect car insurance rates in Tennessee. However, if low income leads to a poor credit record, it can result in higher rates. On the other hand, a good credit record can help lower your rates. Understanding the factors that contribute to car insurance rates in Tennessee can help you make informed decisions in choosing the best car insurance for you.

There are several ways to find affordable car insurance in Tennessee. You can explore state-sponsored programs for low-income drivers or use other strategies to lower your costs. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance can be tough for low-income drivers in Tennessee. Get answers to common questions about low-income car insurance options in the state.