Temporary Car Insurance in Tennessee: The Cheapest Options and What You Need to Know

Major car insurance companies in Tennessee generally offer policies that last for at least six months. However, MoneyGeek discovered ways you can get protection for a shorter period, including options for car owners who need a temporary solution and drivers who don’t own cars but are driving temporarily.

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Last Updated: 8/15/2022
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The best option to get temporary car insurance in Tennessee is to purchase a six-month insurance policy and cancel it early. If you end it after three months, it will only cost you $255 on average.

If you are a visitor in Tennessee and wish to drive in the state or if you live in the state but don’t own a car, getting rental car insurance could be your best option.

MoneyGeek understands that there are some other situations where you need temporary auto insurance, like getting a license reinstated or being covered as a rideshare driver.

Can You Get Temporary Car Insurance in Tennessee

Temporary car insurance can mean different things across different states. If you own a car in Tennessee, you can create temporary car insurance by getting a full insurance policy and then canceling it early. If you don’t own a car, you could purchase rental car insurance or non-owner car insurance.

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HOW TO FIND TEMPORARY CAR INSURANCE IN TENNESSEE TO FIT YOUR NEEDS

There’s no single way of getting temporary car insurance, but MoneyGeek researched solutions ways to get a short-term policy in Tennessee.

Buying a Six-Month Tennessee Insurance Policy and Canceling It Early

Reputable car insurance companies in Tennessee only sell policies that last for six months or more. A six-month insurance policy in Tennessee typically costs around $509. If you need protection for less than six months, you can purchase this six-month insurance policy and cancel it early. Most auto insurers in the state offer a refund for your unused term.

If you purchase a six-month auto insurance policy in Tennessee and cancel it three months early, you could pay roughly $255 for your 90s day of coverage.

When using this strategy, make sure to avoid a lapse in insurance coverage if you don't want to end up paying additional fees every year.

Cheap Temporary Car Insurance in Tennessee

To make it easier for you to find the cheapest temporary car insurance in Tennessee, MoneyGeek calculated the cost of auto insurance by company in the state for six-month, three-month and one-month policies.

On average, the cheapest car insurance in Tennessee for a 90-day policy is available from:

  • GEICO: $194 per 90 days
  • State Farm: $206 per 90 days

These calculations do not include cancellation fees. Most leading insurance companies will not charge you anything extra once you cancel your policy. They will also give you a refund for the unused policy duration.

Annual Cost of Car Insurance in Tennessee by Policy Length

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Altering Tennessee Car Insurance Temporarily Depending on Your Needs

Do you already have a car insurance policy in Tennessee but need to temporarily remove or add coverage? You can do so by making adjustments to your existing policy. Some of the scenarios where you would want or need to make changes to your policy include kids going to school, storing a car or when someone borrows your vehicle.

When You Should Alter Your Policy Temporarily

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If you have kids going to school elsewhere in Tennessee, you can temporarily remove them from your policy or take advantage of discounts.

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Do you need to store your car? Keep your comprehensive insurance and remove everything else to save money. If you’re in the military, use car storage discounts from USAA.

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If someone frequently borrows and drives your car, you should add them to your existing policy.

Cheap Temporary Car Insurance for Students in Tennessee

In Tennessee, it can be costly to add your child to your car insurance policy, but you have to add them if they live with you. You may have to pay roughly $2,140 per year to add an 18-year-old to your policy.

To save money, you can use distant student discounts if your child goes to school away from your home, take them off your existing policy for part of a year or just keep them on your policy.

If you add a student to your policy for two months during the summer, you’ll only pay an additional $357 on average. Meanwhile, you’ll pay approximately $2,140 if you had your student on for the entire year.

Nationwide offers the biggest savings in Tennessee if you utilize this strategy.

Annual Cost of Adding an 18-Year-Old to Car Insurance in Tennessee

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  • Company
    Adding 18-year-old for two out of 12 months
    Adding an 18-year-old for the full year
    Difference
  • $1,586
    $264
    -$1,321
  • $1,644
    $274
    -$1,370
  • $1,993
    $332
    -$1,661
  • $2,356
    $393
    -$1,964
  • $3,198
    $533
    -$2,665
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WHAT IF I CAN’T GET A DISCOUNT?

If you cannot get a discount or temporarily take your child off your policy because they’re too close to home, the best way to save is to shop around. Many insurance companies offer affordable insurance coverage for teens. MoneyGeek has compared the cheapest car insurance for teens to help you find the best deal.

What to Do About Car Insurance if You’re Storing Your Car in Tennessee

If you’re going to store your car in Tennessee, you can protect your car while saving money by getting a car storage discount or switching to comprehensive-only coverage.

Comprehensive and collision insurance with a $1,000 deductible only costs around $360 per year, while a policy that includes minimum liability insurance costs an average of $814 per year.

USAA may be a good option for active military members thanks to its storage discounts. It also offers some of the cheapest policies before the discount, which cost $602 per year on average.

What to Do If You Let Someone Else Drive Your Car

If you let someone outside of your home drive your car, they will be covered by your policy. However, if you and the borrower live together, they need to be insured on your policy.

Buying Rental Car Insurance in Tennessee

Rental car insurance is available for those who rent a car. You can get it from your car rental company. This policy usually includes basic liability insurance and can include add-on coverages like supplemental liability insurance, collision damage waivers and personal accident insurance. If you choose to add all these coverages, you’ll pay about $47 to $60 per day. The rate varies depending on the company. If you want to save money, only pick the add-on coverages you need.

Finding Cheap Rental Car Insurance in Tennessee

Based on the data we collected in Memphis, Tennessee, a complete rental car insurance package, which includes supplemental liability, collision damage waiver and personal accident insurance, costs around $47 to $60 per day with rates varying by the company. Enterprise charges around $47 daily, while coverage from Avis and Hertz roughly costs $57 and $60 per day, respectively.

If you have an existing car insurance policy to cover your own liability, collision and medical payments, there’s no need to buy all these coverages from your rental company. It’s also safe to decline collision damage waiver coverage if your credit card company already provides this.

Cost per Day of Rental Car Insurance in Tennessee

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  • Rental Company
    Total Insurance Cost
    Supplemental Liability Cost
    Collision Damage Waiver Cost
    Personal Accident Insurance Cost
  • Enterprise
    $47
    $13
    $28
    $6
  • Avis
    $57
    $17
    $31
    $10
  • Hertz
    $60
    $19
    $34
    $7

Buying Non-Owner Car Insurance in Tennessee

If you don’t own a car but need temporary car insurance to get proof of insurance coverage or to file an SR-22 so your license can be reinstated, non-owner car insurance can be your best and cheapest choice.

The average cost of this type of insurance in Tennessee is $478 per year.

How to Get Temporary Rideshare Car Insurance for Rideshare in Tennessee

Drivers who work for a rideshare company in Tennessee are already covered by insurance once they transport a passenger or accept a fare. However, when you’re driving your rideshare car outside of those instances, you have a temporary gap in coverage.

If you need to get rideshare insurance and are looking for the best rideshare insurance provider, MoneyGeek has compared companies in Tennessee that offer this policy. However, rideshare insurance policies may not be available in your state.

Frequently Asked Questions About Temporary Car Insurance in Tennessee

Buying temporary car insurance can be tricky. We’ve answered some frequently asked questions about temporary car insurance to help you make informed decisions.

Methodology

MoneyGeek collected car insurance and non-owner car insurance quotes from different insurers across Tennessee with the help of Quadrant Information Services. We used the sample profile of a 40-year-old driver, and the policies include full coverage as described on our methodology page. Costs for a student represent the average costs of adding an 18-year-old driver to a policy.

Note that numbers for the cost of one-month and three-month policies were calculated by MoneyGeek on a prorated basis, assuming a full refund from the insurance company. Additionally, MoneyGeek manually collected rental car insurance costs in Tennessee using the online tools of Avis, Enterprise and Hertz.

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.