State Farm is the cheapest home insurance option for most homeowners in Tennessee, with an average monthly savings of $305. Below is a summary of the most affordable providers in the state.
Cheapest Home Insurance in Tennessee
Updated: May 27, 2025
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Key Takeaways
State Farm, Erie and ASI offer the lowest-cost home insurance in Tennessee overall, with potential savings of up to 66%.
Erie offers the cheapest homeowners insurance in Tennessee if you own a new home or have bad credit.
State Farm offers the most affordable home coverage for those in high-risk fire areas in Tennessee.
What is the Cheapest Home Insurance in Tennessee?
| State Farm | $194 | $2,327 | 25% |
| Auto-Owners Insurance | $194 | $2,327 | 25% |
| Allstate | $204 | $2,450 | 21% |
| Erie | $207 | $2,490 | 19% |
*These rates are based on a house built in 2000 with a $1,000 deductible, $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and class 3 fire protection. The insured is assumed to have good credit and no claims in the past five years.
THE CHEAPEST COMPANY MAY NOT BE THE BEST FOR YOU
While these companies may offer the lowest rates in Tennessee, evaluating their customer service reputation and coverage options is important. To help, we’ve created a separate guide to the best home insurance companies in Tennessee, providing a more comprehensive overview.
Cheapest Tennessee Home Insurance Rates by Category
While we’ve listed the cheapest options for most homeowners, those rates may not reflect your specific situation. For instance, while State Farm is typically the cheapest overall, Erie offers the best rates for newer homes. To help, we’ve outlined the cheapest companies on average for common categories.
| State Farm | Older Homes | $194 |
| Erie | Newer Homes | $88 |
| State Farm | Homes in High Risk Fire Areas | $194 |
| ASI | Bad Credit | $417 |
*Rates are modified based on our methodology’s base profile. Newer home estimates are based on a home built in 2023, high-risk fire estimates are for a policy with 8-class fire protection, and bad credit rates assume a poor credit score on the FICO scale.
Compare Personalized Cheap Tennessee Home Insurance
The companies listed above typically provide the best rates for their categories, but actual rates vary based on your unique profile. Use the filter below to get a personalized list of the cheapest providers for your situation.
Data filtered by:Results filtered by:
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Coverage Level:$250K Dwelling / $125K Personal Property / $200K Liability
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Deductible:1000
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Claims History:Claim free for 5+ years
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Credit Tier:Good
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Home Age:Older Homes
| Auto-Owners Insurance | $194 | $2,326 |
| State Farm | $194 | $2,327 |
| Erie | $207 | $2,490 |
| Allstate | $246 | $2,948 |
| Foremost Insurance | $250 | $3,002 |
Cheapest Tennessee Home Insurance By City
Risk factors for insurers vary by location, making some providers more affordable than others. In Tennessee, Foremost Insurance is the cheapest in cities like Chattanooga and Murfreesboro. However, Allstate offers lower rates in Knoxville, while State Farm is the most affordable in Memphis.
| Chattanooga | Foremost Insurance | $171 |
| Clarksville | Foremost Insurance | $150 |
| Hendersonville | Foremost Insurance | $154 |
| Knoxville | Allstate | $138 |
| Memphis | State Farm | $197 |
| Murfreesboro | Foremost Insurance | $150 |
| Nashville-Davidson | Allstate | $194 |
*These rates are based on a house built in 2000 with a $1,000 deductible, $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and class 3 fire protection. The insured is assumed to have good credit and no claims in the past five years.
How To Find the Cheapest Tennessee Home Insurance for You
Finding affordable home insurance in Tennessee can be challenging, but you can significantly lower your costs with some effort. Below are our core recommendations to help you maximize savings on your policy.
- 1
Determine your coverage needs
It's easy to get oversold on coverage when you don't have limits in mind before buying. Determine your home insurance coverage needs beforehand to avoid purchasing too much. Understanding the different types of home protection available helps ensure you don't miss something important.
- 2
Research home insurance cost information
Secure discounts with bundled home and vehicle insurance packages in Tennessee.
- 3
Bundle your policies
Bundling home insurance with another policy can save you a lot of money if you stay with the same provider. You can save considerably on home insurance when bundling with auto policies. Check MoneyGeek's guide on bundling for more details.
- 4
Compare multiple companies apples to apples
To ensure you’re getting a good deal, compare quotes for the same coverage. Once aligned, gather as many quotes as possible using different methods to find the best rate.
Cheap Home Insurance Tennessee: Bottom Line
State Farm, Auto-Owners Insurance, and Allstate offer the most budget-friendly home insurance in Tennessee. If traditional coverage isn't an option, the TFPA provides low-cost policies. Remember to evaluate various insurers, look into costs, and pinpoint your coverage essentials before choosing.
Cheapest Home Insurance Tennessee: FAQ
Below are answers to frequently asked questions about the cheapest home insurance in Tennessee:
What is the cheapest home insurance company in Tennessee?
Erie offers the lowest rates for newer homes in Tennessee at $88 per month or $1057 per year. However, homeowners with older properties or higher fire protection needs may find better rates with State Farm.
How expensive is home insurance in Tennessee?
Tennessee has the 30th-highest home insurance rates in the U.S.
How much is home insurance in Tennessee?
You need enough home insurance to cover the full replacement cost of your house, as well as the value of personal belongings and liability protection. Coverage should also account for local risks and special items.
Without a mortgage, home insurance isn't a legal requirement. However, mortgage lenders require sufficient dwelling coverage to rebuild your home completely if it's destroyed. Ideally, insurance should also encompass the value of your assets, account for local hazards such as extreme weather or crime, and cover any irreplaceable possessions.
How much home insurance do I need?
You need enough home insurance to cover the full replacement cost of your house, as well as the value of personal belongings and liability protection. Coverage should also account for local risks and special items.
Without a mortgage, home insurance isn't a legal requirement. However, mortgage lenders require sufficient dwelling coverage to rebuild your home completely if it's destroyed. Ideally, insurance should also encompass the value of your assets, account for local hazards such as extreme weather or crime, and cover any irreplaceable possessions.
How We Found the Cheapest Home Insurance Companies in Tennessee
To determine the cheapest home insurance companies in Tennessee, we assumed the following base profile:
- $250K dwelling coverage
- $125K personal property coverage
- $200K liability coverage
- Home built in 2000
- Frame construction
- Composition roof
- $1,000 all perils deductible
- No claims in the past 5+ years
- 3-class fire protection
All other combinations were adjusted based on this profile to provide a more accurate comparison for your specific situation. However, these figures are estimates, and we recommend comparing quotes from multiple providers to secure the best deal.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.