Cheap Car Insurance in Tennessee (June 2023)

If you’re looking for car insurance in Tennessee, remember that no particular car insurance company is the best fit for everyone. Rates vary depending on your driving history, credit score, age, and how much coverage you need. Taking time to compare quotes from multiple insurers is the easiest way to find the best car insurance for you.

The average cost of car insurance in Tennessee is $162 per month, $50 less than the national average. If you’re looking for even cheaper car insurance, you can find it by taking advantage of discounts, driving safely, and various other ways. But it starts by choosing the best car insurance company for your coverage needs.

Best car insurance companies in Tennessee

Finding the best car insurance in Tennessee is a matter of knowing what’s important to you in a car insurance company. Each insurer weighs premium factors differently, and some may offer more relevant discounts, so it’s important to compare car insurance quotes from multiple companies before buying a policy.

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Best car insurance overall: State Farm

State Farm

State Farm is the largest nationwide car insurance company, covering about 17% of all vehicles.^[1] It has excellent ratings and reviews for such a large company, with an Insurify Quality (IQ) Score of 4.4 out of 5 and a lower-than-average amount of customer complaints lodged with the National Association of Insurance Commissioners (NAIC).^[2]

State Farm is also the cheapest insurer for Tennessee drivers, with an average monthly premium of just $40 for liability coverage.

Best cheap car insurance in Tennessee: USAA

USAA

If you’re a veteran or from a military family, USAA is likely your best option in Tennessee. It consistently receives high ratings from J.D. Power for good customer service, from A.M. Best for financial stability, and from the NAIC for its lower-than-average number of customer complaints.^{[4] [5] [2]}

USAA has a 4.5 IQ Score and an average liability premium of $47 per month. It’s slightly more expensive than State Farm but provides excellent coverage for people who qualify.

Best value car insurance in Tennessee: GEICO

GEICO

GEICO also offers some of the cheapest car insurance in Tennessee, costing an average of $52 a month. Although it has an IQ Score of 4.3, the company’s reputation isn’t great in the Tennessee region, where J.D. Power ranks it slightly below average for overall customer satisfaction compared to other options.^[4]

GEICO also offers many different types of insurance policies, from bicycle insurance to renters insurance. It’s also one of the few insurers to offer a mechanical breakdown policy.

Best for college students: Erie

Erie Insurance

Tennessee drivers who choose Erie pay an average monthly premium of $58 for liability coverage. For the price, you get a lot of included coverage options, including accident forgiveness and the Rate Lock feature that prevents your rates from rising over time. Erie also earned a 4.4 IQ Score.

Erie offers more discount options for young drivers and students than most other insurance companies. Unfortunately, Erie is available in only 12 states nationwide.

Best for families: Farmers

Farmers

Farmers offers some excellent discount options for families. Teenagers may qualify for discounts by purchasing their own policy for the first time, and households that share a vehicle can also qualify for a discount.

Farmers’ monthly insurance premiums cost an average of $78 for liability coverage in Tennessee. Unfortunately, it received rather poor ratings for customer service from J.D. Power and earned a lower IQ Score of 3.8.

Best for retirees: Nationwide

Nationwide

Nationwide isn’t the cheapest option, with its liability-only coverage averaging $130 per month. But if you’re a senior who doesn’t drive very often, you might appreciate Nationwide’s mileage-based pricing option. It also offers a discount for seniors taking defensive driver classes and provides a vanishing deductible program as well. 

Nationwide earned a 4.1 IQ Score and has fewer than average customer complaints, according to the NAIC.

Best for commuters: Travelers

Travelers

If you’re a Tennessee commuter who uses public transportation and occasionally drives, Travelers is one of the few companies that offers a nonowner car insurance policy to protect you. If you’re one of the many commuters switching to EVs and hybrids because of the lower fuel costs, you’ll also appreciate the discounts for these cars.

Travelers is relatively affordable, costing an average of $78 per month for liability coverage. It also has the highest possible rating for financial stability from A.M. Best, which is part of the reason for its IQ Score of 4.3.

Best for high-risk drivers: Midvale Home & Auto

Midvale Home & Auto

Finding car insurance after a major driving violation can be challenging and expensive, but Midvale Home & Auto offers affordable rates, with an average monthly liability cost of $93.

Best for sports car owners: Progressive

Progressive

The average monthly premium for Tennessee drivers who choose Progressive is $95 for liability coverage. Your cost may be a bit more if you’re insuring an expensive luxury car, though — especially if you want full coverage — but Progressive is one of the few mainstream insurance companies that cover sports cars, with an upper limit of $150,000.

Progressive received a 4.1 IQ Score. In addition to a wide range of personal insurance options, Progressive also offers car insurance for trips to Mexico.

How Insurify’s experts used internal proprietary data to rate the top auto insurers

Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers’ vehicles, driving records, and demographic information.

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service’s database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.

How to shop for the best car insurance in Tennessee

Tennessee drivers have several advantages when it comes to shopping for the best car insurance policy. 

“Overall, the Tennessee auto market is exceptionally healthy and competitive,” says Kevin Walters, director of communications for the Tennessee Department of Commerce and Insurance. “In fact, we still see some companies are taking less than their fully indicated rates.”

“Ask questions and conduct research before you shop. Different insurance companies charge different rates for the same coverage — and not all insurance companies provide the same level of claims service,” says Walters. “It makes sense to shop around for the best insurance company for your needs.”

Some ways to get the most from your car-insurance shopping experience include:

1. Start shopping early. Many insurers offer discounts if you purchase a new policy before your current one ends.

2. Find your declarations page from your current auto insurance company. This has all the information on it you’ll need to get a new quote, including your car’s make, model, VIN, and your current coverage options.

3. Set aside some time to shop. Shopping for new car insurance can be difficult and time-consuming. Set aside an hour or two to compare options.

4. Research companies and choose an option. Pick the most affordable quotes, and research those companies more to find the one that best suits you. Consider discounts and bundling options.

5. Buy a policy. Once you’ve found the right company, you’re ready to make a purchase. Consider paying for the entire premium at once instead of monthly, as many insurers offer a discount for this.

How to get the cheapest car insurance in Tennessee

Although car insurance in Tennessee is relatively affordable compared to the rest of the country, that doesn’t mean everyone can afford it — and the problem is only getting worse, according to Walters.

“There are multiple factors causing the rise in auto insurance costs, including inflation, rising replacement part costs, an increased number of accidents, higher risk pools, and an increased tendency for higher reckless driving rates after COVID and pandemic lockdown,” says Walters.

Here are some ways you can save on your car insurance premiums:

• Compare rates from as many car insurance companies as possible.

• See whether your coverage options still make sense, and if you can drop any add-ons.

• Choose the highest-deductible option you can afford to pay if you need to file a claim.

Minimum car insurance requirements in Tennessee

Almost every state requires a minimum level of liability coverage in order to drive legally in the state. Tennessee’s requirements are as follows:^[6]

Liability-only vs. full-coverage insurance in Tennessee

If you’re still financing your car in Tennessee, your lender will require you to purchase a  full-coverage insurance policy. Full-coverage car insurance includes the state minimum requirements, collision, and comprehensive coverage.

Collision coverage protects your own vehicle from damage if you’re in a car crash, even if you were the one to cause the accident. Comprehensive coverage, on the other hand, protects your car from damage from non-accident causes, such as riots, trees falling on your car, and theft.

Once you’ve paid off your car loan, you’re free to drop your full-coverage policy and switch to a minimum-liability auto insurance policy to save money. However, this won’t protect your car as thoroughly as full coverage.

Each insurance company in Tennessee prices these policies differently. As you can see below, sometimes the gap between the two coverage options is small, and other times it can be quite large.

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Tennessee car insurance rates by driving and accident history

Insurers consider many different factors when setting your rates, and one of the most important is your driving history. In particular, if you have any traffic violations such as speeding tickets, convictions for driving under the influence, or even any at-fault accidents, you may struggle to find an insurance company that’ll cover you. If you do, the costs can be very high.

SR-22 insurance in Tennessee

If you’ve had your license revoked due to a bad mark on your driving record, Tennessee requires you to file an SR-22 form with the Tennessee Department of Safety and Homeland Security as proof that you’re insured. Check that your insurer offers this service before you buy a policy. Some insurance companies charge fees for this service, usually under $25.^[7]

Here are a few insurers in Tennessee that offer SR-22 insurance:

• Direct Auto

• Bristol West

• The General

Tennessee car insurance quotes by credit tier

Unfortunately, insurance companies in Tennessee can consider your credit score when setting your car insurance rate.^[8] Drivers with excellent or good credit scores will pay much lower rates than drivers with poor credit scores.

Car insurance quotes in Tennessee cities

Another factor insurers use to determine your rate is your ZIP code. If you live in urban areas like Memphis or Nashville, for example, you’re more likely to pay higher insurance costs.

Tennessee car insurance rates by driver age

If you’re a young driver, you can expect to pay more for car insurance because insurance companies consider you more likely to file a claim. It’s not until the age of 25 that most insurance companies start bringing premium prices down.^[9]

You can see a big difference in how age can affect insurance rates for Tennessee drivers below. Tennessee insurers tend to charge the lowest rates for people in their 60s. Teenagers, on the other hand, pay more than twice that rate.

Tennessee car insurance FAQs

Insurify Insights

How Tennessee Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Tennessee below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Tennessee drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Nissan Altima

Most Popular Car in Tennessee

#16

State with the Most Speeding Tickets Rank

#14

State with the Moving Violations Rank

#30

State with the Most DUIs Rank

#7

State with the most Suspended Licenses

• Accidents in Tennessee

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Tennessee is the #10 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #10
  • Percent of drivers in Tennessee with an accident: 10%
• DUIs in Tennessee

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Tennessee is the #30 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #30
  • Percent of drivers in Tennessee with a DUI: 1.2%
• Reckless Driving in Tennessee

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Tennessee is the #26 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #26
  • Percent of drivers in Tennessee with a reckless driving offense: 1.3%
• Rude Driving in Tennessee

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Tennessee is the #25 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #25
  • Percent of drivers in Tennessee with a rude driving violation: 1.5%
• Speeding in Tennessee

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Tennessee is the #16 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #16
  • Percent of drivers in Tennessee with a speeding ticket: 10.1%
• Failure to Yield Rates in Tennessee

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Tennessee is the #21 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #21
  • Percent of drivers in Tennessee with a failure to yield violation: 0.1%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.