Cheapest Liability Car Insurance in Tennessee (2026)

What is liability car insurance?

Liability car insurance helps protect you financially if you hurt someone or damage their property while driving. This coverage applies to other drivers and their passengers, pedestrians, cyclists, and property owners.

Tennessee requires drivers to carry liability insurance or post a $65,000 bond with the Department of Revenue to demonstrate financial responsibility. This helps ensure an at-fault driver can cover the other party’s damages, especially in the event of a serious car accident.

While liability insurance helps pay for damages you cause to another party, it doesn’t cover your car. A full-coverage policy pays to repair or replace your car.

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Cheapest liability car insurance in Tennessee

The average cost of an auto policy in Tennessee is $60 per month for liability-only coverage and $132 per month for full coverage. Premiums depend on a variety of factors, including your driving record, gender, age, marital status, credit history, and ZIP code, among others.

This table shows the insurers with the cheapest average monthly quotes for liability-only coverage in Tennessee.

The below rates in Tennessee are estimated rates current as of: Monday, August 31 at 5:00 PM PDT. 

Insurance Company	Average Monthly Quote: Liability Only
State Farm	$35
Mile Auto	$37
Sun Coast	$37
Progressive	$40
Direct Auto	$41
Certainly	$42
USAA	$42
Allstate	$46
AssuranceAmerica	$46
Auto-Owners	$48
GEICO	$48
Travelers	$48
The General	$49
Erie	$52
Trexis	$52
GAINSCO	$58
Safeco	$58
Trexis One	$59
National General	$62
First Acceptance	$64
Dairyland	$65
Mendota	$65
Farmers	$69
Liberty Mutual	$71
Bristol West	$73
Insurify Car	$73
Root	$76
Elephant	$77
Hugo	$93
Chubb	$100
State Auto	$133

Disclaimer: Table data sourced from real-time Tennessee car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Tennessee may vary based on the policy buyer's unique driver profile.

Minimum car insurance requirements in Tennessee

Car insurance laws in Tennessee require drivers to have liability insurance. The state-minimum coverage limits include $25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage per accident.^[1]

Type of Coverage	Minimum Required Limits	What It Covers
Bodily injury liability	$25,000 per person, $50,000 per accident	Pays for third-party medical expenses, lost wages, legal fees, and funeral expenses after you cause an accident
Property damage liability	$25,000 per accident	Pays to repair or replace cars, fences, and other property after you cause an accident

A minimum-coverage policy doesn’t protect your vehicle. For example, if you back your car into a neighbor’s mailbox, your liability insurance would pay to replace the mailbox, but you’d have to pay out of pocket to repair your damaged bumper.

A full-coverage policy would cover the cost of replacing the mailbox and repairing your car, minus your deductible.

Is minimum liability coverage enough in Tennessee?

Experts generally recommend buying higher liability coverage limits than the state’s minimum requirements. This is because serious accidents can cause damage that easily exceeds Tennessee’s minimum limits.

Suppose you’re at fault in a three-car accident. The wreck totals a car valued at $32,000 and leaves the other car needing $5,000 in repairs.

Since state-minimum coverage in the Volunteer State pays a maximum of $25,000 for property damage, you’re responsible for paying the remaining $12,000 out of pocket. Plus, a state-minimum policy won’t cover the cost of repairing your vehicle.

Consider a full-coverage policy to protect your vehicle in the following scenarios:

• If you finance or lease your car, your lender or leasing company will typically require full coverage to protect its financial interest in the vehicle.

• If someone vandalizes or steals your car, comprehensive coverage pays to repair or replace it.

• If you cause an accident or hit a tree, collision coverage pays to repair or replace your car.

Penalties for driving without liability insurance in Tennessee

Tennessee uses an electronic verification system to match each registered vehicle with an active insurance policy. If your vehicle doesn’t have a liability insurance policy that meets the minimum requirements, the Tennessee Department of Revenue will send you a notice.

You’ll need to submit proof of insurance or financial responsibility online at driveinsuredtn.com. Your insurance card will include all the information you need to complete the questionnaire.

Make sure you respond to the notice in a timely manner. You’ll have to pay a $25 fine within 30 days of receiving your first notice.

If you don’t respond within 30 days of receiving the final notice, the state will suspend your registration and assess a $100 fine.^[2]

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How to find cheap liability car insurance in Tennessee

Use these tips to find the most affordable Tennessee car insurance:

• Ask about car insurance discounts. Teen drivers living in Tennessee college towns like Knoxville, Memphis, and Murfreesboro can look for good student discounts.

• Compare rates every six months. Rates for the same coverage can vary significantly among insurers. Tennessee’s population has increased by 6% in the last five years.^[3] As the state’s population grows, insurers compete to attract business. Get an online quote from several companies to make sure you’re getting the best price.

• Work on improving your credit history. Insurance companies may consider your credit history when setting your premium.

• Bundle your auto insurance policy with your homeowners insurance or renters insurance. Tennessee drivers can often save money with a multi-policy discount.

• Enroll in a telematics program. Driver-tracking programs can help lower your rates, especially if you’re a safe driver or don’t drive many miles.

• Increase your deductibles. Increasing your comprehensive and collision deductibles will lower your rates. Be sure you can afford the higher out-of-pocket expense if you need to file a claim.

Liability car insurance in Tennessee FAQs