Cheap Car Insurance for Low-Income Drivers in Tennessee

What is low-income car insurance in Tennessee?

Low-income car insurance in Tennessee isn’t a specific type of car insurance policy. Instead, it usually refers to what low-income drivers look for in an auto insurance policy.

The state of Tennessee doesn’t offer a state-backed car insurance assistance program. But low-income drivers can still find cheap rates by choosing the right coverage and seeking out discounts. Insurers often offer savings for good students, safe driving, bundling policies, and vehicle safety features.

Choosing a minimum liability policy is another way to keep costs low. But a minimum-coverage policy doesn’t offer much financial protection.^[1] Full-coverage policies cost more but usually include comprehensive and collision insurance for more coverage after an accident.

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Cheapest car insurance in Tennessee

Drivers in Tennessee pay an average of $60 per month for liability-only coverage. But some companies consistently offer lower rates than others. For example, State Farm often offers drivers the lowest premiums in the state, at an average of $35 per month.

Tennessee drivers typically pay less for auto coverage than the national monthly average of $98. That’s partly due to the state’s relatively low population density, at least outside its major cities.^[2]

In Tennessee’s largest cities, Nashville and Memphis, drivers pay significantly more for car insurance than drivers in smaller cities like Bristol and Johnson City.

The table below shows the cheapest liability insurance rates in Tennessee, according to Insurify data.

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

Insurance Company	Average 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.

Cheapest car insurance for drivers with poor credit in Tennessee

As in many states, Tennessee allows insurance companies to consider your credit when determining insurance premiums. Generally, drivers with poor credit pay more for auto insurance than people with good credit.^[3]

Under Tennessee law, insurers can’t deny coverage based on multiple insurance-related lender inquiries.

The table below highlights the average liability quotes for Tennessee drivers with poor credit.

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

Insurance Company	Average Liability Quote: Poor Credit
Sun Coast	$45
Mile Auto	$46
Progressive	$49
Direct Auto	$50
State Farm	$50
Certainly	$52
USAA	$52
Travelers	$56
Allstate	$56
AssuranceAmerica	$57
GEICO	$59
The General	$60
Trexis	$64
GAINSCO	$71
Safeco	$71
Auto-Owners	$72
Trexis One	$72
Erie	$76
National General	$76
First Acceptance	$79
Mendota	$80
Dairyland	$80
Liberty Mutual	$84
Farmers	$85
Insurify Car	$90
Bristol West	$90
Root	$94
Elephant	$95
Hugo	$114
Chubb	$158
State Auto	$165

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.

Car insurance options for low-income drivers in Tennessee

Although Tennessee doesn’t offer a state-sponsored low-income car insurance program, you still have ways to lower your car insurance costs.

It’s important to shop around and compare rates from multiple insurers. Every company calculates rates differently, so comparing quotes can help you find the lowest price. A few auto insurance companies worth considering include:

• Auto-Owners: Auto-Owners offers a range of coverage options and discounts to help you reduce your costs.

• Progressive: On average, Progressive offers Tennessee drivers some of the cheapest rates for liability-only policies.

• Mile Auto: Mile Auto’s pay-per-mile coverage could be a good fit if you don’t drive often. The insurer charges you only for the miles you actually drive, plus a base rate.

A few other potential choices to consider include GEICO, Allstate, and USAA. Comparing quotes is the easiest way to narrow down which company might work for you.

Minimum car insurance requirements in Tennessee

Tennessee requires drivers to have a minimum amount of liability car insurance. Here’s what you’ll need to legally drive in Tennessee:

• Bodily injury liability coverage: You need $25,000 per person and $50,000 per accident to help pay for the medical bills of the other driver and their passengers after you cause an accident.

• Property damage liability coverage: You need $25,000 per accident to help pay to repair or replace another driver’s vehicle after an at-fault accident.

If you opt for a minimum-coverage policy, you’ll likely pay less for car insurance. But the bare-bones coverage might not provide enough financial protection after an accident. Full coverage typically includes comprehensive and collision coverage to help pay for damages to your car.

For example, let’s say you hit a deer and severely damage your vehicle. Without a full-coverage policy, you’d have to pay out of pocket for repairs without help from your insurer. Full coverage can cost more per month, but it could save you money down the road.

The table below outlines the minimum coverage requirements for Tennessee drivers.

Coverage	Minimum Requirement	What It Covers
Bodily injury liability coverage	$25,000 per person/$50,000 per accident	Injuries you cause to another driver and their passengers
Property damage liability coverage	$25,000 per accident	Damage you cause to other vehicles or objects

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What affects car insurance rates in Tennessee?

On average, car insurance rates are relatively affordable in Tennessee. But costs can vary dramatically across the state.

For example, Nashville drivers pay significantly higher premiums, partly due to the city’s population density. Nashville’s intense traffic congestion also leads to higher costs. In fact, Nashville drivers lost 65 hours to traffic congestion in 2025, according to INRIX.^[4]

Memphis has the most expensive car insurance premiums in the state. The city has heavy traffic congestion, with drivers losing 14 hours to congestion in 2025.^[5] But one of the main causes of the city’s high premiums is the high rate of auto thefts. Shelby County, home to Memphis, ranked in the top 20 cities for car theft in the first half of 2025, according to the National Insurance Crime Bureau (NICB).

About 21% of Tennessee drivers are uninsured, according to the Insurance Information Institute.^[6] High rates of uninsured drivers drive costs up for everyone.

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