Best Car Insurance in Tennessee

The #1 car insurance company is State Farm because it is the largest auto insurer in the U.S., with a market share of 16%. State Farm insures over 80 million people and offers coverage in all 50 states.

Largest Auto Insurance Companies in America

Together, these 10 companies own more than 70% of the auto insurance market share in the U.S. As a result, it shouldn't come as a surprise that these companies tend to be the best options for most types of drivers.

Best Car Insurance Companies by Category

To learn more, check out WalletHub's guides to the best car insurance and the largest auto insurers.

Drivers in Tennessee need $25,000 of bodily injury liability insurance per person (up to $50,000 per accident) and $15,000 of property damage liability insurance. Collision, comprehensive and gap insurance may also be required by a lender or lessor if your vehicle is financed.

In addition, an optional but recommended type of coverage in Tennessee is uninsured/underinsured motorist insurance. It replaces the liability coverage an at-fault driver should've had and pays for your costs up to your policy limits.

Here's How Much Car Insurance Drivers Need in Tennessee:

If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Tennessee law. Lenders or lessors usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. Lenders may also require gap insurance, which covers the difference between what you owe on your loan or lease and what the vehicle is worth if it has been stolen or totaled.

Even if you're not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in Tennessee to make sure you're paying for the coverage you need.

Car insurance in Tennessee costs $39 per month or $467 per year for minimum coverage, on average. The cheapest car insurance companies in Tennessee are Auto-Owners, USAA, and State Farm, and getting quotes from several companies can help you find the best deal.

The average cost of car insurance in Tennessee is 30% lower than the national average auto insurance premium. There are several factors that affect how much you'll pay for car insurance in Tennessee, including your driving record, age and location, the amount of coverage you purchase, and the insurance company you buy it from.

Average Cost of Car Insurance in Tennessee by Category

• After an at-fault accident: $180 per month
• Driver with poor credit: $66 per month
• Teen driver: $205 per month
• After a DUI: $89 per month

Average Cost of Car Insurance in Tennessee by Company

Note: Rates are an approximation based on a 45-year-old man in Tennessee with a clean driving record. Actual rates will vary.

Average Cost of Car Insurance in Tennessee by Age

Note: Rates are an approximation based on a driver in Tennessee with minimum coverage and a clean driving record. Actual rates will vary.

How to Lower the Cost of Car Insurance in Tennessee

1. Shop around and compare quotes. We recommend comparing quotes from at least three different insurance companies to make sure you are getting the best rate.
2. Choose a higher deductible. Your deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums but means you will have to pay more out-of-pocket when you file a claim.
3. Consider lowering your coverage. Consider purchasing only the minimum amount of coverage required by your state, rather than purchasing higher limits or a full coverage policy.
4. Look for discounts you may be eligible for. For instance, most insurance companies offer a good-driver discount for customers with a clean driving record, a good-student discount, or a discount for paying your premiums in full up front.

To learn more, check out our guide to how much car insurance you need in Tennessee as well as our picks for the cheapest car insurance companies in Tennessee.

The minimum liability car insurance requirements in Tennessee are $25,000 in bodily injury liability insurance per person ($50,000 per accident) plus $15,000 in property damage liability insurance. These requirements can also be written as 25/50/15.

Key Things to Know About Liability Car Insurance in Tennessee

• It covers others' expenses. Liability insurance pays for others' medical expenses and property damage after an accident you were responsible for.
• There are penalties for driving without the required coverage. If Tennessee drivers do not satisfy Tennessee's minimum liability requirements, they can face penalties for driving without insurance.
• Drivers should consider purchasing higher limits. Drivers should consider buying more than the minimum amount of liability coverage required by Tennessee law if they can afford it. If you cause an accident that results in damage beyond your policy limits, you will be personally responsible for paying the difference.
• Liability insurance will not cover all events. Tennessee drivers can also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder's own injuries or property. For instance, both collision insurance and comprehensive insurance cover damage to the policyholder's car. You will likely need these types of insurance if your vehicle is financed.

To learn more, check out WalletHub's guides on how much car insurance you need and cheap car insurance in Tennessee.

Full coverage insurance in Tennessee costs an average of $302 per month. A full coverage policy usually includes collision and comprehensive insurance, plus the types of coverage required by Tennessee law. In Tennessee, liability insurance is mandatory for all drivers.

Average Cost of Full Coverage Insurance in Tennessee

Note: Premiums are average rates for a good driver in Tennessee; individual premiums will vary.

How to Get Cheaper Full Coverage Insurance in Tennessee

1. Compare quotes from several companies to make sure you're getting the best deal.
2. Increase your deductible. Higher deductibles lead to lower premiums, but remember to only pick a deductible you'd be able to afford in an emergency.
3. Don't forget to make sure you're getting all the discounts you can.

To learn more, check out WalletHub's guide to full coverage car insurance.