The cheapest car insurance companies in Tennessee are State Farm, GEICO, and Erie. Tennessee drivers can save up to $1,416 per year on car insurance just by shopping around and comparing quotes.
Tennessee is among the 20 cheapest states for car insurance, which is good news for the state’s 6.8 million residents. One reason drivers can find cheap car insurance in Tennessee is the state is 93% rural. This results in less traffic and fewer accidents and claims, driving down the cost of car insurance in Tennessee overall.
Tennessee has a high number of uninsured drivers, however, with about 20% of people driving without insurance. This is one reason Tennessee didn’t rank even higher for cheap car insurance, and why drivers who want to find the absolute lowest prices in the state need to shop around. The average difference between the highest and lowest quotes for the same full coverage policy is $4,249 per year in Tennessee, for example, so drivers who shop around can potentially save a lot. You can check out our recommendations below, as well as compare the cheapest options to the best overall car insurance companies in Tennessee to make sure you find the right fit for your particular needs.
Cheapest Insurance Rates by Category
Cheap for Good Drivers
Cheap for Full Coverage
Cheap for Speeding Ticket
Cheap for One At-Fault Accident
Cheap for Poor Credit
Cheap for Young Drivers
Cheap for Old Drivers
Cheap for Drivers with a DUI
Cheap for Married Drivers
Cheapest Car Insurance in Tennessee for Good Drivers
Auto-Owners has the cheapest car insurance for most good drivers in Tennessee. Drivers who have never had an accident or received a citation are considered good drivers by insurers and pay less for insurance than drivers with bad records. In addition to low rates, good drivers can often qualify for additional discounts from their insurance company.
Cheapest Car Insurance in Tennessee for Full Coverage
Full coverage refers to a policy that goes beyond the minimum state requirements. Because full coverage protects you in more situations, it costs more than minimum coverage.
After a speeding ticket, most drivers will see their insurance rates go up for 3-5 years. It’s important to keep in mind that each insurance company calculates rates differently, so you should always get multiple quotes in order to make sure that you get the best deal.
Cheapest Car Insurance in Tennessee for Drivers with One At-Fault Accident
One at-fault accident will usually affect your insurance negatively for 3-5 years as insurers will consider you high-risk. Because of your higher rates, it is even more important to comparison shop.
Cheapest Car Insurance in Tennessee for Drivers with Poor Credit
A low credit score often flags drivers as higher risk, so insurers will usually charge them more for coverage. However, since insurers use different formulas to calculate premiums, poor credit might affect your rates more with one company than another. Because each insurance company treats credit differently, it pays to compare quotes.
Cheapest Car Insurance in Tennessee for Young Drivers
Since young drivers have less experience behind the wheel, insurers tend to charge them higher rates than more mature drivers. On average, most drivers will see their rates drop as they get older with a considerable decrease once they turn 25 years old.
Cheapest Car Insurance in Tennessee for Older Drivers
Although mature drivers pay less for car insurance than teens, older drivers start to see their rates go up as they enter their senior years. Comparing car insurance rates can save older drivers hundreds of dollars a year.
Cheapest Car Insurance in Tennessee for Drivers with a DUI
Drivers who have a DUI on their record typically experience much higher rates than drivers with a clean driving record or people with a history of less severe violations. A DUI usually affects your insurance rates for 3-10 years, but the violation itself may stay on your driving record for much longer than that.
To identify the cheapest post-DUI insurance companies, WalletHub compared rates for a 45-year-old, single man, with minimum coverage, one DUI, and good credit across major insurers.
Cheapest Car Insurance in Tennessee for Married Drivers
Married drivers typically enjoy cheaper car insurance rates than drivers who are single. Auto insurance companies generally view drivers who are married as more responsible and less of a risk to insure. To help married drivers further reduce their insurance costs, WalletHub compared major insurance companies’ rates for a 45-year-old, married man with minimum coverage, a clean driving record, and good credit.
The table above reflects the average annual cost of car insurance in Tennessee’s largest cities and towns.
Factors That Affect Car Insurance Premiums in Tennessee
Recap: Cheapest Auto Insurance Companies in Tennessee
The cheapest car insurance company in Tennessee is State Farm, which charges an average of $57 per month for state-minimum coverage. In addition to being the cheapest auto insurer for Tennesseans overall, it is the cheapest option for a number of specific categories, such as full coverage and insurance for young drivers.
For your convenience, we’ve summarized the cheapest companies overall below.
6 Tips for How to Get Cheap Car Insurance in Tennessee
1. Compare quotes from both national and regional insurers
Don’t forget to include local insurance companies in your search for cheap car insurance. In Tennessee, regional insurers like Erie Insurance, Alfa Insurance, and Farm Bureau Insurance of Tennessee might have lower rates than national companies like State Farm, GEICO, and Nationwide – in addition to comparable customer satisfaction ratings.
2. Know the factors affecting insurance in Tennessee
Everyone knows that your driving habits and claims history affect how much you pay for car insurance. But in Tennessee, companies can also consider your age, gender, credit history, marital status, and more when setting premiums. The car you drive, your annual mileage, and even some factors beyond your control all impact the price of insurance.
3. Choose the coverage that is right for you
You need liability insurance to pay for the other driver’s damages if you’re at fault in an accident in Tennessee. Collision and comprehensive coverage, on the other hand, are optional and may be unnecessary if you own an older car. Usage-based insurance might be a better fit than a standard policy for low-mileage drivers, and going with a higher deductible or lower coverage limits costs less, too. Don’t skimp on the coverage you need, but do make informed choices. That way, you won’t end up paying for more car insurance than you need.
4. Don’t move to more expensive zip codes
Car insurance prices can vary a lot based on zip code in Tennessee. On average, drivers in the most expensive parts of Tennessee spend nearly $900 more per year on full coverage car insurance than those living in the least expensive areas.
5. Search for discounts
Top car insurance companies in Tennessee have a variety of discounts, so almost anyone can find ways to save. You may be able to get a discount if you’re a student, veteran, good driver, homeowner, willing to go paperless, and more.
6. Maintain coverage
You’ll see higher rates if you let your insurance lapse, even if you don’t own a car. Tennessee drivers who don’t maintain continuous coverage pay an average of 17% more than those with five or more years of insurance history.
Video: Cheap Auto Insurance in Tennessee
Methodology for Selecting the Cheapest Auto Insurance in TN
WalletHub’s analysis of cheap car insurance companies in Tennessee is based on data from the Tennessee DMV and Quadrant Information Services. Together with that data, WalletHub used the characteristics listed below to create 40 different driver profiles designed to identify the cheapest car insurance companies for Tennessee drivers in a collection of key categories. For each profile, WalletHub compared quotes among top Tennessee car insurance companies by averaging premiums from 35 zip codes that represent at least 20% of Tennessee's population. Military-specific companies like USAA were only considered for the military-specific category, due to their eligibility restrictions. In some cases, they may still be the best option overall for eligible drivers.
In the table below, you can see all of the profile characteristics that were used in WalletHub’s analysis, in addition to the specific subset of characteristics that make up our Good Driver profile.
Clean, One Speeding Ticket, One At-Fault Accident, One DUI, Suspended License, Open Container, Red Light Infraction, Reckless Driving, One Not At-Fault Accident
Clean
Miles Driven Per Year
7,500 Miles, 15,000 Miles, 20,000 Miles
15,000 Miles
Coverage Level
Minimum, Standard, Full
Minimum
Discounts
None, Multi-Policy, Homeowner, Student
None
Credit Level
Poor, Good
Good
Filings
None, SR22, FR44
None
Car
Sedan, Minivan, SUV, Coupe, Truck
Sedan
Below are additional details regarding the terminology and specific characteristics of the variables in the above table:
Minimum Coverage: Coverage requirements of $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $15,000 in property damage liability, as required by Tennessee's minimum coverage requirements.
Standard Coverage: Coverage levels of 50k/100k/25k of liability coverage and 50k/100k/25k of uninsured motorist coverage.
Full Coverage: Coverage levels of 100k/300k/50k of liability coverage, 100k/300k/50k of uninsured motorist coverage, and collision and comprehensive coverage with a $500 deductible.
Sedan: 2018 Toyota Camry.
Minivan: 2018 Dodge Grand Caravan.
SUV: 2018 Toyota RAV4.
Coupe: 2018 Ford Mustang.
Truck: 2018 Ford F-150.
Where driver profiles are not specified, WalletHub averaged Tennessee insurance quotes across 40 different driver profiles, using the above variables. Quote information is from Quadrant Information Services and is representative only. Individual rates will be different.
Questions & Answers
Finding the cheapest car insurance in Tennessee can be tough. But you’ve got the knowledgeable WalletHub community on your side. Other consumers have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines.
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 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
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.
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.
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.
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.
State Farm has the cheapest full coverage car insurance in Tennessee, charging an average of $170 per month or $2,039 per year. This is cheaper than the $3,626 per year drivers pay for full coverage in Tennessee on average.
The city in Tennessee with the least expensive auto insurance premiums is Bristol, which has an average annual premium of $946 per year. By comparison, the overall average cost of car insurance in Tennessee is $1,186 per year.
You can get car insurance discounts in Tennessee based on how you drive, the car you own, and your relationship with your insurance company. In Tennessee, car insurance companies are allowed to consider factors such as employment, residential, and marital status when setting premiums. That means there are also discounts available for being married, owning a home, or being affiliated with certain employers or educational institutions.
Almost anyone can get a discount on car insurance...
State Farm has the cheapest SR-22 insurance in Tennessee, charging an average of $338 per year for minimum coverage. State Farm's SR-22 insurance is 63% cheaper than what other companies charge for SR-22 insurance in Tennessee, on average.
Tennessee drivers who are convicted of serious driving offenses, such as DUI or reckless driving, may be required to get an SR-22. Since drivers with an SR-22 are considered high-risk, they will pay higher insurance premiums than the...
To get the best high-risk auto insurance in Tennessee, you should compare quotes from at least three different insurance companies. The best high-risk auto insurance companies in Tennessee are USAA, State Farm, and Erie because they offer the most competitive rates for high-risk drivers. You should also practice safe driving habits moving forward, so you can get even lower rates in the future.
Best High-Risk Auto Insurance Companies in Tennessee
The best car insurance in Tennessee for drivers with a DUI is from State Farm, USAA, and Progressive. Getting a DUI in Tennessee will raise your insurance premiums by around 128%, bringing the cost of minimum coverage to $1,066 per year for the average Tennessee driver. You can minimize the cost of post-DUI car insurance by comparing quotes from the cheapest companies.
The cheapest car insurance in Tennessee costs an average of $44 per month ($533 per year), which is significantly less expensive than the national average cost of car insurance. Some of the cheapest car insurance companies in Tennessee include GEICO, USAA, and State Farm.
Tennessee law requires you to have $25,000 in coverage for one person's bodily injury or death, up to $50,000 total per accident. Tennessee also requires you to carry at least $25,000 in coverage for other people's property damage when you are at fault.
The best car insurance for young drivers in Tennessee is from GEICO, which is rated highly by WalletHub's editors for its discounts, customer reviews, ability to pay out claims, and competitive rates for young drivers. GEICO charges young drivers an average of $53 per month, while the state average is $113 per month.
Car Insurance is a necessary expense if you’re a driver, but trying to find the cheapest rates can be a time-consuming process. To gain more insight about getting cheap car insurance while still having quality coverage, WalletHub posed the following questions to a panel of experts in Tennessee. Click on the experts below to view their bios and answers.
What does it say about car insurance companies that so many have celebrity endorsers?
Do you think it’s fair to say that car insurance companies try to mislead customers or is it just marketing?
Is it fair for car insurance companies to consider gender or age when setting premiums?
Is it fair for car insurance companies to consider a driver’s occupation when setting premiums?
Do you think car insurance companies are fair to college students?
What advice do you have for new drivers when it comes to car insurance?
How do you think increased adoption of electric vehicles will change the car insurance landscape?
To what extent has technology disrupted the car insurance industry relative to others?
Matthew Pittman Ph.D., Associate Professor, Tombras School of Advertising & Public Relations; Director, Adam Brown Social Media Command Center, The University of Tennessee, Knoxville Read More
Benton B. Jones DBA, Director of the Doctorate in Business Administration, Bryan College Read More
Dr. Maria Edlin King Director of the Tennessee Council on Economic & Free Enterprise Education, Jones College of Business, Middle Tennessee State University Read More
Dan Jin Ph.D., Assistant Professor, Retail, Hospitality, & Tourism Management, University of Tennessee, Knoxville Read More
Rita W. Green Ed.D., AFC, Certified Personal & Family Finance Educator, Teaching Associate Professor, University of Memphis Fogelman College of Business Read More
Lydia Rosencrants CPA, CMA, Dean, School of Business – Christian Brothers University Read More
