Cheapest Car Insurance in Tennessee: A Comprehensive Guide

Tennessee car insurance rates are different for everyone because of factors such as age and city of residence. That is why some drivers pay more for insurance than others.

However, the goal for many vehicle owners is to find cheap auto insurance in Tennessee. For that, you must understand the main aspects of car insurance. This guide explores everything about car insurance in Tennessee, including average rates and the best companies.

Average Cost of Car Insurance in Tennessee

The average cost of car insurance in Tennessee is $2,004 to $2,214 per year for full coverage. Tennessee is among the more affordable states for car insurance in the United States. However, your personal rate will vary depending on factors such as your age and coverage limits. We compare car insurance quotes to help you find the best coverage at an affordable rate.

Factors that Affect Auto Insurance in Tennessee

Several factors will affect how much you pay for car insurance in Tennessee. They include:

• Driving History: Drivers with a clean record often pay less for coverage than those with speeding tickets, accidents, or DUIs. A history of safe driving often leads to lower rates.
• Age and Experience: Younger drivers (especially teens) pay higher premiums because of their inexperience behind the wheel. Rates tend to decrease as drivers age and gain more experience.
• Location: Where you live in Tennessee will also affect your insurance rates. Cities like Nashville and Memphis usually cost more to insure. The same holds true elsewhere, as drivers comparing the cheapest car insurance in Kentucky often face higher premiums in metro areas than in rural parts of the state.
• Vehicle Type: The type of car you drive can affect your insurance rate, with high-end, luxury cars costing more to insure than older models.
• Coverage Level: The more coverage you choose, the higher your premiums will be. Minimum coverage (which includes liability insurance) will be the most affordable option.

Because of these factors, we compare car insurance quotes from leading companies, including USAA, Travelers, Farm Bureau Insurance of Tennessee, and Progressive.

Companies with Cheap Car Insurance in Tennessee

Several car insurance providers offer affordable coverage for Tennessee drivers, depending on your specific needs. The cheapest rates often come from the following companies:

USAA

USAA offers some of the most affordable car insurance. However, eligibility is only for military families and veterans. USAA has competitive rates and car insurance discounts for safe driving and bundling policies. USAA’s average annual rate is $1,069.

Travelers

Travelers is a reliable option for affordable auto insurance in Tennessee, especially for people who do not qualify for USAA. They offer an average annual rate of $1,339.

Farm Bureau Insurance of Tennessee

Farm Bureau Insurance offers affordable rates for drivers in Tennessee. It is a top choice for teens and high-risk drivers. Drivers can expect to pay $1,373 per annum with Farm Bureau Insurance of Tennessee.

Progressive

Progressive is another good insurance provider in Tennessee. Their average annual rate is $1,507, and the company is a top choice for drivers with a DUI.

Cheapest Car Insurance, Tennessee by City

Tennessee auto insurance rates can be different depending on where you live. Urban areas in the state have higher population density and theft rates, which makes it more expensive to insure a car.

On the other hand, customers in rural areas will often pay less for car insurance. The cheapest cities for auto insurance in the state are:

Cheapest Auto Insurance in Tennessee by Age

Your age affects the cost of car insurance. Below is an outline of what you can expect to pay based on your age group.

Teens

Teen drivers in Tennessee can expect to pay much higher premiums due to their inexperience. The most affordable option for drivers in this category is Farm Bureau Insurance of Tennessee, which offers an average annual rate of $3,311 but only for female drivers. Male drivers in this category can find the cheapest option with Geico at $3,959 per year.

Young Adults

Young adults' rates are lower than those of teens because they have more driving experience. Therefore, drivers in this category can find affordable coverage from many companies.

However, the cheapest is USAA at $1,288 per year for females and $1,328 per year for males. Those who do not qualify for USAA can find the lowest rates with Travelers: $1,494 for female drivers and $1,568 for male drivers.

Adults

Once you reach your 40s, you can expect your rates to start leveling off, especially if you have a clean driving record. The cheapest company for drivers in this category is USAA at $980 for females and $986 for males.

Those who do not qualify for USAA can find the next-best rates with Farm Bureau Insurance of Tennessee at $1,236 and $1,280 per year for female and male adults, respectively.

Seniors

Senior drivers in their 60s also pay less for insurance, often because they drive fewer miles and have a lot of experience on the road. The cheapest rates are $918 for females and $913 for males from USAA. The next-cheapest option is Farm Bureau Insurance of Tennessee, with average rates of $1,057 for female drivers and $1,081 for male drivers.

Cheap Auto Insurance, Tennessee, for Bad Credit

Tennessee law allows insurers to use credit scores to determine insurance rates. Drivers with poor credit often face higher insurance premiums.

However, drivers in this category can still find affordable insurance from various companies, with the cheapest being Farm Bureau Insurance of Tennessee at $1,587 annually. Other affordable companies include USAA (for the military community) and Travelers.

Cheapest Tennessee Car Insurance for High-Risk Drivers

If you have a poor driving record or a history of accidents, insurance companies consider you a high-risk driver, which means higher rates for auto insurance. Drivers in these categories can still find affordable coverage by comparing car insurance quotes from multiple companies. Here's a breakdown of each group:

With 1 Speeding Ticket

A single speeding ticket will affect your premiums as companies see you as a higher risk to insure. The most affordable rate for these drivers is $1,273 from USAA. If you do not qualify for USAA, consider Farm Bureau Insurance of Tennessee, which offers an annual rate of $1,373.

With 1 Accident

If you have a minor accident on your record, you can expect your rates to go up by 40% or more. Farm Bureau Insurance of Tennessee offers the most affordable options for drivers with accidents at $1,373.

With 1 DUI

Motorists with one DUI on their record will often pay more for car insurance, but can find the cheapest rates with Progressive at $1,921 annually.

Tennessee State Requirements for Auto Insurance

Tennessee law requires all drivers to carry the following minimum coverage:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $25,000 for property damage liability

Liability coverage only pays for the injuries (and lost wages) you cause as the at-fault driver in an accident, plus damage to their property.

These minimum legal requirements are sometimes not enough to cover you in a serious accident. For example, the accident property damage liability insurance may not be enough to cover the costs of damage in an accident involving multiple people and cars. It is why some drivers get higher limits.

Additional Coverages to Consider in Tennessee

Drivers in Tennessee can get optional coverages to better protect themselves in an accident. These coverage options include:

Comprehensive Coverage

This insurance covers you in non-collision incidents such as theft, flooding, fire, and severe weather. While Comprehensive insurance is optional, lenders and lessors in Tennessee will require it.

Collision Coverage

This insurance helps cover the cost of repairing or replacing your car after an accident or collision with an object. It can also cover your vehicle after rollovers and pothole damage. Lenders and lessors in Tennessee often require this coverage.

Uninsured/Underinsured Motorist Coverage

This insurance provides financial protection if you're in an accident with an at-fault driver who has too little or no insurance. Tennessee car insurance companies must offer uninsured/underinsured coverage, but you, as the driver, can decline it by waiving it.

MedPay

This insurance covers your medical expenses and those of your passengers after an accident, regardless of fault.

Tips for Getting the Cheapest Car Insurance in Tennessee

The following tips can help you with car insurance savings in Tennessee:

1. Compare Rates: Always get quotes from multiple insurance companies to find the best deal.
2. Take Advantage of Discounts: Many insurance companies offer discounts for safe driving, low mileage, or even paying in full. Also, if you have homeowners or renters insurance, consider bundling it with your car insurance to save money.
3. Increase Your Deductible: Increasing your deductible can lower your premium. However, make sure you can afford the higher out-of-pocket costs in case of an accident.
4. Maintain a Good Credit Score: Drivers with good credit scores often get cheaper rates, so work on improving your credit score.
5. Maintain a Clean Driving Record: Drivers with a clean record often get lower rates, while those with traffic violations pay higher premiums.

Frequently Asked Questions

How Do I Show Proof of Car Insurance in Tennessee?

The Tennessee Department of Safety and Homeland Security's Driver Services Division requires all drivers to have car insurance. You can show proof of insurance by carrying an insurance card or using your insurance company’s mobile app to show digital proof.

How Much Does Car Insurance in Tennessee Cost?

The average cost of car insurance in Tennessee is $2,004 to $2,214 per year for full coverage. It is much cheaper than the national average, making Tennessee one of the cheapest states for auto insurance.

Is Tennessee a No-Fault Car Insurance State?

No, Tennessee is not a no-fault state. The at-fault driver must cover property damage and injuries for the other driver through liability insurance.

What Is the Best Car Insurance in Tennessee?

The best car insurance in Tennessee depends on your profile and driving history. For example, the cheapest option for drivers with poor credit is Farm Bureau Insurance of Tennessee, while the most affordable for drivers with a DUI on their record is Progressive.

Is Uninsured Motorist Coverage Required in Tennessee?

Providers in Tennessee must legally offer uninsured motorist coverage. However, you, as the policyholder, can decline it.

How Can I Get Car Insurance Quotes in Tennessee?

One of the fastest ways to get car insurance quotes is through our online comparison tool. We get car insurance quotes from multiple providers to help you get the cheapest rates. If you request quotes yourself, make sure to have your driver’s license, vehicle details, and a general idea of your coverage needs ready to make the process easier. Also, note that getting free quotes from several providers will help you find the best rate for your needs.