Cheapest Auto Insurance Companies in Tennessee
We analyzed rates from major insurers to find the most affordable options for Tennessee drivers. Rates shown are average annual premiums for a 35-year-old driver with a clean record and good credit.
Full Coverage Rates
| Rank | Company | Annual Premium | Monthly Premium | vs. State Avg |
|---|---|---|---|---|
| 1 | USAA* | $1,320 | $110 | -29% |
| 2 | GEICO | $1,410 | $118 | -24% |
| 3 | State Farm | $1,560 | $130 | -16% |
| 4 | Erie Insurance | $1,650 | $138 | -11% |
| 5 | Progressive | $1,740 | $145 | -6% |
| 6 | Farmers | $1,850 | $154 | 0% |
| 7 | Nationwide | $1,960 | $163 | +6% |
| 8 | Allstate | $2,090 | $174 | +13% |
| 9 | Liberty Mutual | $2,220 | $185 | +20% |
| 10 | Travelers | $2,350 | $196 | +27% |
*USAA is available only to military members, veterans, and their families. Rates are approximate averages and may vary by location and individual factors.
Liability-Only (Minimum Coverage) Rates
| Rank | Company | Annual Premium | Monthly Premium |
|---|---|---|---|
| 1 | USAA* | $384 | $32 |
| 2 | GEICO | $420 | $35 |
| 3 | State Farm | $468 | $39 |
| 4 | Erie Insurance | $492 | $41 |
| 5 | Progressive | $528 | $44 |
*Liability-only coverage meets Tennessee's minimum 25/50/15 requirements but does not cover damage to your own vehicle.
Average Auto Insurance Rates by Tennessee City
Car insurance rates in Tennessee vary by location. Urban areas like Memphis and Nashville typically have higher premiums due to traffic density, theft rates, and accident frequency.
| City | Annual Premium | Monthly Premium | vs. State Avg | Key Factors |
|---|---|---|---|---|
| Memphis | $2,405 | $200 | +30% | High theft rates, urban density, uninsured drivers |
| Nashville | $2,220 | $185 | +20% | Rapid growth, traffic congestion, construction |
| Chattanooga | $1,960 | $163 | +6% | Interstate traffic, moderate urban density |
| Knoxville | $1,887 | $157 | +2% | University town, moderate traffic |
| Clarksville | $1,813 | $151 | -2% | Military base area, suburban setting |
| Murfreesboro | $1,776 | $148 | -4% | Nashville suburb, growing community |
| Franklin | $1,702 | $142 | -8% | Affluent suburb, lower crime rates |
| Jackson | $1,665 | $139 | -10% | Smaller city, lower traffic density |
| Johnson City | $1,591 | $133 | -14% | Rural area, low population density |
| Kingsport | $1,517 | $126 | -18% | Rural Appalachian region, low crime |
*Rates shown are for full coverage. Your actual rate depends on your specific ZIP code, driving record, and other factors.
Tennessee Auto Insurance Rates by Age
Age is one of the biggest factors affecting car insurance rates. Teen drivers pay the most, while rates typically drop significantly after age 25 and reach their lowest point around age 50-60.
| Driver Profile | Annual Premium | Monthly Premium | vs. State Avg |
|---|---|---|---|
|
Teen Driver (16-17)
Added to parent's policy
|
$4,995 | $416 | +170% |
|
Teen Driver (18-19)
Own policy
|
$4,458 | $372 | +141% |
|
Young Adult (20-24)
Clean record
|
$2,812 | $234 | +52% |
|
Adult (25-34)
Clean record
|
$1,943 | $162 | +5% |
|
Adult (35-44)
Clean record
|
$1,795 | $150 | -3% |
|
Middle-Aged (45-54)
Clean record
|
$1,647 | $137 | -11% |
|
Older Adult (55-64)
Clean record
|
$1,554 | $130 | -16% |
|
Senior (65-74)
Clean record
|
$1,702 | $142 | -8% |
|
Senior (75+)
Clean record
|
$1,887 | $157 | +2% |
Tip for Young Drivers
If you're under 25, staying on a parent's policy is usually the cheapest option. You can also reduce rates by maintaining good grades (good student discount), completing a driver's education course, and choosing a safe, modest vehicle rather than a sports car.
How Driving Violations Affect Your Tennessee Rate
Traffic violations and accidents can significantly increase your insurance premiums. Here's how much you can expect to pay after common incidents.
Speeding Ticket
| Before ticket: | $1,850/yr |
| After ticket: | $2,220/yr |
| Extra cost: | +$370/yr |
At-Fault Accident
| Before accident: | $1,850/yr |
| After accident: | $2,627/yr |
| Extra cost: | +$777/yr |
DUI Conviction
| Before DUI: | $1,850/yr |
| After DUI: | $3,330/yr |
| Extra cost: | +$1,480/yr |
How Long Do Violations Affect Your Rate?
Tennessee Auto Insurance Requirements
Tennessee law requires all drivers to carry minimum liability coverage. As a traditional tort state, you can sue the at-fault driver for damages after an accident.
Tennessee Minimum Coverage (25/50/15)
Per Person
Per Accident
Per Accident
| Coverage Type | State Minimum | Recommended | Why It Matters |
|---|---|---|---|
| Bodily Injury Liability | $25,000/$50,000 | $100,000/$300,000 | Hospital stays can easily exceed $25K. Higher limits protect your assets. |
| Property Damage | $15,000 | $50,000+ | Average new car costs $48K. $15K won't cover most vehicle repairs or totals. |
| Uninsured Motorist | Not required | $100,000/$300,000 | About 20% of TN drivers are uninsured. Protects you if they cause an accident. |
| Collision | Not required | $500 deductible | Covers your car regardless of fault. Essential for newer vehicles. |
| Comprehensive | Not required | $500 deductible | Covers theft, vandalism, weather damage. Memphis has high theft rates. |
Tennessee is a Tort State
Unlike no-fault states, Tennessee uses a traditional tort system. This means the at-fault driver is responsible for all damages in an accident. You can sue the at-fault driver for medical bills, lost wages, pain and suffering, and other damages. Having adequate liability coverage is essential to protect your assets if you're found at fault.
Understanding Your Coverage Options
Tennessee offers various types of auto insurance coverage. Understanding what each covers helps you make informed decisions.
Liability Coverage
RequiredWhat it covers: Bodily injury and property damage you cause to others in an accident where you're at fault.
Tennessee minimum: 25/50/15 (higher than some states but still may be insufficient)
Who needs it: Every driver in Tennessee—it's the law. If you cause an accident that exceeds your liability limits, you can be personally sued for the difference.
Cost impact: Liability-only coverage costs around $35-50/month. Higher limits add $10-25/month but provide much better protection.
Collision Coverage
RecommendedWhat it covers: Damage to your own vehicle from collisions with other cars, objects, or rollovers, regardless of fault.
Deductible options: Typically $250, $500, or $1,000. Higher deductible = lower premium.
Who needs it: Anyone with a car loan or lease (usually required by lender), or anyone who couldn't afford to replace their car out of pocket.
Cost impact: Adds $25-70/month depending on your vehicle value and deductible choice.
Comprehensive Coverage
RecommendedWhat it covers: Non-collision damage including theft, vandalism, fire, floods, falling objects, animal strikes, and weather damage.
Why it matters in Tennessee: Memphis consistently ranks among cities with the highest vehicle theft rates in the nation. Comprehensive coverage is particularly important if you live in or near Memphis.
Who needs it: Highly recommended if you park on the street, live in a high-theft area, or have a vehicle worth more than a few thousand dollars.
Cost impact: Adds $12-35/month. Often required along with collision if you have a car loan.
Uninsured/Underinsured Motorist
RecommendedWhat it covers: Your injuries and damages when the at-fault driver has no insurance or insufficient coverage to pay for your losses.
Tennessee statistics: Approximately 20% of Tennessee drivers are uninsured—significantly higher than the national average. This makes UM/UIM coverage especially valuable.
Who needs it: Strongly recommended for all Tennessee drivers. Without it, you could be stuck paying your own medical bills if hit by an uninsured driver.
Cost impact: Adds $8-20/month and is one of the most valuable coverages you can add.
Medical Payments (MedPay)
OptionalWhat it covers: Medical expenses for you and your passengers after an accident, regardless of who's at fault.
Coverage amounts: Typically $1,000 to $10,000 per person.
Who needs it: Useful if you have limited health insurance, high deductibles, or want coverage for passengers. It pays immediately without waiting to determine fault.
Cost impact: Very affordable at $2-6/month for $5,000 in coverage.
Gap Insurance
OptionalWhat it covers: The difference between what you owe on your car loan and what your car is worth if it's totaled.
Example: You owe $22,000 on your loan, but your car is only worth $18,000. If totaled, gap insurance covers the $4,000 difference.
Who needs it: Anyone who put less than 20% down, has a loan longer than 4 years, or leases their vehicle.
Cost impact: Usually $20-40/year when added to your policy (much cheaper than dealer-sold gap insurance).
How to Save on Tennessee Auto Insurance
Tennessee offers several opportunities to save on car insurance. Here are proven strategies to lower your premiums.
Improve Your Credit Score
Unlike some states, Tennessee allows insurers to use credit scores for rating. Improving your credit from poor to good can save you 25-40% on premiums. Pay bills on time and reduce debt to boost your score.
Low Mileage Discounts
If you drive under 10,000 miles per year, you could save 5-15%. Work from home or have a short commute? Ask about low-mileage or pay-per-mile options like Metromile or Progressive's Snapshot.
Good Student Discount
Students under 25 with a B average or better typically save 10-25% on their premium. Just provide a report card or transcript when getting your quote.
Defensive Driving Course
Completing a state-approved defensive driving course can earn you a 5-10% discount and may help remove points from your record. Online courses cost $25-50 and can save much more.
Bundle Your Policies
Combining auto with home or renters insurance typically saves 5-25%. With no state income tax in Tennessee, reinvesting those savings makes even more sense.
Anti-Theft Devices
Given Memphis's high theft rates, installing an approved anti-theft device or using factory-installed security systems can qualify you for 5-15% discounts on comprehensive coverage.
Tennessee's No State Income Tax Advantage
Tennessee is one of only nine states with no state income tax on wages and salaries. This means you keep more of your paycheck, giving you more flexibility to invest in better auto insurance coverage. Consider upgrading from minimum liability to full coverage with the money you save on taxes.
Pro tip: Use the extra disposable income to raise your deductibles, which lowers your monthly premium while maintaining comprehensive protection.
Best Auto Insurance Companies in Tennessee
Based on rates, customer satisfaction, and coverage options, these are the top insurers for Tennessee drivers.
Best for Price
GEICO
Consistently offers some of the lowest rates in Tennessee. Best for drivers who want a straightforward policy and prefer managing everything online or through their app.
Best for Service
State Farm
Largest insurer in Tennessee with agents throughout the state. Ideal for those who prefer in-person service, bundling options, and a company with strong financial stability.
Best for High-Risk
Progressive
Great option for drivers with accidents or violations on their record. Offers Snapshot usage-based insurance and the Name Your Price tool for budget-conscious shoppers.
Best Value
Erie Insurance
Highly rated regional insurer with excellent customer satisfaction scores. Known for reasonable rates, comprehensive coverage options, and responsive claims handling in Tennessee.
What Tennessee Drivers Are Saying
"Living in Memphis, I was shocked at how much my insurance cost. I used Credit Haven to compare quotes and found a policy that saved me $600 a year. The anti-theft discount really helped since car theft is such a big problem here."
"Nashville traffic has gotten insane with all the growth. After a fender bender, my rates went up 40%. Comparing quotes showed me which companies are more forgiving of accidents. Switched to Progressive and cut my increase in half."
"I work from home in Knoxville and barely drive anymore. Getting a low-mileage discount plus pay-per-mile insurance dropped my premium from $140 to $85 a month. Plus with no state income tax, I'm keeping even more of my paycheck."
Frequently Asked Questions
How much does car insurance cost in Tennessee?
The average cost of full coverage car insurance in Tennessee is approximately $1,850 per year ($154/month), which is about 8% lower than the national average of $2,000. However, rates vary significantly based on your city, age, driving record, credit score, and the coverage you choose. Liability-only coverage averages around $480/year.
Why is Memphis car insurance so expensive?
Memphis has some of the highest auto insurance rates in Tennessee due to several factors: high vehicle theft rates (consistently ranking among the worst in the nation), higher accident frequency, a larger percentage of uninsured drivers, and urban density. Drivers in Memphis typically pay 25-35% more than the state average.
Does Tennessee use credit scores for auto insurance?
Yes. Unlike states like California that prohibit credit-based insurance scoring, Tennessee allows insurers to use your credit score as a rating factor. Drivers with poor credit may pay 40-70% more than those with excellent credit. Improving your credit score is one of the most effective ways to lower your premium in Tennessee.
What is Tennessee's minimum car insurance requirement?
Tennessee requires 25/50/15 liability coverage: $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $15,000 for property damage. While these minimums are higher than some states, experts still recommend at least 100/300/50 for adequate asset protection.
What happens if I drive without insurance in Tennessee?
Driving without insurance in Tennessee is illegal. Penalties include: Class C misdemeanor charge, fines up to $300, license suspension, vehicle registration suspension, and requirement to file SR-22 proof of insurance. If you cause an accident while uninsured, you'll be personally liable for all damages and could face a lawsuit.
How can I lower my Tennessee car insurance rate?
Key strategies include: improving your credit score (major factor in TN), comparing quotes from multiple insurers, bundling auto with home/renters insurance, taking advantage of low-mileage discounts, completing a defensive driving course, maintaining a clean driving record, choosing a higher deductible, and installing anti-theft devices (especially important in Memphis).
Is Tennessee a no-fault or tort state for auto insurance?
Tennessee is a traditional tort (at-fault) state. This means the driver who causes an accident is responsible for paying damages. Unlike no-fault states, you can sue the at-fault driver for medical bills, lost wages, pain and suffering, and other damages. This is why having adequate liability coverage is crucial in Tennessee.
Should I get uninsured motorist coverage in Tennessee?
Yes, strongly recommended. About 20% of Tennessee drivers are uninsured—significantly higher than the national average of 13%. Without UM/UIM coverage, you could be stuck paying your own medical bills and car repairs if hit by an uninsured driver. It typically costs only $8-20/month and provides crucial protection.
Why is Nashville auto insurance getting more expensive?
Nashville's rapid population growth (one of the fastest-growing cities in the U.S.) has led to increased traffic congestion, more accidents, and rising insurance claims. Construction zones, inexperienced drivers moving to the area, and growing vehicle theft have all contributed to rate increases. Expect Nashville rates to continue rising as the city expands.
How often should I shop for new car insurance quotes?
Experts recommend comparing quotes at least once a year, ideally 2-3 weeks before your policy renews. You should also shop after major life changes like moving, getting married, buying a new car, improving your credit score, adding a teen driver, or when violations fall off your record (typically after 3 years).
Is it free to compare quotes on Credit Haven?
Yes, comparing quotes through Credit Haven is 100% free with no obligation. We help Tennessee drivers see their options from multiple providers so you can make an informed decision about your coverage. We don't sell insurance directly—we connect you with licensed providers who can offer you personalized quotes.
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