Cheapest Car Insurance in Tennessee for 2024

Despite being surrounded by states that generally pay more for car insurance, Tennessee drivers see rates about 17% less than the national average. Traditionally, Tennessee drivers pay less for insurance because most of the state is rural, leading to less traffic.

However, rates in the Volunteer State are steadily increasing, primarily due to a high percentage of uninsured drivers, more extreme weather, and Tennesseans spending more time behind the wheel.

Despite an upward trend in coverage prices, it’s not impossible to find affordable Tennessee auto insurance. State Farm auto insurance is usually the cheapest option in Tennessee, but there are several other companies to consider depending on your unique situation.

Read on to learn more about cheap car insurance in Tennessee and how you can save even more on your coverage. Then, compare car insurance quotes in TN to find the most affordable policy for you.

Which companies have the cheapest car insurance in Tennessee?

The average Tennessee driver pays about 17% less for coverage than people in other states. According to the Tennessee Department of Health, 93% of the state is rural, meaning fewer drivers are getting into accidents. 

Like the rest of the country, however, prices are steadily increasing in the Volunteer State. The reasons for the price increase include:

• Rising costs of healthcare
• Tennesseans are spending more time driving
• Car repairs cost more
• Nearly a quarter of Tennessee drivers drive uninsured
• More extreme weather in Tennessee

Despite increasing costs, some Tennessee companies have lower rates than others. State Farm and Auto-Owners Insurance Co. are usually your best bet for cheap auto insurance in Tennessee. However, you should compare rates with as many companies as possible to find the most affordable policy.

Companies use different formulas to determine your rates, so you might find cheaper insurance at companies like Geico, Farmers, or Progressive. The only way to know which company has the lowest rates for your specific situation is to get as many quotes as possible.

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Minimum Insurance Rates in Tennessee

Most states require insurance before driving on a public street or registering your car. Minimum insurance is the cheapest way to stay street-legal in Tennessee, especially since state auto insurance requirements are relatively low. 

You need the following insurance before you can drive in Tennessee:

• Bodily injury liability — $25,000 per person
• Bodily injury liability — $50,000 per accident
• Property damage liability — $15,000 per accident

Tennessee car insurance requirements don’t include other types of coverage like uninsured motorist or medical payments. Although it’s not required, insurance companies are required to offer you uninsured motorist coverage before you can sign up for a policy.

If the cheapest Tennessee insurance is what you’re looking for, check out the average cost of minimum coverage below.

Average Minimum Coverage Monthly Rates for the Top Auto Insurance Companies

Auto-Owners auto insurance is your cheapest option when you want minimum coverage, with State Farm and Geico taking second and third place. No matter which company you choose, you’ll still pay less if you buy minimum coverage than you would for full coverage.

While minimum insurance is your cheapest option, it leaves you vulnerable when you need to make a claim because it doesn’t cover your car. It also might not be enough to cover the damage you cause in an accident.

Full Coverage Rates in Tennessee

While Tennessee state law never requires drivers to carry full coverage auto insurance, most people need it if they have a car loan or lease. Full coverage includes a suite of insurance that protects your car, passengers, and yourself from most of the dangers of the road.

Full coverage in Tennessee includes the following types of insurance:

• Bodily injury liability. As the first half of liability insurance, bodily injury pays the medical bills of people you injure in a car accident.
• Property damage liability. The second half of liability insurance pays for damage you cause to other people’s property, like cars or buildings. It does not cover damage to your vehicle.
• Collision insurance. Collision insurance would cover damage to your car after an accident, even if you caused it. It also covers you if you hit a stationary object, like a light pole. (For more information, read our “Does auto insurance cover hiting a pole?“).
• Comprehensive coverage. Comprehensive insurance covers damage from unexpected events, like fires, floods, vandalism, theft, extreme weather, and animal contact.
• Uninsured/underinsured motorist coverage. If someone without coverage hits you, you’ll need uninsured motorist insurance to cover you. According to the Insurance Information Institute, 23.4% of Tennessee drivers are uninsured.
• Medical payments. Medical payments insurance covers medical expenses when you or your passengers are injured in an accident, no matter who was at fault.

Full coverage offers excellent protection for your car but costs more than minimum insurance. Check below to see how much you might pay for full coverage insurance in Tennessee. Keep in mind that your rates will vary by your unique situation.

Average Monthly Full Coverage Rates for the Top Auto Insurance Companies

State Farm and Auto-Owners Insurance Co. are once again the cheapest options, with State Farm charging just $78 a month. On the other end of the list, Allstate charges $185 a month, a full $100 more than State Farm. This highlights why it’s so important to compare prices — if you don’t look at multiple companies, you’ll likely overpay for auto insurance.

Tennessee Car Insurance Rates by Age and Gender

Car insurance companies consider a variety of factors when crafting your rates, and two of the most important are your age and gender.

Young people struggle to find cheap car insurance in TN because they are statistically more likely to drive distracted, engage in reckless behaviors, and get into accidents. New drivers also lack the experience to handle tricky situations on the road, like low visibility or black ice.

As for gender, men are more likely than women to engage in dangerous driving habits, like road rage behaviors or not wearing a seatbelt.

These reasons are why young drivers and men see higher rates for car insurance. However, you won’t be stuck with high rates forever — as long as you keep your driving record clean, your rates will drop around age 25. Similarly, the price gap between genders also decreases with age. 

Check below to see what average car insurance rates by age and gender look like in Tennessee.

Full Coverage Auto Insurance Monthly Rates by Age & Gender

Teens in Tennessee pay almost three times as much for car insurance compared to older adults looking for the same coverage. If you’re a new driver — or looking to add a young person to your policy — State Farm and Auto-Owners Insurance Co. might be your best option.

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Tennessee Car Insurance Rates by Credit Score

Most states allow insurance companies to check your credit score when determining how much to charge you, and Tennessee is one of them.

Companies consider credit scores for two reasons:

• First, people with low credit scores are more likely to file claims and get into accidents.
• Secondly, companies assume people with higher credit scores are more likely to pay their bills on time.

Drivers in Tennessee with bad credit see some of the highest rates in the country, with average quotes being about 152% higher. 

When your credit score is low, comparing car insurance is crucial since some companies are more forgiving than others. Check below to see which companies might have the lowest rates for drivers with low credit scores.

Full Coverage Auto Insurance Monthly Rates by Credit Score

Although Auto-Owners Insurance Co. and State Farm are usually the cheapest options for insurance, that’s not the case for drivers with low credit scores. Farmers and Geico offer much lower rates when your credit score isn’t the best.

The good news is that you won’t pay high prices forever. Your rates will drop if you increase your credit score. Once you improve your credit score, you can wait until your policy renews or call a representative at your insurance company to update your rates. Find cheap auto insurance for drivers with bad credit.

Tennessee Car Insurance Rates After an Accident

Several factors affect your car insurance rates, but they all serve to evaluate your risk level. The more likely you are to file a claim in the future, the more you’ll pay for auto insurance. Of all the things that impact your rates, your driving record is one of the most important.

Tennessee drivers see a 41% rate increase after an at-fault accident. You might need high-risk auto insurance if you’re responsible for too many accidents. However, you’ll find that some companies are more lenient than others when it comes to at-fault accidents.

Average Monthly Rates for the Top Insurance Companies for Drivers with an Accident

State Farm and Auto-Owners auto insurance reclaim their spot as the cheapest options for insurance. State Farm has such cheap rates that the difference between it and the most expensive option — Allstate — is over $150.

Car insurance always goes up after an at-fault accident, but you won’t be stuck with high prices forever. Most accidents stop affecting your rates after three years, meaning your monthly bill will return to normal if you keep your driving record clean.

Which cities have the cheapest car insurance in Tennessee?

From cities with a huge impact on music, like Nashville and Memphis, to towns with ample opportunities to connect with nature, like Chattanooga, Tennessee, has a lot to offer. 

Unfortunately, it usually costs more for car insurance to live in a big city. Finding the best car insurance in Nashville, TN, is harder than in smaller cities like Bristol and Kingsport, but it’s not impossible.

Memphis and Nashville have some of the highest rates in the state, primarily because they are the largest cities. Cheap auto insurance in Chattanooga, TN is easier to find because the city is small and rural. Use our comparison tool below to compare insurance quotes in your city to find the cheapest insurer near you.

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How much do drivers pay for Tennessee car insurance after a DUI?

Although things like a low credit score or an at-fault accident will hurt your rates, nothing has quite the same impact as a DUI. Tennessee drivers can pay up to 74% more for auto insurance after a DUI, but that’s not the only consequence — you’ll also face license suspension, legal fees, and jail time.

Comparing quotes is integral if you have a DUI charge on your driving record, even if you already have a policy. Some companies refuse to work with a driver after even a single DUI, but your rates will increase even if your company continues to work with you. 

Since DUI rates can be costly, shopping for new insurance can save you thousands. Check below for the average insurance price after a DUI in Tennessee.

Average Monthly Rates for the Top Insurance Companies After a DUI

State Farm has the lowest rates for Tennessee drivers after a DUI, with Farmers coming in second. Although Farmers has the second lowest rates after a DUI charge, it’s still about $39 more per month than State Farm.

Discrepancies between the average rates at some of the biggest companies in Tennessee highlight why it’s so important to compare insurance quotes after getting a DUI. 

However, your rates won’t stay high forever. Like at-fault accidents, DUI charges eventually stop affecting your rates. Unfortunately, DUIs stay on your record for seven years instead of three. Find out how to get car insurance after a DUI.

What are Tennessee’s DUI laws?

Tennessee has several DUI laws drivers should be aware of. First, Tennessee has an implied consent law, meaning you agree to let law enforcement test your blood alcohol content (BAC) upon request. Refusing a BAC test can result in up to five years of license suspension.

One of the chief ways Tennessee decides DUI penalties is by the number of previous charges you have. Consequences for a DUI can include:

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• First offense. Up to 11 months in jail, a $1,500 fine, an ignition interlock device (IID) installed in your car for six months, a one-year license suspension, and participation in an alcohol and drug education program.
• Second offense. Up to 11 months in jail, a $3,500 fine, an IID installed in your car for six months, a two-year license suspension, and participation in an alcohol and drug education program.
• Third offense. Up to 11 months in jail, a $10,000 fine, an IID installed in your car for six months, a six-year license suspension, and participation in an alcohol and drug education program.
• Fourth and more offenses. Up to one year in jail, a $15,000 fine, an IID installed in your car for six months, an eight-year license suspension, and participation in an alcohol and drug education program.

The state can also seize your car during your arrest, and there are additional penalties depending on the circumstances of your DUI. For example, having a minor in the car automatically changes a standard DUI charge into a felony.

What are Tennessee’s car insurance laws?

You already know Tennessee’s minimum insurance requirements, but there are several other laws you should be aware of before you hit the roads.

First, all Tennessee drivers are expected to show proof of insurance upon request from a law enforcement officer. Driving without insurance in Tennessee is against the law and comes with the following consequences:

• $300 fine
• License and registration suspension until you submit proof of insurance to the DMV
• $65 reinstatement fee
• $50 fee to the commissioner of safety

You’ll face harsher consequences if you cause an accident and injure or kill someone. For example, you’ll have a fee of up to $2,500 and a year in jail if you injure someone in an accident, and you’ll have to pay the injured person’s medical bills out-of-pocket.

You’ll also need to file SR-22 insurance for three years after driving without insurance, which will increase your coverage rates.

Do you need SR-22 insurance in Tennessee?

Although it’s referred to as a type of coverage, SR-22s are not actually insurance. Instead, they are forms you must submit to your DMV as proof of financial responsibility after certain traffic violations. 

SR-22 forms act as proof that you carry enough insurance to meet Tennessee’s minimum requirements.

You might need to get SR-22 insurance in Tennessee after the following incidents:

• DUI charge
• Driving without insurance
• Driving with a suspended license
• Multiple traffic tickets in a short period of time

You’ll probably need to file SR-22 insurance for three years, and it’s integral that you avoid letting your coverage lapse. If you do, your three-year period will reset, and you’ll have to start over.

You can’t file your SR-22 insurance on your own, however. The DMV requires a licensed insurance agent to file your SR-22 forms on your behalf. Call your insurance company to see if it can file SR-22, or use our comparison tool below to compare SR-22 insurance quotes from local companies to find coverage.

How do you get SR-22 insurance in Tennessee?

Although getting a notice in the mail saying you need to file SR-22 insurance is never fun, getting it in Tennessee usually isn’t difficult. SR-22 insurance costs more than standard coverage, and your application might be rejected. The good news is most companies are willing to work with you.

Similar to finding insurance after a DUI, it’s important to compare your options. Some companies are more forgiving than others for SR-22 insurance. Even if you already have a policy, you might find a better price elsewhere by getting new quotes.

Whether you have an existing policy or need a new one, you simply need to let the company know that you need SR-22 insurance. Most companies charge a monthly filing fee of between $15 and $25, but you’ll at least have the coverage you need to drive legally.

When you receive notification that you need to file SR-22, your license will be suspended until you submit proof of coverage. Getting SR-22 insurance is easy enough when you have a car, but how do you get your license back if you don’t own a vehicle?

The easiest solution to this problem is to buy non-owner car insurance. Non-owner insurance covers any car you drive, regardless of who owns it. With a non-owner policy, you’ll meet Tennessee’s minimum insurance requirements and get your license back. As a bonus, non-owner insurance is usually 25% less than a standard policy.

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What optional car insurance options can you buy in Tennessee?

Tennessee only requires liability insurance, but you can buy better protection for your car with more coverage. Companies offer add-ons to increase the value of your policy, but they can significantly raise your rates. 

Popular add-ons in Tennessee include:

• Roadside assistance. If you’re stranded on the side of the road or in a parking lot, roadside assistance comes to the rescue. Most roadside assistance plans help with flat tires, fuel deliveries, dead batteries, and towing services.
• Accident forgiveness. Buying accident forgiveness will prevent your first at-fault accident from raising your insurance rates, but you usually need to be accident-free for at least three years to qualify.
• Rental car reimbursement. If your car is stuck in the shop after a covered accident, your insurance company will pay for a rental car until your vehicle is repaired.
• New car replacement. Rather than paying for your car’s actual cash value, your insurance will pay to replace your vehicle with a brand-new one. Only cars under a few years old are eligible.
• Classic car. You’ll need to check your car’s eligibility, but people with vintage vehicles need specialty insurance. Classic car insurance includes special coverage for older, valuable cars.
• Custom parts and equipment. Auto insurance policies only cover the original parts of your car. If you invest in vehicle modifications, you’ll need custom parts and equipment insurance to cover them.
• GAP coverage. People with car loans might find themselves owing more than their vehicle is worth. GAP insurance protects you from this situation by paying the remainder of your loan once your car is totaled.

When you buy auto insurance, increasing your coverage can protect your vehicle from just about everything. However, you should only buy what you need to help keep your rates low.

How can Tennessee drivers save money on their car insurance?

Tennessee drivers already pay less than the national average, but there are plenty of ways to save even more. Consider the following ways to save when you’re looking for car insurance:

• Look for discounts. Insurance companies offer car insurance discounts to help their customers save money, and discount availability should be something you look at when shopping for coverage. 
• Lower your coverage. Although having extra coverage on your car keeps you better protected, it also costs more money. Choose the least coverage possible if you need to keep your insurance costs low.
• Keep your driving record clean. Incidents in your driving record significantly increase your rates. Avoiding tickets, accidents, and other infractions helps keep your rates low.
• Raise your deductible. Your deductible is the amount you must pay before your insurance kicks in. You can choose a higher deductible to keep your rates low, but you’ll have to pay more if you need to make a claim.
• Consider usage-based insurance. Most major companies offer usage-based insurance programs to help low-mileage drivers who practice safe habits save money.
• Compare quotes. As you saw above, rates can vary significantly between companies. Comparing quotes is one of the best ways to find the cheapest policy.
• Switch companies. If you find a company with lower rates, you should consider switching. Most insurance companies do not have a cancellation fee, but you should check with a representative before you cancel your current policy.

There are many ways drivers in the Volunteer State can save money on their insurance, but most people see low rates just by living in Tennessee. Of all the ways to find low prices, comparing quotes from multiple companies is the most important.

Find the Best Tennessee Car Insurance Rates Today

Tennessee drivers pay about 17% less for auto insurance than the rest of the country, so it’s usually not difficult to find affordable coverage in the Volunteer State. That’s especially true when you shop at companies like State Farm, Auto-Owners Insurance Co., and Geico, which tend to have the lowest overall rates.

Although these companies tend to be the cheapest options, you should still consider other quotes. Your personalized quotes will consider various factors, and you might find a different company with better prices.

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