Cheap Car Insurance in Tennessee (2023)

The average working Tennessee resident has an average work commute of just 25 minutes, according to U.S. Census Bureau data.^[1] Fewer hours spent driving to their jobs could be contributing to the relatively cheap car insurance Tennesseans enjoy.

Tennessee ranks as the 20th-cheapest state for purchasing auto insurance. The average rate is $178 per month, which is lower than the national average monthly premium of $233. Drivers who want to save even more should compare quotes online to find the most affordable car insurance in their area.

Best cheap car insurance in Tennessee: State Farm

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State Farm

Best Cheap Car Insurance Tennessee

State Farm tops the list for Tennessee’s best and cheapest car insurance. Its policyholders earn an average quote of just $66 per month. Other top Tennessee providers offering rates under $100 per month are USAA and GEICO. Compare quotes from the providers below to find the cheapest premium for your insurance needs.

Learn More: Best Car Insurance Companies

Insurify Composite Score (ICS)

To calculate the Insurify Composite Score, a proprietary rating, Insurify data scientists weigh multiple factors that reflect the quality, reliability, and health of an insurance company. 

Inputs to the score include J.D. Power ratings, Consumer Reports customer satisfaction surveys and customer complaints, mobile app reviews, user-generated company reviews, and financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch.

Minimum car insurance requirements in Tennessee

All motor vehicles operated or parked on Tennessee roadways are required to be insured. Proof of insurance must be carried in your car at all times and must be available when:

• Requested by law enforcement

• Renewing vehicle registration

• The vehicle is involved in a car accident

The minimum liability insurance requirements for private passenger vehicles in Tennessee are:

• $25,000 per person and $50,000 per accident for bodily injury: As a major part of your liability insurance, bodily injury coverage covers medical bills for people other than the policyholder who are injured during an accident. Tennessee is an at-fault state, meaning the driver who is responsible for the collision is also responsible for paying for any resulting expenses, either through their car insurance provider or out of pocket.

• $15,000 per accident for property damage: If it’s determined that an insured driver is at fault for an accident, this coverage pays for repairs to the property of the other involved parties. Additionally, property damage coverage can cover legal costs if the insured driver is involved in a lawsuit following the accident.^[2]

Tennessee DMV information

The Tennessee Department of Motor Vehicles (DMV) provides online access for many DMV tasks in addition to physical locations and self-service kiosks throughout the state. Through the DMV, teen and new drivers can apply for permits and take road tests, seasoned drivers can renew their license and vehicle registration, and new Tennesseans can establish residency.^[3]

Public transportation in Tennessee

Every Tennessee county, rural and metro alike, has some form of public transportation. Specific transportation includes fixed-route bus service, local shuttles, ADA-compliant para-transit, express buses, and demand-response service. Ultimately, the state isn’t easy to navigate without a car, because most areas are not easily accessible by walking.^[4]

Tips for getting cheap car insurance in Tennessee

Tennessee isn’t the cheapest state for car insurance rates, but drivers pay around 24% less than the national average cost of $233 per month. You can find affordable coverage from the best car insurance companies in Tennessee by comparing quotes online to find a policy that meets your needs. You can also bundle policies, lower your deductible, and utilize discounts.

Liability-only vs. full-coverage insurance in Tennessee

If you live in Tennessee, you can opt to carry liability-only auto insurance, which pays for expenses related to injuries and damage to the other party’s car if you cause an accident. Each state sets its own minimums for how much liability insurance it requires drivers to carry. Liability-only insurance can make sense if:

• You have a low-value vehicle.

• You can afford to repair or replace your car out of your own pocket.

• Getting the cheapest insurance possible is your top priority.

For a higher level of protection, you can choose full-coverage insurance, which includes basic liability plus collision and comprehensive coverage. Collision coverage pays for damages to your car, even if you’re at fault for an accident. Comprehensive coverage pays for damages caused by events out of your control, like vandalism, weather, and animals. Auto lenders and leasing companies typically require drivers to carry full coverage on a car they’ve financed.

You may also opt for full coverage if:

• You have a high-value vehicle.

• You wouldn’t be able to afford to repair or replace your car out of pocket.

• Your car’s actual cash value (the payout you’d likely get if your car is totaled) exceeds your annual premium to carry full coverage.

Here’s a look at the average monthly quotes for cheapest auto insurance in Tennessee by policy type.

How your driving record affects Tennessee car insurance rates

Your driving history is the factor that most influences your car insurance costs. Good drivers — whose records are free of serious traffic violations like speeding tickets or reckless driving — tend to get the best car insurance rates in Tennessee. But infractions like driving under the influence or at-fault accidents can significantly increase insurance costs.

Here’s a look at average monthly quotes for the cheapest car insurance in Tennessee based on driving and accident history.

See More: High-Risk Car Insurance Tennessee

See More: SR-22 Car Insurance Tennessee

SR-22 insurance in Tennessee

You may need an SR-22 if you have a severe moving violation or multiple traffic incidents within a short time. An SR-22 form is a certificate of financial responsibility for high-risk drivers, and it’s available from the companies listed below, like Allstate, GEICO, Nationwide, and more. In Tennessee, you may need an SR-22 for up to five years.

How credit scores affect Tennessee car insurance quotes

Tennessee allows insurance companies to consider credit scores when deciding your auto rates. Generally, people with excellent or good credit scores can qualify for lower car insurance premiums than people with average or poor credit scores.

See More: Bad Credit Car Insurance Tennessee

How your city affects Tennessee insurance quotes

Where you live plays a role in your car insurance rates, as costs can vary by city. Drivers in large cities like Memphis and Nashville pay $232 and $183 per month on average. Franklin prices come in at $156 per month, and Johnson City drivers spend a monthly average of $121. Find other average quotes for the most populated cities in Tennessee in the chart below.

How your age affects your Tennessee car insurance rates

Because insurers generally equate age with experience level, your age will significantly affect how much you pay for car insurance. New drivers, who tend to be teens or people in their early 20s, typically pay more for insurance than drivers 25 and older.

The following table gives a high-level view of how age can affect insurance rates.

Quotes for younger drivers

Tennessee residents can get a learner’s permit at 15 years old, but it will be another 10 years before most see their car insurance rates begin to fall. Teenagers generally pay the highest premiums of any age group. The following table provides insight into average monthly rates for teenagers in Tennessee.

Quotes for middle-aged drivers

Car insurance rates begin to decline for most drivers when they turn 25. By the time you reach 35 or 45, your rates could have fallen significantly, especially if you maintained a clean driving record. However, traffic violations like an at-fault accident or conviction for driving under the influence will significantly increase car insurance rates.

The following table provides data for monthly averages for middle-aged drivers in Tennessee.

Quotes for senior drivers

Generally, seniors have the lowest car insurance rates of any age group. However, a traffic violation can push their rates higher. The following table provides sample average monthly rates for Tennessee senior drivers.

Tennessee car insurance FAQs

Insurify Insights

How Tennessee Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Tennessee below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Tennessee drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Nissan Altima

Most Popular Car in Tennessee

#16

State with the Most Speeding Tickets Rank

#14

State with the Moving Violations Rank

#30

State with the Most DUIs Rank

#7

State with the most Suspended Licenses

• Accidents in Tennessee

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Tennessee is the #10 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #10
  • Percent of drivers in Tennessee with an accident: 10%
• DUIs in Tennessee

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Tennessee is the #30 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #30
  • Percent of drivers in Tennessee with a DUI: 1.2%
• Reckless Driving in Tennessee

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Tennessee is the #26 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #26
  • Percent of drivers in Tennessee with a reckless driving offense: 1.3%
• Rude Driving in Tennessee

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Tennessee is the #25 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #25
  • Percent of drivers in Tennessee with a rude driving violation: 1.5%
• Speeding in Tennessee

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Tennessee is the #16 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #16
  • Percent of drivers in Tennessee with a speeding ticket: 10.1%
• Failure to Yield Rates in Tennessee

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Tennessee is the #21 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #21
  • Percent of drivers in Tennessee with a failure to yield violation: 0.1%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.