Cheap Auto Insurance in Tennessee 2025 (Find Savings With These 10 Companies)

Tennessee Statistics Summary

Tennessee, known for its rolling hills and thriving Music City, is expected to grow by over a million people by 2040. With more than seven million residents and over five million registered vehicles, finding the right cheap auto insurance in Tennessee is crucial, especially as over 20% of drivers are uninsured. To secure the best coverage, it’s important to explore car insurance companies that customers recommend for reliable service and affordable rates.

Choosing the right auto insurance policy in Tennessee can be challenging, but we’re here to help. In this comprehensive guide, we’ll walk you through the various types of coverage, pricing, driving laws, and essential tips for securing the best deal on cheap auto insurance in Tennessee. State Farm leads the way with the most affordable rates, starting at just $72 per month. It also offers valuable discounts for safe driving, bundling multiple policies, and providing reliable claims support, making it an excellent option for drivers looking for both affordability and comprehensive coverage.

Our Top 10 Company Picks: Cheap Auto Insurance in Tennessee

Compare RatesStart Now →

State Farm offers the cheapest auto insurance in Tennessee at $72, combining low rates with dependable coverage. It’s ideal for budget-conscious drivers seeking affordable protection.

Stay with us as we dive into the basics of cheap auto insurance in Tennessee. Find the best rates for cheap car insurance in TN online by entering your ZIP code to compare policies and find affordable options that suit your budget and needs.

#1 – State Farm: Top Overall Pick

Pros

• Outstanding Customer Attention: State Farm is renowned for its robust local agent network and individualized attention. Read more in our full review of State Farm’s auto insurance.
• Competitive Rates: Provides some of the lowest prices in the sector, making it ideal for cheap auto insurance in Tennessee.
• Strong Financial Strength: Guarantees dependable and timely claims handling, providing confidence to policyholders.
• Safe Driver Discounts: Offers substantial savings for safe driving through initiatives like Drive Safe & Save.

Cons

• Restricted Discounts: State Farm offers fewer discount options than its rivals, limiting additional savings opportunities.
• Average Digital Tools: Both the website and mobile apps could be more advanced for a smoother experience.
• High Rates for High-Risk Drivers: Drivers with poor records may experience significant premium increases.

Enter your ZIP code below to compare auto insurance rates.

 Secured with SHA-256 Encryption

#2 – Geico: Employee Discounts

Pros

• Low Rates: Geico is renowned for providing some of the market’s lowest rates. Learn more about Geico’s rates in our Geico auto insurance company review.
• Strong Web Presence: Geico offers an easy-to-use platform and mobile app, making it convenient for Tennessee drivers to manage cheap auto insurance policies online.
• Discounts: Geico provides various discounts, including multi-policy, military, and good driver discounts, helping drivers in Tennessee lower their insurance costs.
• Reliable Claims Process: Geico’s claims process generally receives favorable reviews, ensuring timely assistance for policyholders in Tennessee.

Cons

 

• Restricted Agent Network: Geico relies heavily on digital tools, which might limit the personalized service for Tennessee drivers preferring in-person assistance.
• Higher Rates for High-Risk Drivers: Drivers in Tennessee with accidents or bad credit may face significantly higher premiums.
• Poor Customer Service: Some customers report inconsistent experiences with customer support.

#3 – Farmers: Best for Comprehensive Coverage

Pros

• Outstanding Customer Service: Farmers provides excellent customer service with personalized support from local agents and 24/7 claims assistance. Take a look at our Farmers insurance company review to learn more.
• Numerous Coverage Options: Farmers provides various coverage choices, including unique add-ons like rideshare and new car replacement insurance, ideal for Tennessee drivers seeking tailored affordable plans.
• Accident Forgiveness: Farmers’ accident forgiveness program helps drivers avoid premium increases after their first accident, a great benefit for maintaining cheap auto insurance in Tennessee.
• Bundling Discounts: You can save significantly by bundling home and auto insurance, a smart option for those looking to lower their overall insurance costs in Tennessee.

Cons

• Higher Premiums: Farmers’ premiums can be more expensive compared to other providers, which might impact your ability to find the cheapest rates in Tennessee.
• Limited Discounts: Fewer discount opportunities may limit savings for budget-conscious drivers.
• State Availability: Not all coverage options or discounts may be available in every state, including Tennessee.

#4 – Travelers: Best for Unique Coverage

Pros

• Competitive Prices: Travelers provide affordable rates, especially for Tennessee drivers with clean driving records.
• Numerous Coverage Choices: Travelers offers a wide variety of coverage options, including collision, comprehensive, and more, allowing Tennessee drivers to customize their policies for affordable protection. For more information, read our Travelers company review.
  
• Homeowner Discounts: Attractive bundling options allow homeowners to combine policies and save.
• Flexible Payment Options: Offers customizable payment plans for added flexibility.

Cons

• Claims Satisfaction Below Average: Some policyholders report dissatisfaction with the claims process.
• Limited Support for Local Agents: Primarily relies on digital tools, which may lack a personal touch.
• Higher Premiums for High-Risk Drivers: Rates may rise significantly for drivers with a poor driving history.

Enter your ZIP code below to compare auto insurance rates.

 Secured with SHA-256 Encryption

#5 – Progressive: Best for Coverage Options

Pros

• Reasonably priced rates: Progressive is renowned for providing affordable rates, particularly for high-risk drivers. Learn more about coverage options and monthly rates in our Progressive auto insurance company review.
• Snapshot Program: Progressive’s usage-based program rewards safe driving practices with potential discounts, helping drivers secure cheap auto insurance in Tennessee.
• Multi-Policy Discounts: Tennessee residents can enjoy substantial savings when bundling auto, renters, and home insurance.
• Advanced Digital Tools: Progressive provides a user-friendly app and web platform for managing policies and submitting claims, making it convenient for budget-conscious drivers.

Cons

• Claims Satisfaction: Some customers in Tennessee have expressed dissatisfaction with the claims process, noting delays or challenges.
• High Rates for Low-Risk Drivers: Low-risk drivers might not qualify for Progressive’s lowest rates, affecting its affordability.
• Limited Agent Support: Relying heavily on digital tools, Progressive offers less personalized, one-on-one agent support for those seeking more direct assistance.

#6 –  American Family: Best for Loyalty Savings

Pros

• Personalized Service: Well-known for providing excellent customer service via a network of local agents, American Family offers personalized attention to its customers. Find out more about the American Family in our American Family review.
• Flexible Coverage: Offers a variety of insurance options tailored to fit different drivers’ needs, making it easier to secure cheap auto insurance in Tennessee without sacrificing necessary coverage.
• Safe Driving Program: Encourages safe driving practices with potential savings through initiatives that reward responsible drivers in Tennessee. Bundling
• Discounts: Provides substantial savings when combining auto insurance with other policies like home insurance, helping Tennessee residents reduce overall costs.

Cons

• Restricted Availability: The coverage may not be available in all states, limiting access for some Tennessee drivers.
• Higher Premiums for Riskier Drivers: Individuals with bad credit or a higher risk profile may see increased premiums, even for basic coverage.
• Average Claims Process: Some customers report delays or issues in processing claims, impacting satisfaction.

#7 – Liberty Mutual: Best for Customizable Policies

Pros

• Customized Coverage: Liberty Mutual provides adaptable plans that can be customized to meet specific needs, offering options like new car replacement and accident forgiveness. Learn more about this provider in our thorough Liberty Mutual company review.

• Many Discounts: Liberty Mutual offers a variety of discounts, including savings for students, military personnel, and multi-policy holders, making it a good option for cheap auto insurance in Tennessee.

• Robust Digital Tools: Their user-friendly app allows for easy policy management and claims submission, helping Tennessee drivers stay on top of their insurance.
• Financial Stability: Liberty Mutual’s strong financial footing ensures reliable claims payouts, providing peace of mind for policyholders.

Cons

• Higher Rates: Some Tennessee drivers report that Liberty Mutual’s rates may be higher compared to other providers.
• Conflicting Claims Reviews: A few policyholders have expressed dissatisfaction with the claims process, mentioning delays or issues.
• Limited Agent Support: The company relies heavily on digital tools, which may not offer the personalized agent support some Tennessee drivers prefer.

Enter your ZIP code below to compare auto insurance rates.

 Secured with SHA-256 Encryption

#8 – Nationwide: Best for Accident Forgiveness

Pros 

• Variety of Coverage: Provides a wide range of coverage choices, such as vanishing deductibles and accident forgiveness, allowing Tennessee drivers to customize their policies. You can learn more in our Nationwide auto insurance review.
• On Your Side Review: Offers yearly policy evaluations to ensure Tennessee drivers get the best rates for cheap auto insurance.
• Fantastic Bundling Discounts: Tennessee residents can save significantly by bundling auto and home insurance policies.
• Robust Financial Foundation: Nationwide’s solid financial base ensures reliable and timely claims payments.

Cons

• Average Rates: Nationwide provides reasonable rates, but they’re not always the cheapest for Tennessee drivers.
• Availability: Some states, including parts of Tennessee, may have limited access.
• Claims Processing: A few Tennessee clients reported slower-than-expected claims processing times..

#9 – Allstate: Best for Detailed Coverage

Pros

• Large Discounts: Allstate provides several discounts, including safe driver and excellent student discounts, helping Tennessee drivers save on premiums. Read more about this provider in our Allstate auto insurance review.
  
• Local Agents: Tennessee drivers benefit from tailored support through a vast network of agents, offering personalized service.
• Claim Satisfaction Guarantee: Allstate provides a refund to customers dissatisfied with the claims process, ensuring peace of mind.
• Accident Forgiveness: Helps Tennessee drivers avoid rate increases after their first accident, a valuable feature for keeping premiums low.

Cons

• Higher Rates: Allstate’s premiums are typically higher compared to other providers, which may not appeal to drivers seeking the cheapest auto insurance in Tennessee.
• Average Customer Satisfaction: Some customers have mixed feelings about claims handling.
• Limited Digital Tools: The online and mobile platforms could be more user-friendly for easier policy management.

# 10 – Erie: Best for Low rates

Pros

• Affordable: Erie provides some of the most affordable auto insurance quotes, especially for Tennessee drivers seeking budget-friendly options. Dive into our in-depth Erie auto insurance review to find the best policy for your needs.
• Comprehensive Coverage: Erie offers a wide range of coverage options, including rental car and roadside assistance, making it an attractive choice for cheap auto insurance in Tennessee.
• Customer Satisfaction: Known for exceptional claims handling and customer service, it’s highly rated for providing reliable, budget-conscious coverage.
• Additional Benefits: Offers unique perks like rate lock and first-accident forgiveness, ideal for Tennessee drivers seeking extra value.

Cons

• Limited Availability: Erie is only available in 12 states, including Tennessee, which may limit accessibility for others.
• Mobile App: Its digital tools, including the mobile app, are less advanced than competitors.
• Policy Customization: Fewer customization options compared to larger insurers.

Enter your ZIP code below to compare auto insurance rates.

 Secured with SHA-256 Encryption

Cheap Auto Insurance in Tennessee Coverage and Rates

What’s the bottom line? How much is cheap auto insurance in Tennessee actually going to set you back? We’ll break it down so you can understand the actual costs involved.

Tennessee Auto Insurance Monthly Rates by Provider & Coverage Level

Feeling overwhelmed already? We know you don’t want to pay more than you have to, but it’s important to be aware of auto insurance rates and the different levels of insurance, as well as how you can save money on each policy.

To help you understand where we’re coming from, let’s discuss Tennessee’s car culture briefly before discussing cheap auto insurance in Tennessee and minimum coverage options.

Tennessee’s Premiums as a Percentage of Income

No matter where you live in the U.S., your annual per capita income is the money you take home after taxes, influencing the average car insurance cost in Tennessee. For more information, check the State Farm site.

Your car insurance premium is the yearly amount of money you pay for your car insurance policy.

In 2014, Tennessee had an average annual per capita income of $36,909. Tennessee residents paid an average car insurance in Tennessee of $855.56 for full car insurance coverage the same year.

Tennesseans pay an average of 2.32 percent of their annual disposable income on TN insurance, making it essential to find affordable coverage options without compromising on protection.

If you break down this rate at a monthly cost, Tennessee drivers pay $71.29 per month for car insurance. Keep in mind this is an average rate for cheap full coverage car insurance in Tennessee, so if you have a smaller policy, your rate could be much lower.

Countrywide, Americans pay an average of $981.77 per year on full coverage car insurance and have an average salary of $40,859.

If we look at the surrounding states’ premiums, Kentucky insurance is slightly higher at $917.49 per year; Alabama’s average is slightly lower at $837.09 per year, and Georgians pay a higher rate at $991.25 for full coverage.

Rates by ZIP for Cheap Auto Insurance In Tennessee

Where you live also has a lot to do with car insurance rates.

Find your ZIP code in the tables below.

Tennessee 25 Cheapest Auto Insurance Monthly Rates by ZIP Codes

Memphis is the second-largest city in Tennessee, so it makes sense that car insurance might cost the most here. However, there are still options for finding cheap auto insurance in Tennessee to help reduce costs, even in larger cities like Memphis. Comparing the best car insurance companies can help you discover affordable policies that fit your budget.

Tennessee 25 Most Expensive Auto Insurance Monthly Rates by ZIP Codes

Rates by City for Cheap Auto Insurance in Tennessee

Find your city in the tables below.

Cheapest 25 Cities Auto Insurance Monthly Rates in Tennessee

Central City has the cheapest car insurance rates, while Memphis has the most expensive ones.

Most Expensive 25 Cities Auto Insurance Monthly Rates in Tennessee

Now that we’ve reviewed rates by cities and ZIP codes, it’s time to examine cheap auto insurance in Tennessee company ratings.

Male vs. Female Rates in Tennessee

Do you know factors like gender, marital status, and age can affect your car insurance rate?

Tennessee Auto Insurance Monthly Rates by Provider, Age & Gender

As you can see, men usually pay more for car insurance than women do.

As far as rates based on age, cheap auto insurance in Tennessee providers know young drivers have little experience on the road and are more likely to get into accidents or speed. If you keep a clean record as a teenage driver, your rates should significantly decrease by the time you turn 25. Knowing what kind of car insurance you really need can help you make informed decisions and manage these costs effectively.

Auto Insurance Costs in Tennessee

Explore the varying costs of affordable car insurance in Tennessee across different cities and uncover the most budget-friendly options tailored to your location. Whether you reside in Chattanooga, Clarksville, Knoxville, Memphis, or Nashville, this guide provides insights into finding affordable car insurance in Tennessee specific to your city, ensuring you make informed decisions to protect your vehicle without breaking the bank. Check out the best car insurance companies that offer competitive rates and reliable coverage across these areas.

Number of Insurers in Tennessee

Domestic insurance laws are governed by the regulations of the specific state, ensuring compliance with local insurance requirements. In contrast, foreign insurance laws are regulated by federal laws in the United States, ensuring that international agreements and foreign transactions align with U.S. standards. For navigating both domestic and foreign insurance landscapes, it’s important to consult car insurance companies that customers recommend, ensuring you select a reliable provider with strong policyholder satisfaction.

Tennessee Core Coverage

Tennessee Auto Insurance Monthly Rates by Provider & Coverage Type

The data in the table above is pulled directly from a very reputable source: the National Association of Insurance Commissioners. Because this data is from 2015, you can expect rates to be higher from now on.

Americans pay an average of $981.77 per year for car insurance. Tennesseans usually pay around $855.56 for a full coverage insurance policy.

While having minimum liability insurance is crucial and complies with state regulations, you might want to consider getting a full coverage policy. After all, the more coverage, the better when it comes to cheap auto insurance in Tennessee.

This post from Reddit highlights that having full coverage insurance ensures you’re protected when involved in an accident on private property, even if your vehicle isn’t required by law. Maintaining cheap auto insurance in Tennessee is always wise, as it can help resolve claims efficiently and provide financial security in unexpected situations.

Minimum Coverage for Cheap Auto Insurance in Tennessee

The information below is brought to you by NOLO.

What is minimum car insurance coverage, and why is it important to carry? Minimum car insurance is also known as liability car insurance coverage. By state law, it is the least amount of car insurance a person can carry.

Tennessee minimum liability car insurance requirements are as follows, and you must meet these auto insurance requirements in Tennessee to ensure financial responsibility in the event of an accident.

• $25,000 liability coverage for bodily injury or death of one person in an accident caused by the owner/driver of the insured vehicle
• $50,000 liability coverage for total bodily injury or death liability in an accident caused by the owner/driver of the insured vehicle
• $15,000 liability coverage for property damage per accident caused by the owner/driver of the insured vehicle

Tennessee is an at-fault state; this means that the person who was at fault for causing the car accident is also responsible for any resulting harm (from a practical standpoint, the at-fault driver’s insurance carrier will absorb these losses up to policy limits).

Liability coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits.

Read more: Auto Insurance Basics: Property Damage Liability

Vehicle repairs and medical bills can add up very quickly, and if you don’t have enough coverage with cheap auto insurance in Tennessee, you will end up paying for these bills out of your pocket.

Interested in finding out how to bulk up your existing car insurance policy so you don’t get stuck paying more bills than necessary? Keep reading for more info on cheap auto insurance in Tennessee below.

Tennessee’s Additional Liability Coverage

Tennessee Auto Insurance Loss Ratio

Medpay, uninsured, and underinsured motorist coverage are optional liability add-ons that any driver can include in their cheap auto insurance in Tennessee policy. These can enhance what is liability car insurance by offering broader protection in case of an accident.

But why should you consider adding these extra coverage options in the first place?

Twenty percent of Tennessee drivers break the law every single day and drive without car insurance. Tennessee is ranked 5th in the U.S. for uninsured drivers.

Let’s say you are hit by an uninsured driver. This driver might have thousands of dollars in the bank to cover the costs of damages to your vehicle, but chances are, he is broke and will likely go bankrupt trying to pay for damages to his vehicle and yours. Having cheap auto insurance in Tennessee with uninsured motorist coverage can protect you in such situations.

You’ll never see a dime of the money rightfully owed you.

In cases similar to these, uninsured car insurance coverage is a dream to have. Even if an uninsured driver hits you, you never have to worry. Remember, one in five drivers are uninsured.

What is a loss ratio percentage and what does it have to do with a car insurance company?

As you can see in the chart above, we mention loss ratio percentages.

https://www.youtube.com/watch?v=ig7OlwmZamo

Loss ratio percentages are a way to measure a company’s financial strength. They tell exactly how many filed claims the insurance company actually paid out, which is important when choosing cheap auto insurance in Tennessee to ensure you’re selecting a reliable provider.

If a company’s loss ratio is too low (under 50 percent), it might be scamming its clients because it isn’t paying enough claims.

On the other hand, if the company’s loss ratio percentage is too high (over 100 percent), the company could be at risk of going bankrupt.

According to the table above, all of the loss ratio percentages are normal. They stay well within the range of 50-100 percent.

When looking for a new insurance provider, ask them, “What is your loss ratio percentage?” This will help you make a better decision when selecting cheap auto insurance in Tennessee.

Add-ons, Endorsements, and Riders

Are you looking for even cheaper auto insurance coverage in Tennessee? As we said before, car insurance should be specifically tailored to fit your lifestyle.

Click on the links below to learn more about each type of coverage listed.

• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Rental Reimbursement
• Emergency Roadside Assistance
• Mechanical Breakdown Insurance
• Non-Owner Car Insurance
• Modified Car Insurance Coverage
• Classic Car Insurance
• Pay-As-You-Drive or Usage-Based Insurance

Add one or add them all; the choice is up to you.

Top Discounts for Cheap Auto Insurance in Tennessee

Auto Insurance Discounts From the Top Providers in Tennessee

Leading insurance companies offer discounts for good students, multi-policy, and safe drivers, making it simpler to find cheap auto insurance in Tennessee. By comparing these offers, you can guarantee that you have the appropriate coverage for your needs while also drastically lowering your cost. One of the top ways customers save money on their car insurance is by taking advantage of these discounts and bundling policies for maximum savings.

Low-Income Car Insurance Program

Only three states in the U.S. have a low-income car insurance program, and Tennessee is not one of them.

Don’t be discouraged by this. If you’re still looking for more ways to save on your insurance policy, ask your current provider if you qualify for any of the discounts found below.

• Good driver discount
• Homeowner’s discount
• Military Discount
• Multi-car discount
• Student Discount

Looking for even more ways to save? Use our free tool right now. Enter your ZIP code in the box below.

Enter your ZIP code below to compare auto insurance rates.

 Secured with SHA-256 Encryption

Tennessee’s Car Culture

According to Hartford, owning a well-maintained or stylish car gives Tennessee drivers a sense of empowerment beyond just providing transportation, and finding cheap auto insurance in Tennessee can help maintain that sense of freedom without breaking the bank. What kind of car insurance you really need will depend on your vehicle’s value and personal preferences, but ensuring adequate coverage is key.

The love of eye-catching cars extends to the numerous car museums throughout the state. The Lane Motor Museum, just outside Nashville, features over 400 quirky and unique vehicles from obscure automakers.

Tennessee boasts car museums like the Hollywood Star Cars Museum and Floyd Garrett Muscle Car Museum, home to iconic collections. Find cheap auto insurance in Tennessee to protect your ride.

Best Tennessee Car Insurance Companies

With literally hundreds of cheap auto insurance companies in Tennessee to choose from, it’s difficult to pick just one to trust with your vehicle, your money, and possibly even your life. However, the best car insurance in TN is known for providing excellent customer service, competitive rates, and comprehensive coverage.

No one has time to sift through hundreds of companies for the best auto insurance rates in Tennessee; that’s why we already did all the heavy lifting for you. In this section, we will cover things like financial ratings, customer satisfaction ratings, company complaints, and more. Best car insurance companies will be highlighted to help you choose the right fit for your needs.

First, let’s cover financial ratings.

Ratings of the Top Ten Largest Car Insurance Companies in Tennessee

Financial Rating in Tennessee From the Top Companies

The companies above are some of the best in the business. The table shows each company’s AM Best rating, another way to measure a company’s financial strength when selecting cheap auto insurance in Tennessee.

Remember how we said to stay away from car insurance companies with a loss ratio percentage outside the bounds of 50-100 percent? Check out Allstate’s low loss percentage ratio; it still has a high rating. Car insurance companies that customers recommend often showcase a balance between financial strength and reliable customer service.

Companies with the Best Ratings in Tennessee

Customer service is a huge thing to look for when you are interested in finding a new car insurance company. When you’ve just gotten into an accident, you want to make sure you can trust the voice on the other end of the line, especially when dealing with cheap auto insurance in Tennessee.
The 2019 U.S. Auto Insurance Study, put together by J.D. Power, now in its 20th year, examines customer satisfaction in five factors (in order of importance): interaction, policy offerings, price, billing process, policy information, and claims.

Let’s have a look at some of the best-rated car insurance companies in Tennessee’s region.

The study is based on responses from 42,759 auto insurance customers and was fielded from February through April 2019.

According to this chart, Farm Bureau Insurance of Tennessee was the best-rated car insurance company in the Southeast region of the U.S.

Companies with the Most Complaints in Tennessee

The company complaint data below is collected from the NAIC.

Auto Insurance Companies With Most Complaints in Tennessee

Every company receives complaints; how a company handles a complaint after it is received is what truly matters. Car insurance companies that customers recommend are often those that efficiently address customer concerns, ensuring satisfaction even in difficult situations.

Cheapest Companies in Tennessee

Tennessee Auto insurance Rates by Cheapest Companies vs. State Average

The data above shows that Travelers Prop Cas Ins Co and USAA offer cheap auto insurance in Tennessee. However, USAA exclusively serves military personnel and their families. One of the top ways customers save money on their car insurance is by bundling policies, maintaining a clean driving record, and taking advantage of discounts for safe driving.

Commute Rates by Companies

Did you know that distance can affect your car insurance rate?

Tennessee Auto Insurance Monthly Rates by Provider & Annual Mileage

Surprisingly, most of these rates are the same – but if you’re looking at companies with great rates, even if you spend a lot of your life in your car, try going with Allstate or Farmers Auto Insurance. Check out our picks for the best car insurance companies to find the right provider for your needs.

Coverage Level Rates for Cheap Auto Insurance in Tennessee

Sometimes car insurance companies will give you a break on your rate if they know you are going to purchase more insurance. Check it out in the table below to see what we mean.

Tennessee Auto Insurance Monthly Rates by Provider & Coverage Level

When looking for a new insurance provider, ask them, “What is your loss ratio percentage?” This will help you make a better decision when selecting cheap auto insurance in Tennessee. For more guidance, consider car insurance companies that customers recommend for reliable options.

Credit History Rates by Companies

Unfortunately, a bad credit score can leave you paying a lot of green for your car insurance policy.

Tennessee Auto Insurance Monthly Rates by Credit Score

In 2017, Tennessee’s average credit score was 662. That’s 13 points lower than the national average.

Car insurance check your past credit score history because they want to know if you pay your bills on time. If you keep a good credit history, your rates are likely to stay lower.

According to the table above, a bad credit score can increase your car insurance rate by thousands of dollars.

But let’s move on to the biggest rate factor out there: driving record.

Driving Record Rates by Companies

Probably the most important question an insurance provider will ask is, “Have you ever been in an accident or gotten a speeding ticket?”

If you answer yes, you’ll likely have a higher-than-average car insurance rate.

Tennessee Auto Insurance Monthly Rates by Driving Record

Drinking and driving is against the law, and being charged with just one DUI can cost you thousands of dollars more a year on your car insurance policy. It’s essential to understand what a driving record is and what it tracks since it can significantly impact your insurance costs.

Tennessee Car Insurance Laws

By now, you should know that Tennessee requires all drivers to carry a car insurance policy. However, car insurance laws in Tennessee may differ from those in other states, so it’s important to understand the specifics.

How are these laws created, and who creates them?

How State Laws for Insurance are Determined

According to the NAIC, state laws considerably influence auto insurance.

Each state determines the type of tort law and threshold (if any) that applies, the type and amount of liability insurance required, and the system used for approving insurer rates and forms.

The states employ a variety of rate regulation mechanisms:

1. Determined by Commissioner
2. Prior approval
3. Modified prior approval
4. Flex rating
5. File and use
6. Use and file
7. No file

Tennessee uses two processes to file new car insurance laws. Form filings need prior approval (30-day deemer plus 30-day extension).

What does prior approval mean?

Rates/forms must be filed with and approved by the state insurance department before they can be used. Approval can be by means of a deemer provision, which indicates approval if rates/forms are not denied within a specified number of days.

If you want to read about rate filings, check out the Tennessee Code Title 56. Insurance § 56-5-307.

Windshield Coverage

Unfortunately, Tennessee doesn’t have any laws regarding windshield coverage or repairs. However, some car insurance companies might offer a windshield coverage plan included in a comprehensive policy. It’s essential to understand what kind of car insurance you really need] to ensure your coverage includes these options, protecting you from unexpected repair costs.

High-Risk Insurance

Car accidents happen, and that’s exactly why car insurance was invented in the first place. However, if you have been in an accident, you may need to apply for high-risk insurance or SR22 insurance.

What are some other reasons you may need to get SR22 insurance?

• Being convicted of a DUI
• Driving without insurance
• Being convicted of a serious traffic violation
• Having points on your driving record

What is SR22 insurance in Tennessee?

A SR-22 form is proof of future financial responsibility as required under Tennessee Code Annotated 55-12-114. If you are required to file a SR-22, then you should contact your liability insurance representative and advise them of the needed filing with our state.

According to the Tennessee Department of Safety and Homeland Security, an SR-22 can be required for five years from the date of suspension.

If the SR-22 is filed for a total of three years (36 months) within the five years, it may be canceled, provided it is not required on any other suspension.

If five years pass from the date of suspension before you reinstate your privileges, the SR-22 is not required. If the SR-22 is canceled before the required time and a new form is not filed, your driving privileges will be suspended.

Forms of Financial Responsibility

What is a form of financial responsibility?

A form of financial responsibility is just proof of insurance. An insurance card proves that a driver is financially responsible if and when he or she is involved and/or causes an accident.

Acceptable forms of proof of insurance are:

1. Valid liability insurance ID cards
2. Copy of your current car’s insurance policy
3. Valid insurance binder (a temporary form of car insurance)
4. Electronic insurance card (or picture proof of insurance card)

According to the Tennessee Department of Revenue, you can show proof of financial responsibility to satisfy your legal requirement under Tennessee law by:

• posting a bond with the Department of Revenue for $65,000
• making a cash deposit with the Department of Revenue for $65,000

If you are pulled over and cannot provide proof of insurance, you may have to pay a fine of up to $300.

Driving without car insurance in Tennessee is a Class A misdemeanor, and knowingly providing false proof of insurance can lead to jail time and hefty fines. If you still have no coverage, keep reading to learn more about cheap auto insurance in Tennessee.

Enter your ZIP code below to compare auto insurance rates.

 Secured with SHA-256 Encryption

Tennessee State Laws

Tennessee has hundreds of state laws, and while you’re not expected to know them all, it’s crucial to be familiar with the most important driving laws. To help keep your cheap auto insurance in Tennessee rates low and avoid unnecessary traffic tickets, this section covers essential safety laws, rules of the road, and more.

Tennessee State Specific Laws

One weird state-specific driving law in Tennessee is that you may not drive while you’re asleep. As tempting as it may be, please don’t drive while sleeping. You’ll face some serious jail time and will most likely kill yourself if you do.

When applying for a Tennessee license, drivers must present the following:

• Your current license (or certified copy of driving record or other acceptable ID)
• Proof of name change, such as original certified court order, marriage certificate, or divorce decree
• Two Proofs of Tennessee Residency with your name and resident address
• Proof of U.S. citizenship or lawful permanent resident status
• A Social Security Number or sworn affidavit if no Social Security number has been issued

Don’t forget to update your insurance company and let them know you are moving out of state and will need Tennesee car insurance.

Tennessee minimum car insurance requirements are:

• $25,000 liability coverage for bodily injury or death of one person in an accident caused by the owner/driver of the insured vehicle
• $50,000 liability coverage for total bodily injury or death liability in an accident caused by the owner/driver of the insured vehicle
• $15,000 liability coverage for property damage per accident caused by the owner/driver of the insured vehicle

Some companies don’t provide car insurance in every state in the U.S., so it’s extremely important to find this out before you move.

Statute of Limitations

The statute of limitations law means victims of car accidents only have a specific amount of time to file a claim with their insurance policy.

This protects both the victim and the insurance company by allowing the victim enough time to file a claim, ensuring claims aren’t delayed for years. For more information, check the Geico site.

In Tennessee, car accident victims have just one year to file a personal injury claim and three years to file a property damage claim.

Keep in mind – you have one or three year(s) to file a claim from the day of your accident.

Don’t wait to file your claims! Cheap auto insurance in Tennessee exists to help you out when you’ve been in an accident, so there’s really no reason to delay filing your claim. Understanding why car insurance is so expensive can also highlight the importance of acting quickly to avoid further financial strain after an incident.

Automobile Insurance Fraud in Tennessee

Auto insurance fraud is a serious crime in Tennessee, but what does insurance fraud mean exactly?

According to the Insurance Information Institute, Insurance fraud can be “hard” or “soft.” Hard fraud occurs when someone deliberately fabricates claims or fakes an accident.

Soft insurance fraud, also known as opportunistic fraud, occurs when people pad legitimate claims, for example, or, in the case of business owners, list fewer employees or misrepresent the work they do to pay lower premiums for workers’ compensation.

If you’re caught committing insurance fraud, you could be facing jail time.

Wondering how not to commit insurance fraud?

Don’t pad your claims, and don’t intentionally cause an accident.

If you have more questions about insurance fraud or would like to contact the Tennessee Department of Commerce & Insurance, visit tn.gov or call

You can also visit the office at the address listed below.

500 James Robertson Pkwy Nashville, TN 37243.

Vehicle Licensing Laws

Have you ever heard of a REAL ID?

By October 2020, Tennesee residents must carry a REAL ID to pass airport security and board a domestic flight.

You must also carry a REAL ID if you wish to visit any federal sites. If you don’t wish to use a REAL ID, a valid passport can be used instead.

Penalties for Driving Without Insurance

Trust us. We know that skipping out on car insurance might seem like an easy way to save money in the long run, but it doesn’t.

Why? Because driving without car insurance is illegal in Tennessee.

Still don’t believe us? Take a look at the penalty for driving without car insurance listed below. This is what happens when you get caught driving without insurance the first time:

• Pay a $300 fine
• Driver’s license and registration suspended until insurance proof is provided and driver’s license examination is retaken
• $65 restoration fee; $50 fee to commissioner of safety; SR-22 certificate for three years

What if you do have car insurance, but you don’t have proof of insurance? There are penalties for that too.

• $25 coverage failure fee after 15 days; an additional $100 continued coverage failure fee after an additional 30 days
• Driver’s license and registration are suspended after 45 days until proof provided
• $65 license and registration restoration fee; $50 fee to the commissioner of safety

The information above is pulled from the Tennesee Department of Revenue.

Let’s go back again and review acceptable forms of proof of car insurance. When a law enforcement officer pulls you over and asks for proof of insurance, license, and registration, you are obligated to provide him or her with these critical documents.

1. Valid liability insurance ID cards
2. Copy of your current car’s insurance policy
3. Valid insurance binder (a temporary form of car insurance)
4. Picture of proof of insurance on your smartphone

Don’t put off submitting your claims! There’s no excuse to put off filing a claim because cheap auto insurance in Tennessee  is meant to help you after an accident

Teen Driver Laws

The information below is collected from the IIHS.

Good news for young Tennessee drivers! You must be at least 15 years old to start driver’s education classes and obtain a permit in Tennessee.

You must be at least 16 years old to obtain a restricted driver’s license.

Auto Insurance License Requirements in Tennessee

Look at the table below for restricted license laws.

Restricted Drivers License Rules in Tennessee

Driver License Renewal Procedures

Whether you’re 18 years old or 80 years old, all Tennessee drivers must renew their licenses every eight years.

The state of Tennessee does not require drivers to have proof of adequate vision when renewing a driver’s license.

Save a trip to the Tennessee DMV and renew your license online or by mail. All ages are allowed to renew licenses online or by mail. While you’re renewing your license, consider reviewing the best car insurance companies in Tennessee to ensure you’re getting the most value for your coverage.

New Residents: Cheap Auto Insurance in Tennessee

If you are a new resident in the state of Tennessee or you are thinking about moving to Tennessee shortly, this section is for you.

New residents or those returning to Tennessee and holding a driver’s license from another state must obtain a Tennessee driver’s license no later than 30 days after establishing residency. Additionally, securing new driver car insurance is essential to ensure you’re fully covered when driving in the state, especially as a new resident adjusting to Tennessee’s driving laws.

Negligent Operator Treatment System (NOTS)

In Tennessee, “negligent” or reckless driving is a class B misdemeanor. Convicted drivers are looking at up to six months in jail and a maximum of $580 in fines.

Any motorist who racks up two reckless driving convictions within one year faces a 12-month license suspension.

Reckless driving in Tennessee can be defined as:

• driving in “willful or wanton disregard for the safety of persons or property”
• doing a wheelie on a motorcycle in willful or wanton disregard for the safety of a person or property
• driving into a flooded area that is marked with a warning sign or barricade

A reckless driving conviction will also add six demerit points to the motorist’s driving record. Accumulating 12 or more points in a year can lead to a license suspension of 6-12 months.

Rules of the Road in Tennessee

Are you unsure about Tennessee’s rules of the road? Not knowing simple rules of the road could potentially cause you to rack up points on your driving record, cause you to get into a car accident, or worse.

In this next section, we go over speed limit laws, car seat and seat belt laws, safety laws and more — so buckle up as we fly through these important Tennessee rules of the road. Understanding what a driving record is and what it tracks can help you avoid accumulating points, which could lead to higher insurance rates or even license suspension. Your driving record keeps track of violations, accidents, and other infractions, making it crucial to maintain a clean record.

Fault vs No-Fault

As we’ve already stated above, Tennessee is an at-fault state.

Simply put, if you cause an accident and damage another person’s vehicle or cause them to need medical intervention, you are responsible for covering all costs of damages and medical bills resulting from that accident.

If you break it, you buy it, and that’s all there is to it.

It’s so important to have the right kind of car insurance you really need because having the correct policy can save you from paying out of pocket for damage repairs. Cheap auto insurance in Tennessee can offer the protection necessary without breaking the bank.

Seat Belt and Car Seat Laws

The information below is brought to you by the IIHS.

Every state seat belt law is different – avoid having to pay a hefty penalty fine by knowing these seat belt laws below.

Tennessee Seat Belt Laws

Tennessee also wants children to be safe while traveling on the road. Look at the table below to find out more about Tennessee car seat laws.

Tennessee Car Seat Laws

Children 8 years and younger and less than 4’9″ must be in the rear seat if available. A rear seat is recommended for children ages 9-12.

If you’re caught breaking a car seat law, the fine is $50, plus fees.

There are also restrictions on riding in the cargo area of a pick-up truck.

You will not be covered by your insurance if you are in an accident while riding in the bed of a pick-up truck if the following applies:

• People 12 and older
• people 6-11 in a vehicle being operated off the interstate or state highway system
• parades if a vehicle going less than 20 mph
• agricultural activities or on city or county roads unless prohibited by local ordinance or resolution

Keep Right and Move Over Laws

We’ve all heard of keep right or move over laws, right?

In Tennessee, you’re supposed to move right to let faster traffic pass if you’re blocking traffic in the left lane.

According to AAA, state law requires drivers approaching a stationary authorized emergency, utility vehicle, municipal vehicle, road maintenance vehicle, or a tow truck or recovery vehicle, to display flashing lights and travel in the same direction, to reduce speed and, if safe to do so, vacate the lane closest to the vehicles.

To stay protected on the road, it’s important to choose from the best car insurance companies in Tennessee. These companies offer solid coverage and peace of mind while following the state’s driving laws.

Speed Limit Laws

Always pay attention to speed limit laws. They are set in place for a reason – to keep you and your family as safe as possible while on the road.

Check out the table below for Tennessee’s speed limit laws.

Tennessee Speed Limit Laws

Keep in mind that these limits listed above are the maximum speeds you may drive on Tennessee roads.

Ridesharing

Have you ever heard of ridesharing services like Uber or Lyft? If you are a ridesharing employee, you must have what is called ridesharing insurance.

Car insurance companies know that the more you drive, the more likely you are to get into a car accident.

Need Tennessee ridesharing car insurance, but you’re not sure where to start shopping for it?

Check out the best rideshare car insurance companies listed below to get started:

• Allstate
• Erie
• Farmers
• Geico
• Liberty Mutual
• State Farm
• USAA

Remember that not every insurance company provides cheap auto insurance in Tennessee with ridesharing coverage, and it is their right to refuse coverage if you are a candidate for ridesharing insurance.

Automation on the Road

What is automation on the road?

According to the IIHS, in driving, automation involves using radar, cameras, and other sensors to perform parts or all of the driving tasks on a sustained basis instead of the driver.

One example is adaptive cruise control, which continually adjusts the vehicle’s speed to maintain a set minimum following distance.

Features like automatic braking, which steps in if a driver fails to brake, or blind-spot detection for added safety, are not considered full automation but still enhance driver safety. Visit the Farmers site to explore coverage for these advanced features.The NCSL states that Tennessee has a new law that prohibits local governments from banning the use of motor vehicles equipped with autonomous technology. Vehicle automation is currently in deployment.

The IIHS also states that an operator of an automated vehicle does not need to be licensed, and there doesn’t need to be an operator inside an automated vehicle, however, automated vehicles must have minimum liability insurance of at least $5,000,000.

Safety Laws in Tennessee

This next section will cover laws regarding impaired driving, drunk driving laws, penalties, and distracted driving laws in Tennessee.

First, let’s talk about a devastating unlawful activity: drinking and driving.

What a driving record is and what it tracks: Your driving record tracks your history as a driver, including violations like DUIs, accidents, and speeding tickets. Having these incidents on your driving record can significantly impact your ability to secure cheap auto insurance in Tennessee and may result in much higher premiums.

DUI Laws

The information below on DUI laws and penalties is pulled directly from responsibility.org.

Nearly 3,000 Tennessee drivers have lost their lives to drinking and driving over the last ten years — which is exactly why there are strict laws against drinking and driving.

Tennessee DUI Laws

Listed below are DUI penalties based on the number of offenses.

Tennessee DUI Penalties

These penalties may be strict, but they are enforced for good reason.

Marijuana-Impaired Driving Laws

At this time, there aren’t any marijuana-specific drugged driving laws in Tennessee, but just because you can’t specifically be pulled over for marijuana use doesn’t mean you can’t be pulled over for impaired driving.

If you are caught driving while impaired, you could be facing jail time and you may be required to pay a fine.

Why car insurance is so expensive: Impaired driving incidents can increase the cost of car insurance across the board. The risk factors associated with driving under the influence, including accidents, legal fees, and medical costs, drive up insurance premiums for all drivers, making car insurance in Tennessee more expensive.

Distracted Driving Laws

Technology can be a great tool in many cases, but using a cell phone while driving has become a huge distraction and the culprit for causing many car accidents.

In case you didn’t know or needed to be reminded, texting and driving is against the law in the state of Tennessee.

Tennessee Distracted Driving Laws

Don’t risk running yourself or someone else off the road because of a text! It can wait!

What a driving record is and what it tracks: Your driving record tracks various aspects of your driving history, such as accidents, traffic violations, and points accrued from violations like texting while driving. A poor driving record can lead to higher insurance premiums or difficulty securing cheap auto insurance in Tennessee.

Enter your ZIP code below to compare auto insurance rates.

 Secured with SHA-256 Encryption

Driving in Tennessee

Now that we’ve covered Tennessee’s driving and safety laws, insurance requirements, and rules of the road, it’s time to explore traffic fatality trends, congestion issues, and vehicle theft patterns.

Understanding these risks can help you avoid accidents, dangerous areas, and heavy traffic.

Staying aware of your surroundings always gives you an advantage. Let’s begin by looking at vehicle theft trends and how the best car insurance companies can offer coverage that protects you from financial losses related to theft or other risks.

Vehicle Theft in Tennessee

How do you know if your vehicle is on Tennessee’s most stolen car list? Check out the table below to see if your vehicle is at risk of being stolen.

Keep in mind that the vehicle year listed is the most popular model year stolen.

Vehicle Theft in Tennessee

Below is the FBI‘s data on cities in Tennessee with the most car theft.

Vehicle Theft by City in Tennessee

Some of these cities reported zero theft in 2017 – that is not a typo, that’s a fact.

Road Fatalities in Tennessee

Let’s move on to a more sobering topic: traffic fatalities. How do they occur? What factors contribute to them? Are certain types of vehicles more likely to be involved in fatal accidents?

We’ll delve into these statistics next to help you better understand the risks and why car insurance can be so expensive. Elevated insurance costs often reflect the financial responsibility insurers take on in covering potential fatal accidents.

Fatal Crashes by Weather Condition and Light Condition

Did the weather have anything to do with the traffic fatality rate in Tennessee?

Fatal Crashes by Weather Condition and Light Condition

According to the table above, most traffic fatalities happened in broad daylight without any major weather conditions, emphasizing that factors other than weather are often to blame. If you’re considered a high-risk driver, it’s essential to have the right coverage. Finding the best car insurance for high-risk drivers can protect you even when unexpected accidents happen, regardless of weather conditions.

Fatalities (All Crashes) by County

Did more fatalities happen in some counties than others?

Fatalities (All Crashes) by County in Tennessee

Yes, certain counties in Tennessee have experienced higher traffic fatalities than others. This concentration of accidents in specific areas could contribute to why car insurance is so expensive, as insurers adjust rates based on local risk factors like accident rates and traffic fatality trends.

Traffic Fatalities Rural vs Urban

Most people think traffic fatalities are more likely to occur in urban areas because there is more traffic on the road which means a vehicle is more likely to be involved in a serious car accident.

Traffic Fatalities Rural vs. Urban in Tennessee

Interestingly, according to the table above, there were only three years out of the total ten when more fatalities happened in urban areas. This highlights the importance of understanding what kind of car insurance you really need, as rural areas can present unique risks that require adequate coverage to protect against unforeseen accidents.

Fatalities by Person Type

Did the fatality rate have anything to do with vehicle or person type? Are some vehicles more likely to be involved in traffic fatalities than others?

Fatalities by Person Type in Tennessee

Choosing the right car insurance companies that customers recommend can help ensure you’re protected, regardless of the type of vehicle you drive. Whether you’re driving a small car, an SUV, or a motorcycle, getting coverage from a trusted company can provide peace of mind in the event of an accident.

Fatalities by Crash Type

Most of these crashes occurred when there was a roadway departure involved. Ensuring you have coverage from one of the best car insurance companies can offer greater protection in these high-risk situations, helping cover costs related to accidents, repairs, and medical expenses.

Fatalities by Crash Type in Tennessee

Five-Year Fatality Trend for the Top Ten Counties in Tennessee

Below is the five-year fatality trend for the top ten counties with the highest fatality rates in Tennessee. This data helps explain why car insurance is so expensive in certain areas, as higher fatality rates can lead to increased premiums due to greater risk factors for insurers.

Five Year Fatality Trend in Tennessee

Fatalities Involving Speeding by County

Speeding is another major cause of road fatalities, which makes understanding what kind of car insurance you really need critical. Having sufficient coverage protects you financially in case of accidents caused by speeding or other high-risk behaviors.

Fatalities Involving Speeding in Tennessee by County

Fatalities in Crashes Involving an Alcohol-Impaired Driver (BAC = .08+) by County

The state of Tennessee has strict rules regarding drinking and driving. There were 251 alcohol-impaired road fatalities in 2017 in the state of Tennessee, and these offenses are reflected in what a driving record is and what it tracks. Your driving record tracks violations such as DUIs, speeding tickets, and accidents, all of which can significantly impact your car insurance rates.

Fatalities in Crashes Involving an Alcohol-Impaired Driver by County in Tennessee

Teen Drinking and Driving

If you give an inexperienced teenage driver a couple of alcoholic beverages and then ask him or her to get in a car and drive somewhere, you’re looking at a bad situation.

In 26 states and D.C., under-21 alcohol-impaired driving fatalities per 100k population were at or below the national average of 1.2 deaths per 100k population. Thankfully, Tennessee is one of those 26 states with an average of .6 deaths per 100k population.

Tennessee DUI Arrest for Teens

Tennessee ranks 21st in the U.S. for under-18 DUI arrests.

Transportation

Ever wondered how many vehicles your neighbors own? Up next, we’ll dive into vehicle transportation statistics. Understanding these patterns can help when searching for the best car insurance companies, as different insurers may offer better deals based on your vehicle usage and driving habits.

Car Ownership

The following chart from Data USA displays the households in Tennessee distributed between a series of car ownership buckets compared to the national averages for each bucket.

The largest share of households in Tennessee have two cars, followed by three cars.

The orange bars represent Tennessee’s average and the gray bars show the national average.

Commute Time

Using averages, employees in Tennessee have a shorter commute time (23.9 minutes) than the typical US worker (25.5 minutes). Additionally, 2.04 percent of the workforce in Tennessee have “super commutes” over 90 minutes. It’s crucial to consider these factors when selecting car insurance companies that customers recommend, as longer commutes may influence your rates.

Commuter Transportation

In 2017, the most common method of travel for workers in Tennessee was driving alone, followed by those who carpooled and those who worked from home. When selecting the best car insurance companies, it’s essential to factor in your travel habits to find the most suitable coverage and rates for your driving needs.

Traffic Congestion in Tennessee

According to Inrix, Tennessee has two of the most traffic-congested cities in the world. Check out the details in the table below.

Traffic Congestion in Tennessee

EMS Response Time in Tennessee

Seconds can mean all the difference in the world when it comes to EMS response time. Showing up seconds too late could mean losing a victim that could have been saved if an EMS team had shown up earlier.

EMS Response Time in Tennessee

EMS response times are often faster in cities than they are in rural areas because there are usually more EMS services in cities than there are in the country.

Now that you’ve read through our complete guide to cheap auto insurance in Tennessee, it’s time to start shopping for your own car insurance policy. Enter your ZIP in the box below to get started.

Happy shopping!