The best, cheapest car insurance in Tennessee

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Best car insurance company in Tennessee

Drivers in Tennessee pay an average of $1,677 a year or $140 a month for car insurance coverage which makes it the 37^th most expensive state in the country.

Even though car insurance is pretty expensive in Tennessee, it’s possible to find affordable coverage with top insurers such as Travelers, Progressive, GEICO, and other insurers.

Farm Bureau Insurance of Tennessee is our choice for the best car insurance in Tennessee. It finished first in our rankings with 4.92 out of 5 stars and an average premium of $1,355 a year, or $113 a month, which is $322 less than the state average.

State Farm was second with a score of 4.24 stars followed by Erie Insurance with 4.2 stars.

The best car insurance companies in Tennessee

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state/regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in Tennessee

Travelers is the cheapest option for car insurance in Tennessee.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age and marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The numbers highlight these differences. Allstate is the most expensive insurer in Tennessee with an average premium of $3,032 a year.

On the other hand, as mentioned above, the average premium for Travelers policyholders in Tennessee is $1,395 a year. Progressive had the second cheapest coverage in Tennessee at $1,550 and GEICO rounded out the top three cheapest at $1,565.

Below is a list of the cheapest full-coverage car insurance rates in Tennessee for a 40-year-old driver of a 2023 Honda Accord LX.

Cheapest full-coverage insurance in Tennessee

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

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Full coverage car insurance in Tennessee

As noted, the rates above are for full coverage car insurance. Residents of Tennessee will often be advised to get full coverage, which includes both liability protection as well as collision and comprehensive. Liability helps pay medical and legal bills for injuries or damages you are responsible for after an accident. However, liability doesn’t cover damage to your vehicle or your injuries.

Collision will pay to repair your vehicle if it is damaged after colliding with another vehicle or object. Comprehensive covers perils such as fire, theft, flooding, vandalism and more.

You can find out more about liability, collision, and comprehensive coverage here.

Shopping for car insurance in Tennessee

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – he will recommend higher coverage.

“Depending on their age/income and profession,” he says, “I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Tennessee by age

Insurance companies consider your age when setting a premium and teens and young adults pay more for coverage as statistics show that young drivers, because they are inexperienced, have more accidents and claims.

Regardless of your age, in Tennessee, Travelers is the most affordable coverage with an average rate of $1,395 a year.

As teens transition into young adults and get more experience under their belt rates start to drop. By their mid to late-20s – assuming they keep their record clean – driver rates should stabilize and then stay stable until the driver moves into their 70s when rates will start climbing again.

Cheapest car insurance for senior drivers in Tennessee

According to our data, senior drivers pay roughly 31% more than middle-aged drivers.

Seniors tend to pay slightly higher car insurance rates than younger drivers. In Tennessee, the cheapest insurance company for senior drivers is Travelers at $1,419 a year or $118 a month. GEICO grabbed the second-place spot with premiums running $1,536 annually or $128 a month, State Farm was third at $1,601.

Seniors pay higher rates thanks to age-related issues. They often suffer from vision and hearing issues as well as slowing reflexes and medical issues. This all leads to more accidents and claims, which pushes up the cost to insure seniors.

The chart below shows the average premium for senior drivers.

Average rates for seniors in Tennessee

Car insurance for young drivers in Tennessee

While young adults pay less than teen drivers, they still pay more than older more experienced drivers. The best choice for young adults (early 20s) in Tennessee is Travelers with an annual rate of $2,179 or $182 a month.

Farmers had the second cheapest premium at $2,319 a year followed by Progressive was third at $2,522.

If young drivers keep their driving record clean, their rates will drop down as they move out of their 20s.

The table below shows the best insurers for young drivers in Tennessee:

Average rates for young drivers in Tennessee

Car insurance for teen drivers in Tennessee

Although teen drivers always pay much higher premiums than other driver groups, Erie Insurance offers teens the cheapest rate at $3,977. Teen drivers are inexperienced and are big risk takers which results in more accidents and claims, pushing up the cost of coverage.

“Teenagers are more likely to be involved in accidents than older drivers because of their lack of experience. This increased risk results in higher insurance rates because insurance companies regard them as high-risk drivers,” says Goronga. “Teenagers are also more likely to engage in risky driving behaviors, such as distracted driving or speeding, increasing their chances of being involved in an accident.”

Travelers has the second most affordable premium at $4,405 a year followed by State Farm at $4,919 annually.

Our data clearly shows how dramatic premium differences can be for teens and how important shopping your coverage is when trying to find the best rate for your specific risk factors. While Erie Insurance was the most affordable at $3,977, Allstate was the most expensive with an annual premium of $10,475.

There are a few ways to save some money when insuring a teen. Ask your insurer for a good student discount if they are carrying a B average or better. Putting your teen in an older vehicle that you wouldn’t repair after an accident can help save some money by dropping collision and comprehensive. Just keep in mind that doing so means you’ll be on the hook for any damage if they’re in a crash.

The chart below shows average premiums for teens in Tennessee:

Average rates for teens in Tennessee

Average cost of car insurance in Tennessee

Tennessee is the 37^th most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $1,677.

The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Tennessee

Which Tennessee ZIP codes are most expensive for car insurance?

Where your vehicle spends its days and nights will impact your rate. Frequent severe weather or a high crime rate will raise the cost of insurance for everyone in the area.

Our data shows that Memphis is the most expensive area for coverage with an average premium of $2,161 a year.

Here are the most expensive ZIP codes in Tennessee for car insurance:

Most expensive ZIP codes in Tennessee

Which Tennessee ZIP codes are the cheapest for car insurance?

Rural areas are almost always cheaper than urban areas when it comes to car insurance. Fewer people and cars on the road mean fewer accidents and claims. The cheapest zip code for car insurance in Tennessee is in Bristol with an annual premium of $1,385.

Least expensive ZIP codes in Tennessee

Cheapest car insurance for high-risk drivers in Tennessee

If you have an at-fault accident, DUI or speeding ticket on your driving record, your insurer may consider you a high-risk driver and will push up the cost of your coverage.

A speeding ticket increases the average premium to $1,804 and will stay on your record and impact your premium for three years.

If you are responsible for an accident, your rates will push the average cost of coverage to $2,219.

A DUI is considered a major violation and will raise the average premium to $2,675.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in Tennessee after a traffic incident

Minimum car insurance requirements in Tennessee

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. Tennessee requires drivers to carry 25/50/25 in liability coverage, which translates into:

• $25k for bodily injury and $50,000 for death for a person involved in an accident
• $50k for bodily injury and $100,000 for death for two or more people in an accident
• $25k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Tennessee.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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