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 and 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 has the cheapest average rate in the state at $1,395 a year.

While Travelers is the cheapest for many drivers, the perfect insurer for you may be a different company.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age, 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 data clearly shows the range of premiums for similar drivers.

In Tennessee, as mentioned earlier, the cheapest policy is Travelers with an average rate of $1,395 a year. Progressive follows with an average premium of $1,550 a year or $129 a month and GEICO with premiums of $1,565 a year or $130 a month.

Allstate is the most expensive insurer with an average premium of $3,032.

Make sure you’re taking advantage of all the discounts you qualify for to ensure you’re getting the best possible rate. Ask your agent to review your policy for any available savings you might be missing.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in Tennessee

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 – I am going to recommend and quote at least 50/100/100. Depending on their age/income and profession, 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

Seniors in the state pay more for coverage than all other driver groups, except for teens. Travelers is the most affordable option for seniors with a yearly premium of $1,419 or $118 a month. GEICO was the second cheapest at $1,536 and State Farm rounded out the top three at $1,601.

Seniors tend to pay more for coverage due to age. Many seniors suffer from vision and hearing issues as well as slowing reflexes. In addition, medications they may take can impact their driving. All of these factors combined lead to more accidents and claims which will result in a higher premium.

The chart below shows the average premium for senior drivers.

Average rates for seniors in Tennessee

Car insurance for young drivers in Tennessee

Young drivers (21-25) have seen their premiums drop from their teen years, but they still pay more than more experienced drivers. In Tennessee, Travelers is the cheapest option for young adults with a yearly premium of $2,179 or $182 a month.

Farmers is the next most affordable with an average rate of $2,319 followed by Progressive at $2,522.

Young drivers who maintain a clean driving record can expect their rates to drop even more as they reach their late 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

Adding a teen to a car insurance policy will always push up the rate. Teens are the least experienced drivers out on the road which leads to more accidents and claims and higher premiums.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

For Tennessee teens, Erie Insurance is the most affordable option with a premium of $3,977 a year or $331 a month. Travelers is the next most affordable at $4,405 a year or $367 a month followed by State Farm running $4,919 a year.

If your teen has a B average or better, ask for a good student discount to help save a bit of money. Having your teen drive an older vehicle will also help save some money. If the car is old enough that you wouldn’t repair it after an accident, you may be able to drop collision and comprehensive.

The chart below shows average premiums for teens in Tennessee:

Average rates for teens in Tennessee

Average cost of car insurance in Tennessee

The average cost of car insurance in Tennessee is $1,677, which makes it the 37^th most expensive state in the country behind Louisiana and Florida.

Metropolitan areas – and all states have them – equals lots of drivers, which often leads to car crashes and claims.

“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,” says Gao.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Average rates for a 40-year-old in Idaho

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?

When it comes to cheap car insurance in Tennessee, these ZIP codes have the most affordable coverage. The area around Bristol has the lowest premiums in Tennessee with an average premium of $1,385.

Least expensive ZIP codes in Tennessee

Cheapest car insurance for high-risk drivers in Tennessee

Drivers with a speeding ticket, DUI or at-fault accident on their record are often considered high-risk drivers and end up paying more for coverage. The increase can range from reasonable for a speeding ticket to a big leap in costs for a DUI.

The data showed that a speeding ticket will result in a 38% increase, pushing the average rate to $1,804. Speeding tickets will typically impact your premium for at least three years.

An at-fault accident will raise your rates by 69% to an average of $2,219. A DUI will result in the biggest increase, sending your premium up 104% to an average of $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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