The best and cheapest car insurance in Tennessee

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According to our analysis, Farm Bureau Insurance of Tennessee is the top car insurance provider in Tennessee, earning 4.37 out of 5 stars for its combination of affordability, customer satisfaction and financial stability. Its average premium of $2,146 per year is $89 less than the statewide average.

Drivers in Tennessee spend an average of $2,235 annually, or $186 monthly, on car insurance.

Erie Insurance finished second with 4.23 stars, followed closely by GEICO at 4.19 stars.

The table below shows the best car insurance companies in Tennessee.

How we picked the top auto insurance companies

When selecting the top car insurance companies in Tennessee, we didn’t focus solely on price. We also reviewed customer satisfaction results from J.D. Power, financial strength ratings from AM Best and complaint records from the National Association of Insurance Commissioners (NAIC). When state-specific data wasn’t available, we used national averages to ensure readers could make fair comparisons.

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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Which company offers the cheapest car insurance in Tennessee?

With an average annual rate of $1,686, GEICO is the most affordable car insurance company in Tennessee.

Other low-cost options include:

• Auto-Owners, at $1,907 per year or $159 per month
• Erie Insurance, averaging $2,142 annually, which works out to about $179 a month

Meanwhile, Allstate ranks as the most expensive insurer in the state, with average premiums of $3,152 a year.

Keep in mind that your individual rate may vary. Insurance companies factor in your driving record, credit score, age, vehicle and ZIP code when setting premiums, so the cheapest insurer for one driver may not be the cheapest for another.

Below are the cheapest car insurance rates by state, based on a 40-year-old driving a Honda Accord LX to ensure fair comparisons. All rates reflect full coverage policies.

What is full coverage car insurance?

Full coverage car insurance combines several types of protection to provide broader financial coverage. It generally includes liability insurance (which is required in most states) along with collision and comprehensive coverage.

These additional coverages pay for damage to your own vehicle caused by accidents, theft, severe weather, vandalism and other non-collision incidents. While full coverage offers more protection than minimum liability alone, it also comes at a higher cost and is often especially worthwhile for newer, financed or higher-value vehicles.

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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How to find the best 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.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. That means checking:

• The same liability limits
• The same deductibles
• The same coverage types

For example, if one quote shows 25/50/25 in liability coverage and another shows 50/100/100, the lower price may simply reflect lower protection — not a better deal. Many agents recommend at least 50/100/100, and higher limits may make sense depending on your income and assets.

You can also lower your premium by:

• Maintaining a strong credit score
• Avoiding tickets and accidents
• Bundling home and auto insurance with the same carrier

Which companies have the cheapest car insurance for seniors in Tennessee?

Senior drivers in Tennessee generally pay higher car insurance rates than most age groups, though teens still tend to pay the most overall.

The cheapest car insurance companies for seniors in Tennessee are:

• GEICO: $1,690 a year ($141 a month)
• Farm Bureau Insurance of Tennessee: $1,843 a year
• Auto-Owners: $1,988 a year

Insurers typically charge seniors more because premiums reflect overall risk trends, including claim frequency and age-related driving factors such as slower reaction times and vision changes. That said, many seniors can still find lower rates by keeping a clean driving record, driving fewer miles and taking advantage of mature driver or safe driver discounts.

The chart below shows the average car insurance premiums for senior drivers in Tennessee.

Which companies have the cheapest car insurance for young adults 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 GEICO with an annual rate of $2,766 or $231 a month.

Farmers had the second cheapest premium at $3,080 a year followed by Auto-Owners was third at $3,278.

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:

Which companies have the cheapest car insurance for teen drivers in Tennessee?

In Tennessee, Erie Insurance offers the most affordable coverage for teen drivers, with average premiums starting at $5,288 annually or $441 per month.

Because teens have less driving experience, insurers classify them as higher-risk policyholders.

“Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

GEICO follows at $5,558 per year or $463 per month, while Farm Bureau Insurance of Tennessee rounds out the top three at $5,904 annually.

The table below shows average teen car insurance premiums in Tennessee:

Why the cheapest company may vary by driver

The lowest average rate doesn’t always mean the lowest quote for you. Car insurance is highly personalized, and insurers price policies differently based on risk.

Key factors that affect your premium include:

• Driving record
• Credit score (in most states)
• Age and marital status
• Vehicle make and model
• ZIP code and local risk levels

Age is one of the biggest pricing factors. For example, adding a teen to a policy can significantly increase premiums because teens are the least experienced drivers and are more likely to be involved in accidents and file claims.

“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.”

Parents can help offset higher costs by asking about good student discounts, insuring a less expensive vehicle or adjusting coverage if the car’s value is low.

What is the average cost of car insurance in Tennessee?

In Tennessee, drivers pay an average of $2,235 per year for car insurance.

Premiums vary widely across states since insurers consider overall risk indicators like claims activity, repair costs, regulatory requirements and accident data. Within the same state, individual quotes can also vary based on a driver’s record, age, vehicle and location.

The chart below displays the average rate in Tennessee for a 40-year-old driver with 100/300/100 coverage and a $500 collision and comprehensive deductible driving a Honda Accord LX.

Which Tennessee cities and ZIP codes are most expensive for car insurance?

Memphis has the most expensive ZIP codes for car insurance in Tennessee, with average annual premiums of $2,807.

Insurance rates vary by location because where your vehicle is parked overnight affects risk exposure. Areas with frequent severe weather, higher traffic density or elevated crime rates tend to have higher accident and theft claims, which raises premiums for everyone in those cities and ZIP codes.

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

Which cities and ZIP codes in Tennessee have the cheapest car insurance?

Bristol has the lowest car insurance rates in Tennessee, with average premiums of $1,782 per year across its least expensive ZIP codes.

Car insurance is generally more affordable in smaller cities and rural areas, where fewer vehicles on the road lead to fewer accidents and claims. Lower population density and crime rates also help reduce premiums.

The table below shows the cheapest cities and ZIP codes for car insurance in Tennessee:

How location in Tennessee impacts car insurance rates

Your ZIP code can significantly influence what you pay for car insurance in Tennessee. Insurers look at local risk factors such as accident rates, traffic density, repair costs and weather-related claims when setting premiums.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Gao.

Because insurers weigh these location-based risks differently using their own pricing models, quotes can vary widely even for drivers with similar profiles living in different parts of the state.

Which companies have the cheapest car insurance for high-risk drivers in Tennessee?

Traffic violations and accidents can significantly increase your car insurance rates because insurers may classify you as a higher-risk driver.

For example, a speeding ticket can raise the average premium to $3,226 and typically affects your rates for up to three years. An at-fault accident tends to have a larger impact, pushing the average cost of coverage to around $3,824.

A DUI is considered a major violation and usually leads to the steepest increase, with average premiums rising to $3,875.

The table below shows how much car insurance rates increase on average after common driving incidents.

Minimum car insurance requirements in Tennessee

To legally drive in Tennessee, drivers must carry at least 25/50/25 in liability car insurance. This required coverage includes bodily injury and property damage protection.

While meeting the state minimum keeps you legal on the road, those limits may not be enough in a serious accident. If damages exceed your liability coverage, you’re responsible for paying the remaining costs out of pocket.

For stronger financial protection, many experts recommend carrying at least 100/300/50 in liability coverage to better safeguard your assets and future earnings.

Final thoughts on the best and cheapest car insurance in Tennessee

The best car insurance in Tennessee depends on your budget, driving profile and coverage needs. Farm Bureau Insurance of Tennessee stands out for its overall value, offering competitive pricing along with strong customer satisfaction and solid financial strength.

That said, the cheapest insurer for the average driver may not be the cheapest for you. Factors like your age, driving history, vehicle and ZIP code all influence your final quote, which is why comparing multiple insurers is key.

To get the best rate in Tennessee, compare quotes from at least three companies, review coverage limits (not just price) and take advantage of discounts such as bundling, safe driver, telematics or good student savings. A few minutes of comparison shopping can lead to significantly lower premiums without sacrificing coverage.

What our experts say

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

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

Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups

Methodology

Our car insurance analysis is based on 2026 rate data across all 50 states and Washington, D.C., covering 29,159 cities and 34,595 ZIP codes.

For standard rate comparisons, we analyzed 65,756,440 quotes from 195 companies across 73 insurer groups. Rates reflect a 40-year-old male and female driving a Honda Accord LX with 100/300/100 liability limits, $500 collision and comprehensive deductibles, a good insurance score, no violations, a 12-mile commute and 10,000 annual miles. The national average premium for this profile is $2,578 per year.

To measure the impact of risk factors, we reviewed an additional 95,071,152 quotes modeling at-fault accidents, DUI/DWI, speeding violations and poor credit, using the same base profile for consistency.

Company rankings are weighted as follows:

• J.D. Power (30%) – customer satisfaction
• Annual premium (25%) – average cost
• AM Best (25%) – financial strength
• NAIC (20%) – complaint index

Alisha Ambre

 

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Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.

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