Cheapest Car Insurance In Tennessee

The Cheapest Tennessee Car Insurance Rates Are $22/mo ($264/yr) for Liability Insurance From USAA and $66/mo ($797/yr) for Full Coverage From USAA.

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Updated: Jun 28, 2024

Written by: Daniel Robinson

Written by: Daniel Robinson Writer

Daniel Robinson is a writer based in Greenville, N.C. with expertise in auto insurance, loans, warranty options and more. Away from the keyboard, Daniel spends time with his wife and son, plays guitar and obsesses over the Beatles and Baltimore Orioles.

Writer

Edited by: Rashawn Mitchner

Edited by: Rashawn Mitchner Managing Editor

RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on things including travel, entertainment and household services.

Senior Editor

Our team took an in-depth look at the country’s best car insurance companies and what they offer Tennessee drivers in terms of rates, coverage, reputation and customer service. You’ll find premium estimates for drivers in different Tennessee cities, of different ages, and with different driving histories.

Cheapest Auto Insurance Tennessee

Because insurance coverage rates are cheaper in Tennessee than the national average, you have a good chance at finding great car insurance in Tennessee at excellent rates.

Here, we’ll look at the cheapest car insurance companies and coverage options in the state, beginning with the most affordable providers and coverage options.

Cheapest Car Insurance Companies Tennessee

In addition to finding providers that offer cheap car insurance in Tennessee, it’s important to consider each company’s coverage offerings, customer service ratings and more to make an informed decision. Based on our research, we name USAA, State Farm, Geico and Tennessee Farmers the cheapest options for Tennessee drivers.

Tennessee Car Insurance Companies	Overall Rating	Coverage Rating	Cost Rating	Learn More
USAA Learn More	9.5	9.5	10.0	Learn More
State Farm Learn More	9.2	9.0	9.0	Learn More
Geico Learn More	9.2	8.5	9.4	Learn More
Farm Bureau Insurance	8.5	8.0	8.5

Tennessee Car Insurance Companies	Overall Rating	Coverage Rating	Cost Rating	Learn More
USAA Learn More	9.5	9.5	10.0	Learn More
State Farm Learn More	9.2	9.0	9.0	Learn More
Geico Learn More	9.2	8.5	9.4	Learn More
Farm Bureau Insurance	8.5	8.0	8.5

*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in Tennessee.

Cheapest Car Insurance Coverage in Tennessee

Coverage level will impact how much you pay for auto insurance. Many quotes from providers include estimates for minimum liability and full coverage car insurance. While minimum liability is all that is required, it’s a good idea for drivers to consider full coverage auto insurance.

Below are the cheapest auto insurance options in Tennessee for both coverage types.

Cheapest Liability Car Insurance in Tennessee

When it comes to minimum coverage car insurance, the average estimate for Tennessee drivers is around $415 per year, or $35 per month. That is more than 35% cheaper than the national average for a minimum coverage policy.

The table below shows the providers with the cheapest minimum coverage estimates in Tennessee:

Cheapest Liability Insurance: Tennessee	Estimated Monthly Cost	Estimated Annual Cost
USAA	$22	$264
Auto-Owners Insurance	$27	$324
State Farm	$27	$321
Tennessee Farmers Insurance Companies	$27	$318
Geico	$34	$408
Erie Insurance	$34	$406
Progressive	$34	$412
Travelers	$41	$486
Allstate	$50	$602
Farmers	$51	$613

Cheapest Full Coverage Car Insurance in Tennessee

Car insurance rates in the Volunteer State are 26% lower than the national average. That means the cheapest car insurance in Tennessee is among the most affordable in the country. We at the Guides Auto Team found full coverage estimates for as little as $797 per year, or $66 per month from USAA. The table below shows the providers with the lowest rates in Tennessee for full coverage.

Cheapest Full Coverage Insurance: Tennessee	Estimated Monthly Cost	Estimated Annual Cost
USAA	$66	$797
State Farm	$87	$1,042
Auto-Owners Insurance	$94	$1,126
Geico	$97	$1,166
Tennessee Farmers Insurance	$100	$1,199
Erie Insurance	$105	$1,257
Farmers	$112	$1,348
Travelers	$121	$1,452
Allstate	$136	$1,630
Progressive	$149	$1,788

Cheap Car Insurance in Tennessee

Age, driving history and a person’s credit scores can have a huge impact on the cost of car insurance in Tennessee. Below we compare cheap car insurance estimates for Tennessee drivers in these categories.

Cheapest Car Insurance for Young Drivers in Tennessee

Age has a big factor on how much you will pay for car insurance. Below are tables on how much a young driver might pay for car insurance in Tennessee.

Cheapest Tennessee Car Insurance for 16-Year-Olds

Erie Insurance tends to offer the cheapest car insurance for 16-year-old drivers in Tennessee, with an estimated rate of $2,988 per year, or $249 per month. The average estimated rate for 16-year-old Tennessee drivers is $7,703 per year, or $642 per month. That’s 316% more than the state average for 35-year-old drivers.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
Erie Insurance	$249	$2,988
State Farm	$276	$3,310
Tennessee Farmers Insurance Companies	$277	$3,318
Auto-Owners Insurance	$319	$3,829
Geico	$341	$4,086

Cheapest Tennessee Car Insurance for 17-Year-Olds

In Tennessee, Erie Insurance typically offers the lowest estimates for 17-year-old drivers, with an average estimate of $2,706 per year, or $226 per month. The average estimate for car insurance in Tennessee for a 17-year-old driver is $6,051 per year, or $504 per month. This is 227% more than the average estimate for a 35-year-old driver in the state.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
Erie Insurance	$226	$2,706
State Farm	$244	$2,923
USAA	$245	$2,941
Geico	$268	$3,214
Tennessee Farmers Insurance Companies	$277	$3,318

Cheapest Tennessee Car Insurance for 18-Year-Olds

For those who are eligible, USAA tends to offer the cheapest coverage for 18-year-old drivers in Tennessee at an average estimate of $2,488 per year, or $207 per month. The average estimate for 18-year-old Tennessee drivers is $5,414 per year, or $451 per month. This is 193% more than the average rate estimate for a 35-year-old driver in Tennessee.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
USAA	$207	$2,488
Erie Insurance	$211	$2,527
State Farm	$214	$2,570
Geico	$222	$2,668
Tennessee Farmers Insurance Companies	$232	$2,789

Cheapest Tennessee Car Insurance for 21-Year-Olds

USAA tends to offer the cheapest car insurance for 21-year-old Tennessee drivers, with an average estimate of $1,279 per year, or $107 per month. For these drivers, the average rate estimate is $2,965 per year, or $247 per month. This is around 55% more than the average estimate for 35-year-old drivers in Tennessee.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
USAA	$107	$1,279
Geico	$136	$1,626
State Farm	$145	$1,737
Auto-Owners Insurance	$149	$1,782
Farmers	$161	$1,932

Cheapest Tennessee Car Insurance for 25-Year-Olds

In Tennessee, 25-year-old drivers can typically find the cheapest insurance with USAA, which offers an estimated rate of $1,008 per year, or $84 per month. The average estimate for 25-year-old drivers in Tennessee is $2,132 per year, or $178 per month. This is 15% more expensive than the average estimate for 35-year-old drivers in the state.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
USAA	$84	$1,008
State Farm	$101	$1,207
Geico	$106	$1,276
Auto-Owners Insurance	$115	$1,375
Travelers	$130	$1,555

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Cheapest Tennessee Car Insurance for High-Risk Drivers

People who have a DUI, speeding ticket or recent accident can expect to pay more for car insurance than other drivers. Below are some estimated car insurance costs for people who fall under those categories.

Cheapest Tennessee Car Insurance for Drivers With a Speeding Ticket

Safe driving goes a long way when you’re trying to keep the cost of car insurance low. Drivers with a speeding ticket on their record pay an average of $1,468 per year for car insurance in Tennessee.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
USAA	$75	$894
State Farm	$76	$912
Tennessee Farmers	$101	$1,210
Geico	$103	$1,241
Erie Insurance	$106	$1,270

Cheapest Tennessee Car Insurance for Drivers With a Recent Accident

You can expect your car insurance costs to increase if you’ve been in a recent accident. On average, Tennessee drivers with an accident on their record pay $1,783 per year for coverage.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
State Farm	$82	$988
USAA	$92	$1,102
Tennessee Farmers	$101	$1,210
Erie Insurance	$131	$1,575
Progressive	$155	$1,860

Cheapest Tennessee Car Insurance for Drivers With a DUI

Having a DUI conviction on your driving record can cause your car insurance rates to skyrocket. Tennessee drivers with a DUI pay about $1,894 per year for coverage on average.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
State Farm	$76	$912
Progressive	$100	$1,195
USAA	$118	$1,419
Erie Insurance	$157	$1,880
Geico	$165	$1,981

Cheapest Tennessee Car Insurance for Drivers With Poor Credit

Drivers with poor credit scores pay some of the highest car insurance premiums in the state of Tennessee. On average, those with bad credit pay about $2,496 per year.

Cheapest Car Insurance in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
USAA	$110	$1,316
Tennessee Farmers	$117	$1,400
Geico	$135	$1,621
Nationwide	$142	$1,705
Progressive	$151	$1,816

Best Cheap Car Insurance Tennessee

For those who would like to know about the cheapest auto insurance in the Volunteer State, the sections below contain more detailed information:

#1 USAA: Low Rates for Military

9.2/10

Overview

With some of the lowest average rates for many types of Tennessee drivers, USAA is our top provider in the state. The company also received the highest customer satisfaction score in the J.D. Power 2021 U.S. Auto Insurance Study℠. Although coverage is only available for military members, veterans and their families, it can be a great choice for those who qualify.

Keep reading: USAA insurance review

Industry Standing

J.D. Power regional rating: 890/1,000
AM Best financial strength rating: A++
Better Business Bureau (BBB) rating: A+

#2 State Farm: Most Popular Provider

9.4/10

Overview

State Farm has been offering quality insurance products since 1922. It’s the largest auto insurance company in the U.S., and it can be a strong coverage option for Tennessee drivers in particular. State Farm offers low average rates across the board, especially for teen drivers and high-risk drivers in Tennessee.

Keep reading: State Farm insurance review

Industry Standing

J.D. Power regional rating: 859/1,000
AM Best financial strength rating: A++
BBB rating: A+

#3 Geico: Editor’s Choice

9.1/10

Overview

Geico is our review team’s top choice for car insurance nationwide, and it can be a smart choice for many Tennessee drivers. The insurer has strong industry ratings from AM Best and the BBB, indicating you can rely on it to pay claims out and resolve issues. Geico is known for its affordable average rates, extensive coverage options and range of discount opportunities.

Keep reading: Geico insurance review

Industry Standing

J.D. Power regional rating: 843/1,000
AM Best financial strength rating: A++
BBB rating: A+

#4 Tennessee Farmers: Strong Local Coverage

9/10

Overview

As the largest state farm bureau organization in the country, Tennessee Farmers provides coverage for one in four people in the state. The local insurer has been providing insurance products since 1948 and has a positive industry reputation, with an A+ rating from both the BBB and AM Best.

You’ll need to become a member of the Tennessee Farm Bureau to qualify for coverage, but the process is simple and requires only a $30 membership fee.

Industry Standing

J.D. Power regional rating: 883/1,000
AM Best financial strength rating: A+
BBB rating: A+

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Average Car Insurance Cost Tennessee

According to our data, Tennessee drivers pay an average of $1,281 per year, or $107 per month for full coverage insurance. This is nearly 26% lower than the national average of $1,730 per year, making Tennessee one of the cheaper states for car insurance.

City in Tennessee	Estimated Monthly Cost	Estimated Annual Cost
Nashville	$106	$1,277
Memphis	$127	$1,528
Knoxville	$95	$1,142
Chattanooga	$95	$1,138
Clarksville	$100	$1,203
Murfreesboro	$95	$1,138
Franklin	$93	$1,113
Jackson	$102	$1,222
Johnson City	$83	$997
Bartlett	$115	$1,380
Hendersonville	$96	$1,158
Kingsport	$82	$989
Smyrna	$95	$1,144
Collierville	$112	$1,347
Cleveland	$87	$1,048
Brentwood	$96	$1,150
Spring Hill	$92	$1,103
Gallatin	$93	$1,111
Columbia	$94	$1,129
Germantown	$117	$1,400
Mount Juliet	$97	$1,162
La Vergne	$97	$1,159
Lebanon	$97	$1,163
Cookeville	$90	$1,078
Morristown	$88	$1,056

Cost of Car Insurance in Tennessee by Age

A driver’s age is perhaps the single biggest cost factor in car insurance. Younger drivers and especially teen drivers pay substantially higher premiums than drivers from other age groups. The table below shows the average full coverage rate estimates for Tennessee drivers of different ages.

Age	Estimated Monthly Cost	Estimated Annual Cost
16	$642	$7,703
17	$504	$6,051
18	$451	$5,414
19	$340	$4,079
21	$247	$2,965
25	$178	$2,132
30	$159	$1,904
40	$153	$1,837
45	$152	$1,826
50	$148	$1,777
55	$144	$1,727
65	$151	$1,813
75	$177	$2,123

Car Insurance Cost Factors in Tennessee

Your rates will vary from the estimates you’ll see in this article. That’s because car insurance companies in Tennessee and elsewhere base their rates on several variables pertaining to you and your vehicle.

These are the most important factors car insurance providers use to calculate your rates:

Age
Marital status
Driving record
Gender listed on your license
Credit score
Location

Tennessee Car Insurance Requirements

Tennessee law requires drivers to carry liability car insurance in the amounts of 25/50/15. This includes:

Bodily injury liability: $25,000 per person and $50,000 per accident
Property damage liability: $15,000 per accident

While only liability insurance is mandated by state minimum coverage requirements, it’s a good idea to get a full coverage policy that includes collision coverage, comprehensive coverage and underinsured/uninsured motorist coverage to ensure you’re protected.

Is Tennessee an At-Fault State or a No-Fault State?

Tennessee is an at-fault state. This means the driver who is found to be at fault for an accident will be legally and financially responsible for any damage caused by the accident. The vast majority of states across the country follow at-fault insurance laws, which makes Tennessee car insurance relatively standard.

How To Get Car Insurance in Tennessee

Based on our research, we recommend USAA, State Farm, Geico and Tennessee Farmers as the top choices for auto insurance in Tennessee for their low average rates and positive industry reputations. To get a sense for what you might pay for coverage, reach out to providers to compare car insurance quotes and find the best option for your needs.

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Tennessee Car Insurance: The Bottom Line

In this article, we reviewed the cheapest auto insurance companies, coverage and rates in the state of Tennessee. We also looked at average cost of car insurance and coverage requirements in the Volunteer State.

Cheapest Car Insurance in Tennessee: FAQ

Below are some common frequently asked questions about cheap car insurance in Tennessee:

Frequently Asked Questions

According to our rate estimates, full coverage car insurance costs about $1,281 per year or $107 per month in Tennessee. This is about 26% lower than the national average of $1,730 per year or $144 per month.

Tennessee ranks as the 34th-most expensive state for car insurance coverage, according to the National Association of Insurance Commissioners (NAIC). The average cost of car insurance in Tennessee is about 29% cheaper than the national average.

Yes, it’s mandatory to have car insurance in Tennessee. According to Tennessee law, drivers must carry $25,000 per person and $50,000 per accident in bodily injury liability coverage and $15,000 per accident in property damage liability.

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials: