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Best Cheap Car Insurance In Tennessee (2023)

Learn which providers offer the most affordable coverage in the Volunteer State.

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09/14/2023 06:17 PM

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Despite the rise in auto insurance costs, Tennessee drivers are still able to find quality insurance options at affordable rates. Our team of auto insurance experts found USAA, Geico, and Progressive to be some of the best and cheapest options for drivers in the Volunteer state.

We looked at average auto insurance rates in Tennessee for different types of drivers, including good drivers and those with bad driving records, to give you a sense of what you might pay. We recommend comparing rates and policies from several of the best car insurance providers to find the right one for your needs.

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Cheap Car Insurance In Tennessee

Based on our rate estimates, USAA is typically the cheapest option for full-coverage car insurance in Tennessee, with an annual premium of $797. State Farm is a an average annual premium of $1,042.

Auto Insurance ProviderEstimated Annual Cost
State Farm$1,042
Auto-Owners Insurance$1,126
Erie Insurance$1,257
Tennessee Farmers Group$1,199
Farmers Insurance$1,348

How Much Is Auto Insurance In Tennessee?

A full coverage car insurance policy in Tennessee costs an average of $1,281 per year. A driver in Tennessee pays about 26 percent less for auto insurance than the national average of $1,730. In 2019, Tennessee ranked 35th for the most expensive states for auto insurance, according to the National Association of Insurance Commissioners (NAIC).

Even though car insurance in Tennessee is relatively inexpensive, there are ways to make your policy even more affordable, such as taking advantage of discounts and maintaining a good driving record. In addition, your customized insurance rates are based on several factors, such as:

  • Age: Due to their high-risk status and lack of driving experience, young drivers pay more for car insurance.
  • Gender on driver’s license: In most states, men typically pay higher premiums than women do.
  • Marital status: Generally, married drivers pay less for car insurance than single drivers. Married drivers also tend to qualify for more family and bundling discounts.
  • Driving record: Insurers raise rates for drivers who have speeding tickets, accidents, or DUIs on their records.
  • Credit score: Drivers with bad credit scores are usually charged higher insurance rates than those with good credit scores.
  • Coverage level: Full coverage auto insurance policies are more expensive than state minimum liability policies.

Cheapest Tennessee Car Insurance: Young Drivers

USAA tends to be the cheapest car insurance company in Tennessee for young drivers. Geico and State Farm also offer excellent insurance coverage with average costs below $1,200 per year.

Cheapest Car Insurance In Tennessee: 16-Year-Olds

In Tennessee, the cheapest full-coverage car insurance for 16-year-olds comes from Erie Insurance at $249 per month. State Farm comes in a close second at $276 per month. Sixteen-year-old drivers often pay some of the highest rates in most states.

Cheap Car Insurance In TennesseeAverage Monthly CostAverage Annual Cost
Erie Insurance$249 $2,988
State Farm$276 $3,310
Tennessee Farmers Group$277 $3,318
Auto-Owners Insurance$319 $3,829
Geico$341 $4,086

Cheapest Car Insurance In Tennessee: 18-Year-Olds

The cheapest car insurance in Tennessee for 18-year-olds comes at roughly $207 per month on average from USAA. Erie Insurance also offers affordable coverage at $210 per month.

Cheap Car Insurance In TennesseeAverage Monthly CostAverage Annual Cost
USAA$207 $2,488
Erie Insurance$210 $2,527
State Farm$214 $2,570
Geico$222 $2,668
Tennessee Farmers Group$232 $2,789

Cheapest Car Insurance In Tennessee: 21-Year-Olds

Twenty-one-year-olds can find the cheapest coverage in Tennessee at USAA, which has an average monthly cost of $106. Drivers this age can also find affordable coverage from Geico and State Farm.

Cheap Car Insurance In TennesseeAverage Monthly CostAverage Annual Cost
USAA$106 $1,279
Geico$135 $1,626
State Farm$144 $1,737
Auto-Owners Insurance$148 $1,782
Farmers Insurance$161 $1,932

Cheapest Car Insurance In Tennessee: 25-Year-Olds

Twenty-five-year-old drivers in Tennessee can find the cheapest car insurance from USAA at around $84 per month and from State Farm at around $100 per month.

Cheap Car Insurance In TennesseeAverage Monthly CostAverage Annual Cost
USAA$84 $1,008
State Farm$100 $1,207
Geico$106 $1,276
Auto-Owners Insurance$114 $1,375
Travelers$129 $1,555

Cheapest Tennessee Car Insurance: High-Risk Drivers

In general, those with clean driving records pay lower insurance premiums than drivers who have a history of speeding tickets, car accidents, or DUI convictions. The table below shows the difference in cost for each traffic violation by the top five cheapest companies for Tennessee drivers.

Car Insurance ProviderSpeeding TicketsDUI ConvictionsRecent Accidents
Travelers$1,858 $2,083 $2,235
USAA$1,040 $1,673 $1,447
Geico$1,518 $2,424 $2,731
Auto-Owners Insurance$4,260 $3,090 $6,123
State Farm$1,190 $1,190 $1,290

*Speeding tickets are for 16 to 20 mph over the speed limit. Recent accidents are for a single vehicle ($2,500 worth of damage).

Cheapest Tennessee Car Insurance: Bad Credit

If you have a poor credit score, your car insurance rates in Tennessee could be up to twice as high as rates for those with good credit scores. According to our estimates, at $1,316 per year, USAA offers the lowest average rates for people with bad credit. You may also find affordable coverage under $1,700 a year through Tennessee Farmers or Geico.

Car Insurance Providers 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

Top 5 Auto Insurance Companies In Tennessee

After conducting our own extensive research, we named our top five picks for Tennessee auto insurance. Based on their cost, coverage, and customer service, Geico, USAA, and Progressive are the state’s best companies to choose from.

Best Car Insurance in Tennessee Overall Rating Cost Rating Coverage Rating
1. Geico Car Insurance 4.6 4.7 4.2
2. USAA Car Insurance 4.6 4.9 4.6
3. Progressive Car Insurance 4.3 4.4 4.4
4. State Farm Car Insurance 4.7 4.6 4.6
5. Nationwide Car Insurance 4.3 4.5 4.2

*Our research team scores car insurance companies by taking nationwide factors into account. The order of insurers in this table is specific to auto insurance in Tennessee.

#1 Geico: Best For Discounts

Our top pick for cheap car insurance in Tennessee is Geico, which we also named the Best Overall Provider in our nationwide review. The provider offers some of the lowest rates for many Tennessee drivers. It also has an A++ financial strength rating from AM Best and an A+ rating from the Better Business Bureau (BBB). As for customer claims satisfaction, Geico received an above-average score in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study℠.

In addition to traditional car insurance coverage, Geico gives you access to options such as rental car reimbursement, mechanical breakdown coverage, and 24/7 roadside assistance. Tennessee drivers can also take advantage of Geico’s range of discount offers, which can be earned through safe driving practices and policy bundling.

Read moreGeico insurance review

#2 USAA: Best For Military Members

Military members, veterans, and their families can find affordable car insurance in Tennessee from USAA, one of the nation’s largest auto insurance providers. For its outstanding customer service and reasonable car insurance rates, USAA received a 4.6 out of 5.0 in our review and was recognized as the best provider for military personnel.

USAA holds an A++ rating for financial strength from AM Best. Those who are eligible for USAA auto insurance coverage can also choose from extra options such as gap insurance, roadside assistance, and accident forgiveness.

Read moreUSAA insurance review

#3 Progressive: Best Usage-Based Insurance

Our search for the best Tennessee car insurance revealed that Progressive is a strong choice due to its coverage options, affordable premiums, and range of discounts. Drivers who opt into Progressive’s usage-based insurance program, Snapshot® can save about $156 on average per year for safe driving behaviors. In addition, the company offers add-on coverage such as gap insurance, rideshare coverage, and coverage for customized parts and equipment.

Progressive is known for offering quality homeowners and renters insurance in addition to its auto policies, so the provider is a great choice for those who want to bundle policies. It holds an A+ rating from AM Best.

Read moreProgressive insurance review

#4 State Farm: Best Overall Provider

State Farm is another smart choice for car insurance in Tennessee, as the provider offers reasonably priced insurance, has a good reputation within the industry, and provides reliable claims service. AM Best gives State Farm an A++ rating for financial strength, and the insurer placed above average in the latest J.D. Power Auto Claims Satisfaction Study.

In addition to standard options, State Farm offers supplemental auto insurance coverage such as rental car reimbursement, rideshare coverage, and emergency road service. Students can save with discounts of up to 25 percent until the age of 25, making State Farm an affordable choice for many students in the state. The provider offers special discounts for young drivers with its Steer Clear® and Drive Safe & Save™ usage-based insurance as well.

Read moreState Farm insurance review

#5 Nationwide: Best For Senior Drivers

Based on its positive reputation and low average rates, our team chose Nationwide as our final recommendation for car insurance in Tennessee. While it tends to have slightly higher average rates than some of its competitors, the insurer is still one of the most affordable options for Tennessee drivers, especially those with low credit scores. The company has a strong reputation within the insurance industry, as evidenced by its A+ ratings from both AM Best and the BBB.

We found some of the best deals through Nationwide’s discounts and usage-based insurance programs. A driver in Tennessee could save as much as 40 percent on auto insurance by taking advantage of Nationwide’s safe-driving program, SmartRide®, or switching to Nationwide’s pay-per-mile option, SmartMiles®. By bundling policies, staying accident-free, or being a good student, you may also qualify for car insurance discounts from Nationwide in Tennessee.

Read more: Nationwide insurance review

Tennessee Insurance Requirements

According to Tennessee law, the state minimum car insurance requirements include bodily injury liability insurance, which pays for the medical expenses of the driver who is not at fault and their passengers, and property damage liability coverage, which pays for repairs to the vehicle of the driver who is not at fault. The limits are as follows:

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

In addition to the state-mandated minimum coverage, you should consider adding other types of auto insurance coverage to your policy to ensure you’re protected, such as:

How To Get Tennessee Car Insurance Quotes

The best car insurance options for Tennessee drivers are Geico, USAA, and Progressive, based on our cost estimates, customer reviews, and industry ratings. Residents of the Volunteer State can also find affordable car insurance from State Farm and Nationwide.

We recommend getting quotes from providers before making a final decision about coverage. This will help you determine how much you might wind up paying for a policy. You can get quotes online from most major providers, reach out by phone, or contact an insurance agent for personalized help.

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Best Cheap Car Insurance In Tennessee

Does Tennessee have high car insurance rates?

Tennessee does not have high car insurance rates when compared to the national average. The average cost of full-coverage car insurance in Tennessee is $1,281 per year, according to our estimates. This is 26 percent less than the national average, which is $1,730 per year. However, drivers under 25, and drivers with bad credit or traffic violations on their records will likely see higher rates.

How much is full-coverage car insurance in Tennessee?

The average  cost of a full-coverage car insurance policy in Tennessee is $1,281 per year or $107 per month, according to our estimates. However, drivers under 25, and drivers with bad credit or traffic violations on their records will likely see higher rates.

What auto insurance is required by law in Tennessee?

Yes, it is a requirement for drivers to have automobile insurance coverage in the state of Tennessee. You must carry $20,000 per person and $40,000 per accident in bodily injury liability coverage and $10,000 per accident in property damage liability to comply with the state minimum coverage requirements.

Is Tennessee a no-fault auto insurance state?

No, Tennessee is not a no-fault auto insurance state. According to Tennessee‘s fault-based insurance system, the insurance company of the at-fault driver will pay for any damages or injuries resulting from the collision.

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

  • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
  • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
  • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
  • Service: We comb through customer reviews on sites like the BBB to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.