Find Cheap Auto Insurance Quotes in Tennessee
The average cost of auto insurance in Tennessee is $289 for six months of minimum liability coverage, which comes out to about $577 per year. The cheapest car insurance in Tennessee is provided by Tennessee Farmers, with an average annual rate of $407 per year, or about $34 per month.
Car insurance costs in Tennessee vary widely by location, company and driver profile, so we analyzed quotes from the largest local insurers to determine which have the best rates.
Cheapest for minimum liability
Cheapest for full coverage
Cheapest for drivers with an accident
Best for customer service
The cheapest insurer in Tennessee, for example, offers rates 29% lower than the state average, and depending on the policy type, costs may vary by more than $1,000 across different insurers. The wide range in prices highlights why consumers should compare multiple quotes when shopping for car insurance coverage.
Read more about our study below, or enter your ZIP code above to compare auto insurance rates among top Tennessee insurers near you.
Cheapest minimum liability car insurance in Tennessee
Shoppers looking for the absolute cheapest auto insurance can buy a policy that only meets minimum state requirements. The cheapest auto insurance company in Tennessee for a minimum-coverage policy is Tennessee Farmers, also called Tennessee Farm Bureau.
Find Cheap Auto Insurance Quotes in Tennessee
Below, we rank our eight sample insurers by average rates for the stripped-down policy.
On average, a minimum coverage policy in Tennessee is one-third the price of a full-coverage policy. However, a liability-only policy puts you at risk of insufficient coverage if you're in an auto accident. For example, Tennessee minimum policies only cover up to $15,000 in property damage to others per accident.
To find the companies with the lowest auto insurance rates, we reviewed and ranked the average annual quotes for a single 30-year-old man driving a Honda Civic EX across hundreds of ZIP codes in Tennessee.
Cheapest full coverage car insurance in Tennessee
The cheapest car insurance companies in Tennessee for a full coverage policy were State Farm, GEICO and Erie. Overall, the three cheapest companies had an average premium of $1,507 per year, which is 17% cheaper than the average Tennessee quote.
However, each driver's rates will differ depending on their driving record, coverage limits and where they live. That's why consumers should compare quotes from multiple insurers to get the lowest rates.
The table below shows the top eight Tennessee insurance companies for full coverage in terms of price. The companies are ranked in order of lowest insurance costs per year to highest.
|Rank||Company||Average annual rate|
This comparison was for a full coverage policy, meaning a car insurance policy that includes both comprehensive and collision coverage. Drivers who want to protect themselves against damage to their own car should seriously consider purchasing full coverage auto insurance.
Cheapest Tennessee car insurance after an accident
Drivers with a history of traffic violations or car accidents are often charged higher insurance rates. Below, we've listed the rates for our sample insurers both before and after an accident.
Using a full coverage policy, the cheapest Tennessee auto insurer after an accident is State Farm, for which average rates increased by only $247. Tennessee Farmers and Nationwide ranked second and third, despite keeping rates consistent for drivers after an accident.
|Rank||Company||Rates after accident||Rates before accident||Difference|
Best car insurance in Tennessee
We found that Progressive, Tennessee Farmers and State Farm were the best-rated auto insurance companies in Tennessee for customer service. We arrived at these rankings by measuring customer satisfaction among the major auto insurance companies operating in the state.
With a lower complaint rate and affordable rates, Tennessee Farmers is a great pick for drivers looking for value.
|Rank||Insurer||Market share||Complaint index|
Only Liberty Mutual has a complaint index above 1.0, indicating a disproportionate number of complaints.
The metric we chose — the NAIC complaint index — consists of a company's share of complaints compared to its share of direct premiums underwritten in Tennessee. This takes into account how a company performs relative to its competitors. A lower index indicates fewer complaints, which indicates more satisfied policyholders.
Auto insurance in Tennessee: Minimum coverage requirements
Tennessee requires that car insurance policies include, at a minimum, the following coverage limits:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $15,000 per accident
If you shop for auto insurance in Tennessee, your quote may also include uninsured motorist coverage for bodily injury and property damage. However, these coverages can be rejected in writing if you desire.
While these limits represent the least amount of insurance coverage you can have, you should consider adding more, as damage above the limits could require that you pay out of pocket after an accident.
The amount of liability insurance you should have typically depends on the amount of assets you have at risk in the case of a lawsuit. If you own a house in an expensive neighborhood and have sizable savings, for example, we'd recommend you increase your liability limits and consider adding umbrella insurance — a policy that covers liability costs beyond your auto insurance limits — as well.
Cheap car insurance in Tennessee by city
Location helps determine how much drivers pay for their car insurance. The five most expensive cities in Tennessee for full coverage auto insurance had an average annual rate of $2,155, while the five cheapest areas had yearly premiums around $1,579 — 27% cheaper than the priciest towns in Tennessee.
Generally speaking, lower population density (i.e., fewer people per square mile) and lower crime rates (especially auto theft rates) tend to translate to cheaper quotes. The five costliest cities in Tennessee — Collierville, Germantown, Millington, Bartlett and Memphis proper — were all in the Memphis metro area, which has the highest crime rates in Tennessee and is also its most densely populated area.
The table below provides the three cheapest auto insurance companies for the 50 most populous cities we surveyed, along with the average annual rates for a single male. USAA and State Farm were among the three cheapest insurers in all 50 cities, while GEICO ranked in the top three for 41 cities.
|City||Cheapest car insurance companies||Annual rates|
|Union City||State Farm||$1,270|
Below, we discuss insurance rates for the five most populous cities in Tennessee: Nashville, Memphis, Knoxville, Chattanooga and Clarksville. Although USAA ranks as the cheapest insurer in each city, it can only be purchased if you're a service member, a veteran, or a family member of a service member or veteran. State Farm ranks as the second cheapest insurer in each major city.
- Average annual cost = $1,885 (sixth most expensive out of 50 cities)
- Four percent more expensive than the Tennessee average
Nashville is the most populous city in the state, and its average insurance rate, $1,885, is 4% higher than the state average. USAA and State Farm rank as the cheapest insurers in Nashville, with an average annual rate of $1,185. Allstate ranks as the most expensive at $3,320.
- Average annual cost = $2,306 (most expensive out of 50 cities)
- Twenty-seven percent more expensive than the Tennessee average
The second biggest city in Tennessee has the most expensive car insurance, with an average annual rate of $2,306, which is 27% higher than the state average. State Farm is 60% cheaper than Allstate in Memphis, showing the benefits of shopping around for auto insurance.
- Average annual cost = $1,795 (eighteenth most expensive out of 50 cities)
- One percent less expensive than the Tennessee average
Compared to Nashville and Memphis, Knoxville is reasonably affordable, with an average annual premium of $1,795.
- Average annual cost = $1,760 (twenty-seventh most expensive out of 50 cities)
- Three percent less expensive than the Tennessee average
Chattanooga has the cheapest auto insurance rates of the five major cities. Its average premium of $1,760 is about 3% cheaper than the Tennessee state average.
- Average annual cost = $1,798 (seventeenth most expensive out of 50 cities)
- One percent less expensive than the Tennessee average
Clarksville is the most average city of these five. Its average annual car insurance rate of $1,798 is within 1% of the state average.
Average cost of car Insurance in Tennessee in all cities
Our study looked at more than 500 cities to obtain Tennessee's average cost of car insurance: $577 per year for a minimum coverage policy or $1,821 per year for a full coverage policy.
The average rates are based on quotes for a single 30-year-old man driving a Honda Civic EX. Here are the average annual rates for a full coverage policy in the 50 most populous cities in order of cheapest to costliest:
|Rank||City||Average annual insurance rate|
We collected quotes for hundreds of cities in Tennessee from eight insurance companies. Our base driver was a 30-year-old male who drove a 2015 Honda Civic EX. The driver was profiled as having no credit history, making him equivalent to a driver with below-fair to poor credit, according to our data source, Quadrant Information Services.
For the full-coverage policy, we gave the driver the following coverage:
Sample full-coverage policy:
|Coverage type||Study limits|
|Bodily liability||$50,000 per person/$100,000 per accident|
|Property damage||$25,000 per accident|
|Uninsured/underinsured motorist bodily injury||$50,000 per person/$100,000 per accident|
|Comprehensive and collision||$500 deductible|
For a minimum-coverage policy, our sample driver had coverage equivalent to the minimum requirements of the state of Tennessee.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.