Best cheap car insurance in TN
Travelers, Auto-Owners and Erie are the cheapest companies for most people in Tennessee.
- Want full coverage? Travelers: $140/mo
- Only need minimum coverage? Auto-Owners: $43/mo
- Want the best customer service? Erie: $149/mo
- Have a speeding ticket? Auto-Owners: $148/mo
- Caused an accident? State Farm: $199/mo
- Need coverage for a teen? Erie: $105/mo
- Got a DUI? Travelers: $213/mo
- Have poor credit? Travelers: $245/mo
Monthly rates are based on full coverage car insurance for a 30-year-old man. Some rates use different ages or coverage limits.
Cheapest car insurance quotes in TN: Travelers
Travelers, Auto-Owners and Erie have the most affordable full coverage insurance in Tennessee.
- Erie is the best choice for most people because it offers the best mix of affordable rates and excellent customer service. At an average of $149 per month, full coverage from Erie is $27 per month cheaper than the Tennessee average.
- Auto-Owners is also a great option, at $148 per month, on average. Auto-Owners has good customer service and helpful local agents. But it doesn't offer online quotes, so you have to talk to an agent to buy a policy.
- Travelers has the cheapest quotes for most Tennessee drivers, at $140 per month. However, it doesn't have great customer service. It might be worth paying a few extra dollars per month for a company with better reviews, such as Erie or Auto-Owners.
Find Cheap Car Insurance Quotes in Tennessee
Cheapest full coverage insurance in TN
Company | Monthly rate |
|---|---|
| Travelers | $140 |
| Auto-Owners | $148 |
| Erie | $149 |
| Geico | $182 |
| USAA* | $99 |
*USAA is only available to current and former military members and their families.
Data-powered research on Tennessee car insurance
Cheap liability car insurance in TN: Auto-Owners and Erie
- Auto-Owners and Erie have the cheapest liability-only insurance in Tennessee. At $43 per month, on average, both companies cost around $15 per month less than the state average.
- USAA has even cheaper rates, at just $31 per month. However, only military members, veterans and some of their family members can buy USAA insurance.
Best cheap TN liability insurance
Company | Monthly rate |
|---|---|
| Auto-Owners | $43 |
| Erie | $43 |
| Travelers | $45 |
| State Farm | $59 |
| USAA* | $31 |
*USAA is only available to current and former military members and their families.
Find Cheap Car Insurance Quotes in Tennessee
Average car insurance cost in Tennessee by city
- Travelers has the cheapest full coverage insurance in 78% of cities and towns across Tennessee, including Nashville, Memphis and Knoxville. Erie has the cheapest rates in 15% of cities, many of which are in northeastern Tennessee, while Auto-Owners has the lowest rates in the remaining 7%.
- Memphis, the second-largest city in Tennessee, has the most expensive car insurance in the state. Full coverage car insurance in Memphis, TN, costs an average of $264 per month. This is partially because Memphis has significantly more car thefts than other cities in Tennessee.
- Central, a small community outside Johnson City, has the cheapest rates in the state, at $152 per month.
Find Cheap Car Insurance Quotes in Tennessee
Cheapest full coverage auto insurance rates by TN city
City | Avg. rate | Cheapest company | Cheapest rate |
|---|---|---|---|
| Nashville | $191 | Travelers | $144 |
| Memphis | $264 | Travelers | $176 |
| Knoxville | $179 | Travelers | $143 |
| Chattanooga | $181 | Travelers | $137 |
| Clarksville | $184 | Travelers | $134 |
| Murfreesboro | $182 | Travelers | $142 |
| Franklin | $170 | Travelers | $139 |
| Johnson City | $152 | Travelers | $112 |
| Jackson | $190 | Travelers | $149 |
| Hendersonville | $176 | Travelers | $137 |
| Spring Hill | $167 | Travelers | $134 |
| Kingsport | $157 | Erie | $124 |
| Bartlett | $227 | Travelers | $169 |
| Gallatin | $174 | Travelers | $133 |
| Cleveland | $172 | Auto-Owners | $135 |
| Lebanon | $180 | Travelers | $137 |
| Columbia | $182 | Travelers | $137 |
| Brentwood | $174 | Travelers | $141 |
| Mount Juliet | $183 | Travelers | $138 |
| Germantown | $216 | Travelers | $160 |
| La Vergne | $189 | Travelers | $134 |
| Cookeville | $167 | Travelers | $135 |
| Oak Ridge | $176 | Travelers | $132 |
| Maryville | $170 | Erie | $132 |
| Morristown | $168 | Travelers | $128 |
| Bristol | $153 | Erie | $116 |
| Shelbyville | $175 | Travelers | $129 |
| East Ridge | $181 | Travelers | $130 |
| Tullahoma | $172 | Auto-Owners | $130 |
| Adams | $186 | Travelers | $141 |
| Adamsville | $200 | Travelers | $140 |
| Afton | $164 | Erie | $122 |
| Alamo | $196 | Travelers | $138 |
| Alcoa | $170 | Erie | $132 |
| Alexandria | $187 | Travelers | $135 |
| Algood | $165 | Travelers | $131 |
| Allardt | $186 | Erie | $140 |
| Allons | $183 | Travelers | $142 |
| Allred | $186 | Travelers | $134 |
| Alpine | $185 | Travelers | $144 |
| Altamont | $184 | Travelers | $137 |
| Andersonville | $179 | Travelers | $139 |
| Antioch | $206 | Travelers | $144 |
| Apison | $176 | Travelers | $137 |
| Ardmore | $193 | Travelers | $138 |
| Arlington | $216 | Travelers | $165 |
| Arnold Air Force Base | $174 | Travelers | $130 |
| Arrington | $173 | Travelers | $136 |
| Arthur | $183 | Erie | $139 |
| Ashland City | $191 | Travelers | $141 |
| Athens | $171 | Travelers | $127 |
| Atoka | $211 | Travelers | $152 |
Best car insurance in Tennessee: Erie
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Full coverage rate$149/moThis analysis used auto insurance quotes for a policy with collision and comprehensive coverage.
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Claims processBestClaims rating is based on J.D. Power's claims satisfaction survey.
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AM Best ratingAAn A financial strength rating means that a company has an excellent ability to pay customer claims, even in difficult financial situations. This is the third-highest rating available.
The author, Lindsay Bishop, chose the best car insurance companies in Tennessee based on:
- J.D. Power's 2025 U.S. Auto Insurance Study
- J.D. Power's 2025 U.S. Auto Claims Satisfaction Study
- National Association of Insurance Commissioners complaint data
- Each company's average car insurance rates in Tennessee
- Coverage availability and optional add-ons
- The author's 7+ years of insurance industry experience
ValuePenguin's reviews follow strict, independent editorial standards and are never influenced by commissions or partnerships.
Cheap auto insurance in TN after a speeding ticket: Auto-Owners
Auto-Owners has the best rates for most Tennessee drivers with a recent speeding ticket. Full coverage from Auto-Owners costs $148 per month, on average. That's $75 per month cheaper than the Tennessee state average.
Auto-Owners doesn't offer online quotes, so you have to contact an agent to get your rate.
If you need to compare quotes and buy a policy quickly, consider Erie instead.
Cheap Tennessee auto insurance rates after a speeding ticket
Company | Monthly rate |
|---|---|
| Auto-Owners | $148 |
| Erie | $161 |
| Travelers | $186 |
| State Farm | $217 |
| USAA* | $118 |
*USAA is only available to current and former military members and their families.
Tennessee drivers could pay 27% more for auto insurance after a speeding ticket. That's an average increase of $48 per month for full coverage insurance.
Cheap auto insurance in TN after an accident: State Farm
- State Farm has the best cheap Tennessee car insurance after an accident. A full coverage policy from State Farm costs an average of $199 per month after a crash, which is $59 per month less than the statewide average.
- Travelers also offers affordable rates after an accident. However, its poor customer service reviews mean State Farm is usually a better option.
Affordable car insurance in Tennessee after a crash
Company | Monthly rate |
|---|---|
| State Farm | $199 |
| Travelers | $200 |
| Erie | $218 |
| Auto-Owners | $252 |
| USAA* | $143 |
*USAA is only available to current and former military members and their families.
Full coverage quotes in Tennessee could go up by 47% after an at-fault accident, on average.
However, your rates shouldn't go up if the accident wasn't your fault. In Tennessee, insurance companies aren't allowed to raise your rates if someone else caused the accident.
Cheapest car insurance in TN for teens: Erie
Erie has the cheapest car insurance quotes in Tennessee for teen drivers.
- Minimum liability coverage: A liability-only policy from Erie costs $105 per month for an 18-year-old, on average. That's $88 per month less than the Tennessee average for teens.
- Full coverage: Erie also has the most affordable full coverage for young drivers, at an average of $357 per month.
- Military ties: USAA has even cheaper car insurance quotes for 18-year-old drivers. However, only active-duty military members, veterans and some of their family members (including their children) can get insurance from USAA.
Cheapest car insurance quotes in TN for teens
Company | Liability only | Full coverage |
|---|---|---|
| Erie | $105 | $357 |
| Travelers | $130 | $393 |
| Geico | $154 | $363 |
| Auto-Owners | $188 | $513 |
| USAA* | $91 | $263 |
*USAA is only available to current and former military members and their families.
In Tennessee, 18-year-olds pay more than three times as much for car insurance as older drivers, on average. That's because teens have less experience behind the wheel and are more likely to cause a crash.
The best way for young drivers in Tennessee to get cheap insurance rates is by sharing a policy with their parents. Good student and driver safety course discounts can also help teens save on car insurance.
Cheapest auto insurance in TN for teens with a ticket or accident: Erie
Erie has the most affordable rates in Tennessee for most young drivers with a speeding ticket or accident on their record.
- Speeding ticket: A minimum liability policy from Erie costs an average of $122 per month for an 18-year-old with one speeding ticket. That's around half the Tennessee average for teens with a ticket.
- Accident: At $146 per month, liability-only coverage from Erie costs 46% less than the state average.
- Military ties: USAA offers even cheaper rates for teens with military ties. But you can only get a policy if you're an active-duty military member or veteran, or if your parents had a policy at some point.
Cheap liability insurance quotes in TN for teens with a bad driving record
Company | Ticket | Accident |
|---|---|---|
| Erie | $122 | $146 |
| Travelers | $169 | $206 |
| Auto-Owners | $188 | $281 |
| Geico | $191 | $214 |
| USAA* | $101 | $110 |
*USAA is only available to current and former military members and their families.
Young drivers in Tennessee could see their rates go up by 24% after one speeding ticket and 39% after an at-fault accident. That's a smaller increase than adult drivers usually see, because teens are considered high-risk drivers, even before a ticket or accident.
Affordable auto insurance in Tennessee after a DUI: Travelers
Travelers has the best rates for most Tennessee drivers with a DUI. Full coverage from Travelers costs $213 per month after a DUI. That's $82 per month cheaper than the state average, and $62 per month less than the second-cheapest company, Erie.
Cheap TN car insurance quotes after a DUI
Company | Monthly rate |
|---|---|
| Travelers | $213 |
| Erie | $275 |
| Progressive | $283 |
| Geico | $292 |
| USAA* | $189 |
*USAA is only available to current and former military members and their families.
Driving under the influence in Tennessee could raise your rates by an average of 68%.
In addition, drivers with a DUI may need to get SR-22 insurance in Tennessee. An SR-22 filing can cost an extra $15 to $50.
Cheap Tennessee insurance for drivers with poor credit: Travelers
Travelers has the most affordable full coverage insurance for Tennessee drivers with poor credit, at $245 per month. That's $127 per month cheaper than the state average.
Affordable car insurance in TN if you have poor credit
Company | Monthly rate |
|---|---|
| Travelers | $245 |
| Farmers | $292 |
| Geico | $293 |
| Erie | $343 |
| USAA* | $177 |
*USAA is only available to current and former military members and their families.
Drivers with poor credit pay twice as much, on average, for car insurance in Tennessee as drivers with good credit. That's because insurance companies believe people with low credit scores tend to file more claims.
Is your car insurance company raising rates in Tennessee in 2026?
Two major car insurance companies in Tennessee, American Family and Farmers, are raising rates by a meaningful amount in 2026. But many companies are lowering rates across the state.
- ↑ Biggest increase: American Family at +4.2%
- ↓ Biggest decrease: State Farm at -16.9%
Company | 2026 rate change | 5 year rate change |
|---|---|---|
| State Farm | ↓ 16.9% | ↑ 20.6% |
| Alfa | ↓ 6.6% | ↑ 14.5% |
| Travelers | ↓ 5.0% | ↑ 14.7% |
| Progressive | ↓ 4.2% | ↑ 30.3% |
| Geico | ↓ 0.7% | ↑ 43.8% |
| USAA | 0.0% | ↑ 31.0% |
| Liberty Mutual | 0.0% | ↑ 46.1% |
| Erie | ↑ 0.6% | ↑ 74.1% |
| Farmers | ↑ 1.2% | ↑ 59.0% |
| American Family | ↑ 4.2% | ↑ 44.6% |
A downward arrow (↓) indicates a rate decrease, while an upward arrow (↑) indicates a rate increase.
What to do if your rates went up in Tennessee
If your insurance company is raising rates in Tennessee, there are a few things you can do to lower your insurance bill.
-
Shop around for quotes from the cheapest companies in Tennessee, including Travelers, Auto-Owners and Erie.
There's a difference of $103 per month between the most and least expensive companies for full coverage insurance in TN. That could mean a savings of more than $1,200 per year.
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Find a company that offers lots of discounts you qualify for. You can usually save the most money by bundling your home insurance or insuring multiple vehicles.
But some companies also offer less-common discounts. For instance, Travelers offers a discount if you drive a hybrid or electric car. And families with teen drivers can save money with Auto-Owners by installing a GPS tracker in their teen's car.
- Sign up for a safe driving program. These programs track your driving habits using a mobile app or device that you plug into your car. If you avoid risky driving habits, like speeding and late-night driving, you could earn a big discount.
What is the Tennessee state minimum auto insurance?
In Tennessee, you must have a minimum amount of liability insurance, which is often written as 25/50/25.
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $25,000 per accident
In Tennessee, the Department of Revenue periodically checks to make sure your car insurance policy is still active. It does this using an electronic insurance verification system.
That means you'll get in trouble if you have a lapse in coverage, even if you don't get pulled over or have an accident.
According to Tennessee state law, you will have to pay fines and risk losing your registration if you're caught driving without insurance.
If your license is suspended, your insurer will also need to file an SR-22 form on your behalf, which could cause your rates to increase.
Failure to provide proof of insurance
- Fines: $25 coverage failure fee after 15 days; an additional $100 continued coverage failure fee after additional 30 days
- Driving privileges: Driver's license and registration suspended after 45 days until proof provided
- Other: $65 license and registration restoration fee; $50 SR-22 fee
Driving without insurance
- Fines: $300
- Driving privileges: Driver's license and registration suspended until insurance proof provided and driver's license examination retaken
- Other: $65 restoration fee; $50 SR-22 fee; SR-22 certificate on file for three years
Motorists who don't want to buy car insurance can instead choose an alternative form of financial responsibility. By fulfilling one of the following requirements, the commissioner of the Tennessee Department of Safety (DOS) will issue you a certificate of insurance, which you'll need to show when you register a vehicle or are pulled over on the road.
Cash/security deposit: Once you deposit $60,000 with the DOS, the commissioner will verify there are no prior unsatisfied judgments against you. Then, they'll issue you proof of coverage. The deposit can be made in either cash or securities, such as government bonds or notes, and it acts as your insurance fund to satisfy future judgments that may arise from any auto accident you cause.
Surety bond: Filing a copy of a bond that can cover a $60,000 payment with the DOS will fulfill your Tennessee motorist duty. A surety bond is only valid as your proof of financial responsibility when it is issued by a surety company licensed in TN and has been valid for at least a year. When you cannot pay for damage you caused in an accident, the surety company will pay in your place (and then ask you for the money back later).
What's the best car insurance coverage for Tennessee drivers?
Most drivers should get full coverage auto insurance rather than the minimum limits.
Full coverage car insurance includes comprehensive and collision coverages in addition to liability coverage.
- Comprehensive coverage pays for damage to your car caused by events outside of your control, such as theft and weather.
- Collision coverage pays for damage to your car after an accident, regardless of whose fault it is.
If you have a car loan or lease, your lender typically requires you to have full coverage. You should also consider full coverage insurance if your car is worth more than $5,000 or is newer than 8 years old.
Minimum liability policies are the cheapest option in Tennessee.
That's because they offer the least coverage you can legally have. Cheap rates might make liability-only auto insurance seem like the best option if you're on a budget. But if you're in an accident, you could end up paying more in the long run.
A minimum coverage policy only pays for the other driver's injuries and property damage. It doesn't protect your car or pay for injuries to you and your passengers.
Frequently asked questions
Who has the cheapest car insurance rates in Tennessee?
In 2026, Travelers is the cheapest insurance company in Tennessee, with full coverage rates averaging $140 per month. Auto-Owners and Erie have the cheapest liability-only coverage, at $43 per month.
How much is car insurance in Tennessee?
The average cost of auto insurance in Tennessee is $176 per month for a full coverage policy. That's $18 per month cheaper than the U.S. average. Minimum liability coverage costs an average of $58 per month.
How much is car insurance in Knoxville, TN?
The average cost of full coverage car insurance in Knoxville is $179 per month. That's just 2% more than the state average.
Methodology
To find the best cheap insurance in Tennessee, ValuePenguin collected thousands of rates from ZIP codes across TN for the largest insurance companies in the state. Rates are for a 30-year-old man with a 2018 Honda Civic EX and good credit.
Rates for a full coverage policy have higher liability limits than the state requirement, along with collision and comprehensive coverage.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision: $500 deductible
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates came from insurance company filings. Use them for comparative purposes only. Your own quotes may differ.
To determine rate changes by company, ValuePenguin analyzed publicly available rate filing data from the Tennessee Insurance Division. Rate filing data was sourced using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
The table includes rate filings submitted by major insurance companies and their subsidiaries with effective dates between 2022 and 2026. Because insurance companies often segment customers into different rating groups, a filing may apply only to certain drivers, vehicles, coverage levels, regions or policy types. Not every increase or decrease applies to every policyholder insured by that company in the state.
Data limitations
Insurance companies may submit multiple filings throughout the year. Some filings may be revised, withdrawn or superseded after publication.
Rate filing information was current as of July 28, 2026.
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
