Who Has the Cheapest Car Insurance in Tennessee? (2022)

Who Has the Cheapest Car Insurance in Tennessee? (2022)

State Farm has the best cheap car insurance in Tennessee, at $314 per year, or $26 per month, for minimum liability coverage.

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Depending on the company, average car insurance rates fluctuate by $590 for a minimum-coverage policy and $1,364 for a full-coverage policy in Tennessee. The best way to get the cheapest rates is to compare quotes from multiple insurers.

Cheapest car insurance in Tennessee: State Farm

State Farm offers the cheapest minimum-coverage car insurance in Tennessee. At $361 per year, its minimum-coverage policy costs 39% less than the state average.

The average cost of car insurance in Tennessee is $514 per year, or $43 per month, for minimum liability.

Cheapest car insurance companies in Tennessee

Find Cheap Auto Insurance Quotes in Tennessee

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Company
Annual rate
Monthly rate
State Farm$314$26
Geico$382$32
Farmers$394$33
Erie$503$42
Progressive$579$48
Allstate$724$60
Nationwide$902$75
USAA$312$26

*USAA is only available to current and former military members and their families.

Minimum liability policies are the cheapest form of insurance in Tennessee because they provide the lowest level of coverage you can legally carry in the state. Cheap premiums might make minimum-coverage auto insurance seem like the best option, but if you're involved in an accident, you could end up paying more out of pocket in the long run.

A minimum-coverage policy only covers the other driver's injuries and property damage. It does not pay for damage to your vehicle or injuries to you and your passengers.

That's why we recommend most drivers purchase a full-coverage auto insurance policy rather than a minimum-coverage policy.

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Cheapest full-coverage car insurance in Tennessee: State Farm

Tennessee drivers can find affordable full-coverage insurance from State Farm. At $911 per year, or $76 per month, State Farm's rates are 41% cheaper than average, and $419 less than the second-cheapest insurer, Geico.

Full-coverage auto insurance costs $1,534 per year on average in Tennessee — $1,020 more than a minimum-coverage policy.

Company
Annual rate
Monthly rate
State Farm$911$76
Geico$1,330$111
Erie$1,490$124
Farmers$1,644$137
Progressive$1,734$145
Allstate$2,059$172
Nationwide$2,235$186
USAA$871$73

*USAA is only available to current and former military members and their families.

Tennessee drivers who have served in the armed forces or belong to a military family can get insurance that's even cheaper from USAA. A full-coverage policy from USAA costs $871 annually — 43% cheaper than the state average.

A full-coverage policy includes comprehensive and collision coverages in addition to liability coverage. Comprehensive coverage pays for damage to your car resulting from incidents beyond your control, like theft and weather, while collision coverage pays for damage when you're in control of the vehicle. If you have a car loan or lease, your lender will typically require you to have full coverage.

Cheap car insurance for drivers with prior incidents

The cost of car insurance in Tennessee is typically more expensive for drivers without a clean driving record. Insurers see incidents like at-fault accidents, traffic violations and DUIs as signs of a risky driver, which typically results in a price increase.

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Find Cheap Auto Insurance Quotes in Tennessee

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Cheapest car insurance after a speeding ticket: State Farm

State Farm has the best rates for Tennessee drivers with a recent speeding ticket, at $993 per year for full coverage. That's more than $700 cheaper than the state average of $1,736. Tennessee drivers can expect to pay 13% more for auto insurance after a speeding ticket.

Company
Annual rate
Monthly rate
State Farm$993$83
Geico$1,330$111
Erie$1,539$128
Farmers$1,644$137
Progressive$2,256$188
Allstate$2,324$194
Nationwide$2,763$230
USAA$1,035$86

*USAA is only available to current and former military members and their families.

Cheapest car insurance after an accident: State Farm

Tennessee drivers with an at-fault accident on their record can find affordable auto insurance from State Farm. While the average rate for drivers with an at-fault accident is $2,144 per year for full coverage, State Farm policyholders pay 50% less — just $1,074 annually, or $90 monthly.

Company
Annual rate
Monthly rate
State Farm$1,074$90
Farmers$1,644$137
Erie$1,890$158
Geico$2,326$194
Progressive$2,678$223
Allstate$3,014$251
Nationwide$3,276$273
USAA$1,251$104

*USAA is only available to current and former military members and their families.

Average rates in Tennessee increase by 40% after an at-fault accident. However, insurance companies take different approaches to an at-fault accident, which may include whether you have accident forgiveness or not.

For instance, Farmers might not raise rates at all: the company quoted the same annual rate of $1,644 both before and after an at-fault accident. In contrast, Geico raised rates by 75% after an at-fault accident, from $1,330 a year to $2,326.

The wide range in cost between insurance companies highlights the importance of shopping around to find the best rates, especially after your driving record has changed.

Cheapest car insurance after a DUI: Progressive

Progressive offers the best rates to drivers in Tennessee who have a DUI. A full-coverage policy from Progressive costs $1,926 per year, 29% cheaper than the state average of $2,704. Drivers who are eligible for USAA can take advantage of even lower rates — $1,652 per year and 39% below average.

Company
Annual rate
Monthly rate
Progressive$1,926$161
State Farm$1,989$166
Erie$2,240$187
Farmers$2,620$218
Allstate$2,871$239
Nationwide$4,158$347
Geico$4,174$348
USAA$1,652$138

*USAA is only available to current and former military members and their families.

Driving under the influence in Tennessee can raise your rates more than any other offense. Average rates increase by 76% after a DUI, compared to 13% after a speeding ticket and 40% after an at-fault accident.

Cheapest car insurance for drivers with poor credit: Geico

Tennessee drivers with poor credit can find the best rates from Geico. The company offers full-coverage insurance for $1,631 per year, 39% cheaper than the state average.

Company
Annual rate
Monthly rate
Geico$1,631$136
Farmers$1,901$158
Progressive$2,726$227
Nationwide$2,808$234
Allstate$3,139$262
Erie$3,525$294
State Farm$4,329$361
USAA$1,476$123

*USAA is only available to current and former military members and their families.

The average cost of car insurance can be nearly 75% more expensive for drivers with bad credit versus those with average credit. Having poor credit can result in higher car insurance premiums because drivers with lower credit scores are statistically more likely to file a claim.

Cheapest car insurance for married drivers: State Farm

State Farm has the best auto insurance rates for married couples in Tennessee. Married drivers pay $911 annually for a full-coverage policy from State Farm — 36% below the state average. State Farm offers the same rate to both married and unmarried drivers, but it is still the cheapest option. Progressive gives married drivers a 25% discount, the highest in the state.

Company
Annual rate
Monthly rate
State Farm$911$76
Geico$1,261$105
Progressive$1,301$108
Erie$1,411$118
Farmers$1,466$122
Allstate$2,041$170
Nationwide$2,154$180
USAA$760$63

*USAA is only available to current and former military members and their families.

Married drivers usually pay lower premiums than unmarried drivers because they're statistically less likely to be in car accidents. In Tennessee, married drivers pay an average $1,413 per year, which is 8% less than unmarried drivers.

Cheapest car insurance for young drivers in Tennessee: Erie

Erie offers the cheapest auto insurance rates for young drivers in Tennessee. A minimum-coverage policy with Erie costs $1,078 per year — 44% cheaper than the state average. State Farm has the most affordable full-coverage policy, at $2,800 per year.

Company
Liability only
Full coverage
Erie$1,078$3,135
State Farm$1,082$2,800
Farmers$1,313$4,690
Geico$1,681$5,137
Allstate$2,439$7,375
Progressive$3,112$8,729
Nationwide$3,803$8,635
USAA$956$2,401

*USAA is only available to current and former military members and their families.

The average cost of minimum-coverage car insurance for 18-year-old drivers is $1,933 per year, or $161 per month — over three times more expensive than the cost for 30-year-old drivers. Young drivers are statistically more likely to get into accidents than older drivers, making their insurance rates pricier.

We recommend that younger drivers share a policy with a parent or other older driver, which often results in more affordable rates. Good student and driver safety course discounts can also help young drivers reduce their rates.

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Cheapest car insurance for young drivers after a ticket: State Farm

Young drivers with a speeding ticket on their record can find the most affordable rates at State Farm. Premiums cost $1,202 annually for minimum coverage, which is 42% cheaper than the state average.

Company
Annual rate
Monthly rate
State Farm$1,202$100
Farmers$1,313$109
Erie$1,403$117
Geico$1,681$140
Allstate$2,816$235
Progressive$3,296$275
Nationwide$3,688$307
USAA$1,059$88

*USAA is only available to current and former military members and their families.

Young drivers in Tennessee can expect their rates to go up by 6% after a speeding ticket. However, the amount that your premium may increase varies by company.

Farmers and Geico do not increase rates for young drivers after a single speeding ticket. On the other hand, drivers insured with Allstate pay 15% more for minimum coverage after a ticket, more than any other company in our study.

Cheapest car insurance for young drivers after an accident: State Farm

State Farm also has the best auto insurance rates for young drivers involved in an at-fault accident — $1,322 per year for minimum coverage and $866 cheaper than the state average.

Company
Annual rate
Monthly rate
State Farm$1,322$110
Farmers$1,457$121
Erie$1,542$129
Geico$1,768$147
Allstate$2,997$250
Progressive$3,467$289
Nationwide$3,786$316
USAA$1,164$97

*USAA is only available to current and former military members and their families.

An at-fault accident may cause young drivers' rates to increase by 13%, on average. Though its rates are on the cheaper side, Erie has the highest rate increase after an at-fault accident — 43%. Although young drivers with Geico only see a 5% rate increase, its minimum-coverage rates are still $446 more expensive than State Farm.

Best car insurance companies in Tennessee

Erie has the best car insurance for Tennessee drivers, thanks to cheap rates and highly rated support.

If customer service is your top priority, you'll want to consider buying insurance from Erie. The company is our pick for best insurer in Tennessee based on a high rating from our editors, an excellent J.D. Power customer service score and a superior financial stability score from A.M. Best. State Farm is another good choice for great support and affordable quotes.

Company
Editor's rating
JD Power
AM Best
Erie
874A+
State Farm
859A++
Geico
843A++
Nationwide
831A+
Farmers
818A
Allstate
838A+
Progressive
828A+
USAA
890A++

Our editor's rating is determined by analyzing each company's rates in relation to its competitors, the policy coverages it offers and customer satisfaction scores.

All of the companies included in our study received a Financial Strength Rating of "A+" or better from A.M. Best, indicating a "Superior" ability to pay out claims.

J.D. Power commissions an annual survey for car insurance customers regarding how satisfied they are with a company's claims service — a perfect score is 1,000.

Average car insurance rates in Tennessee by city

Memphis has the highest average car insurance rates, with residents paying $1,962 per year for full coverage. Bristol residents pay the lowest rates, at $1,297 a year.

Where you live can impact your car insurance rates as much as your driving habits. Full-coverage rates in Tennessee vary by about $665 a year between the most and least expensive cities.

City
Average annual rate
Percent from average
Adams$1,5461%
Adamsville$1,5431%
Afton$1,404-9%
Alamo$1,5571%
Alcoa$1,494-3%
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Minimum requirements for auto insurance coverage in Tennessee

In Tennessee, state-minimum car insurance includes bodily injury liability coverage, which pays for the other driver's injuries, and property damage liability coverage, which pays for the other driver's repairs.

Coverage
Limit
Bodily injury liability (BI)$25,000 per person/$50,000 per accident
Property damage liability (PD)$15,000 per accident

Recap of the cheapest car insurance in Tennessee

  • Minimum coverage: State Farm
  • Full coverage: State Farm
  • After a speeding ticket: State Farm
  • After an at-fault accident: State Farm
  • After a DUI: Progressive
  • Poor credit history: Geico
  • Married drivers: State Farm
  • Young drivers: Erie
  • Young drivers after a ticket: State Farm
  • Young drivers after an accident: State Farm

Frequently asked questions

What is the cheapest car insurance company in Tennessee?

State Farm is the cheapest insurance company for most drivers in Tennessee, with rates starting at $314 per year for a minimum liability insurance policy.

How much does insurance cost in Tennessee?

The average price of insurance for a state-minimum policy is $514 per year, and the average for full-coverage insurance is $1,534.

Does Tennessee require auto insurance?

Yes, Tennessee requires drivers to have bodily injury liability coverage of at least $25,000 per person and $50,000 per accident, plus a minimum of $15,000 of property damage liability coverage.

How much does car insurance cost in Memphis versus Nashville?

Drivers in Memphis pay the highest rates in the state for full-coverage auto insurance — $1,962 per year and 28% above the state average. Insurance for Nashville drivers is less expensive, at $1,631 per year, but rates are still 6% higher than average.

Methodology

We collected thousands of rates from ZIP codes across Tennessee for the largest insurers in the state using a sample driver with the following profile:

  • 30-year-old male
  • Drives a 2015 Honda Civic EX
  • Average credit

The base policy for the study was a full-coverage policy with the following limits:

Coverage
Limit
Bodily injury liability$50,000 per person/$100,000 per accident
Personal injury protection$10,000
Property damage liability$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible

For our minimum-coverage policy, we quoted a policy with the minimum required limits in Tennessee. Rates for young drivers were compiled using a minimum-coverage policy.

For other rates analyses (credit score, accident history and marital status), the base policy listed above was changed to reflect the new driver.

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.

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.