Who Has the Cheapest Car Insurance Quotes in Tennessee? (2020)

Find Cheap Auto Insurance Quotes in Your Area

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The average cost of auto insurance in Tennessee is $1,821 per year, or about $152 per month, for a full-coverage policy. The cheapest car insurance in Tennessee is provided by State Farm, with an average annual rate of $1,337 per year, or about $111 per month. That's 27% lower than the state average.

The cost of car insurance in Tennessee varies widely by location, company and driver profile, so we analyzed quotes from the largest insurers in Tennessee to determine which insurance companies have the cheapest car insurance rates. Our research also evaluated customer feedback to determine the best auto insurance companies in the state.

The wide range in prices means it's always important for consumers to 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 U.S. insurers near you.

Cheapest car insurance in Tennessee

The cheapest car insurance companies in Tennessee 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.

This graph shows the top three cheap auto insurance companies in the state of Tennessee, and compares their rates to the state average.

Find the Cheapest Auto Insurance Quotes in Your Area

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The table below shows the top eight Tennessee insurance companies in terms of price. The companies are ranked in order of lowest insurance costs per year to highest. If you're looking for a personalized quote, enter your ZIP code above to find the cheapest Tennessee auto insurance quotes near you.

RankCompanyAverage annual rate
1State Farm$1,337
2GEICO$1,544
3Erie$1,640
4Tennessee Farmers$1,745
5Nationwide$1,815
6Progressive$1,859
7Allstate$3,377
N/A*USAA$1,249
USAA is not ranked, as only current and former military members and their families are eligible for a policy.

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.

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 consider purchasing full coverage auto insurance.

Cheapest minimum car insurance in Tennessee

The quotes cited above are for a full-coverage insurance policy, but 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. Below, we rank our eight sample insurers by average rates for the stripped-down policy.

RankCompanyAverage annual rate
1Tennessee Farmers$407
2Erie$444
3State Farm$459
4GEICO$526
5Progressive$599
6Nationwide$771
7Allstate$1,034
N/A*USAA$380
USAA is not ranked, as only current and former military members and their families are eligible for a policy.

On average, a minimum coverage policy in Tennessee is one-third the price of our sample full-coverage policy. However, a minimum 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.

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.

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.

RankCompanyRates after accidentRates before accidentDifference
1State Farm$1,584$1,337$247
2Tennessee Farmers$1,745$1,745$0
3Nationwide$1,815$1,815$0
4Erie$2,050$1,640$411
5GEICO$2,438$1,544$894
6Progressive$2,718$1,859$858
7Allstate$5,000$3,377$1,623
N/A*USAA$1,765$1,249$516
Data is for average annual premiums. USAA is not ranked, as only current and former military members and their families are eligible for a policy.

Best car insurance in Tennessee

We found that Progressive, Tennessee Farmers and State Farm were the best-rated auto insurance companies in Tennessee. We arrived at these rankings by measuring customer satisfaction among the major auto insurance companies operating in the state.

RankInsurerMarket shareComplaint index
1Progressive8.6%0
2Tennessee Farmers14.3%0.07
3State Farm18.8%0.57
4GEICO8.3%0.62
5Allstate5.3%0.64
6Nationwide2.9%0.68
7Travelers2.5%0.69
8Erie3.0%0.77
9USAA4.7%0.88
10Liberty Mutual4.3%1.17
The analysis includes the top 10 insurance groups in the state by market share. An insurer with a complaint index of 1.0 has an expected number of complaints given its market size.

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 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.

CityCheapest car insurance companiesAnnual rates
AlcoaUSAA$1,213
State Farm$1,331
Erie$1,464
ArlingtonUSAA$1,333
State Farm$1,457
GEICO$1,588
AthensState Farm$1,174
USAA$1,213
GEICO$1,456
BartlettUSAA$1,359
State Farm$1,587
GEICO$1,818
BrentwoodUSAA$1,173
GEICO$1,425
State Farm$1,444
BristolState Farm$1,083
USAA$1,112
GEICO$1,287
ChattanoogaUSAA$1,227
State Farm$1,349
GEICO$1,473
ClarksvilleUSAA$1,203
State Farm$1,407
GEICO$1,529
ClevelandState Farm$1,221
USAA$1,222
Erie$1,485
ColliervilleUSAA$1,156
State Farm$1,434
GEICO$1,583
ColumbiaUSAA$1,251
State Farm$1,332
GEICO$1,497
CookevilleState Farm$1,117
USAA$1,174
GEICO$1,501
CrossvilleState Farm$1,175
USAA$1,213
GEICO$1,392
DicksonState Farm$1,299
USAA$1,318
GEICO$1,441
DyersburgState Farm$1,336
USAA$1,336
GEICO$1,525
East RidgeUSAA$1,262
State Farm$1,374
GEICO$1,471
ElizabethtonState Farm$1,147
USAA$1,155
GEICO$1,287
FarragutUSAA$1,226
State Farm$1,367
GEICO$1,482
FranklinUSAA$1,139
State Farm$1,355
GEICO$1,414
GallatinUSAA$1,220
State Farm$1,322
GEICO$1,392
GermantownUSAA$1,161
State Farm$1,457
GEICO$1,786
GoodlettsvilleUSAA$1,205
State Farm$1,455
GEICO$1,535
GreenevilleUSAA$1,127
State Farm$1,170
Erie$1,307
HendersonvilleUSAA$1,211
State Farm$1,358
GEICO$1,453
JacksonUSAA$1,294
State Farm$1,477
GEICO$1,515
Johnson CityUSAA$1,107
State Farm$1,169
Erie$1,307
KingsportUSAA$1,107
State Farm$1,232
Erie$1,322
KnoxvilleUSAA$1,262
State Farm$1,358
GEICO$1,478
La VergneUSAA$1,245
State Farm$1,374
GEICO$1,427
LawrenceburgState Farm$1,233
USAA$1,275
GEICO$1,544
LebanonUSAA$1,220
State Farm$1,296
GEICO$1,428
LewisburgState Farm$1,217
USAA$1,225
Tennessee Farmers$1,513
ManchesterUSAA$1,156
State Farm$1,232
GEICO$1,541
MartinUSAA$1,231
State Farm$1,294
GEICO$1,449
MaryvilleUSAA$1,192
State Farm$1,345
GEICO$1,391
McMinnvilleState Farm$1,163
USAA$1,193
GEICO$1,485
MemphisUSAA$1,467
State Farm$1,783
GEICO$1,923
MillingtonUSAA$1,269
State Farm$1,391
GEICO$1,617
MorristownUSAA$1,213
State Farm$1,244
GEICO$1,350
Mount JulietUSAA$1,213
State Farm$1,362
GEICO$1,428
MurfreesboroUSAA$1,225
State Farm$1,323
GEICO$1,431
NashvilleUSAA$1,185
State Farm$1,381
GEICO$1,511
Oak RidgeUSAA$1,213
State Farm$1,420
GEICO$1,484
ParisUSAA$1,279
State Farm$1,321
GEICO$1,549
PortlandState Farm$1,192
USAA$1,241
GEICO$1,453
SeviervilleUSAA$1,265
State Farm$1,355
Tennessee Farmers$1,578
SmyrnaUSAA$1,220
State Farm$1,332
GEICO$1,427
Spring HillUSAA$1,237
State Farm$1,269
Tennessee Farmers$1,550
Union CityState Farm$1,270
USAA$1,308
Progressive$1,689
White HouseUSAA$1,205
State Farm$1,320
GEICO$1,471

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.

Nashville, TN

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.

InsurerAverage annual rate
USAA$1,185
State Farm$1,381
GEICO$1,511
Erie$1,800
Nationwide$1,918
Tennessee Farmers$1,975
Progressive$1,988
Allstate$3,320

Memphis, TN

The second biggest city in Tennessee has the most expensive car insurance, with an average annual rate of $2,306, which is 28% higher than the state average. State Farm is 60% cheaper than Allstate in Memphis, showing the benefits of shopping around for auto insurance.

InsurerAverage annual rate
USAA$1,467
State Farm$1,783
GEICO$1,923
Erie$2,080
Tennessee Farmers$2,107
Nationwide$2,221
Progressive$2,425
Allstate$4,445

Knoxville, TN

Compared to Nashville and Memphis, Knoxville is reasonably affordable, with an average annual premium of $1,795.

InsurerAverage annual rate
USAA$1,262
State Farm$1,358
GEICO$1,478
Erie$1,527
Tennessee Farmers$1,660
Nationwide$1,844
Progressive$1,917
Allstate$3,315

Chattanooga, TN

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.

InsurerAverage annual rate
USAA$1,227
State Farm$1,349
GEICO$1,473
Erie$1,540
Tennessee Farmers$1,701
Nationwide$1,796
Progressive$1,832
Allstate$3,162

Clarksville, TN

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.

InsurerAverage annual rate
USAA$1,203
State Farm$1,407
GEICO$1,529
Erie$1,637
Tennessee Farmers$1,661
Nationwide$1,748
Progressive$1,873
Allstate$3,328

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: $1,821 per year. The average is based on rates for a single 30-year-old man driving a Honda Civic EX. Here are the average annual rates for the 50 most populous cities in order of cheapest to costliest:

RankCityAverage annual insurance rate
1Bristol$1,530
2Johnson City$1,555
3Elizabethton$1,562
4Kingsport$1,574
5Greeneville$1,676
6Athens$1,688
7Cookeville$1,710
8Crossville$1,714
9Cleveland$1,717
10Lebanon$1,717
11Franklin$1,721
12Maryville$1,724
13Mount Juliet$1,727
14McMinnville$1,739
15Portland$1,742
16Alcoa$1,744
17Gallatin$1,745
18Lewisburg$1,745
19Morristown$1,747
20Murfreesboro$1,753
21East Ridge$1,758
22Smyrna$1,759
23Hendersonville$1,760
24Chattanooga$1,760
25Brentwood$1,762
26Manchester$1,767
27White House$1,768
28Spring Hill$1,772
29Lawrenceburg$1,780
30Dickson$1,790
31Martin$1,791
32Farragut$1,794
33Knoxville$1,795
34Clarksville$1,798
35Columbia$1,808
36La Vergne$1,809
37Union City$1,817
38Sevierville$1,826
39Paris$1,830
40Oak Ridge$1,831
41Dyersburg$1,837
42Jackson$1,867
43Goodlettsville$1,871
44Nashville$1,885
45Arlington$2,025
46Collierville$2,047
47Germantown$2,103
48Millington$2,154
49Bartlett$2,162
50Memphis$2,306

Methodology

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 typeStudy 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.

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.