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Who Has the Cheapest Car Insurance Quotes in Tennessee? (2024)

Erie has the cheapest full coverage quotes in Tennessee, with an average of $107 per month. Farm Bureau has the best cheap liability-only rates, at $33 per month.

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Best cheap car insurance in TN

To find the best cheap Tennessee auto insurance, ValuePenguin gathered quotes from some of the largest car insurance companies across every ZIP code in the state.

Quotes for minimum coverage meet TN state minimum requirements of $25,000 in bodily injury liability coverage per person and $50,000 per accident, plus $25,000 in property damage coverage. Full coverage quotes include collision and comprehensive coverage, plus higher liability limits than state minimums.

Our experts also ranked the best insurance companies in Tennessee based on cost, convenience, customer service reviews and coverage availability.

Cheapest full coverage insurance in TN: Erie & State Farm

Erie and State Farm offer the most affordable full coverage insurance in Tennessee.

At $107 per month, both companies are 17% cheaper than average. The average cost of car insurance in Tennessee is $129 per month for full coverage.

Erie and State Farm are also $16 per month more affordable than the next-cheapest company, Travelers. On average, Erie is $1 per year cheaper than State Farm. Compare quotes from both companies to see which offers the best rates for you.

Cheapest car insurance companies in Tennessee

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Tennessee drivers who are veterans or belong to a military family can get even cheaper car insurance from USAA. A full coverage policy from USAA costs $88 per month, which is 32% cheaper than the state average.

Best cheap full coverage car insurance quotes in TN

Company
Monthly rate
Erie logo
Erie$107
State Farm logo
State Farm$107
Travelers logo
Travelers$123
Progressive logo
Progressive$130
Farm Bureau logo
Farm Bureau$137
Show All Rows

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

Full coverage car insurance includes comprehensive and collision coverages in addition to liability coverage.

  • Comprehensive coverage pays for damage to your car caused by "acts of God," like theft and weather.
  • Collision coverage pays for damage to your car after an at-fault accident.

If you have a car loan or lease, your lender will typically require 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.

Cheapest car insurance in Tennessee: Farm Bureau

Farm Bureau has the cheapest minimum coverage car insurance in Tennessee.

At $33 per month, a liability-only policy with Farm Bureau costs $9 per month less than the state average. State Farm, Progressive and Erie also have affordable minimum coverage quotes of less than $40 per month.

Cheap liability insurance in TN

Company
Monthly rate
Farm Bureau$33
State Farm$35
Progressive$35
Erie$36
Geico$46
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*USAA is only available to current and former military members and their families.

The average cost of liability-only car insurance in Tennessee is $42 per month. That's $87 per month less than the cost of full coverage insurance.

Minimum liability policies are the cheapest option in Tennessee. That's because they provide the lowest amount of coverage you can legally have in the state. 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.

That's why most drivers should get full coverage auto insurance rather than a minimum liability policy, especially if they have a long commute or a newer car.

Cheap auto insurance in TN for young drivers: Erie

Erie has the cheapest car insurance quotes in Tennessee for teen drivers.

A minimum coverage policy with Erie costs $85 per month for an 18-year-old. That's 40% cheaper than the Tennessee average. Erie also has the most affordable full coverage policy for most young drivers, at $245 per month.

USAA has even more affordable car insurance rates for 18-year-old drivers. Liability-only coverage from USAA costs $78 per month, and full coverage is $230 per month. However, only active-duty military members, veterans and some of their family members can get insurance from USAA.

Cheapest TN car insurance for teens

Company
Liability only
Full coverage
Erie$85$245
Farm Bureau$109$391
Geico$116$323
State Farm$119$325
Travelers$133$335
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In Tennessee, an 18-year-old can expect to pay more than three times as much for car insurance as a 30-year-old driver. That's because teens have less experience behind the wheel, which means they're 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 young drivers save on car insurance.

Find Cheap Auto Insurance Quotes in Tennessee

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Cheap insurance in TN after a speeding ticket: Erie

Erie has the best quotes for Tennessee drivers with a recent speeding ticket, averaging $117 per month for full coverage. That's $32 per month cheaper than the state average of $149 per month.

Coverage from State Farm is only $1 per year more than a policy from Erie. So Tennessee drivers should compare quotes from both companies to find their best price.

Company
Monthly rate
Erie$117
State Farm$117
Farm Bureau$137
Travelers$163
Progressive$167
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Tennessee drivers can expect to pay 15% more for auto insurance after a speeding ticket. That's an average increase of $20 per month for full coverage insurance.

Cheapest TN auto insurance after an accident: State Farm

State Farm has the best cheap Tennessee car insurance for drivers with an at-fault accident on their record. A full coverage policy from State Farm costs $126 per month after a crash, which is 33% cheaper than the statewide average.

Company
Monthly rate
State Farm$126
Farm Bureau$137
Erie$146
Travelers$179
Progressive$215
Show All Rows

Full coverage quotes in Tennessee increase by 46% after an at-fault accident. However, each insurance company takes a different approach to accidents. Your rates may also depend on whether you have accident forgiveness or not.

For instance, Farm Bureau might not raise rates at all. The company offers the same average rate of $137 per month both before and after an accident. But Geico raises rates by 85% after an at-fault accident, from $144 per month to $267 for full coverage.

The wide range in cost between insurance companies is why it's so important to shop around to find the best rates, especially after your driving record has changed.

Cheapest for teens after a ticket or accident: Erie

Erie has the most affordable rates in Tennessee for young drivers with a speeding ticket or accident on their record.

A minimum liability policy from Erie costs $99 per month for an 18-year-old after a speeding ticket. That's $60 per month cheaper than the Tennessee average.

Erie also has the cheapest quotes for teens after an accident. At $112 per month, minimum coverage from Erie costs $75 per month less than the statewide average.

Best quotes in TN for teens after a ticket or accident

Company
Ticket
Accident
Erie$99$112
Farm Bureau$109$121
Geico$132$198
State Farm$132$146
Travelers$172$196
Show All Rows

Young drivers in Tennessee can expect their rates to go up by 12% after a speeding ticket, and 32% after an at-fault accident.

Cheapest auto insurance in Tennessee after a DUI: Progressive

Progressive has the best rates in Tennessee for drivers with a DUI. A full coverage policy from Progressive costs $150 per month, which is 28% cheaper than the state average of $209 per month.

Company
Monthly rate
Progressive$150
Erie$175
Travelers$187
Farm Bureau$218
State Farm$238
Show All Rows

Driving under the influence in Tennessee will raise your rates by an average of 61%. In addition, you may need to get SR-22 insurance after a DUI in Tennessee. An SR-22 filing can cost an extra $15 to $50.

Cheapest insurance in TN for drivers with poor credit: Farm Bureau

Farm Bureau has the most affordable full coverage insurance for Tennessee drivers with poor credit, at $158 per month. That's nearly $100 per month cheaper than the state average, which is $251 per month.

Company
Monthly rate
Farm Bureau$158
Progressive$215
Travelers$216
Geico$221
Erie$247
Show All Rows

Car insurance in Tennessee costs nearly twice as much for drivers with bad credit versus those with good credit. Insurance companies believe drivers with lower credit scores are more likely to file a claim, which is why they pay more for insurance.

Best car insurance in TN

USAA has the best auto insurance for Tennessee drivers, thanks to highly rated customer service and cheap quotes.

However, you can only get USAA car insurance as an active-duty military member, a veteran or their family member.

Tennessee drivers who aren't eligible for USAA should consider Erie, State Farm and Farm Bureau. All three companies earned high ratings from our experts based on their reliable customer service, useful coverage and affordable rates.

Best insurance companies in Tennessee

Company
Editor's rating
J.D. Power
AM Best
USAA
881A++
Erie
871A+
State Farm
842A++
Farm Bureau
NRA
Geico
835A++
Show All Rows

Customer service reviews are just as important as price when shopping for the best car insurance in Tennessee.

A company with great service will have a fast and easy claims process after an accident. On the other hand, a company with poor service may take longer to pay for car repairs.

Average cost of Tennessee insurance by city

Memphis has the most expensive car insurance in Tennessee, at $171 per month for full coverage.

Bristol and Walnut Hill, located on the Tennessee-Virginia border, have the cheapest rates in the state, averaging $109 per month.

Tennessee car insurance quotes by city

City
Monthly rate
% from average
Adams$1344%
Adamsville$1300%
Afton$119-8%
Alamo$1311%
Alcoa$122-6%
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Compare Rates

Where you live can impact your car insurance rates as much as your driving habits. Full coverage rates in Tennessee vary by about $62 per month between the most and least expensive cities.

Large cities with more traffic and higher crime rates, like Memphis and Nashville, tend to have more expensive car insurance rates. That's because drivers in these cities tend to file more claims due to more accidents and auto theft.

Minimum car insurance requirements in Tennessee

In Tennessee, state minimum car insurance includes bodily injury liability coverage and property damage liability coverage. Bodily injury pays for the other driver's injuries, while property damage pays for the other driver's repairs. The Tennessee requirements are often written as 25/50/25.


Frequently asked questions

What is the cheapest car insurance in TN?

Erie is the cheapest insurance company for full coverage in Tennessee, with rates averaging $107 per month. The cheapest minimum coverage comes from Farm Bureau, which charges $33 per month.

How much is car insurance in Tennessee per month?

The average price of insurance for a state-minimum policy is $42 per month. Full coverage insurance in Tennessee costs $129 per month, on average.

What type of car insurance is required in TN?

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

Is car insurance expensive in Tennessee?

Car insurance rates in Tennessee are much cheaper compared to most other states. This is partially because of its low minimum insurance requirements and low traffic congestion. There are only 10 states that have a cheaper average rate for full coverage.

However, some of the bigger cities in Tennessee have much higher rates. For example, the cost of car insurance in Memphis is 32% higher than the state's average.

How much are car insurance quotes in Knoxville, TN?

Full coverage car insurance in Knoxville costs around $130 per month, which is about the same as the Tennessee state average. In comparison, rates in Memphis average $171 per month for full coverage.


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 2015 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: $25,000 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 were publicly sourced from insurance company 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.