Cheapest Tennessee Car Insurance (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: University of California-Berkeley (BA in History)
Rob Bhatt is a licensed insurance agent and joined the staff of Lending Tree in 2021. Previously, he spent more than 20 years writing for and editing regional publications in California, Nevada and Washington. Rob enjoys helping readers understand how different coverages work so they can make informed purchasing decisions, and he specializes in producing research-backed content for LendingTree about auto, home and renters insurance. His work has been cited by ABC, Business Insider, MSN and Yahoo.
Farm Bureau has the cheapest average rate for liability car insurance in Tennessee at $33 a month. Erie and State Farm are the cheapest for full coverage. Both companies’ rates average $107 a month.
Cheapest insurance companies in Tennessee
Cheapest full-coverage car insurance in Tennessee: Erie and State Farm
Erie narrowly beats out State Farm for the cheapest full-coverage car insurance for most Tennessee drivers.
Erie charges Tennessee drivers an average of $1,288 a year for full coverage, while State Farm’s rates average $1,289 a year. Both rates work out to about $107 a month.
USAA has the state’s cheapest overall full-coverage rate, $1,055 a year, or $88 a month. However, USAA is only available to the military community.
| Company | Annual rate |
|---|---|
 Erie | $1,288 |
 State Farm | $1,289 |
 Travelers | $1,476 |
 Progressive | $1,554 |
 Farm Bureau | $1,644 |
 Geico | $1,730 |
 Allstate | $2,392 |
 USAA* | $1,055 |
The average cost of full-coverage auto insurance in Tennessee is $1,554 a year, or $130 a month. The price you pay depends on factors such as:
- Your driving record and credit history
- Your age and ZIP code
- The type of vehicle you drive
- Any discounts you are eligible to receive
Since insurance companies evaluate these factors differently, you may get a much lower rate from one company than you do from others. This is the main reason to compare car insurance quotes from multiple companies when you shop.
Cheapest liability auto insurance in Tennessee: Farm Bureau
Farm Bureau has the cheapest liability car insurance in Tennessee. Its quotes average $393 a year, or $33 a month.
| Company | Annual rate |
|---|---|
| Farm Bureau | $394 |
| State Farm | $415 |
| Progressive | $418 |
| Erie | $437 |
| Geico | $557 |
| Travelers | $569 |
| Allstate | $934 |
| USAA* | $318 |
Minimum liability vs. full coverage
Liability auto insurance covers injuries or property damage you cause to others, up to the minimum limits required by the state. You may see this called minimum-coverage car insurance.
Full coverage includes:
- Higher amounts of liability coverage than a minimum-coverage policy.
- Collision and comprehensive, which cover your vehicle for damage and theft.
- Uninsured motorist, which covers injuries to you and your passengers in an accident caused by a driver without insurance.
Cheapest rates for young drivers in Tennessee: Erie
Erie has the cheapest minimum-liability and full-coverage car insurance quotes for young drivers in Tennessee.
Erie charges 18-year-olds an average of $1,020 a year for minimum-liability auto insurance. This is 40% less than the state average of $1,699 a year.
Cheapest liability quotes for 18-year-olds
| Company | Annual rate |
|---|---|
| Erie | $1,020 |
| Farm Bureau | $1,313 |
| Geico | $1,394 |
| State Farm | $1,428 |
| Travelers | $1,595 |
| Progressive | $2,440 |
| Allstate | $3,472 |
| USAA* | $931 |
Erie’s full-coverage auto insurance rates for 18-year-olds is $2,946 a year, or $246 a month. The next-best rates come from Geico, $3,880 a year, and State Farm, $3,905 a year.
Cheapest full-coverage quotes for 18-year-olds
| Company | Annual rate |
|---|---|
| Erie | $2,946 |
| Geico | $3,880 |
| State Farm | $3,905 |
| Travelers | $4,018 |
| Farm Bureau | $4,690 |
| Progressive | $7,658 |
| Allstate | $8,953 |
| USAA* | $2,760 |
Teen drivers have higher crash rates than other age groups. This is the main reason why young drivers pay so much for auto insurance.
A young driver typically gets a lower rate when added to a parent’s car insurance than they do on their own.
Cheapest rates after a speeding ticket in Tennessee: Erie
Erie and State Farm have the cheapest auto insurance quotes for Tennessee drivers with a speeding ticket. Erie’s rates for these drivers average $1,400 a year, while State Farm’s nearly identical rate averages $1,401 a year.
In Tennessee, the average cost of car insurance goes up by 15% after a speeding ticket. However, Erie only raises its rates for drivers with a speeding ticket by 9%.
| Company | Annual rate |
|---|---|
| Erie | $1,400 |
| State Farm | $1,401 |
| Farm Bureau | $1,644 |
| Travelers | $1,950 |
| Progressive | $2,002 |
| Geico | $2,015 |
| Allstate | $2,672 |
| USAA* | $1,256 |
Cheapest rates after an accident in Tennessee: State Farm
State Farm has the cheapest car insurance quotes for Tennessee drivers with an at-fault accident. Its full-coverage rates for these drivers average $1,513 a year, or $126 a month.
Farm Bureau charges the next-best rates at $1,644 a year and then Erie at $1,752 a year.
| Company | Annual rate |
|---|---|
| State Farm | $1,513 |
| Farm Bureau | $1,644 |
| Erie | $1,752 |
| Travelers | $2,143 |
| Progressive | $2,577 |
| Geico | $3,209 |
| Allstate | $3,773 |
| USAA* | $1,511 |
Best rates for Tennessee drivers with a DUI: Progressive
Progressive has the best auto insurance rates for Tennessee drivers with a DUI, $1,804 a year, or $150 a month, for full coverage.
The next-cheapest rates are available from Erie at $2,105 a year and Travelers at $2,620 a year.
Tennessee drivers with a DUI pay an average of $2,508 a year for car insurance, which is 61% higher than the rate for drivers with a clean record. However, you may find a lower rate if you shop around.
| Company | Annual rate |
|---|---|
| Progressive | $1,804 |
| Erie | $2,105 |
| Travelers | $2,239 |
| Farm Bureau | $2,620 |
| State Farm | $2,852 |
| Geico | $3,199 |
| Allstate | $3,250 |
| USAA* | $1,995 |
Best rates for Tennessee drivers with poor credit: Farm Bureau
Farm Bureau has the cheapest car insurance quotes for Tennessee drivers with poor credit. The company charges these drivers an average of $1,901 a year, or $158 a month, for full coverage.
Tennessee drivers with poor credit pay an average of $3,011 a year, or $251 a month, for full coverage. This is 94% higher than the rate available to drivers with good credit.
| Company | Annual rate |
|---|---|
| Farm Bureau | $1,901 |
| Progressive | $2,579 |
| Travelers | $2,594 |
| Geico | $2,647 |
| Erie | $2,961 |
| Allstate | $4,076 |
| State Farm | $5,429 |
| USAA* | $1,897 |
Best car insurance companies in Tennessee
State Farm, Travelers and Erie are some of the best car insurance companies in Tennessee thanks to their affordable rates and great customer service.
Erie and State Farm have some of the best customer service scores from J.D. Power. Both insurance companies also offer some of the cheapest average rates for full-coverage policies in Tennessee.
| Company | LendingTree score | J.D. Power customer satisfaction |
|---|---|---|
| State Farm | 4.5 | 842 |
| Travelers | 4.4 | 829 |
| USAA* | 4.1 | 881 |
| Progressive | 3.8 | 819 |
| Geico | 3.7 | 835 |
| Allstate | 3.2 | 824 |
| Erie | Not rated | 871 |
| Farm Bureau | Not rated | - |
State Farm
- Low full-coverage average rate of $1,289 a year
- 17% lower than state average
- AM Best’s financial strength rating: A++
Pros
Cheap rates for both a liability-only and full-coverage policies
Top-notch customer service
Large national network of agents
Cons
Doesn’t offer as many easy-to-qualify-for discounts as some of its competitors
State Farm offers cheap rates along with top-notch customer service. It also offers a large network of agents, which can be beneficial if you move.
State Farm offers cheap coverage for both liability-only and full-coverage policies. State Farm rates average $107 a month for a full-coverage policy and $35 a month for liability car insurance.
State Farm also has an AM Best rating of A++, which shows it’s in excellent financial standing and can pay out insurance claims.
On the other end, State Farm doesn’t offer many discounts that are easy to get, such as an early quote discount or a paperless discount.
Travelers
- Low full-coverage average rate of $1,476 a year
- 5% lower than state average
- Low NAIC complaint rating: 0.4
Pros
Offers an optional coverage that can replace your new car with a new car of the same make and model if it’s totaled in the first five years you own it
Has an A++ rating for financial strength from AM Best
Cons
Poor customer satisfaction score
Higher-than-average rate for liability-only coverage
Travelers offers full-coverage car insurance at $123 a month, on average, which is 5% cheaper than the state average. However, Travelers’ average rate for liability-only coverage is higher than the state average.
Travelers has a low complaint rating from the National Association of Insurance Commissioners (NAIC), which looks at the number of complaints customers file against a company. Travelers also received a financial strength of A++ from AM Best.
On the other end, Travelers has a below-average customer satisfaction score of 829 out of 1,000 points from J.D. Power.
Erie
- Low full-coverage average rate of $1,288 a year
- 17% lower than state average
Pros
Second-cheapest car insurance rate for a full-coverage policy
Excellent customer satisfaction
Rate-lock feature protects against your insurance rate increasing
Cons
Doesn’t offer easy-to-qualify-for discounts
Erie offers affordable rates and great customer service. Erie’s rates average $106 a month for a full-coverage policy and $36 a month for a liability-only policy.
Along with affordable rates, Erie received great customer satisfaction ratings from J.D. Power.
On the other end, Erie doesn’t offer discounts that are easy to qualify for, such as a discount for automatic payments.
Tennessee car insurance rates by city
In Tennessee’s cities, car insurance rates range from $1,327 a month for full coverage in Johnson City to $2,050 a year in Memphis.
Nashville drivers pay an average of $1,677 a year, or $140 a month. This amount is 8% higher than the state average.
| City | Annual rate |
|---|---|
| Bartlett | $1,903 |
| Brentwood | $1,553 |
| Chattanooga | $1,527 |
| Clarksville | $1,570 |
| Cleveland | $1,452 |
| Collierville | $1,793 |
| Columbia | $1,506 |
| Cookeville | $1,457 |
| Franklin | $1,502 |
| Gallatin | $1,497 |
| Germantown | $1,901 |
| Hendersonville | $1,516 |
| Jackson | $1,613 |
| Johnson City | $1,327 |
| Kingsport | $1,349 |
| Knoxville | $1,555 |
| La Vergne | $1,561 |
| Lebanon | $1,536 |
| Maryville | $1,458 |
| Memphis | $2,050 |
| Mount Juliet | $1,555 |
| Murfreesboro | $1,530 |
| Nashville | $1,677 |
| Smyrna | $1,548 |
| Spring Hill | $1,489 |
Tennessee auto insurance laws
Tennessee law requires you to have auto insurance to register and drive your vehicle.
Insurance companies report new policies, lapses and cancellations to the state’s Department of Revenue. If your policy expires without a new one in place, the state sends you a letter requesting proof of insurance.
If you fail to reply in a timely manner, you can be fined and have your registration suspended.
Minimum auto insurance requirements in Tennessee
Tennessee’s minimum auto insurance requirements include:
- Bodily injury liability: $25,000 per person/$50,000 per accident
- Property damage liability: $25,000
Liability covers injuries and property damage you cause to others in a car accident.
The minimum liability limits satisfy your legal requirements, but they do not always provide enough protection.
If you cause an accident, you can be held personally responsible for portions of a victim’s medical or car repair costs that exceed your liability limits. Since this can put your savings or future earnings at risk, consider getting liability limits that match or exceed your net worth.
Most Tennessee car insurance companies offer these optional coverages for extra protection:
- Collision: Pays to repair damage to your vehicle from a collision with another vehicle or object.
- Comprehensive: Covers your vehicle for theft or damage from non-collision causes, including fire, flood, falling objects and vandalism.
- Uninsured/underinsured motorist: Pays to treat injuries you and your passengers suffer in an accident caused by a driver with no insurance or not enough to cover your medical bills.
- Medical payments: Covers injuries you and your passengers suffer in a car accident, regardless of fault.
SR-22 car insurance in Tennessee
Tennessee requires drivers with certain violations, including driving without insurance and DUI, to get SR-22 insurance.
An SR-22 is a certificate that your insurance company files with the state to verify that you have insurance.
If you have an SR-22 requirement, let the companies you contact for quotes know about it. Some companies don’t insure SR-22 drivers. Many do add a small filing fee, usually about $25, to your rate.
The actual price you pay for SR-22 insurance depends largely on your driving record. You can expect to pay more after a DUI than you will for driving without insurance.
Frequently asked questions
The average cost of car insurance in Tennessee is $505 a year for liability and $1,554 a year for full coverage.
Tennessee requires drivers to have proof of financial responsibility for injuries or damage you may cause in a car accident. Most people satisfy this requirement with car insurance, but the state also accepts bonds and cash deposits.
Farm Bureau has the cheapest liability auto insurance rates in Tennessee. Erie and State Farm have the cheapest full-coverage rates.