The cheapest car insurance company in Tennessee is USAA, at an average of $68 a month or $820 a year. But USAA is only available to drivers affiliated with the military, so State Farm, Auto-Owners, GEICO, and Travelers are the cheapest car insurance companies in Tennessee for most drivers.
Average cost per month | ||
|---|---|---|
USAA | $68 | |
State Farm | $71 | |
Auto-Owners | $81 | |
GEICO | $90 | |
Travelers | $100 |
Methodology & why you can trust our rates
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:
Bodily injury liability: 50/100
Property damage liability: $50,000
Uninsured/underinsured motorist: 50/100
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by state or insurer.
Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.
Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
Cheapest car insurance companies in Tennessee
USAA
5.0
All 50 states
Bundle home & auto
Coverage for rideshare drivers
Good student discount
Usage-based discount
Offers classic car insurance
Mobile app
Offers motorcycle insurance
Why we chose it
USAA has some of the best car insurance rates and customer service ratings of any company in Tennessee. It also offers add-ons like gap insurance and roadside assistance, as well as special discounts for service members.
Pros and cons
Pros
Low rates
Available nationwide
High customer service ratings
Cons
Only available to military members and their families
More details
Why we chose USAA:
If you’re an active or retired member of the military or a part of a military family, USAA has some of the best and cheapest car insurance in Tennessee. USAA has some special features for its military clientele, including savings if you garage your car on base.
USAA’s customer service is one of its greatest strengths. It frequently earns top scores from J.D. Power for claims satisfaction, and receives about an average number of complaints for the industry, according to the National Association of Insurance Commissioners.
How does the cost of car insurance from USAA compare to average in Tennessee?
The average cost of car insurance from USAA in Tennessee is $68 a month or $820 per year, which is 38% cheaper than the statewide average.
State Farm
4.8
Bundle home & auto
Coverage for rideshare drivers
Good student discount
Mobile app
Usage-based discount
Offers classic car insurance
Offers motorcycle insurance
Why we chose it
State Farm is one of our top car insurance companies in Tennessee thanks to its cheap rates and high customer service ratings. State Farm may even be an affordable pick for drivers with spotty records.
Pros and cons
Pros
Available in almost every state
Low rates for teens and drivers with accidents
High customer satisfaction ratings
Cons
Limited coverage options
More details
Why we chose State Farm:
State Farm is one of the cheapest car insurance companies in Tennessee even if you have a history of accidents and other driving violations.
State Farm also has high customer satisfaction ratings and receives fewer complaints than is average for the industry, according to the National Association of Insurance Commissioners.
How does the cost of car insurance from State Farm compare to the average in Tennessee?
The average cost of State Farm car insurance in Tennessee is $71 a month or $848 per year, which is 36% cheaper than the statewide average.
Auto-Owners
4.7
Bundle home & auto
Offers gap coverage
Mobile app
Good student discount
Offers classic car insurance
Offers motorcycle insurance
Why we chose it
Auto-Owners has affordable coverage and high customer service ratings in Tennessee, plus a range of useful coverage add-ons and discounts.
Pros and cons
Pros
Lower-than-average rates
Offers gap coverage
Owned by its policyholders
Cons
Not offered in every state
More details
Why we chose Auto-Owners:
Auto-Owners is one of the cheapest car insurance companies in Tennessee — and your rates may be even lower if you qualify for any of the available discounts.
Auto-Owners also has lots of add-ons to choose from, including gap insurance, accident forgiveness, coverage for your car’s lost value after an accident, and more.
How does the cost of car insurance from Auto-Owners compare to average in Tennessee?
The average cost of car insurance from Auto-Owners in Tennessee is $81 a month or $975 per year, which is 27% cheaper than the statewide average.
GEICO
4.7
Offers classic car insurance
All 50 states
Offers motorcycle insurance
Good student discount
Mobile app
Usage-based discount
Why we chose it
GEICO is among our picks for top car insurance companies in Tennessee because of its low rates, convenient mobile app, and solid customer service.
Pros and cons
Pros
Available in all 50 states
Easy-to-use digital tools
Plenty of discounts
Cons
Only sells through GEICO agents
Doesn’t underwrite its other products
More details
Why we chose GEICO
GEICO is among the cheapest car insurance companies in Tennessee, even for drivers with bad credit or newly-licensed teens at home.
GEICO’s convenient mobile app even helps you estimate the cost of vehicle repairs after an accident. Though it’s one of the largest insurance companies in the country, GEICO gets fewer complaints from its customers than expected.
How does the cost of car insurance from GEICO compare to average in Tennessee?
The average cost of car insurance from GEICO in Tennessee is $90 a month or $1,078 per year, which is 19% cheaper than the statewide average.
Travelers
4.7
Accident forgiveness
Bundle home & auto
Usage-based discount
Offers gap coverage
Offers new car replacement
All 50 states
Coverage for rideshare drivers
Mobile app
New homebuyer discount
Why we chose it
Travelers has cheaper-than-average car insurance rates in Tennessee (along with a lengthy list of discounts), and a range of useful coverage add-ons.
Pros and cons
Pros
Offers useful add-ons like new car replacement and gap coverage
Cheaper-than-average rates
Receives few complaints for service
Cons
Has lower satisfaction ratings than competitors
More details
Why we chose Travelers:
Travelers’s rates are lower than average in Tennessee, and your insurance may be even more affordable once you factor in the many available discounts.
Travelers’s range of car insurance coverage options are another strong point. You can add gap insurance, along with accident forgiveness, new car replacement, and more.
How does the cost of car insurance from Travelers compare to average in Tennessee?
The average cost of car insurance from Travelers in Tennessee is $100 a month or $1,204 per year, which is 9% cheaper than the statewide average.
Best car insurance companies in Tennessee
The best car insurance company in Tennessee is USAA, which scored the highest on the 2023 J.D. Power Auto Insurance Study. [1] This study measures how drivers in the region feel about their insurance company’s service, billing, claims service, and price.
If you’re not in the military or in a military family, Tennessee Farm Bureau is the best-rated car insurance company.
Company | Score | |
|---|---|---|
1 | USAA | 876 |
2 | Tennessee Farm Bureau | 866 |
3 | Erie | 859 |
4 | Kentucky Farm Bureau | 857 |
5 | Alfa | 851 |
Cheapest car insurance companies by age in Tennessee
Car insurance for teens is typically much more expensive than insurance for adults, sometimes by several thousand dollars each year. This is because young drivers are statistically more likely to be in an accident or file a claim than older drivers.
Most teens see their insurance costs go down as they get into their early twenties, but that is only if they have a clean driving record.
The table below shows the companies with the lowest rates by age in Tennessee:
Age | Cheapest company | Average cost |
|---|---|---|
18 | GEICO | $2,225 |
21 | USAA | $1,256 |
35 | USAA | $823 |
45 | USAA | $773 |
55 | USAA | $726 |
60 | USAA | $723 |
65 | USAA | $745 |
70 | USAA | $791 |
16 | State Farm | $2,997 |
25 | State Farm | $1,008 |
30 | State Farm | $863 |
Choosing the right car insurance company in Tennessee
Choosing the best car insurance company for you doesn’t have to be an overwhelming experience. There are several factors to consider, including:
Cost: The best way to keep insurance costs low is to get quotes from multiple companies to make sure you are getting the lowest possible rate.
Coverage: If you don’t have enough liability coverage you will still be held accountable for damage that goes beyond your coverage levels, so having the highest levels of liability coverage you can afford is an important consideration when choosing an insurance policy.
Customer service: The odds are good that you will only contact your insurance company if you are filing a claim. Given how stressful it can be to deal with the aftermath of an accident, choosing a company with stellar customer service can go a long way toward making a difficult situation better.
Policygenius can help you compare quotes and choose the right policy for your needs.
Car insurance rates for drivers with driving violations in Tennessee
Your driving history is one of the biggest factors insurance companies use to help determine your rates, meaning a single accident or a traffic ticket could have a significant impact on your insurance costs.
The cheapest car insurance in Tennessee if you have an accident or driving violation on your record is State Farm.
USAA | State Farm | Auto-Owners Insurance | GEICO | Travelers | |
|---|---|---|---|---|---|
At-fault accident | $1,249 | $1,010 | $1,720 | $1,914 | $1,747 |
Suspended license | $1,593 | $936 | $2,384 | $2,795 | $1,902 |
Open container | $1,162 | $936 | $1,292 | $1,993 | $1,660 |
Expired registration | $1,039 | $936 | $1,005 | $1,256 | $1,660 |
Driving without lights | $1,039 | $936 | $1,005 | $1,299 | $1,660 |
Running a red light | $1,039 | $936 | $1,005 | $1,299 | $1,683 |
Following too closely | $1,039 | $936 | $1,005 | $1,299 | $1,660 |
Hit and run | $1,712 | $936 | $2,384 | $2,302 | $1,902 |
Not-at-fault accident | $875 | $863 | $1,005 | $1,075 | $1,299 |
Passing a school bus | $1,162 | $936 | $1,423 | $1,299 | $1,902 |
Reckless driving | $1,162 | $936 | $2,384 | $2,302 | $1,902 |
Cheapest car insurance after an accident in Tennessee
The cheapest car insurance company in Tennessee after an at-fault accident is State Farm. On average, car insurance from State Farm costs $84 a month, or $1,010 a year with a single at-fault accident on your record.
Rates for drivers with an at-fault accident | |
|---|---|
State Farm | $1,010 |
USAA | $1,249 |
Auto-Owners | $1,720 |
Travelers | $1,747 |
GEICO | $1,914 |
Cheapest car insurance for drivers with a DUI in Tennessee
The cheapest car insurance company in Tennessee if you have a DUI on your record is State Farm. The average cost of car insurance from State Farm is $78 a month or $936 a month with a DUI.
Rates for drivers with DUIs | |
|---|---|
State Farm | $936 |
USAA | $1,651 |
Travelers | $1,902 |
GEICO | $1,993 |
Auto-Owners Insurance | $2,384 |
Cheapest car insurance for drivers with a speeding ticket in Tennessee
The cheapest car insurance after a speeding ticket in Tennessee comes from State Farm. On average, coverage from State Farm after a speeding ticket costs for $78 a month or $936 a year.
Rates for drivers with speeding tickets | |
|---|---|
State Farm | $936 |
USAA | $1,039 |
Travelers | $1,902 |
GEICO | $2,302 |
Auto-Owners Insurance | $3,258 |
→ Learn about how to find the cheapest SR-22 insurance in Tennessee
Cheapest car insurance for drivers with bad credit in Tennessee
Insurance companies in Tennessee can use your credit score to help determine your rates, or even decide whether or not to sell you insurance based on your credit. Drivers with poor credit histories and low credit scores can expect to pay more for their insurance than drivers with high credit scores.
Because of this, working to improve your credit score can save you money on car insurance. The chart below shows the car insurance companies with the lowest average rates for drivers with low credit:
Rates for drivers with bad credit | |
|---|---|
USAA | $1,544 |
GEICO | $1,644 |
Tennessee Farmers Mutual Insurance | $1,763 |
Grange Insurance | $1,879 |
Nationwide | $1,939 |
Cheapest car insurance in Tennessee by city
Your insurance rates will depend on local crime, population density, and traffic accidents and congestion near where you live.
Here are the cheapest car insurance companies in the 10 most populated cities in Tennessee.
Largest cities | Cheapest company | Average yearly rate for the cheapest company | Overall citywide average |
|---|---|---|---|
Nashville | USAA | $812 | $1,370 |
Memphis | USAA | $924 | $1,700 |
Knoxville | USAA | $831 | $1,283 |
Chattanooga | State Farm | $842 | $1,290 |
Clarksville | USAA | $759 | $1,318 |
Murfreesboro | USAA | $803 | $1,284 |
Franklin | USAA | $771 | $1,225 |
Johnson City | State Farm | $722 | $1,123 |
Jackson | USAA | $823 | $1,359 |
Hendersonville | USAA | $820 | $1,256 |
Buying car insurance in Tennessee
If your vehicle is registered in Tennessee, state law says drivers must meet the following minimum liability insurance requirements or have other proof of financial responsibility:
$25,000 for each injury or death per accident
$50,000 for total injuries or deaths per accident
$25,000 for property damage per accident
These are just the basic required minimum amounts. However, these limits are relatively low. If you are in an accident that causes more damage than your liability limits will cover, you will be held personally responsible for any costs above and beyond your liability insurance coverage. If you have a car loan or lease a vehicle, you’ll need to have comprehensive and collision insurance as well.
Tennessee is an at fault state, which means that if you cause an accident, you must fully compensate the other driver for any damages to their property or bodily injuries sustained in an accident. Your liability insurance covers the cost of car repairs, other property damage, and medical expenses for the other driver if you are found at fault, but only up to your policy limits. If you don’t have enough liability insurance to cover those damages, expect to pay those additional costs out-of-pocket.
How to get cheap car insurance in Tennessee
Most insurance companies offer Tennessee drivers plenty of ways to save money on your car insurance. These are some of the discounts available from most companies:
Good student discount: Students who maintain a B average or higher can earn up to 15% off of their car insurance.
Bundling discount: Insurance companies typically offer a substantial discount to customers who combine multiple insurance policies (home, auto, renters, etc.) through the same company.
Safe driver discount: Taking a safe driver course can sometimes earn drivers a discount on their insurance, but some companies offer discounts for drivers who maintain a clean driving record for three years or more.
Group discount: Insurance discounts are often available based on profession. For example, teachers are often given a discount on their car insurance. Some insurance companies also partner with larger employers and offer discounts as part of an employee benefits package.
Low mileage discount: Insurance companies often charge lower rates for drivers who have short commutes.
Military discount: Many insurance companies offer a discount to active military members and their families.
Not everyone will qualify for these discounts, but there are other ways to save money on your car insurance. Keeping your driving record clean is the best way to keep your insurance costs low, while improving your credit rating can help save you a significant amount of money on your insurance.
Comparing quotes from multiple insurance companies is another excellent way to make sure you are getting the most affordable policy available.
Find car insurance in your city:
Frequently asked questions
How much is car insurance per month in Tennessee?
On average, car insurance costs $111 per month in Tennessee. This is about $300 less per year than the national average cost of coverage.
Why is car insurance so cheap in Tennessee?
The cost of car insurance in Tennessee is cheaper than the national average cost of coverage. This may be for a few reasons. Drivers in Tennessee may be less likely to make claims for damage than those in other states. In Tennessee, drivers may be less likely to fight a claim settlement in court — which saves insurers money on legal fees.
Is it mandatory to have car insurance in Tennessee?
Yes, Tennessee drivers must have at least the state-required minimum levels of liability coverage. The state requires drivers to carry at least $25,000 of bodily injury liability coverage per person, $50,000 per accident, and $15,000 of property damage liability insurance.
What happens if I drive without car insurance in Tennessee?
Driving without insurance in Tennessee is a Class C misdemeanor. This is punishable by a fine of $300 and the state will suspend your license and car registration until you provide proof of insurance.
