Average Cost of Car Insurance in Tennessee for 2023

From Graceland to the Great Smoky Mountains, Tennessee has some iconic landmarks and attractions, so it’s easy to see why it’s one of the fastest growing states.

Tennessee has a relatively low cost of living, which is also reflected in its auto coverage rates. The average cost of car insurance is about 21% lower than the national average.

Continue reading to learn about typical car insurance rates in the Volunteer State and what you can do to save money on your policy.

Key takeaways:

• The average cost of car insurance in Tennessee is $1,205 per year for full coverage policies.
• State-minimum coverage averages $425 per year.
• On average, teen drivers pay $3,881 per year for car insurance.

How much does car insurance cost in Tennessee?

Car insurance is typically cheaper in Tennessee than it is in other states. The average cost of full coverage policies — which include collision, comprehensive, and liability insurance — is about $324 less than the national average of $1,529. State-minimum liability policies in the state average just $425 per year.

Avg. cost for full coverage	Avg. cost for minimum coverage	Cheapest insurance provider
$1,205/year	$425/year	State Farm

Avg. for young drivers	Avg. cost for seniors	Avg. for high-risk drivers
$3,881/year	$1,420/year	$1,835/year

Average cost of car insurance in Tennessee by provider

Car insurance is sold by several different companies in Tennessee, ranging from national corporations to smaller insurers.

We found that State Farm has the lowest premiums for full coverage policies, averaging just $863 per year. USAA is the cheapest for state-minimum coverage at just $299 per year.

By contrast, Allstate is the most expensive for both full coverage and minimum liability policies.

Provider	Full coverage	Minimum liability coverage
Allstate	$1,520/year	$609/year
GEICO	$972/year	$336/year
Nationwide	$1,165/year	$457/year
Progressive	$1,300/year	$445/year
State Farm	$863/year	$327/year
USAA	$890/year	$299/year
Erie	$1,251/year	$400/year

How does credit score affect car insurance rates in Tennessee?

Tennessee’s laws allow insurers to consider drivers’ credit scores when underwriting auto policies. Although other factors are considered, a strong credit score can help you save money on car insurance.

We found that drivers with poor credit — meaning those with scores below 650 — pay two times more for car insurance than those with excellent credit.

Credit health	Avg. annual premium
Poor (550-649)	$2,277/year
Average (650-699)	$1,853/year
Good (700-749)	$1,560/year
Excellent (750+)	$1,291/year

Average car insurance rates for high-risk drivers in Tennessee

Driving infractions can significantly affect your premiums. In Tennessee, a driving under the influence (DUI) conviction can increase your annual premiums by an average of $817. Similarly, an at-fault accident may increase your premiums by an average of $667 per year.

Violation	Avg. annual premium before violation*	Avg. annual premium after violation	Avg. cost increase
At-fault accident	$1,560/year	$1,872/year	$667
DUI	$1,560/year	$2,022/year	$817
Speeding ticket	$1,560/year	$1,593/year	$388

*Assumes clean driving record with good credit

How does age affect car insurance rates in Tennessee?

Young drivers typically pay more for car insurance than other drivers, and that’s certainly true in Tennessee. On average, 18-year-olds pay $4,164 per year for coverage — nearly $3,000 more than the state average.

Generally, premiums decline as you age, with drivers in their 60s averaging just $1,290 per year.

Age	Avg. annual premium
18	$4,164/year
25	$1,541/year
30	$1,410/year
40	$1,373/year
60	$1,290/year

Tennessee car insurance rates by city

Cities with high crime rates tend to have higher average premiums since residents are more likely to be involved in accidents or submit vandalism-related claims. 

According to NeighborhoodScout, Memphis is one of the most dangerous cities in the country. It’s also the most expensive city in Tennessee for car insurance, averaging $1,813 per year.

City	Avg. annual full-coverage premium
Memphis	$1,813/year
Nashville	$1,454/year
Knoxville	$1,315/year
Tallassee	$1,272/year
Franklin	$1,453/year
Clarksville	$1,380/year

TN’s minimum car insurance requirements

In Tennessee, drivers must meet the following insurance minimums:

• $25,000 in bodily injury protection for one person
• $50,000 in bodily injury protection for two or more people
• $25,000 in property damage insurance

However, you should know that Tennessee has a high percentage of uninsured drivers. According to the Insurance Research Council, 23.7% of drivers in the state are uninsured, the third-highest rate in the country. 

To adequately protect yourself and your vehicle, it may be a good idea to purchase uninsured or underinsured motorist protection, as well as comprehensive or collision insurance.

How to save money on car insurance in Tennessee

To save money on your car insurance in Tennessee, use these tips:

• Sign up for pay-per-mile coverage: Pay-per-mile policies can be significantly cheaper than traditional car insurance because it’s based on your mileage and driving habits. Drivers in Tennessee can take advantage of pay-per-mile coverage offered by companies like MileAuto, Progressive, and Nationwide.
• Ask about discounts: Contact your agent and ask about available discount programs. Discounts vary by insurer, but you may qualify for a reduction based on your safe driving history, grade point average, or by signing up for paperless billing.
• Get quotes from other companies: If you haven’t shopped around for car insurance in a while — or if it’s your first time purchasing insurance on your own — request multiple quotes from the best car insurance companies. You’ll find that rates vary between companies, so you may save by choosing a different insurer.

FAQs about car insurance costs in TN