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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 $1,205, compared to the national average of $1,582.
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
- How much does car insurance cost in Tennessee?
- Average cost of car insurance in Tennessee by provider
- How does credit score affect car insurance rates in Tennessee?
- Average car insurance rates for high-risk drivers in Tennessee
- How does age affect car insurance rates in Tennessee?
- Tennessee car insurance rates by city
- TN's minimum car insurance requirements
- How to save money on car insurance in Tennessee
- Methodology
- FAQs about car insurance costs in TN
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 $1,205, compared to the national average of $1,582. 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 |
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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 hundreds 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 | $1,205/year | $1,872/year | $667 |
| DUI | $1,205/year | $2,022/year | $817 |
| Speeding ticket | $1,205/year | $1,593/year | $388 |
*Assumes clean driving record with good credit
Average rate:
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 — thousands 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 |
| Franklin | $1,453/year |
| Clarksville | $1,380/year |
| Knoxville | $1,315/year |
| Gatlinburg | $1,296/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.
Methodology
Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.
FAQs about car insurance costs in TN
Is car insurance expensive in TN?
Car insurance is relatively inexpensive in Tennessee. On average, full coverage policies cost $1,205 per year, while the national average is $1,582.
How much is car insurance per year in TN?
The average cost of car insurance in Tennessee is $1,205 per year for full coverage policies. State-minimum liability coverage averages $425 per year.
Average rate:
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