INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Tennessee for 2024

Updated Dec. 18, 2023
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State Farm is generally the cheapest car insurance in Tennessee for full coverage policies.

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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.

In this article

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

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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 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

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. 

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.