INSURANCE - CAR INSURANCE

Best Car Insurance in Tennessee for 2024

Updated Dec. 19, 2023
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State Farm generally offers the least expensive full-coverage car insurance in Tennessee.

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From Music City to the gorgeous scenery of the Great Smoky Mountains, Tennessee is a fantastic place to call home. It also ranks ninth in the country’s top ten most affordable states. The low cost of living also extends to auto insurance, making road trips through The Volunteer State an easy decision.

In this article

Key takeaways

  • The best car insurance in Tennessee is State Farm, which costs $863 per year for comprehensive coverage.
  • Drivers with a clean driving record pay an average of $100 per month in Tennessee.
  • High-risk drivers in Tennessee pay an average of $1,835 annually for full coverage.

Best car insurance companies in Tennessee

The average cost of car insurance in Tennessee is $1,205, but drivers who use State Farm may pay significantly less, an average of just $863 a year. Farm Bureau has the most expensive full-coverage car insurance in Tennessee, with an average of $1,644 yearly, and Allstate has the most costly minimum coverage, at $609 annually.

Provider J.D. Power customer satisfaction rating Estimated annual full coverage Estimated annual minimum liability coverage
USAA 876/1,000 $890/year $299/year
Farm Bureau 866/1,000 $1,644/year $396/year
State Farm 847/1,000 $863/year $327/year
Progressive 836/1,000 $1,300/year $445/year
Allstate 832/1,000 $1,520/year $609/year
GEICO 828/1,000 $972/year $336/year
Travelers 818/1,000 $1,207/year $490/year

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USAA: Highest customer satisfaction

USAA earned the highest customer satisfaction rating in Tennessee. It is also the most affordable carrier for minimum coverage, costing an average of $299 yearly, but there were more cost-effective options for full coverage. USAA offers standard policies, but only current and former military members and their families qualify.

Pros
  •  USAA had the cheapest minimum auto insurance in Tennessee
  •  It offers various discounts, including up to 10% when you bundle a home and auto policy
Cons
  •  You may find more full-coverage options with a competitor
  •  USAA policies are not available to everyone

Get a quote now | USAA review

Farm Bureau: Best for ease of use

Farm Bureau was the most expensive full coverage option but earned Tennessee’s second-highest customer satisfaction score. Although more expensive, Farm Bureau’s auto insurance is available to everyone who signs up for a membership ($30 annual fee) and comes with perks like saving money on a new car or discounts at certain hotels.

Pros
  •  Second-highest customer service score in the state
  •  Members may qualify for additional services, including identity theft protection
Cons
  •  You may find more coverage options with a competitor
  •  It was the most expensive option for full coverage insurance in Tennessee

Get a quote now | Farm Bureau review

State Farm: Most affordable coverage

State Farm is the lowest-cost option for full coverage insurance in Tennessee and has a variety of policy options to choose from. It was the second most affordable option for minimum coverage, costing $327 annually, behind USAA. State Farm earned third place in customer satisfaction scores.

Pros
  •  There are multiple State Farm agents and offices throughout Tennessee
  •  It has many discount options, including helping new drivers save up to 25%
Cons
  •  State Farm earned third place in customer satisfaction scores in Tennessee
  •  You may find more discount or policy options with a competitor

Get a quote now | State Farm review

Progressive: Best for lowest deductible

Progressive is the lowest-cost option in Tennessee with a vanishing deductible, costing an average of $1,300 annually. If Progressive customers drive without an accident during the policy term, they may be able to reduce their deductible by $50 every six months or $100 once a year for annual renewals.

Pros
  •  Progressive has standard and specialty coverages, including accident forgiveness
  •  It offers multiple discounts, including an average savings of 10% for good students
Cons
  •  Progressive has a lower customer satisfaction rating than some carriers in Tennessee
  •  Its minimum liability coverage costs more than many of its competitors

Get a quote now | Progressive review

Allstate: Best for coverage options

Allstate has various coverage options in Tennessee, including new vehicle replacement, gap coverage, and a vanishing deductible. It has multiple customer discounts, including bundling a home and auto policy or driving a new car. Despite its numerous options, it was the second most expensive carrier on our list of the best car insurance companies, charging an average of $1,520 annually.

Pros
  •  Allstate offers multiple policy add-ons, including a vanishing deductible program
  •  It has multiple agents in Tennessee
Cons
  •  Allstate was the second most expensive option in Tennessee
  •  It had lower customer satisfaction scores than some competitors

Get a quote now | Allstate review

Tennessee auto insurance requirements

Drivers in Tennessee must meet minimum insurance requirements of:

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

How to choose a car insurance provider in Tennessee

Finding a new car insurance provider can take time, but keeping a few things in mind can help:

  • Check pricing and discounts: Get quotes from at least three companies to compare pricing and discounts. Double-check that the coverage options and limits are comparable to what you currently have and that you’re getting every discount you qualify for before you sign up for a policy.
  • Ask for reviews: Check review websites and the Better Business Bureau to see what existing customers say. Ask friends and family for recommendations, and avoid signing up with a company with multiple complaints and low ratings.
  • Check financial stability: Before starting with a new insurance company, check its ability to pay claims on a website like Standard & Poor’s or AM Best. It’s also wise to check with the Tennessee Department of Commerce & Insurance or the National Association of Insurance Commissioners (NAIC) to confirm a company is currently licensed to do business in Tennessee.

How much does car insurance cost in Tennessee?

The average cost of car insurance in Tennessee is $1,205 for full coverage and $425 for minimum liability insurance. Drivers in Memphis pay an average of $1,813 a year, compared to a national average of $1,582. Drivers in Gatlinburg pay the least for full coverage insurance, an annual total of $1,296.

Tennessee car insurance rates by city

The population of where you live is one of the factors that can impact your car insurance costs. Nashville drivers pay an annual average of $1,454 for car insurance, but drivers in Gatlinburg only spend an average of $1,296. The difference might seem odd until considering both cities’ populations.

Nashville has a population of 678,851. Comparatively, Gatlinburg has a much smaller population of around 4,000. The population reduces potential insurance claims and the amount residents pay for car insurance.

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

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the best 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 Tennessee

What are the minimum car insurance coverage requirements in Tennessee?

All Tennessee drivers must carry $25,000 in bodily injury protection for one person and $50,000 in bodily injury protection for two or more people. Drivers must also have $25,000 in property damage liability.

How much does car insurance cost in Tennessee?

In Tennessee, car insurance costs an average of $1,205 annually for full coverage and $425 for minimum coverage. 

Which car insurance companies cover Tennessee?

Many car insurance companies cover Tennessee, including State Farm, Allstate, GEICO, and regional carrier Farm Bureau.

What is the cheapest car insurance company in Tennessee?

State Farm has the cheapest full-coverage car insurance on our list for Tennessee, averaging $863 annually.

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Author Details

Kate Daugherty Kate Daugherty is a professional writer with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.