The Cheapest Auto Insurance in Tennessee in 2024

Tennessee has an average car insurance rate of $102 per month — $27 below the national average. Drivers who choose one of Tennessee’s most affordable companies — like State Farm, Travelers, or Erie — could pay rates that are closer to half the national average.

State Farm stands out as the cheapest overall car insurance company in the state, at an average rate of $63 per month, but other affordable options are only a few dollars more. With this many cheap insurers, there’s no reason you can’t find affordable rates.

Let’s break down the best auto insurance in Tennessee across different driver profiles, then outline some strategies Tennesseans can use to get lower rates.

Key Takeaways: 

• There’s no clear cheapest option in Tennessee, with the five cheapest auto insurance companies offering average monthly rates within $5 of each other.
• State Farm, Nationwide, and GEICO all have average full-coverage premiums that are below the statewide average rate.
• Tennessee drivers must show proof of financial responsibility or face fines of up to $300.

Tennessee’s Cheapest Car Insurance Companies

The average Tennessee driver is lucky enough to pay $102 per month for car insurance, which is far below the national average. Knowing your needs and budget can help you find car insurance that’s the right fit, but the most important thing is to find the right company.

With that in mind, let’s explore the five companies that offer the cheapest car insurance in Tennessee.

All five companies are well below the state average, and, with all five companies within $5 of each other, there isn’t one clear cheapest option. State Farm takes the top spot, with average rates of just $63, but such a small difference means any of the companies listed could be the cheapest option for you.

Receiving car insurance quotes from multiple companies is the best way to figure out the most affordable company for your unique insurance profile. After all, companies weigh rating factors differently.

In the sections below, let’s break down the best car insurance in Tennessee for different types of drivers.

Compare.com’s Best Tennessee Insurance Companies of 2024

No single company is the ideal option for every driver. Before buying insurance, be aware of your needs, budget, and insurance profile. Then ask yourself, “Which company is best suited for a driver like me?”

The following sections highlight the best insurers for different driver profiles — chosen based on a combination of average rates, available discounts, customer reviews, and more.

State Farm: Best for Tennesseans on a budget

Average monthly quote: $63

Compare.com rating: 4.3 out of 5

Trustpilot rating: 1.7 out of 5

BBB rating: B-

Pros:

• Lowest average rates in Tennessee
• Above-average J.D. Power customer satisfaction ratings
• Plenty of available discounts

Cons:

• Rates for teens exceed state average
• More National Association of Insurance Commissioners (NAIC) complaints than average
• Mixed customer reviews

State Farm narrowly beats out Travelers as the cheapest overall insurance company in Tennessee. Rates are particularly favorable for drivers seeking full coverage, with an average rate of just $88 per month.

Drivers with spotty records should also consider coverage from State Farm, as it offers the lowest average rate for Tennessee drivers with a DUI. Plus, you can save even more if you take advantage of State Farm’s good driver discount, defensive driving course discount, and bundling discounts.

GEICO: Best for teens and young drivers

Average monthly quote: $163

Compare.com rating: 4.7 out of 5

Trustpilot rating: 1.3 out of 5

BBB rating: A+

Pros:

• Lowest full-coverage rates for teens
• Lots of available discounts
• Popular telematics program

Cons:

• Below-average J.D. Power customer satisfaction ratings
• Gap insurance not available
• Mixed customer reviews

Teens often deal with the highest car insurance rates of any group. Luckily, GEICO offers teens liability-only coverage below the state average, at $99 per month — and its full-coverage rates are the lowest in the state, at $226 per month, too.

Young policyholders can qualify for GEICO’s good student discount and save up to 15% by earning a “B” average or better. Drivers younger than 25 can also enroll in GEICO’s Steer Clear telematics program, which offers savings for driving safely.

Tennessee Farmers: Best for drivers with spotty records

Average monthly quote: $69

Compare.com rating: N/A

Trustpilot rating: N/A

BBB rating: A+

Pros:

• Lowest average rates for drivers with an accident
• Highest J.D. Power customer satisfaction rating in Southeast region
• Fewer NAIC complaints than average

Cons:

• Fewer available discounts than competitors
• No telematics program available
• Gap insurance not available

Your rate will usually increase after an at-fault accident. In fact, we’ve found that the average driver sees their rates jump by 44% after just one accident.

Fortunately, Tennessee Farmers policyholders with an accident pay an average of $38 per month for liability-only insurance and $99 per month for full coverage — both well below the statewide average.

Policyholders are also satisfied with their Tennessee Farmers insurance, earning the company the highest J.D. Power customer satisfaction score in the region (866/1,000). Plus, the company receives well below the average number of NAIC complaints.

The Average Cost of Tennessee Car Insurance

Tennessee drivers pay an average of $102 per month for car insurance, making it the 15th-cheapest state for car insurance in the country. Let’s take a look at how it stacks up with the rest of the region, as well as the national average.

Kevin Walters, director of communications for the Tennessee Department of Commerce & Insurance, says that statewide premiums are reasonable but claims are a different story.

“Insurance claims inflation has risen faster than the underlying consumer price index, far outpacing increases in premiums,” says Walters. “Additionally, unsafe driving behavior, medical cost increases, abuse of the legal system with injury claim settlements, more severe injuries, and the ongoing increase in auto repair costs all play significant factors in the rising costs.”

Your rates can also vary based on local property values, crime rates in your ZIP code, and your area’s weather patterns.

Now, let’s take a look at how much Tennessee drivers pay for different types of policies.

5 Ways to Get Cheap Car Insurance in Tennessee

Tennessee drivers already pay fairly reasonable rates, but here’s how to save even more:

• Raise your deductible: Higher deductibles typically come with lower monthly premiums. Just remember you’ll be on the hook for more out-of-pocket costs if you file a claim.

• Choose the right car: Vehicles with advanced safety features and strong safety records are less of a risk and cheaper to insure.

• Find discounts: Most car insurance companies offer generous discounts for things like safe driving, insuring multiple cars, installing safety features, bundling policies, and more.

• Go for lower coverage limits: Drivers with used or low-value cars may not need robust coverage. Repairing these cars could be more expensive than the price of replacing the vehicle, which makes collision coverage unnecessary.

• Shop around: Comparing quotes from multiple insurance options every few months is one of the best ways to lower your rates.

Tennessee Auto Insurance Requirements

Tennessee state law is somewhat unique in that it doesn’t require proof of insurance. But the state’s Financial Responsibility Law means you must prove you can cover the resulting bills after an accident. The best way to do this is to buy car insurance.

These are the minimum amounts of coverage you can purchase in Tennessee:

• $25,000 in bodily injury liability insurance per person
• $50,000 in bodily injury liability insurance per accident
• $25,000 in property damage liability insurance per accident

“We also encourage Tennesseans to purchase uninsured motorist coverage as part of their auto insurance coverage,” Kevin Walters says. “This financially protects drivers if they are in a collision with an uninsured driver.”

For more on Tennessee’s insurance laws, visit the Tennessee Department of Revenue site.

Penalties for driving without auto insurance in Tennessee

Drivers who are unable to demonstrate proof of financial responsibility in Tennessee can face fines of up to $300 and can have their license suspended.

As in most states, the penalties will escalate if you receive multiple offenses.

SR-22 auto insurance in Tennessee

Tennessee requires drivers to file an SR-22 form with the state Department of Commerce & Insurance after their license is suspended. In most cases, you’ll need an SR-22 form on file with the state for five years, though the form may be canceled after three years if you don’t receive any more suspensions.

Tennessee advises drivers to contact their insurance agent for details about filing SR-22 forms and the costs associated with it.

Cheapest State-Minimum Car Insurance in Tennessee: Auto-Owners

Every driver has to choose a coverage level — and the more coverage you buy, the higher your rates. Liability coverage at the state-minimum limits is the cheapest policy available. If you cause an accident, this policy covers the other driver’s medical bills and repairs but not your own.

The table below shows the five companies offering the cheapest liability-only insurance policies in Tennessee, according to Compare.com data.

Tennessee Farmers may be the best value here, with the highest customer satisfaction rating of any company on this list and an average monthly rate that’s only $6 higher than the cheapest option.

Auto-Owners is a smart option if you’re specifically looking for liability-only coverage, because — as we’ll see — it doesn’t crack the full-coverage list. But its average $32 monthly liability rate is the best on this list.

So, which companies make the full-coverage list? Let’s find out.

Cheapest Full-Coverage Car Insurance in Tennessee: State Farm

Full coverage includes collision insurance and comprehensive insurance, in addition to basic liability coverage. This means your car’s repairs are covered after an accident or a non-collision event like severe weather.

As you can imagine, full coverage is more expensive than liability-only coverage. Still, a bit of research can help you find competitive rates on full coverage.

With that in mind, here are the five companies offering the cheapest full-coverage policies in Tennessee.

All five companies offer rates below the statewide average and significantly below the national average. And, once again, there’s little difference in price between these five options.

State Farm takes the cake with $88 per month average rates, but with similar prices across the board, you might consider the company that offers relevant optional coverages, such as rental car reimbursement or rideshare coverage.

Compare Tennessee Auto Insurance Rates by Age

Car insurance companies consider your age when determining rates. Young drivers pay more, given their higher rate of accidents, but rates tend to decrease as you age.

So, let’s see what different age groups pay for car insurance in Tennessee. First up: teen drivers.

Cheapest car insurance for Tennessee teens: Erie

Teens pay the highest car insurance rates of any age bracket. Why? Recent studies show they’re three times as likely to get into a fatal crash as drivers age 20 and older.

These stats cause car insurance companies to see teen drivers as “high risk” — and insurers offset these risks by charging teen drivers higher monthly premiums. Fortunately, rates usually come down once you turn 25.

We’ve broken down the five cheapest companies for Tennessee teens in the table below, based on data from 18-year-old drivers.

Erie has the cheapest rates for young drivers who choose liability-only insurance, but its monthly rates increase by $148 for full coverage.

Meanwhile, GEICO’s full-coverage rate is the lowest, though still nearly $100 more per month than the national average. And Allstate is far from the cheapest full-coverage option — more than $200 more per month than the nearest alternative.

Now, let’s turn our focus toward Tennessee’s older drivers.

Cheapest car insurance for Tennessee seniors: Auto-Owners

Senior drivers pay lower rates on average due to their lower mileage and tendency to avoid risky driving situations. But rates can increase around age 70 as vision and mental faculties deteriorate and the likelihood of severe injury in an accident increases.

The table below highlights the five cheapest insurance companies in Tennessee based on data from 65-year-olds.

The range of average rates is once again slim for both liability-only and full-coverage policies.

The price that might stand out the most is $80 per month for full coverage at State Farm, which is more than $10 cheaper than three other companies on the list. But Tennessee Farmers’ full-coverage rate is just $4 more per month and backed by the region’s highest customer satisfaction.

Compare Tennessee Auto Insurance Rates by Driving Record

Your driving record might be the most important rating factor of all. Having a speeding ticket, DUI, or at-fault accident on your record makes you riskier to insure in the eyes of car insurance companies. You’ll deal with higher rates for as long as that violation stays on your record.

But drivers with spotty records aren’t guaranteed high rates. The sections below break down the cheapest car insurance options by driving record.

Cheapest car insurance for good drivers in Tennessee: Auto-Owners

It’s no secret that drivers without accidents or violations on their record pay the lowest rates.

But how low? Well, the table below lists the five cheapest car insurance companies for Tennessee drivers with no accidents or tickets.

Auto-Owners is the cheapest liability-only insurance option, at just $32 per month, but it’s also the most expensive full-coverage option of the group. State Farm remains the best option for full coverage and has monthly liability-only rates just a few dollars more than Auto-Owners. This may be thanks to State Farm’s Drive Safe & Save telematics program, which offers heavy discounts to safe drivers.

It’s not easy keeping a perfect record on the roads — so what kind of rates should you expect if you recently received a ticket?

Cheapest car insurance in Tennessee after a ticket: GEICO

Accidents often involve speeding drivers. That’s why car insurance companies see you as more likely to cause an accident if you’ve received a speeding ticket. They’ll raise your rates after a ticket by an average of 37%, according to Compare.com data.

Here are the five companies offering the cheapest car insurance policies to Tennessee drivers with one speeding ticket.

Surprisingly, these rates aren’t much higher than the rates for drivers without a speeding infraction. State Farm remains the cheapest insurer for full coverage, while Auto-Owners is significantly more expensive for full coverage compared to the other four companies.

The minimal difference in rates among the five companies makes it all the more important to compare quotes.

Now, let’s see if rates go up for drivers with an at-fault accident on their record.

Cheapest car insurance in Tennessee after an accident: Tennessee Farmers

Getting an at-fault accident on your record will raise your rates by 44% on average, according to Compare.com data — but it’s still possible to find affordable rates.

Checking out the companies below is a good start. Here are the five cheapest companies in Tennessee for drivers with one accident on their record.

Liability-only rates remain very affordable in Tennessee, but full-coverage rates are higher: Three of the five companies on this list offer rates above the national average. Tennessee Farmers is the cheapest in both categories, offering rates that are identical to the rates it offers drivers with speeding tickets.

Now, let’s turn our focus to the traffic violation that’s often considered the most severe: driving under the influence (DUI).

Cheapest car insurance in Tennessee with a DUI: State Farm

Getting a DUI is a serious infraction that results in a hefty fine and license suspension. Having a DUI on your record puts you in the high-risk category, which spikes your auto insurance rates by an average of 94%, according to Compare.com data.

You still have options, though. The five companies below offer the cheapest average rates to Tennessee drivers with one DUI on their record.

Again, the biggest increase in rates is seen among full-coverage policies, with four of the five average rates comfortably exceeding the national average.

State Farm is an anomaly, as its $96 monthly rate for full coverage is lower than the Tennessee state average — making it the most budget-friendly option by a wide margin.

Tennessee Auto Insurance FAQs

Here are answers to some commonly asked questions about car insurance in Tennessee.

What is the cheapest auto insurance in Tennessee?

State Farm is the cheapest auto insurance company in Tennessee, with average insurance rates of just $63 per month.

How much is car insurance in Tennessee per month?

Drivers in Tennessee pay an average of $102 per month for car insurance.

Does Tennessee have cheap auto insurance?

Tennessee is the 15th-cheapest state in the country for auto insurance. Its average monthly rates are $27 less than the national average.

How much car insurance is required in Tennessee?

Drivers must purchase $25,000 in bodily liability insurance per person, $50,000 in bodily liability insurance per accident, and $25,000 in property damage liability insurance per accident.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. J.D. Power, “2023 U.S. Auto Insurance Study,” Accessed November 15, 2023.
2. Tennessee Department of Revenue, “Why You Should Have Auto Insurance,” Accessed November 15, 2023.
3. Tennessee Department of Revenue, “Financial Responsibility Affidavits,” Accessed November 15, 2023.
4. Tennessee Department of Revenue, “Penalties for Violations and Removals of STOP,” Accessed November 15, 2023.
5. NOLO, “Tennessee’s DUI Laws and Conviction Penalties,” Accessed November 16, 2023.
6. Insurance Information Institute, “Do auto insurance premiums go up after a claim?,” Accessed November 15, 2023.