The Best Auto Insurance in Tennessee

Erie is a popular insurer in Tennessee, for good reason. Though they’re a smaller provider, Erie has earned high customer satisfaction scores and offers some of the cheapest rates in the state.

Pros + Cons

✓ Cheap rates
✓ Strong customer service
X Limited national availability

Cheap Rates in Tennessee

Erie is an insurer known for their affordable rates. On average, a full coverage policy from Erie costs about 17 percent less than the Tennessee state average. Among our top picks, only USAA offers cheaper rates. But unlike USAA, Erie is available to all customers (who live within the 13 states where coverage is available), and not just those with a military affiliation.

To keep premiums low, Erie aims to attract those with clean driving records who are less likely to file claims — these are the customers most likely to save on their premiums with Erie.

Reputation for Strong Customer Service

In addition to offering affordable rates, Erie is known for their highly rated customer service. The company fared well in J.D. Power’s Claims Satisfaction Study.² The company’s score of 733 out of 1,000 is the highest rating for customer satisfaction of any of our Tennessee providers. Erie also ranked fourth out of 88 insurers nationally on CRASH Network’s Insurer Report Card, an independent survey of collision repair shops.³ While no insurer is perfect, these scores indicate Erie customers are satisfied overall with the insurer’s claims handling.

The only insurer in this review to score higher than Erie is USAA. Though we’ve included a score here, J.D. Power deems USAA ineligible for the study because of their membership requirements. While USAA may be cheaper and rank higher with J.D. Power, Erie’s inclusivity makes them our favorite budget provider in Tennessee.

Affordable Rates for Drivers with a Speeding Ticket

Regardless of where you live, if you’re caught speeding you can expect your auto insurance rates to increase. A speeding ticket in Tennessee increases rates to an average of $2,037 per year, or $170 per month. This is 35 percent higher than rates for those with a clean record.

Still, Erie offers some of the most affordable rates in the state for drivers with speeding tickets. The annual average cost with Erie is only $1,230 per year, or $103 per month. Allstate, on the other hand, offers some of the most expensive rates for drivers with a speeding ticket, with policies averaging $2,760 a year.

While Direct Auto does not make their pricing data available, they cater specifically to high-risk drivers, making it another great choice for drivers with multiple speeding tickets or more serious violations like reckless driving.

For more than seven decades, Allstate has been serving customers with auto and other insurance. The company offers a variety of auto policies, including options for classic cars, RVs, and motorcycles. It also gives substantial discounts if you bundle insurance together.

Pros + Cons

✓ Fast online quotes
✓ Local agents
X Not the cheapest

Multiple Ways to Bundle

Allstate offers up to 25 percent off when you purchase homeowners or renters insurance with an auto policy. In addition to auto insurance, Allstate has numerous types of policies available.

Local Agents

Local Allstate agents help customers tailor auto policies based on their location and needs. In Tennessee, more than 50 agents operate out of Allstate offices in the following cities:

• Alcoa
• Antioch
• Athens
• Bartlett
• Bristol
• Chattanooga
• Clarksville
• Cleveland
• Collierville
• Columbia
• Cookeville
• Cordova
• Covington
• Crossville
• Dickson
• Fairview
• Franklin
• Gallatin
• Germantown
• Goodlettsville
• Greeneville
• Hendersonville
• Hermitage
• Hixson
• Jacksboro
• Jackson
• Jefferson City
• Johnson City
• Kingsport
• Knoxville
• Lakeland
• Lenoir City
• Lexington
• Maryville
• Memphis
• Millington
• Morristown
• Murfreesboro
• Nashville
• New Market
• Nolensville
• Oak Ridge
• Old Hickory
• Ooltewah
• Selmer
• Sevierville
• Seymour
• Shelbyville
• Signal Mountain
• Smyrna
• Spring City
• Spring Hill
• Sweetwater
• White House

Allstate’s extensive list of local agents makes it easy to find one close to where you live in Tennessee.

Claim Satisfaction Guarantee

Allstate offers policyholders a claim satisfaction guarantee. If you aren’t satisfied with your claim experience or payout, you will receive a six-month credit for your premium payments. To qualify for the claim satisfaction guarantee, you must meet the following criteria:

• You have an active Allstate insurance policy.
• Allstate has paid your claim.
• You haven’t registered a second claim on the vehicle in question.
• You have mailed a letter detailing your dissatisfaction within 180 days of the accident to the following address:
  • Allstate Insurance, CSG
  • P.O. Box 13084
  • Roanoke, VA 24031-3084

For more than a century, USAA has insured active-duty military members, veterans, and their families. They offer the most affordable full and minimum coverage rates in the state, as well as a range of discounts to help military members and their families keep auto insurance costs as low as possible.

USAA has earned strong third-party ratings from J.D. Power, the Better Business Bureau, and AM Best. The company is a great option for military members who value customer service and want a provider with a stellar reputation.

Pros + Cons

✓ Cheap rates
✓ Excellent third-party ratings
X Only available to military members and their families

Cheap Rates for Military Members and Families

USAA’s rates for households with teen drivers are low, and they offer several discounts that help keep premiums affordable for families. On average, a USAA policy with a teen driver costs $3,299 annually ($275 monthly) — about 13 percent less than the statewide average cost for teens of $3,780 annually ($315 monthly). And it’s more than $1,400 cheaper per year than Allstate, whose policies for teen drivers cost an average of $4,768 annually, or $397 monthly.

In addition, USAA offers several ways to save on auto insurance rates when you add a young driver to your policy.

• Good student discount, for drivers with a 3.0 GPA or higher
• Driver education discount, for taking an approved driver training course
• Legacy discount, up to 10 percent off for drivers in their 20s transitioning off a household policy
• Multi-vehicle discount, when you add another car to your policy (not exclusive to teens)
• USAA SafePilot, up to 30 percent off for monitoring your driving habits (not exclusive to teens)

USAA is also a great choice for military members and veterans who do not have young drivers in the household. With average rates in Tennessee of $797 annually ($66 monthly) for full coverage and $304 annually ($25 monthly) for minimum coverage, they’re one of the cheapest providers in the state.

Military-Specific Discounts

USAA keeps rates low by offering a number of discounts, including a couple specific to military members

• Garaging your vehicle on military installations like Fort Campbell or Arnold Air Force Base can get you 15 percent off comprehensive coverage.
• Storing your vehicle during deployment (or for another reason) can save you up to 60 percent on premiums.

You can also save with the following discounts:

• Clean Driving Record: Discounts for maintaining a good driving record for more than five years
• Bundling Policies: Save up to 10 percent by bundling auto with homeowners or renters insurance.
• Newer Vehicle Discount: Discounts for vehicles less than 3 years old
• Anti-Theft Device: Save if your car has an anti-theft device installed.
• Low Mileage: Discounts based on annual mileage

Discounts for Safe Drivers

USAA offers a usage-based discount called SafePilot, which can help safe drivers save on premiums. USAA customers can download the SafePilot app to monitor their driving behaviors, like hard braking, rapid acceleration, and distracted driving. The app scores drivers on their habits behind the wheel, with higher scores translating into greater discounts.

Customers who enroll in SafePilot get a 10 percent discount just for signing up, and can save up to 30 percent at their next renewal.

Liberty Mutual promises that their customers only pay for what they need. They offer customized insurance for teachers in Tennessee, which can help them save on their auto insurance and provide extra protection.

Pros + Cons
✓ Strong digital tools
✓ Perks for teachers
X Mixed satisfaction ratings

Customized Coverage for Teachers

Liberty Mutual is our only provider on this list that offers auto insurance coverages specific to teachers. These include:

• Vandalism Loss Protection: Teachers pay no deductible if their vehicle is vandalized on school property or during school-related events.
• Personal Property Coverage: Teaching materials or school-owned items in the vehicle are covered up to $2,500 per incident if stolen or damaged.
• Collision Coverage: No deductible applies if a teacher’s vehicle is damaged in a collision while being used for school-related business.

In addition, Liberty Mutual advertises other savings and discounts specifically for teachers, depending on your state.

Multiple Add-Ons

In addition to offerings for teachers, Liberty Mutual gives customers a number of coverage choices to add to their auto insurance policies:

• 24-hour roadside assistance: Roadside assistance gives you access to jump starts and tows if your vehicle breaks down.
• Better car replacement: With better car replacement, you’ll have the funds to purchase a model a year newer than your totaled car.
• Gap insurance: If your leased vehicle is totaled and its value is less than the amount you owe on your loan, this coverage will pay the difference.
• Lifetime repair guarantee: The lifetime repair guarantee assists you in finding an approved direct repair shop after an accident and guarantees the repairs for as long as you own the vehicle. If the repair fails, the company will cover the repair cost again.
• New car replacement: If you total your new car within the first year of ownership, this replacement coverage will buy you a brand-new vehicle.
• Original parts replacement: This coverage lets you restore broken vehicle parts with parts from the original manufacturer.
• Rental car reimbursement: While your vehicle is repaired after a covered accident, you’ll receive funds for a rental car.

Good Digital Tools

Liberty Mutual has a strong mobile app, which gives customers the ability to perform multiple tasks, such as the following:

• Add drivers.
• Chat with Liberty Mutual customer service.
• Contact roadside assistance.
• Manage and pay bills.
• See documents electronically.
• Start and view claims.
• View ID cards.

The Liberty Mutual app rates well with users. In the Google Play store, the app has a 4.7 out of five-star rating, and in the App Store, it earned 4.8 out of five stars, making Liberty Mutual’s app the favorite among users of all insurers reviewed here. With 2.8 stars for both Android and iPhone, Erie’s app is ratest the lowest, suggesting insurance customers who value comprehensive digital tools would be better off with Liberty Mutual.

Liberty Mutual also fares well in the J.D. Power Digital Experience Survey, with a score of 701 (three points higher than the study average) in the Service category.⁴ This suggests customer satisfaction with Liberty Mutual digital policy management tools.

Direct Auto tells their customers, “Car insurance doesn’t have to be complicated.” The company has more than 450 locations in 16 states, including 75 in Tennessee. Unlike Erie, a company geared toward drivers with clean records, Direct Auto specializes in offering auto insurance to high-risk drivers, regardless of whether you have a DUI, less than stellar credit, or a recent at-fault accident. Additionally, the company has many discount options available.

Pros + Cons

✓ Offers policies for high-risk drivers
✓ Large selection of discounts
X High rates for drivers with a clean history

Multiple Discounts

Direct Auto offers a lot of discounts to help customers save on premiums, many of which don’t require a clean driving record.

Cheap Motorcycle Insurance

More than 199,000 motorcycles are registered in Tennessee.⁵ If you drive a motorcycle, Direct Auto offers inexpensive coverage. Plus, bundling your auto and motorcycle insurance will save you money. The company’s motorcycle coverage has the following options:

• Bodily injury liability
• Collision
• Comprehensive
• Guest passenger liability
• Medical payments
• Personal injury protection
• Property damage
• Towing
• Uninsured/underinsured motorist coverage

In addition, Direct Auto motorcycle policies cover custom parts, equipment, and accessories, which include backrests, CB radios, chrome pieces, levers, and saddlebags.

Flexible Payment Options

Direct Auto gives you several choices in how you pay your premiums:

• Recurring payments with a credit or debit card
• Directly from your bank account
• One-time payments with cash or a credit or debit card at a Direct Auto location
• Over the phone at 877-463-4732
• Online account
• Online quick pay via credit card, debit card, or e-check (which doesn’t require logging in)
• Through the Direct Auto mobile app