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Best Auto Insurance in Tennessee of 2026
Erie, Nationwide, and USAA are three of our top picks in the Volunteer State.
Best Value
Editor's Rating:
5/5
5/5Best National Insurer
Editor's Rating:4.8/5
4.8/5
Full Coverage Averages in Tennessee
- Annual premium: $2,314
- Monthly premium: $193
Best for Military and Veterans
Editor's Rating:5/5
5/5
Full Coverage Averages in Tennessee
- Annual premium: $1,289
- Monthly premium: $107
Last updated: June 2, 2026
Key Takeaways: Best Tennessee Car Insurance of 2026
Erie offers the best value car insurance in Tennessee, with a mix of affordability and excellent customer service.
Car insurance in Tennessee is cheaper than the national average, at $2,047 per year for full coverage and $646 per year for minimum coverage.
USAA offers the cheapest full coverage rates in the state and is our pick for the best provider for military members.
Meanwhile, Tennessee Farm Bureau has the lowest minimum coverage rates and makes our list as the best regional provider.
Summary of the Best Auto Insurance in Tennessee
- Best Value: Erie
- Best National Insurer: Nationwide
- Best for Military and Veterans: USAA
- Best Regional Insurer: Tennessee Farm Bureau
- Best for High-Risk Drivers: Direct Auto
Compare the Best Cheap Auto Insurance in Tennessee
| Company | Full coverage monthly average in Tennessee | Minimum coverage monthly average in Tennessee | Southeast customer satisfaction (J.D. Power) |
|---|---|---|---|
| Erie | $155 | $40 | Above average |
| Nationwide | $193 | Data not available | Above average |
| USAA | $107 | $39 | Above average |
| Tennessee Farm Bureau | $146 | $33 | Above average |
| Direct Auto | Data not available | Data not available | Not rated |
| Tennessee | $171 | $54 | – |
Breaking Down the Best Cheap Auto Insurance in Tennessee
1. Erie - Best Value
5
Editor's Rating:
- Average Tennessee Rate for Minimum Coverage
- $40 mo.
- Average Tennessee Rate for Full Coverage
- $155 mo.
Competitive rates- Strong customer service
- Unique Rate Lock option
Agent-only- Fewer online features
Why we chose it
Erie is a smaller provider that operates in only 12 states, including Tennessee. It’s known for its affordable rates and has earned high customer satisfaction scores. On average, a full coverage policy from Erie costs about 9 percent less than the Tennessee state average, and a minimum coverage policy costs 25 percent less than average. Erie’s Rate Lock option is unique among car insurers and allows you to avoid premium increases due to factors outside your control, like inflation.
In addition to offering affordable rates, Erie ranked first in J.D. Power’s Claims Satisfaction Study and first for Southeast customer satisfaction in J.D. Power’s U.S. Auto Insurance Study. Erie also ranked fourth out of 91 insurers nationally on CRASH Network’s Insurer Report Card, an independent survey of collision repair shops.
Who it’s best for
Drivers on a budget, those who prioritize customer service, drivers looking for add-ons, such as new car replacement
Erie Tennessee Pricing
| Erie | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $155 | $40 |
| Annually | $1,854 | $486 |
| Difference from Tennessee average | -9% | -25% |
2. Nationwide - Best National Insurer
4.8
Editor's Rating:
- Average Rate for Minimum Coverage
- $60 mo.
- Average Rate for Full Coverage
- $193 mo.
- High regional customer service ratings
- Pay-per-mile policy option
- Loyalty perks
- Not available in select states
- Expensive for teen drivers
Why we chose it
Nationwide isn’t the cheapest option, on average, but it has strong customer service ratings in the southeast region, making it an ideal choice for drivers who prefer to work with a major insurer and don’t mind paying a bit more for good service. It ranked third for Southeast customer satisfaction in J.D. Power’s Auto Insurance Study and fourth in J.D. Power’s Claims Satisfaction Study.
Nationwide offers various discounts to help lower the cost of premiums, including two usage-based insurance programs. The first, SmartRide, tracks driving behavior and can get you a discount of up to 40 percent off for safe driving. Unlike some other programs, it will never increase your rates. The other program, SmartMiles, is a pay-per-mile policy option that includes a base rate and a per-mile rate, so what you pay changes each month based on how much you actually drive.
Who it’s best for
Those who drive less than average, drivers who prefer to purchase from a major national provider, homeowners
Nationwide Tennessee Pricing
| Nationwide | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $193 | Data not available |
| Annually | $2,314 | Data not available |
| Difference from Tennessee average | +13% | N/A |
3. USAA - Best for Military and Veterans
5
Editor's Rating:
- Average Tennessee Rate for Minimum Coverage
- $39 mo.
- Average Tennessee Rate for Full Coverage
- $107 mo.
- Cheapest full coverage rates in Tennessee
- Excellent third-party ratings
- Military-focused coverage
- Military eligibility required
- Limited to members
- Fewer branch locations
Why we chose it
For more than a century, USAA has insured active-duty military members, veterans, and their families. It offers the lowest full coverage and the second-lowest minimum coverage rates in the state, as well as the cheapest average rates for teens. USAA has earned strong third-party ratings from J.D. Power, the Better Business Bureau, and AM Best.
USAA also has a range of discounts to help military members and their families keep auto insurance costs as low as possible. These include a 15 percent discount if you garage your vehicle on military installations and a 60 percent discount if you store your vehicle during deployment. You can also save if you have a clean driving record, bundle policies, have a new vehicle, or drive less than average.
Who it’s best for
Military members, veterans, and their families
USAA Tennessee Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $107 | $39 |
| Annually | $1,289 | $471 |
| Difference from Tennessee average | -37% | -27% |
4. Tennessee Farm Bureau - Best Regional Insurer
4.2
Editor's Rating:
- Average Tennessee Rate for Minimum Coverage
- $33 mo.
- Average Tennessee Rate for Full Coverage
- $146 mo.
- Community-focused agents
- Affordable rates
- Offers business insurance
- Membership required
- Limited digital tools
Why we chose it
Tennessee Farm Bureau is the regional Farm Bureau affiliate that serves Tennessee. It has the cheapest minimum coverage rates, on average, in the state, and its full coverage rates are below average as well. In addition, it offers the cheapest rates for teen drivers after USAA, which is only available to military drivers. The company also has a young driver program called The First Mile, designed for teens aged 16 or 17. The program offers a discount of up to 10 percent upon completion.
Farm Bureau companies sell insurance through a network of local agents who understand the needs of the community. Tennessee Farm Bureau ranked second for customer satisfaction in J.D. Power’s U.S. Auto Insurance Study after Erie, indicating that it provides a high standard of customer service.
FYI:
In order to purchase Farm Bureau insurance, you need to be a Tennessee Farm Bureau member, which comes with a reasonable annual fee of $30.
Who it’s best for
Those who want to work with a local agent, drivers looking for only basic coverages, families with teen drivers
Tennessee Farm Bureau Pricing
| Tennessee Farm Bureau | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $146 | $33 |
| Annually | $1,748 | $396 |
| Difference from Tennessee average | -15% | -39% |
5. Direct Auto - Best for High-Risk Drivers
3.6
Editor's Rating:
- Average Rate for Minimum Coverage
- $78 mo.
- Average Rate for Full Coverage
- $264 mo.
- Offers policies for high-risk drivers
- Large selection of discounts
- Flexible payment options
- Higher costs
- Limited tech tools
- Mixed service ratings
Why we chose it
Direct Auto 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 auto insurance for high-risk drivers, regardless of whether you have a DUI, less-than-stellar credit, or a recent at-fault accident.
Direct Auto offers a lot of discounts to help customers save on premiums, many of which don’t require a clean driving record, including driver training, homeowner, and autopay discounts. Another benefit is its flexible payment options, which let you choose how and when to pay your premiums. You can select your payment date and installment plan. You can also decide how much you pay in your first month, thereby determining your ongoing monthly payment.
Who it’s best for
Drivers with DUIs, a low credit score, or multiple violations; customers who prefer to customize their payment methods; drivers who need SR-22s
Tennessee Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Southeast1 | CRASH Network Insurer Report Card2 | J.D. Power Auto Claims Satisfaction Study3 | NAIC Complaint Index4 |
|---|---|---|---|---|
| Erie | 718 | A- | 743 | 1.61 |
| Nationwide | 691 | C | 729 | 2.00 |
| USAA | 749 | C- | 741 | 3.00 |
| Tennessee Farm Bureau | 696 | Not rated | Not rated | Not rated |
| Direct Auto | Not rated | D | Not rated | 2.31 |
| Average | 667 (out of 1,000) | C+ | 700 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share; the lower the score, the better |
Average Cost of Auto Insurance in Tennessee
Full Coverage Rates in Tennessee
Typically, Tennesseans can expect to pay around $300 less than the national average for a full coverage premium. A full coverage policy in Tennessee costs an average of $2,047 per year, or $171 per month.
| Annual full coverage average | Monthly full coverage average | |
|---|---|---|
| Tennessee | $2,047 | $171 |
| U.S. | $2,356 | $196 |
Minimum Coverage Rates in Tennessee
Like full coverage, minimum coverage in Tennessee is cheaper than the national average. A minimum coverage policy costs an average of $646 per year, or $54 per month — about 11 percent less than the national average.
| Annual minimum coverage average | Monthly minimum coverage average | |
|---|---|---|
| Tennessee | $646 | $54 |
| U.S. | $722 | $60 |
Auto Insurance Costs by City in Tennessee
The cost of auto insurance varies significantly based on your state, but it also varies by city. In Tennessee, Knoxville offers some of the most affordable rates at $2,025 for full coverage. Memphis, on the other hand, is the most expensive city for auto insurance in Tennessee. At $2,870 a year, or $239 a month, its rates are 40 percent higher than the state average.
Auto insurance rates are based on a variety of factors, not just location. Companies also take age, driving history, and gender into account, among other factors. We recommend comparing at least three providers to find the best auto insurance rates.
How Many Car Accidents Happen in Tennessee?
According to data from the Tennessee Department of Safety and Homeland Security, there were 65,247 total car accidents in the state in 2025.5 Of those, 2,062 were fatal or involved serious injuries.6 The month with the most crashes was August, and in terms of days of the week, most accidents occurred on Thursday, Friday, and Saturday.
Minimum Auto Insurance Requirements in Tennessee
Tennessee drivers must carry at least the following car insurance limits to adhere to state law:
- Bodily injury liability: $25,000 per person/$50,000 per accident
- Property damage liability: $25,000 per accident
These limits are fairly standard compared to other states, and while they offer basic coverage, they may not provide enough if you get into a serious accident and are responsible for the other party’s medical expenses. If you can afford to, it’s wise to get higher limits and add full coverage as well to help pay for damage to your car should it be needed.
Frequently Asked Questions
Auto insurance in Tennessee is typically less expensive than the national average. A full coverage policy in Tennessee costs around 13 percent less than the U.S. average, and minimum coverage costs an average of 11 percent less.
That being said, insurance rates in Tennessee aren’t one-size-fits-all. The cheapest car insurance company for someone may be different from their neighbor. Coverage also affects costs; someone with even the cheapest full coverage car insurance will pay more for car insurance than someone with minimum coverage car insurance.
At a minimum, Tennessee requires liability car insurance of $25,000 of bodily injury liability coverage and $50,000 per accident, and $25,000 of property damage liability coverage per accident.
No, Tennessee is an at-fault state, which means the at-fault driver pays for the other party’s property damage and medical expenses. The state has a modified comparative law, which ties an accident party’s recovery to the percentage of their fault. However, your share of the liability in the accident must be less than 50 percent to receive compensation from the other at-fault party.
No, Tennessee doesn’t require full coverage car insurance, only bodily injury and property damage liability coverage.
Methodology: How We Review Providers
We evaluated car insurance companies in Tennessee across the following four main categories:
- Price (40%): We analyze average costs for full and minimum coverage in Tennessee and average costs for a range of driver profiles, including drivers with speeding tickets, DUIs, or low credit scores. We also consider discounts offered by each of our providers. For minimum coverage, we use state laws. For full coverage, the following limits apply:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured motorist bodily injury: $100,000 per person/$300,000 per accident
- Medical payments: $1,000
- Comprehensive and collision: $500 deductible
- Claims (25%): We favor providers with a fast, efficient, and fair claims process. We use third-party sources like J.D. Power’s Claims Satisfaction Study and CRASH Network’s Insurer Report Card to assess the claims handling of our providers. We also consider A.M Best’s financial strength rating to determine a provider’s ability to pay claims.
- Customer Experience (25%): We review the customer experience of each provider, all the way from getting a quote to making a claim. We review regional customer satisfaction scores from J.D. Power and customer complaint data from the Better Business Bureau and National Association of Insurance Commissioners.
- Coverage Options (10%): We favor providers that offer coverage beyond the state minimum, including accident forgiveness, gap insurance, and rideshare coverage.
Read more about our ratings and methodology.
By evaluating these key areas and weighing them according to their importance, we aimed to provide a comprehensive and data-driven analysis of the best auto insurance options for drivers in Tennessee.
Sources
It’s Now a Buyer’s Market for Auto Insurance, JD Power Finds. JD Power. (2025, Jun 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2026. CRASH Network. (2026).
https://www.crashnetwork.com/irc/Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, JD Power Finds. JD Power. (2025, Oct 28).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyConsumer Insurance Search Results. NAIC. (2026).
https://content.naic.org/cis_refined_results.htmRecent Crashes. TN Department of Safety & Homeland Security. (2026, Jun 02).
https://www.tn.gov/safety/stats/dashboards/recent-crashes.htmlFatal & Serious Injury Crashes. TN Department of Safety & Homeland Security. (2026).
https://www.tn.gov/safety/stats/dashboards/fatalseriousinjurycrashes.html
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