We’ve sifted through dozens of auto insurers to find the best ones for the Volunteer State.
Direct Auto rose to the top of the list due to its wide range of discounts and reasonable rates. The company also insures high-risk drivers with SR-22 certifications.
Allstate offers two dozen additional policies to bundle with your car insurance for savings. For example, bundling your auto with a home, condo, or renters insurance policy will save you up to 25 percent.
If you’re one of the more than 5 million drivers living in Tennessee, you have several choices for car insurance. Direct Auto, Allstate, USAA, and Liberty Mutual offer a variety of coverages and services designed to meet your needs. Whether you have teen drivers or a less-than-spotless driving record, you’ll find options to fit your budget and requirements.
The Best Auto Insurance in Tennessee Overall: Direct Auto
The Best Auto Insurance Bundles in Tennessee: Allstate
The Best Auto Insurance for Teen Drivers in Tennessee: USAA
The Best DUI Auto Insurance in Tennessee: Liberty Mutual
|Company||Add-on coverage||Average annual cost||Discounts||AM Best rating||Read our full review|
|Direct Auto||Accidental death, rental reimbursement, roadside assistance, towing & labor||$2,487||Military, senior citizen, driver education, etc.||A+||Direct Auto review|
|Allstate||Roadside assistance, rental car reimbursement, personal umbrella policy||$1,683||Safe driving, full pay, early signing, paperless, etc.||A+||Allstate review|
|USAA||Rental car reimbursement, rideshare||$1,151||Low mileage, vehicle storage, family, vehicle equipment, etc.||A++||USAA review|
|Liberty Mutual||Better car replacement, gap, lifetime repair guarantee, new car replacement, original parts guarantee, rental car reimbursement, roadside assistance||$1,637||Claims-free, early shopper, online purchase, student-away-from-home, etc.||A||Liberty Mutual review|
Direct Auto tells its customers that “car insurance doesn’t have to be complicated.” The company has more than 450 locations in 16 states, including 77 in Tennessee. Direct Auto specializes in offering auto insurance to high-risk drivers. Additionally, it has many discount options available.
Direct Auto has many opportunities for you to save up to 25 percent on annual premiums. Here are the available options:
In Tennessee, more than 195,000 motorcycles were registered as of the most recent 2021 data.1 Fortunately, Direct Auto offers inexpensive motorcycle coverage. Plus, bundling your auto and motorcycle insurance will save you money. The company’s motorcycle coverage has the following options:
In addition, Direct Auto motorcycle policies cover custom parts, equipment, and accessories, which include backrests, CB radios, chrome pieces, levers, and saddlebags.
Direct Auto gives you several choices in how you pay your premiums:
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.
Allstate gives members numerous opportunities to combine auto insurance with other types of insurance. If you combine two or more policies, you could save up to 25 percent on your auto insurance premiums. In addition to auto insurance, Allstate has numerous types of policies available.
|Vehicle||Boat, motorcycle, off-road/ATV, roadside assistance, snowmobile|
|Property||Condo, flood, homeowners, landlord, motorhome, renters, RVs|
|Life||Term, universal, whole|
|Business||Business owners, commercial auto|
|Other||Event, pet, travel, voluntary employee benefits|
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:
Allstate’s extensive list of local agents makes it easy to find one close to where you live in Tennessee.
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:
For more than a century, USAA has insured active-duty military members, veterans, and their families, including young drivers. The company charges less compared to other insurers for insuring teens and young drivers up to age 25. USAA gradually lowers the premiums for its young drivers based on good driving records.
It has the lowest car insurance rates of any company on this list, but you should get car insurance quotes from each provider, as your average rate may differ based on your zip code, accident and moving violation history (such as a speeding ticket), and other factors.
Tennessee allows drivers 15 years old and older to get their learner’s permits and teens as young as 16 to get their intermediate licenses.2 USAA covers young drivers with learner’s permits without additional premium costs because fully licensed adults must be in the vehicles monitoring their driving. Rates will go up, however, if there is someone on a policy with an intermediate license since they can operate vehicles without adult supervision.
The company has one of the least expensive options for car insurance for teens and young drivers under 25, with an average cost of $1,350 per year. Across all companies, the cost of car insurance for teens averages $3,751 annually.3 In addition, USAA offers several ways to save on auto insurance rates when you add a young driver to your policy.
USAA offers its members add-on coverages specific to the military:
USAA generally has high ratings both from third-party raters and customers.
Liberty Mutual promises that its customers only pay for what they need. The company offers competitive rates for drivers with DUIs on their records and even files SR-22s on their behalf. In addition, Liberty Mutual rates well as a company, with a Better Business Bureau rating of A+ and an 819 out of 1,000 rating from J.D. Power in 2022.7
If someone has a DUI on their record, Liberty Mutual will file SR-22 certificates with the Tennessee Department of Motor Vehicles (DMV) on their behalf. An SR-22 verifies a driver has the minimum amount of auto insurance Tennessee requires. The state mandates filing SR-22 certificates from the date of the driver’s license suspension and might require filing annually for up to five years. Liberty Mutual charges between $15 and $25 to file the SR-22 form.
Typically, if you have an SR-22, you’ll pay 133 percent more for auto insurance with Liberty Mutual than someone with a clean driving record.
Liberty Mutual gives customers a plethora of coverage choices to add to their auto insurance policies:
Liberty Mutual has a strong mobile app, which gives customers the ability to perform multiple tasks, such as the following:
The Liberty Mutual app rates well with users. In the Google Play store, the app has a 4.7 out of five-star rating, while in the App Store, it has a 4.8 out of five-star rating.
In looking at the best auto insurance for Tennessee drivers, we considered a variety of factors:
No, auto insurance is not expensive in Tennessee. The average annual price is 18 percent below the national average. Tennesseans pay, on average, $854 yearly for auto insurance, according to the National Association of Insurance Commissioners (NAIC), while the national annual average is $1,047.
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 per injury or death per person, $50,000 per total injuries or death per accident, and $25,000 for property damage per accident, according to the Tennessee state government.
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.
Highway Statistics 2021. U.S. Department of Transportation. (2023, Mar).
Teen/Graduated Driver License. Department of Safety & Homeland Security. (2023).
2019/2020 Auto Insurance Database Report. National Association of Insurance Commissioners. (2023, Jan).
AM Best Credit Ratings. AM Best. (2023).
Consumer Insurance Search Results. National Association of Insurance Commissioners. (2023).
Login. S&P Global. (2023).
Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds. J.D. Power. (2022, Jun 13).