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Last updated: May 6, 2025
Compare Cheap Auto Insurance in Tennessee
USAA, Erie and Tennessee Farm Bureau offer cheap rates in Tennessee, depending on the driver profile.
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In Tennessee, auto insurance rates are cheaper than the national average. Full coverage in the state costs an average of $1,716 per year — 28 percent below the national average of $2,399. Minimum coverage is similarly affordable at $587 per year on average, cheaper than the national average of $635.
Auto insurance rates can vary greatly depending on where you live, even within a state. Drivers in larger cities like Memphis and Nashville pay higher rates, on average, than those in more rural areas due to increased traffic and risk of accidents.
Overview:
- Full coverage auto insurance in Tennessee costs an average of $1,716 per year, while minimum coverage costs an average of $587 annually.
- USAA and Erie offer some of the cheapest auto insurance rates for various driver profiles in Tennessee but only those affiliated with the military are eligible for USAA.
- Tennessee Farm Bureau and Travelers also have competitive rates, depending on the category.
Jump to:
- Cheapest full coverage auto insurance in Tennessee: USAA ($1,116 annually) and Erie ($1,262 annually)
- Cheapest minimum coverage: Tennessee Farm Bureau ($353 annually) and USAA ($363 annually)
- Cheapest with a teen driver: Erie ($3,037 annually) and USAA ($3,501 annually)
- Cheapest with a speeding ticket: USAA ($1,380 annually) and Tennessee Farm Bureau ($1,463 annually)
- Cheapest with an at-fault accident: USAA ($1,606 annually) and Erie ($1,696 annually)
- Cheapest with a DUI: Travelers ($1,820 annually) and USAA ($2,122 annually)
- Cheapest with low credit: USAA ($1,906 annually) and Farmers ($2,370 annually)
Cheapest Car Insurance in Tennessee for Full Coverage: USAA and Erie
USAA has the cheapest rates for full coverage in Tennessee at $1,116 per year, which is 35 percent less than the state average. USAA is only available to members of the military community, but nonmilitary drivers can also find affordable rates from Erie at $1,262 per year — 26 percent below the state average.
| Provider | Annual Full Coverage | Monthly Full Coverage |
|---|---|---|
| USAA | $1,116 | $93 |
| Erie | $1,262 | $105 |
| Tennessee Farm Bureau | $1,343 | $112 |
| Farmers | $1,562 | $130 |
| GEICO | $1,635 | $136 |
| State Farm | $1,658 | $138 |
| Nationwide | $1,869 | $156 |
| Allstate | $2,269 | $189 |
| Progressive | $2,269 | $189 |
| Tennessee average | $1,716 | $143 |
| National average | $2,399 | $200 |
Cheapest Car Insurance in Tennessee for Minimum Coverage: Tennessee Farm Bureau
Tennessee Farm Bureau has the lowest rates for minimum coverage in Tennessee at only $353 per year, which is 44 percent cheaper than the state average. USAA and Travelers also offer below-average rates at $363 per year and $393 per year, respectively.
| Provider | Annual Minimum Coverage | Monthly Minimum Coverage |
|---|---|---|
| Tennessee Farm Bureau | $353 | $29 |
| USAA | $363 | $30 |
| Travelers | $393 | $33 |
| Erie | $422 | $35 |
| GEICO | $519 | $43 |
| State Farm | $581 | $48 |
| Progressive | $697 | $58 |
| Allstate | $936 | $78 |
| Tennessee average | $587 | $49 |
| National average | $635 | $53 |
Cheapest Car Insurance in Tennessee for Teen Drivers: Erie
Erie offers the cheapest rates for teen auto insurance in Tennessee, with an average annual premium of $3,037. That’s 48 percent cheaper than the state average. USAA and Travelers also have affordable rates at $3,501 per year and $3,814 per year, respectively.
| Provider | Annual With Teen Driver | Monthly With Teen Driver |
|---|---|---|
| Erie | $3,037 | $253 |
| USAA | $3,501 | $292 |
| Travelers | $3,814 | $318 |
| GEICO | $4,136 | $345 |
| Tennessee Farm Bureau | $5,174 | $431 |
| State Farm | $5,306 | $442 |
| Allstate | $8,793 | $733 |
| Progressive | $11,208 | $934 |
| Tennessee average | $5,811 | $484 |
| National average | $3,919 | $327 |
FYI:
Teens are the most expensive age group to insure, on average, since they tend to be involved in an outsized share of auto accidents. As such, it’s worth researching and asking insurers about any discounts that might apply, including for good grades or safe driving via a telematics program.
Cheapest Car Insurance in Tennessee With a Speeding Ticket: USAA and Tennessee Farm Bureau
USAA provides the cheapest auto insurance for eligible military-affiliated drivers in Tennessee with a speeding ticket at $1,380. Those not eligible for USAA can find the cheapest average rates from Tennessee Farm Bureau at $1,463 per year, which is only slightly more than USAA and 29 percent cheaper than the state average.
| Provider | Annual With Speeding Ticket | Monthly With Speeding Ticket |
|---|---|---|
| USAA | $1,380 | $115 |
| Tennessee Farm Bureau | $1,463 | $122 |
| Erie | $1,539 | $128 |
| State Farm | $1,795 | $150 |
| Travelers | $1,867 | $156 |
| GEICO | $2,064 | $172 |
| Farmers | $2,141 | $178 |
| Progressive | $2,597 | $216 |
| Allstate | $2,727 | $227 |
| Tennessee average | $2,063 | $172 |
| National average | $2,511 | $209 |
Cheapest Car Insurance in Tennessee With an At-Fault Accident: USAA and Erie
USAA and Erie have the cheapest rates for drivers with an at-fault accident in Tennessee at $1,606 per year and $1,696 per year, respectively — both well below the state average of $2,343. Travelers and Tennessee Farm Bureau also have competitive rates in this category.
| Provider | Annual With At-Fault Accident | Monthly With At-Fault Accident |
|---|---|---|
| USAA | $1,606 | $134 |
| Erie | $1,696 | $141 |
| Travelers | $1,715 | $143 |
| Tennessee Farm Bureau | $1,739 | $145 |
| State Farm | $1,965 | $164 |
| GEICO | $2,510 | $209 |
| Progressive | $3,416 | $285 |
| Allstate | $3,722 | $310 |
| Tennessee average | $2,343 | $195 |
| National average | $2,812 | $234 |
Cheapest Car Insurance in Tennessee With a DUI: Travelers
Travelers offers the cheapest auto insurance for Tennessee drivers with a DUI on their record, with an average annual premium of $1,820. That’s 38 percent cheaper than the state average. USAA and Erie also offer competitive rates but the former is only available to the military community.
| Provider | Annual With DUI | Monthly With DUI |
|---|---|---|
| Travelers | $1,820 | $152 |
| USAA | $2,122 | $177 |
| Erie | $2,244 | $187 |
| Tennessee Farm Bureau | $2,430 | $203 |
| Progressive | $2,584 | $215 |
| GEICO | $3,037 | $253 |
| Allstate | $3,153 | $263 |
| State Farm | $3,232 | $269 |
| Tennessee average | $2,941 | $245 |
| National average | $3,305 | $275 |
Cheapest Car Insurance in Tennessee With Low Credit: USAA and Farmers
Military-affiliated drivers with low credit in Tennessee will find the lowest average auto insurance premiums from USAA at $1,906 — 40 percent cheaper than the state average. Farmers and Travelers also offer below-average rates for non-military drivers.
| Provider | Annual with Low Credit | Monthly with Low Credit |
|---|---|---|
| USAA | $1,906 | $159 |
| Farmers | $2,370 | $198 |
| Travelers | $2,413 | $201 |
| Nationwide | $2,521 | $210 |
| GEICO | $2,678 | $223 |
| Erie | $2,898 | $241 |
| Progressive | $3,366 | $281 |
| Allstate | $3,849 | $321 |
| State Farm | $4,830 | $402 |
| Tennessee average | $3,178 | $265 |
| National average | $3,377 | $281 |
Best Claims and Customer Satisfaction in Tennessee: Tennessee Farm Bureau
Tennessee Farm Bureau doesn’t have the absolute cheapest rates in most categories, but its rates do tend to fall below average and it beats out most competitors when it comes to customer satisfaction ratings. It may be worth it to pay a bit more for a policy from a provider with better customer service but always get several quotes as your rates may differ from the average. USAA and Erie also have high customer service ratings in Tennessee.
| Provider | Southeast Customer Satisfaction (J.D. Power)1 | Claims Satisfaction (J.D. Power)2 | CRASH Network Insurer Report Card Grade3 |
|---|---|---|---|
| USAA | 759 | 726 | D+ |
| Tennessee Farm Bureau | 688 | N/A | N/A |
| Erie | 676 | 733 | A- (Honor Roll) |
| Farmers | 676 | 706 | C- |
| State Farm | 673 | 710 | C- |
| Nationwide | 669 | 728 | C |
| GEICO | 651 | 692 | C- |
| Travelers | 642 | 684 | C |
| Progressive | 637 | 672 | C |
| Allstate | 634 | 691 | D |
| Average | 663 | 697 | C+ |
How to Find the Cheapest Car Insurance Rates in Tennessee
- Compare rates: Don’t settle for the first quote you get without first checking what other companies can offer. The cheapest company may not be the one you expect. Just make sure to get quotes for the same coverages to be able to compare apples to apples.
- Pay upfront: Many insurers offer a discount for paying your premium in larger chunks, such as annually or biannually. Check if this is an option with your insurer and pay upfront if you can afford it to help you save money in the long run.
- Look into telematics programs: Telematics programs track your driving habits and provide you with a discount if you drive safely (some also offer discounts for low mileage). These discounts are typically quite high — up to 30-40 percent, depending on the company — but some may also increase your rates if you drive unsafely, so read the fine print before signing up to make sure you’re comfortable with the terms.
- Drop unneeded coverages: The more coverages you have on your policy, the more expensive your premium will be. While you should try to avoid dropping needed coverage just to save money, there are instances where it makes sense. For example, you may not need to keep paying for full coverage on an old car with low value.
Average Auto Insurance Cost in Tennessee by City
Memphis has the most expensive auto insurance rates in Tennessee, on average, at $2,318 per year, which is 35 percent higher than the state average. Meanwhile, average rates are below average in smaller cities like Chattanooga and Knoxville.
| City | Annual Full Coverage | Monthly Full Coverage |
|---|---|---|
| Memphis | $2,318 | $193 |
| Nashville | $1,812 | $151 |
| Clarksville | $1,717 | $143 |
| Chattanooga | $1,694 | $141 |
| Knoxville | $1,678 | $140 |
| Tennessee average | $1,716 | $143 |
Minimum Car Insurance Requirements in Tennessee
Tennessee drivers must carry minimum bodily injury and property damage liability limits to be able to legally drive in the state — it’s possible to increase them, but no auto insurance policy can be sold with limits lower than the following:
- Bodily injury liability: $25,000 per person/$50,000 per accident
- Property damage liability: $25,000 per accident
It’s a good idea to get more than these minimum limits for added financial protection in case you cause an accident. If you have a newer vehicle and would like to cover damages to it, you’ll also need full coverage.
Good to know:
Tennessee has the fourth highest rate of uninsured motorists in the country — following Washington, D.C.; New Mexico; and Mississippi — so although uninsured motorist coverage is not required by law in Tennessee, it’s highly recommended. An estimated 1 in 5 drivers in Tennessee are not insured.4
Frequently Asked Questions
Who has the cheapest car insurance in Tennessee?
USAA offers the cheapest car insurance in Tennessee for military-affiliated drivers at $1,116 annually, on average, for full coverage. Erie has the next cheapest rates at $1,262 annually. For minimum coverage, Tennessee Farm Bureau has the cheapest average rates at $353 annually, followed by USAA at $363 annually.
How much is car insurance per month in Tennessee?
Car insurance in Tennessee costs an average of $143 per month for full coverage and $49 per month for minimum coverage. However, your rates may differ based on various factors.
Is it illegal to not have car insurance in Tennessee?
Yes, it is illegal to drive without car insurance in Tennessee. State law requires drivers to carry a policy with at least the following limits: $25,000 per person and $50,000 per accident in bodily injury liability and $25,000 per accident in property damage liability.
What is considered full coverage car insurance in Tennessee?
Full coverage car insurance refers to a policy that includes comprehensive and collision coverages in addition to liability coverage. These add-ons cover damage to your own vehicle in the event of an accident or a non-collision incident such as theft.
Methodology
We analyze average auto insurance premiums in Tennessee for full and minimum coverage for good drivers with good credit as well as other driver profiles, including those with DUIs, accidents, low credit and teenagers. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
Managing Editor & Industry Analyst
Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.
Citations
Trust Emerges as Top Driver of Customer Satisfaction with Auto Insurance as Prices Continue to Surge, J.D. Power Finds. J.D. Power. (2024, Jun 5).
https://www.jdpower.com/business/press-releases/2024-us-auto-insurance-studyAuto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, J.D. Power Finds. J.D. Power. (2024, Oct 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-study2024 CRASH Network Insurer Report Card. CRASH Network. (2024).
https://www.crashnetwork.com/irc/Facts + Statistics: Uninsured motorists. Insurance Information Institute (III). (2023, Nov).
https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists
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