Compare Cheap Auto Insurance in Tennessee

USAA has the cheapest rates for full coverage in Tennessee at $1,289 per year, which is 37 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 Travelers at $1,492 per year — 27 percent below the state average.

Tennessee Farm Bureau has the lowest rates for minimum coverage in Tennessee at only $396 per year, which is 39 percent cheaper than the state average. USAA and Erie also offer below-average rates at $471 per year and $486 per year, respectively.

USAA offers the cheapest rates for teen auto insurance in Tennessee, with an average annual premium of $4,011. That’s 38 percent cheaper than the state average. For non-military families with teen drivers, Tennessee Farm Bureau has affordable rates at $4,245 per year.

Tennessee Farm Bureau provides the cheapest auto insurance for drivers with a speeding ticket in Tennessee at $1,553. Those who are affiliated with the military can also find cheapest average rates from USAA at $1,609 per year, which is only slightly more than Tennessee Farm Bureau and 33 percent cheaper than the state average.

USAA and Travelers have the cheapest rates for drivers with an at-fault accident in Tennessee at $1,796 per year and $2,016 per year, respectively. Erie also has competitive rates in this category, at 15 percent below the state average.

USAA offers the cheapest auto insurance for military members with a DUI on their record, with an average annual premium of $2,340. That’s 32 percent cheaper than the state average. For those not in the military, Travelers and Progressive also offer competitive rates.

Military-affiliated drivers with low credit in Tennessee will find the lowest average auto insurance premiums from USAA at $2,265 — 41 percent cheaper than the state average. Travelers and Farmers also offer below-average rates for non-military drivers.

Erie 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 Tennessee Farm Bureau also have high customer service ratings in Tennessee.

1. 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.
2. 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.
3. 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.
4. 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.

Memphis has the most expensive auto insurance rates in Tennessee, on average, at $2,870 per year, which is 42 percent higher than the state average. Meanwhile, average rates are below average in smaller cities like Chattanooga and Knoxville.

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.

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: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible