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Last updated: July 20, 2023

Cheapest Car Insurance in Tennessee

Which providers in the Volunteer State offer the cheapest rates?

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Tennessee is one of the most affordable states, according to data from the United States Bureau of Economic Analysis. Specifically, Tennessee’s average annual cost of living in 2021 was $42,469, compared to the national average of $47,915. The average cost of car insurance across the state is also lower compared to other states. However, many people may still need help finding protective policies at reasonable prices.

Whether you’re a seasoned driver or a new driver in Tennessee, knowing which kind of auto insurance coverage you need and how much it will cost you is crucial. This page covers our top picks for affordable policies for all drivers. Keep reading to discover how you can save on your auto insurance.

Cheapest Car Insurance Rates in Tennessee

Below, we’ve compiled average annual auto insurance costs from various companies depending on coverage level and demographic information. Keep in mind that auto insurance providers base their rates on various factors, including a person’s age, ZIP code, marital status, driving history and vehicle model.

Therefore, we suggest you compare online car insurance quotes from different companies to find the cheapest car insurance premiums for you and your circumstances. The cheapest car insurance company for someone with a clean driving record, for example, will be different for someone with a bad driving record. See the lowest average auto insurance rates for different demographics below.

Cheapest Companies

  • Erie: $567
  • GEICO: $1,120
  • Progressive: $1,288
  • State Farm: $800
  • USAA: $755


  • Full coverage car insurance: State Farm, $920
  • Minimum coverage in Tennessee: State Farm, $626

Driving Record

  • Speeding ticket: State Farm, $678
  • At-fault accident: State Farm, $883
  • DUI: State Farm, $804


Drivers in Tennessee with certain violations, including DUIs, must file SR-22 forms, which raise the cost of car insurance.


Car insurance rates are highest for young drivers ages 16 to 19. Take a look at the average rates you can expect according to each age range.

Age Average annual cost
16 $4,538
17 $3,690
18 $3,189
19 $2,364
20s $1,958
30s $1,136
40s $1,095
50s $1,004
60s $802


  • Poor credit: $2,446
  • Average credit: $1,663
  • Good credit: $1,387


Auto insurance companies in Tennessee can consider your credit score when calculating your yearly premium. However, state law prohibits companies from denying or canceling insurance policies on the basis of credit solely.1

The Best Car Insurance in Tennessee

Our top picks for the best auto insurance in Tennessee include:

  • Allstate
  • Direct Auto
  • Liberty Mutual
  • USAA

Ways to Save

  1. Search for discounts through your provider: Many car insurance providers offer a wide range of discounts that may apply to you. If you have more than one vehicle you need to insure, qualify as a senior or have a student driver on your policy, you may be eligible for discounts.
  2. Demonstrate safe driving: Drivers who demonstrate safety behind the wheel and defensive driving by taking a course can save on their yearly premiums.
  3. Improve your credit score: Since auto insurance companies in Tennessee consider your credit score when calculating the cost of your insurance, one way to lower your premium is to have a high credit score. Paying your bills on time is one way to raise your credit score.

How Much Coverage Do You Need?

Tennessee’s minimum liability coverages are as follows:

  • $25,000 in bodily injury liability per person
  • $50,000 in bodily injury liability per accident
  • $25,000 in property damage liability per accident2

Because these liability coverages cover the other party’s expenses if you cause an accident, many drivers invest in optional coverages to cover their own expenses. You should consider opting for the following coverages:

  • Medical payments: Medical payments coverage pays for the medical expenses of you and your passengers after an accident, regardless of fault.
  • Uninsured/underinsured motorist coverage: Uninsured and underinsured motorist coverage protects you in the event of a collision with an uninsured or underinsured driver.
  • Comprehensive: Comprehensive coverage covers damage resulting from unforeseen events other than collisions, such as vandalism, theft, hail, fire or storms.
  • Collision: Collision coverage pays for your vehicle repairs and replacements after an accident, no matter who was at fault.

Alternative Car Insurance


Although this alternative does not apply to most people, Tennessee has a self-insurance option for auto insurance. Residents who own 25 vehicles or more can apply for self-insurance by submitting an application to the Tennessee Department of Commerce and Insurance.

Tennessee Department of Motor Vehicles Information

  • Phone: (888) 871-3171
  • Mail:
    • Administration Office
    • 1150 Foster Avenue
    • Nashville, TN 37243
  • URL:


Car insurance in Tennessee is cheaper than in other states, with an average annual cost of $854 compared to the national average of $1,047, as of 2020.3 That said, certain factors, such as your credit and driving history, may lead to higher rates or lower if you have good credit and driving history.

If you want the most protection as possible at an affordable price, we suggest you compare quotes from different providers. Continue reading through our frequently asked questions to learn more about car insurance and driving laws in Tennessee.

Frequently Asked Questions

What happens if I drive without insurance in Tennessee?

If you drive without the minimum liability insurance requirements in Tennessee, expect to face the following penalties if you cannot provide proof of insurance to the Department of Revenue within 30 days.

Violation Maximum fine License suspension? Registration suspension? SR-22 requirement?
Driving without insurance $300 Yes, until you retake your driver’s examination Yes, until you provide proof of insurance Yes, 3 years

Does Tennessee require PIP or medical payments coverage?

As an at-fault state, Tennessee offers medical payments coverage as opposed to personal injury protection (PIP) coverage. However, Tennessee does not require medical payments coverage, though you may choose to buy this optional policy to cover your own medical expenses in the event of an accident.

Does Tennessee require uninsured motorist coverage?

No, Tennessee does not require drivers to have uninsured motorist coverage. However, many Tennesseans find this coverage helpful. Tennessee is among the top three states with the highest percentage of uninsured and underinsured drivers, standing at 24 percent, according to a 2021 report from the Insurance Research Council.

Is Tennessee a “no-fault” state?

No, Tennessee is an at-fault state, which means the at-fault party’s insurance pays for the other party’s medical expenses and property damage.


  1. 2021 Tennessee Code Title 56 Part 2 – Restrictions on Use of Credit Scores. JUSTIA US Law. (2021).

  2. Why You Should Have Auto Insurance. Tennessee Department of Revenue. (2023).

  3. 2019/2020 Auto Insurance Database Report. National Association of Insurance. (2023, Jan).