The average cost of car insurance differs with each state. According to our latest research, Tennesseans pay $369 annually for minimum coverage and $1,364 annually for full coverage. And while that is below the national average of an annual rate of $1,738 for full coverage, we know that people still want to look for ways to save on their insurance. Further, with 70% of Tennessee residents driving and a total of 204,673 crashes overall in 2019, it will come as no surprise that insurance is a must-have.
Luckily, we’ve done the work of finding the cheapest insurance companies and best ways to save for you. Read on to find out.
The Cheapest car insurance in Tennessee
Finding cheap car insurance in Tennessee that gives great coverage requires a little bit of legwork. However, in Tennessee, the cheapest providers are some of the best providers in the nation. Our findings indicate that the following five companies offer the cheapest auto insurance in Tennessee.
|Car Insurance Company||Average Annual Premium for Minimum Coverage||Average Annual Premium for Full Coverage|
|Tennessee Farmers Group||$263||$1,255|
Geico is not only the cheapest on our list but it also has the most discounts. If that weren’t enough, the discounts offer a significant amount of savings. Insuring multiple vehicles with Geico will get you a 25% discount, driving without any accidents for five years will get you up to a 26% discount and having air bags for both the driver and the passenger may save you up to 40%. However, there are numerous other ways to lower your premium even more. One quick and easy way is to also use Geico for either your renters, homeowners or condo insurance. How much you’ll save varies, so speak with a customer service representative to learn more if you’re interested.
Tennessee Farmers Group
Tennessee Farmers Group may not be as much of a household name as some of the other companies on this list, but don’t let that fool you. Tennessee Farmers offers low premiums and a multitude of ways to lower them even more through discounts. They even have a few that stand out. For example, the ‘Signal’ app monitors your driving habits and prices your premium based on how safely you drive. Drive a hybrid and you can qualify for the ‘Alternative Fuel’ discount. Lastly, Tennessee Farmers gives discounts based off of your occupation (whether current or retired). They don’t have a full list of vocations listed on their website, so you’ll want to contact them for more information.
State Farm is a nationally known company for a reason— their premiums are cheap and their service is great. Discounts wise State Farm mostly has the standard array of ways drivers can save. They have such discounts as multi-car discounts, anti-theft discounts and accident free discounts. Our favorite, however, is the Drive Safe & Save discount, where an app analyzes your driving habits. If State Farm likes what it sees, you get a discount.
USAA is unique in that it only insures current and retired military, as well as their immediate family members. If this applies to you, you’re in luck. USAA has been reported to be one of the most customer friendly providers on the market.
Unfortunately, USAA doesn’t offer too many discounts that go beyond the typical ones you’ll find. They seem to be catering more to their target audience (active military). For example, if you need to garage your vehicle while you’re deployed, USAA may give you up to a 60% discount on your premium.
Though Erie is last on our list cost wise, don’t let that dissuade you from getting a quote from them. According to J.D. Powers, Erie is one of the best companies when it comes to customer satisfaction— which means that if you file a claim with them, they’re not going to drag their feet.
Erie also offers a lot of discounts to get your premium down even further (many of which revolve around young drivers and students). Perhaps the coolest thing Erie does is offer a rate lock, which freezes your auto premium even if you have to file a claim.
Affordable coverage for Tennessee drivers
Tennessee requires its drivers to have 25/50/15 coverage. This means that, at minimum, your basic liability must cover:
- $25,000 per person for bodily injury/ death
- $50,000 per accident for bodily injury/ death
- $15,000 per accident for property damage
Insurance companies typically recommend that drivers purchase more liability than this, and for good reason. If you just consider property damage, for example, $15,000 in many situations will not be able to cover many damages you may inflict upon another car. Many new cars on the road cost $20-$30 thousand more. Should you total one of them, you would be expected to pay for any remaining amount out of your own pocket. As such, purchasing more liability insurance than just the required minimum can save you from financial hardship in the long run.
How to get cheap car insurance in Tennessee
When finding the cheapest car insurance in Tennessee the importance of shopping around can’t be emphasized enough. Insurance companies all use their own pricing algorithms to determine the cost of your premium. Each takes into account your personal information (driving history, type of car, distance travelled, location, etc.), but the importance of each factor is weighed differently with every company. This is why you may receive completely different quotes from similar providers. Always request quotes from multiple companies.
Once you’ve received your quotes, you’ll want to next compare discounts. Don’t just look at the amount of discounts. The important thing is to look at the discounts that would immediately apply to you. It’s highly likely the company won’t advertise the amount you’ll save with each discount, so you’ll want to speak with a representative to learn just how much you’ll save.
Next, consider opting for a higher deductible. The obvious downside to doing this is that you’ll receive less of a payout should something happen, so you’ll want to have a little bit set aside in savings if you go this route.
Lastly, a little known fact about car insurance is that your premium is affected by your credit score. The higher your score, the lower your premium. You won’t be able to change your credit score overnight, so consider this a part of your long term game plan.
Frequently asked questions
What is the best car insurance in Tennessee?
This is a complicated question to answer because there are a lot of ways to answer it. What’s more important to you? Customer satisfaction, financial strength, price or available discounts? For an in-depth dive, please read our Best Car Insurance in Tennessee page.
What is the average cost of car insurance in the U.S.?
According to the Insurance Information Institute’s latest study, the average cost of car insurance in the United States is $611.12 annually for minimum coverage, but the average expenditure is $1,004.58. Drivers in Tennessee currently pay less than these amounts ($456.05 and $820.63). According to III, Tennessee is the 35th most expensive state in which to get car insurance.
Is Tennessee a no-fault state?
No, Tennessee is not a no-fault state. This means that as a driver you’ll want to have plenty of liability just in case you do cause a major accident. Any amount over your liability coverage will have to be paid out of pocket by you.
Does Tennessee have a lot of uninsured drivers?
Yes, Tennessee does have a lot of uninsured drivers. According to the Insurance Information Institute, Tennessee is the 5th worst state for uninsured motorists. Currently, at least 20% of drivers are driving uninsured.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a cleaning driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.