Best car insurance in Tennessee for 2023

Best car insurance companies in Tennessee

Using data gathered by Quadrant Information Services, Bankrate's team determined that the average policyholder in Tennessee pays $371 for state-mandated minimum coverage and $1,429 for full coverage, which includes collision and comprehensive. However, we know that rates alone do not necessarily mean a company offers the best insurance. In addition to average rates, we also analyzed scores from the 2022 J.D. Power Auto Insurance Study, AM Best ratings for financial strength, coverage options, discounts and digital tools to pick the best car insurance carriers in Tennessee.

How Bankrate chose the best car insurance companies in Tennessee

Bankrate chose the best car insurance companies in Tennessee by evaluating criteria and rating each carrier. Factors used to determine the best auto insurance in Tennessee include average annual quoted premiums, coverage options, available discounts, customer satisfaction scores, third-party rankings, financial strength ratings and mobile and online accessibility. These criteria also help to make up the Bankrate Score, which is a five-point scale rating that shoppers could use to help them decide which company may excel in the categories that matter the most to them.

How much is car insurance in Tennessee?

The average annual premium in Tennessee for minimum auto coverage is $371, compared to $1,429 for full coverage. This is well below the national annual averages of $622 for minimum coverage and $2,104 for full coverage. This is likely due in part to the state’s lack of heavy traffic, which may reduce the risk of claims. Tennessee drivers pay less on average than drivers in several neighboring states as well. For example, Kentucky and Missouri have average full coverage rates of $2,124 and $1,943 per year, respectively.

Auto insurance premiums may differ depending on what state you live in. This is because companies may have their own specific rating factors for different geographic locations. The factors influencing premiums in Tennessee and other states may include the amount of minimum required insurance, the likelihood of being in an accident, how severe accidents tend to be, and the likelihood of non-accident related claims like hail damage or theft.

How to find the best car insurance in Tennessee

For many drivers, finding the best auto insurance in Tennessee is about more than just price. When considering possible insurers, you may want to think about these factors:

Consider minimum insurance requirements in Tennessee

Tennessee law requires drivers to obtain at least a minimum amount of liability car insurance. In lieu of liability insurance, the Tennessee Department of Revenue may allow drivers to show proof of financial responsibility, which means making a cash deposit or posting a bond with the Department for $65,000.

Minimum requirements for auto insurance in Tennessee rose recently. While it may be informational to know these minimums, a licensed insurance agent will not allow you to purchase a policy that falls short of the legal minimum. Many insurance experts would suggest that you buy more than this minimum coverage in order to have more robust financial protection in the event of a covered incident. 

Consider lender requirements

If you finance or lease your car, lenders often have requirements that are higher than the state minimums. Lenders usually require comprehensive and collision coverage, also known as full coverage, which may pay to repair or replace your car in a covered incident. These lender requirements are in place to protect the lender until you pay the loan or lease agreement in full. Even if you don't have a car loan or lease, these optional coverage types may help protect your financial investment in your car. 

Consider your individual needs

Tennessee is vulnerable to natural disasters, such as tornadoes and other severe weather events, including hail storms and floods, which may make purchasing comprehensive insurance something to consider. Other common endorsements that may fit your needs include gap insurance for vehicles with a loan or lease and rental car reimbursement coverage for those with access to only one car.

According to the Insurance Information Institute, Tennessee had the third-highest percentage of uninsured motorists in the U.S. in 2019, with nearly 24 percent of all drivers estimated to be uninsured. To protect yourself from the financial consequences of being in an accident with an uninsured or underinsured motorist, you may want to consider purchasing uninsured and underinsured motorist coverage as part of your Tennessee car insurance policy.