Best car insurance in Tennessee for 2023

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

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.

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.

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.

When it comes to choosing the best insurance company, there is no one single best carrier for every driver. Every company is different, and each driver has different priorities and needs. While some drivers only care about price and want the cheapest coverage possible, another person might prefer to pay a bit more if it means great service and the option to work with a local agent. To find the best company for you, experts recommend narrowing down your priorities and comparing quotes from a handful of carriers that meet your needs.

The cheapest car insurance company in Tennessee will be different for everyone, as rate factors include individual criteria, such as your age and driving record. To find the cheapest rates for you, consider getting multiple car insurance quotes to compare the same coverage across different carriers.

Yes, you legally have to carry car insurance in Tennessee. However, if you can deposit or post a bond for $65,000 to the Department of Revenue, you may be able to use that as proof of financial responsibility rather than carrying car insurance coverage. Note that as of January 1, 2023, Tennessee law increased the minimum required property damage liability from $15,000 to $25,000. Your next insurance renewal will likely reflect this change if you have minimum coverage.

Tennessee is an at-fault insurance state, which means the driver who is found at-fault for an auto accident is legally and fiscally responsible for damages and injuries that resulted from the collision. This is why it may be important to have adequate liability limits in Tennessee because if you are at fault in an accident, you are financially responsible for the other driver’s damages.