Best car insurance in Tennessee for 2021
From the scenic highways of the Great Smoky Mountains to the gates of Graceland, Tennessee holds a lifetime of natural and cultural attractions to explore. According to the Federal Highway Administration, Tennessee also had more than 5 million registered vehicles as of 2015. The average cost of car insurance in Tennessee is $1,338 for full coverage, according to Bankrate’s 2021 study of quoted annual premiums.
With so many vehicles on the road, it is important to protect yourself with the best car insurance in Tennessee. Auto insurance is an important part of your financial health and could prevent financial devastation if you cause an accident. Bankrate’s editorial team has reviewed multiple factors for the largest companies in the Volunteer State to help you decide which company could offer you the best coverage for your needs.
Best car insurance companies in Tennessee
To determine the best car insurance companies in Tennessee, Bankrate’s editorial team reviewed average quoted premiums, provided by Quadrant Information Services, from the largest insurance carriers in the area by market share. We also compared customer service rankings, coverage options and available discounts. Based on our research, the following five companies are the best auto insurance providers in Tennessee.
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power auto claims satisfaction score|
|Tennessee Farmers Insurance||3.8||$1,222||872|
State Farm has the second-lowest average annual premium for full coverage on the list but the highest score for auto claims satisfaction. As the #1 national auto insurer, State Farm has a lot to offer its customers with a wide range of coverages and discounts. Tennessee drivers can save up to 20% by insuring more than one car and up to 17% for bundling home and auto insurance together with State Farm. By practicing safe driving habits and participating in the Drive Safe & Save program, policyholders can save up to 30% on their car insurance.
Learn more: State Farm Insurance Review
Geico offers the lowest average annual full coverage premium on our list and could be a good choice if you are primarily concerned with finding insurance to fit your budget. Geico also offers several potential discounts to help lower your premium even more, such as discounts for being a military member, federal employee or good student.
However, Geico did receive a below-industry-average score for claims service in the 2020 J.D. Power U.S. Auto Claims Satisfaction Study. This could indicate that policyholders often feel dissatisfied with the claims service they receive.
Learn more: Geico Insurance Review
Tennessee Farmers Insurance
In Tennessee, drivers can take advantage of Farmers Insurance’s robust offering of car insurance coverages. Adding a teen driver can be expensive, but with Farmer’s youthful driver discount, Tennessee parents can save on the average cost of car insurance. Farmers auto claims satisfaction ranking is one point above Geico’s and tied with the average ranking score, indicating the company could improve upon their customer satisfaction. Overall, Farmer’s has a 39% positive opinion ranking with YouGov and is the country’s 10th most popular insurance brand.
Learn more: Farmers Insurance Review
In addition to the standard auto insurance coverages you expect from major car insurance companies, Progressive offers a few extras to customize your car insurance needs. For example, custom parts and equipment up to $5,000, gap insurance and rideshare coverage are available for Tennessee drivers. You can also choose Progressive’s deductible savings bank, which reduces your comprehensive and collision deductible by $50 for every policy period you do not file a claim.
Learn more: Progressive Insurance Review
Allstate may have the highest rates for car insurance in Tennessee on our list, but it also has a higher-than-average score for auto claims satisfaction. It is also the fourth most popular insurance brand with a 47% positive opinion rating. To reduce car insurance costs with Allstate, Tennessee drivers can participate in the Drivewise program, which tracks driving habits and rewards good driving behaviors with up to 40% in savings. Being a responsible payer also lowers auto insurance costs with multiple discounts for avoiding late payments, paying in full and setting up automatic payments.
Learn more: Allstate Insurance Review
Average car insurance cost in Tennessee
The average annual premium for minimum coverage in Tennessee is $371. The average annual premium for full coverage is $1,338. This is well below the national average of $1,674 for full coverage and $565 for minimum coverage
|Average annual premium for minimum coverage in Tennessee||Average annual premium for full coverage in Tennessee|
Auto insurance premiums differ depending on what state you live in and even where you live in that state. This is because each geographic location has its own specific rating factors. These factors 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.
State minimum insurance requirements in Tennessee
Tennessee law requires drivers to obtain at least a minimum amount of liability car insurance.
The minimum required liability limits in Tennessee are 25/50/15 which means you must carry at least the following amounts of these coverages:
- $25,000 for each injury or death per accident
- $50,000 for total injuries or deaths per accident
- $15,000 for property damage per accident
This is the minimum coverage required, but it will not provide money to repair or replace your own vehicle, your own injuries or the funds to rent a car while your vehicle is being repaired. Additionally, state minimum required liability levels may not be enough to pay for the damages you could cause in an at-fault accident, leaving you with out-of-pocket expenses. Most insurance professionals agree that purchasing higher liability limits is advisable, if you can afford the coverage. You will likely be required to carry full coverage insurance if you have a loan or lease on your vehicle.
How to get the best car insurance
Insurance can provide the funds to repair or replace your vehicle, plus pay for medical expenses and wages lost in the event of personal bodily injury. Getting the best car insurance may mean getting additional coverage for some of these possibilities.
- Evaluate your needs: Your circumstances determine your car insurance needs, like having a teen driver to insure, a history of accidents or tickets, a desire for mobile tools or the need to keep your premium as cheap as possible. Because these rating factors often change with time — teen drivers age and may move out, your driving record can improve, or maybe you want to find a local agent instead of handling your insurance online — you may want to consider reevaluating your auto insurance periodically to see if it still fits your lifestyle.
- Consider state factors: Tennessee is vulnerable to natural disasters, such as tornadoes and weather events, like hailstorms, which makes purchasing comprehensive insurance something to consider. Tennessee also had the third-highest percentage of uninsured motorists in the U.S. in 2019, with nearly 24% of all drivers estimated to be uninsured. To protect yourself from the financial consequences of being in an accident with an uninsured motorist, you may want to consider purchasing uninsured and underinsured motorist coverage.
Car insurance discounts in Tennessee
Although Tennessee drivers already pay less than the national average for car insurance, there could be ways to lower your premium even more by taking advantage of discounts like:
- Multi-policy: Insuring more than just your car with the same carrier can result in significant savings. Bundling your home and auto insurance together is a great way to save with most Tennessee auto insurance carriers. Some also include additional savings for boat, life insurance and other policy types.
- Defensive driving: Senior drivers 55 and older can complete a state-approved defensive driving safety course for additional potential savings. This course must be passed and the certificate submitted to the insurance company to receive the discount. Not only can senior drivers pay more, but they can also practice safer driving habits to stay claims-free.
- Vehicle safety: Buying a new car with safety features can also reduce the cost of auto insurance. The more safety features your car has, the less likely you are to get into an accident. The claims savings for the insurance company is then passed onto the policyholder in the form of a discount.
- Good student: Teen drivers are expensive to insure, even in Tennessee. One way to lower how much you pay for car insurance for your young driver is to take advantage of discounts. With good grades, your teen driver should be eligible for a good student discount with many insurance companies.
Since every company has its own range of discounts, the best way to see if you are taking advantage of savings opportunities is to talk to your agent or a customer service representative.
Frequently asked questions
What is the best car insurance company?
The best insurance companies are those that are rated highly for overall customer satisfaction, policy offerings, pricing, billing process and policy information, customer interaction and claims handling. Ultimately, your insurance needs are different than the insurance needs of other drivers. Understanding what you want from a company and comparing several quotes is one of the best ways to find the right coverage for you.
How much is car insurance per month in TN?
The average cost of car insurance in Tennessee is $30.92 per month for state minimum coverage. For full coverage, the average auto insurance cost is $111.50 per month. Your cost for car insurance per month in TN may differ, based on several factors, including your driving record, make and model of the car you drive, coverages and city where you live.
Is Tennessee a no-fault insurance state?
Tennessee is a fault insurance state, which means the at-fault party in an accident, or their insurance company, pays for the other person’s injuries and property damage. This is why it is important to have adequate liability limits in Tennessee because if you are at fault in an accident, you will have to pay the other driver’s damages.
Bankrate utilizes Quadrant Information Services to analyze 2021 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 clean 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 base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Bankrate Scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings.