The best cheap car insurance in Tennessee
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Car insurance in Tennessee is relatively affordable, with the average driver paying about $820 a year for coverage, according to the Insurance Information Institute (III).
Car insurance companies consider your location, age, gender, and driving record to calculate rates for premiums. Other factors like credit score, marital status, vehicle type, previous coverage, and miles driven can all play a role in the amount you’ll pay for coverage.
It’s essential to shop around and ensure that you get the best coverage for your money.
Minimum car liability insurance requirements in Tennessee
In the US, drivers must have liability coverage. If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and passengers. If you finance or lease your car, your lender probably requires comprehensive and collision coverage.
The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage. This policy protects you when an at-fault driver hits you, and they have no coverage or not enough coverage.
Tennessee requires bodily and property coverage, according to the III. Tennessee’s minimum liability requirements are 25/50/15 — up to $25,000 of injury protection for each person involved in an accident, up to $50,000 worth of injuries per incident, and up to $15,000 of property damages per incident.
| Types of liability coverage | Definition |
| Bodily injury (BI) | Injury you cause to others, includes medical expenses, lost wages, and funeral expenses |
| Property damage (PD) | Damage you cause to others’ vehicle or property |
| Uninsured motorist (UM) | Protects you when an at-fault driver hits you with no insurance |
| Underinsured motorist (UIM) | Protects you when an at-fault driver hits you with not enough coverage |
Best cheap car insurance in Tennessee based on credit score
Consumer Reports compiled a list of all car insurance pricing formulas from all companies in every state. It used an average single adult driver to find the best pricing in each state and found that three companies came out on top for three different credit levels. Here are the three best companies and their average price for coverage:
| Excellent credit (FICO 800+) | Good credit (FICO 670-739) | Poor credit (300-579) |
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Best car insurance for Tennessee drivers with a clean record
For a driver in Tennessee age 25 or older with no accidents and one vehicle, the following companies provide the best average rates:
| Company | Average monthly insurance premium |
| Safeauto | $108 |
| Root | $110 |
| State Farm | $111 |
| GEICO | $129 |
| Progressive | $134 |
| Allstate | $139 |
| Liberty Mutual | $144 |
| Esurance | $150 |
| Travelers | $172 |
| USAA* | $173 |
*USAA is only for active military, veterans, and their families.
Above data obtained from Savvy, based on 1,469 policyholders in the state of Tennessee
Best car insurance for Tennessee drivers with one or more accidents
For a driver in Tennessee age 25 or older, with one or more accidents and one vehicle, the following companies provide the best average rates:
| Company | Average monthly insurance premium |
| GEICO | $145 |
| Progressive | $161 |
| Allstate | $172 |
| Esurance | $173 |
Above data obtained from Savvy, based on 1,469 policyholders in the state of Tennessee
Average premiums for seniors and teen drivers in Tennessee
The table below shows the average senior and teen drivers can expect to pay in Tennessee. Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. Most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.
Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.
| Average premium for seniors | Average premium for teens |
|
$1,212 per year |
$2,500 per year |
Data provided by Goosehead Insurance
Tennessee car insurance rates by city
Below is the estimated average annual premium of auto insurance policies per household in Tennessee’s most populous cities:
| City | Average annual insurance premium |
| Nashville-Davidson | $1,407 |
| Memphis | $1,261 |
| Knoxville | $1,258 |
| Chattanooga | $1,287 |
| Clarksville | $1,365 |
| Murfreesboro | $1,421 |
| Franklin | $1,605 |
| Johnson City | $1,303 |
| Jackson | $1,271 |
| Hendersonville | $1,456 |
| Bartlett | $1,523 |
| Smyrna | $1,429 |
| Kingsport | $1,262 |
| Collierville | $1,679 |
| Cleveland | $1,280 |
| Brentwood | $1,780 |
| Spring Hill | $1,591 |
| Columbia | $1,316 |
| La Vergne | $1,449 |
| Gallatin | $1,388 |
| Germantown | $1,610 |
| Lebanon | $1,400 |
| Cookeville | $1,227 |
| Mount Juliet | $1,586 |
| Oak Ridge | $1,370 |
| Morristown | $1,235 |
| Maryville | $1,352 |
| Bristol | $1,272 |
| Shelbyville | $1,294 |
| Farragut | $1,637 |
| East Ridge | $1,256 |
| Tullahoma | $1,303 |
Data from S&P Global Market Intelligence
Best car insurance in Tennessee based on customer satisfaction
Customer satisfaction with car insurance providers may factor into your decision. Five factors define customer satisfaction: billing process and policy information; claims; interaction; policy offerings; and price. According to a 2021 survey by J.D. Power, a consumer research company that surveys customers, these are the top car insurance companies in the Southeast region (which includes Tennessee):
Most popular car insurance companies in Tennessee based on market share
The following are the most popular car insurance companies in Tennessee, based on the percentage of insured Tennessee drivers who use them:
| Company | Market share (%) |
| State Farm | 20.34 |
| Tennessee Farmers Insurance | 16.34 |
| GEICO | 10.04 |
| Progressive | 9.92 |
| Allstate | 6.32 |
| USAA* | 5.61 |
| Liberty Mutual | 4.74 |
| Erie Insurance | 3.03 |
| Nationwide | 2.82 |
| National General Holdings | 2.15 |
| Travelers | 1.96 |
| Farmers Insurance | 1.93 |
| Shelter Insurance | 1.71 |
| Auto-Owners Insurance | 1.40 |
| Alfa Mutual Group | 1.38 |
| American Family Insurance | 1.25 |
| MetLife | 1.03 |
| Grange Insurance | 0.59 |
| First Acceptance | 0.49 |
| Westfield Insurance | 0.48 |
*USAA is only for active military, veterans, and their families.
Data from S&P Global Market Intelligence
Who gets the best cheap car insurance in Tennessee?
Drivers with the best credit scores generally get some of the best rates for car insurance. It might be worth doing a little bit of work to raise your credit score before shopping around — it could make a big difference in the amount you’ll pay for coverage.
Another way to save is to shop around. Every insurance company prices policies differently, and no two policies are the same. Prices vary greatly depending on whether you get liability, comprehensive, or collision coverage.
Consider the amount of coverage and the types of coverage listed on your quote. Remember, you’re looking for the most coverage for your money. Don’t forget to look at the deductible or the amount you’ll pay out of pocket if you get into an accident.
This content was originally published here.
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