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A.M. Steinbach is a Brooklyn-based writer, editor, and content marketing strategist who has been writing for Compare.com since 2023. He's an expert in breaking down a diverse range of insurance topics into crisp, readable content.
A.M. has worked with major brands in insurance, tech, finance, and healthcare. He also contributes to The Average Joe, a personal finance newsletter that reaches more than 250,000 daily readers, and other notable publications.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Tennessee has an average car insurance rate of $102 per month — $27 below the national average. Drivers who choose one of Tennessee’s most affordable companies — like State Farm, Travelers, or Erie — could pay rates that are closer to half the national average.
State Farm stands out as the cheapest overall car insurance company in the state, at an average rate of $63 per month, but other affordable options are only a few dollars more. With this many cheap insurers, there’s no reason you can’t find affordable rates.
Let’s break down the best auto insurance in Tennessee across different driver profiles, then outline some strategies Tennesseans can use to get lower rates.
There’s no clear cheapest option in Tennessee, with the five cheapest auto insurance companies offering average monthly rates within $5 of each other.
State Farm, Nationwide, and GEICO all have average full-coverage premiums that are below the statewide average rate.
Tennessee drivers must show proof of financial responsibility or face fines of up to $300.
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The average Tennessee driver is lucky enough to pay $102 per month for car insurance, which is far below the national average. Knowing your needs and budget can help you find car insurance that’s the right fit, but the most important thing is to find the right company.
With that in mind, let’s explore the five companies that offer the cheapest car insurance in Tennessee.
Company | Monthly Premium |
|---|---|
| State Farm | $63 |
| Travelers | $66 |
| Erie | $67 |
| GEICO | $67 |
| Tennessee Farmers | $67 |
All five companies are well below the state average, and, with all five companies within $5 of each other, there isn’t one clear cheapest option. State Farm takes the top spot, with average rates of just $63, but such a small difference means any of the companies listed could be the cheapest option for you.
Receiving car insurance quotes from multiple companies is the best way to figure out the most affordable company for your unique insurance profile. After all, companies weigh rating factors differently.
In the sections below, let’s break down the best car insurance in Tennessee for different types of drivers.
No single company is the ideal option for every driver. Before buying insurance, be aware of your needs, budget, and insurance profile. Then ask yourself, “Which company is best suited for a driver like me?”
The following sections highlight the best insurers for different driver profiles — chosen based on a combination of average rates, available discounts, customer reviews, and more.
Average monthly quote: $63
Compare.com rating: 4.3 out of 5
Trustpilot rating: 1.7 out of 5
BBB rating: B-
Lowest average rates in Tennessee
Above-average J.D. Power customer satisfaction ratings
Plenty of available discounts
Rates for teens exceed state average
More National Association of Insurance Commissioners (NAIC) complaints than average
Mixed customer reviews
State Farm narrowly beats out Travelers as the cheapest overall insurance company in Tennessee. Rates are particularly favorable for drivers seeking full coverage, with an average rate of just $88 per month.
Drivers with spotty records should also consider coverage from State Farm, as it offers the lowest average rate for Tennessee drivers with a DUI. Plus, you can save even more if you take advantage of State Farm’s good driver discount, defensive driving course discount, and bundling discounts.
Average monthly quote: $163
Compare.com rating: 4.7 out of 5
Trustpilot rating: 1.3 out of 5
BBB rating: A+
Lowest full-coverage rates for teens
Lots of available discounts
Popular telematics program
Below-average J.D. Power customer satisfaction ratings
Gap insurance not available
Mixed customer reviews
Teens often deal with the highest car insurance rates of any group. Luckily, GEICO offers teens liability-only coverage below the state average, at $99 per month — and its full-coverage rates are the lowest in the state, at $226 per month, too.
Young policyholders can qualify for GEICO’s good student discount and save up to 15% by earning a “B” average or better. Drivers younger than 25 can also enroll in GEICO’s Steer Clear telematics program, which offers savings for driving safely.
Average monthly quote: $69
Compare.com rating: N/A
Trustpilot rating: N/A
BBB rating: A+
Lowest average rates for drivers with an accident
Highest J.D. Power customer satisfaction rating in Southeast region
Fewer NAIC complaints than average
Fewer available discounts than competitors
No telematics program available
Gap insurance not available
Your rate will usually increase after an at-fault accident. In fact, we’ve found that the average driver sees their rates jump by 44% after just one accident.
Fortunately, Tennessee Farmers policyholders with an accident pay an average of $38 per month for liability-only insurance and $99 per month for full coverage — both well below the statewide average.
Policyholders are also satisfied with their Tennessee Farmers insurance, earning the company the highest J.D. Power customer satisfaction score in the region (866/1,000). Plus, the company receives well below the average number of NAIC complaints.
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Tennessee drivers pay an average of $102 per month for car insurance, making it the 15th-cheapest state for car insurance in the country. Let’s take a look at how it stacks up with the rest of the region, as well as the national average.
State | Average Rates | State Rank |
|---|---|---|
| Tennessee | $102 | 15th-cheapest |
| Alabama | $113 | 25th |
| Arkansas | $124 | 29th |
| Georgia | $165 | 43rd |
| Mississippi | $93 | 12th |
| Missouri | $161 | 41st |
| North Carolina | $81 | 6th |
| Virginia | $113 | 24th |
| National average | $129 | – |
Kevin Walters, director of communications for the Tennessee Department of Commerce & Insurance, says that statewide premiums are reasonable but claims are a different story.
“Insurance claims inflation has risen faster than the underlying consumer price index, far outpacing increases in premiums,” says Walters. “Additionally, unsafe driving behavior, medical cost increases, abuse of the legal system with injury claim settlements, more severe injuries, and the ongoing increase in auto repair costs all play significant factors in the rising costs.”
Your rates can also vary based on local property values, crime rates in your ZIP code, and your area’s weather patterns.
Now, let’s take a look at how much Tennessee drivers pay for different types of policies.
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Tennessee drivers already pay fairly reasonable rates, but here’s how to save even more:
Raise your deductible: Higher deductibles typically come with lower monthly premiums. Just remember you’ll be on the hook for more out-of-pocket costs if you file a claim.
Choose the right car: Vehicles with advanced safety features and strong safety records are less of a risk and cheaper to insure.
Find discounts: Most car insurance companies offer generous discounts for things like safe driving, insuring multiple cars, installing safety features, bundling policies, and more.
Go for lower coverage limits: Drivers with used or low-value cars may not need robust coverage. Repairing these cars could be more expensive than the price of replacing the vehicle, which makes collision coverage unnecessary.
Shop around: Comparing quotes from multiple insurance options every few months is one of the best ways to lower your rates.
Tennessee state law is somewhat unique in that it doesn’t require proof of insurance. But the state’s Financial Responsibility Law means you must prove you can cover the resulting bills after an accident. The best way to do this is to buy car insurance.
These are the minimum amounts of coverage you can purchase in Tennessee:
$25,000 in bodily injury liability insurance per person
$50,000 in bodily injury liability insurance per accident
$25,000 in property damage liability insurance per accident
“We also encourage Tennesseans to purchase uninsured motorist coverage as part of their auto insurance coverage,” Kevin Walters says. “This financially protects drivers if they are in a collision with an uninsured driver.”
For more on Tennessee’s insurance laws, visit the Tennessee Department of Revenue site.
Drivers who are unable to demonstrate proof of financial responsibility in Tennessee can face fines of up to $300 and can have their license suspended.
As in most states, the penalties will escalate if you receive multiple offenses.
Tennessee requires drivers to file an SR-22 form with the state Department of Commerce & Insurance after their license is suspended. In most cases, you’ll need an SR-22 form on file with the state for five years, though the form may be canceled after three years if you don’t receive any more suspensions.
Tennessee advises drivers to contact their insurance agent for details about filing SR-22 forms and the costs associated with it.
Every driver has to choose a coverage level — and the more coverage you buy, the higher your rates. Liability coverage at the state-minimum limits is the cheapest policy available. If you cause an accident, this policy covers the other driver’s medical bills and repairs but not your own.
The table below shows the five companies offering the cheapest liability-only insurance policies in Tennessee, according to Compare.com data.
Company | Monthly Premium |
|---|---|
| Auto-Owners | $32 |
| Travelers | $36 |
| Erie | $37 |
| State Farm | $37 |
| Tennessee Farmers | $38 |
Tennessee Farmers may be the best value here, with the highest customer satisfaction rating of any company on this list and an average monthly rate that’s only $6 higher than the cheapest option.
Auto-Owners is a smart option if you’re specifically looking for liability-only coverage, because — as we’ll see — it doesn’t crack the full-coverage list. But its average $32 monthly liability rate is the best on this list.
So, which companies make the full-coverage list? Let’s find out.
How we chose the cheapest companies in Tennessee
Our team analyzed thousands of rates from dozens of the top insurance companies in Tennessee. Using that data, we listed the five cheapest options for Tennessee drivers based on several key factors, such as age, coverage level, driving history, and more. All of the rates listed are based on someone who drives a 2016 Honda Accord and has the minimum limits for coverage in Tennessee. The listed “full-coverage” rates include $500 deductibles for collision and comprehensive coverages in addition to state-minimum liability coverage.
Full coverage includes collision insurance and comprehensive insurance, in addition to basic liability coverage. This means your car’s repairs are covered after an accident or a non-collision event like severe weather.
As you can imagine, full coverage is more expensive than liability-only coverage. Still, a bit of research can help you find competitive rates on full coverage.
With that in mind, here are the five companies offering the cheapest full-coverage policies in Tennessee.
Company | Monthly Premium |
|---|---|
| State Farm | $88 |
| Nationwide | $92 |
| Penn National | $95 |
| Erie | $96 |
| GEICO | $96 |
All five companies offer rates below the statewide average and significantly below the national average. And, once again, there’s little difference in price between these five options.
State Farm takes the cake with $88 per month average rates, but with similar prices across the board, you might consider the company that offers relevant optional coverages, such as rental car reimbursement or rideshare coverage.
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Car insurance companies consider your age when determining rates. Young drivers pay more, given their higher rate of accidents, but rates tend to decrease as you age.
So, let’s see what different age groups pay for car insurance in Tennessee. First up: teen drivers.
Teens pay the highest car insurance rates of any age bracket. Why? Recent studies show they’re three times as likely to get into a fatal crash as drivers age 20 and older.
These stats cause car insurance companies to see teen drivers as “high risk” — and insurers offset these risks by charging teen drivers higher monthly premiums. Fortunately, rates usually come down once you turn 25.
We’ve broken down the five cheapest companies for Tennessee teens in the table below, based on data from 18-year-old drivers.
Company | Liability Only | Full Coverage |
|---|---|---|
| Erie | $94 | $242 |
| Auto-Owners | $99 | $266 |
| GEICO | $99 | $226 |
| State Farm | $114 | $257 |
| Allstate | $135 | $477 |
Erie has the cheapest rates for young drivers who choose liability-only insurance, but its monthly rates increase by $148 for full coverage.
Meanwhile, GEICO’s full-coverage rate is the lowest, though still nearly $100 more per month than the national average. And Allstate is far from the cheapest full-coverage option — more than $200 more per month than the nearest alternative.
Now, let’s turn our focus toward Tennessee’s older drivers.
Senior drivers pay lower rates on average due to their lower mileage and tendency to avoid risky driving situations. But rates can increase around age 70 as vision and mental faculties deteriorate and the likelihood of severe injury in an accident increases.
The table below highlights the five cheapest insurance companies in Tennessee based on data from 65-year-olds.
Company | Liability Only | Full Coverage |
|---|---|---|
| Auto-Owners | $32 | $97 |
| State Farm | $35 | $80 |
| Erie | $36 | $92 |
| Tennessee Farmers | $36 | $84 |
| Travelers | $38 | $96 |
The range of average rates is once again slim for both liability-only and full-coverage policies.
The price that might stand out the most is $80 per month for full coverage at State Farm, which is more than $10 cheaper than three other companies on the list. But Tennessee Farmers’ full-coverage rate is just $4 more per month and backed by the region’s highest customer satisfaction.
Your driving record might be the most important rating factor of all. Having a speeding ticket, DUI, or at-fault accident on your record makes you riskier to insure in the eyes of car insurance companies. You’ll deal with higher rates for as long as that violation stays on your record.
But drivers with spotty records aren’t guaranteed high rates. The sections below break down the cheapest car insurance options by driving record.
It’s no secret that drivers without accidents or violations on their record pay the lowest rates.
But how low? Well, the table below lists the five cheapest car insurance companies for Tennessee drivers with no accidents or tickets.
Company | Liability Only | Full Coverage |
|---|---|---|
| Auto-Owners | $32 | $103 |
| Travelers | $36 | $97 |
| Erie | $37 | $96 |
| State Farm | $37 | $88 |
| Tennessee Farmers | $38 | $96 |
Auto-Owners is the cheapest liability-only insurance option, at just $32 per month, but it’s also the most expensive full-coverage option of the group. State Farm remains the best option for full coverage and has monthly liability-only rates just a few dollars more than Auto-Owners. This may be thanks to State Farm’s Drive Safe & Save telematics program, which offers heavy discounts to safe drivers.
It’s not easy keeping a perfect record on the roads — so what kind of rates should you expect if you recently received a ticket?
Accidents often involve speeding drivers. That’s why car insurance companies see you as more likely to cause an accident if you’ve received a speeding ticket. They’ll raise your rates after a ticket by an average of 37%, according to Compare.com data.
Here are the five companies offering the cheapest car insurance policies to Tennessee drivers with one speeding ticket.
Company | Liability Only | Full Coverage |
|---|---|---|
| GEICO | $38 | $108 |
| Tennessee Farmers | $38 | $99 |
| Erie | $41 | $103 |
| State Farm | $41 | $96 |
| Auto-Owners | $45 | $135 |
Surprisingly, these rates aren’t much higher than the rates for drivers without a speeding infraction. State Farm remains the cheapest insurer for full coverage, while Auto-Owners is significantly more expensive for full coverage compared to the other four companies.
The minimal difference in rates among the five companies makes it all the more important to compare quotes.
Now, let’s see if rates go up for drivers with an at-fault accident on their record.
Getting an at-fault accident on your record will raise your rates by 44% on average, according to Compare.com data — but it’s still possible to find affordable rates.
Checking out the companies below is a good start. Here are the five cheapest companies in Tennessee for drivers with one accident on their record.
Company | Liability Only | Full Coverage |
|---|---|---|
| Tennessee Farmers | $38 | $99 |
| Travelers | $45 | $130 |
| State Farm | $45 | $105 |
| Auto-Owners | $48 | $143 |
| Erie | $53 | $127 |
Liability-only rates remain very affordable in Tennessee, but full-coverage rates are higher: Three of the five companies on this list offer rates above the national average. Tennessee Farmers is the cheapest in both categories, offering rates that are identical to the rates it offers drivers with speeding tickets.
Now, let’s turn our focus to the traffic violation that’s often considered the most severe: driving under the influence (DUI).
Getting a DUI is a serious infraction that results in a hefty fine and license suspension. Having a DUI on your record puts you in the high-risk category, which spikes your auto insurance rates by an average of 94%, according to Compare.com data.
You still have options, though. The five companies below offer the cheapest average rates to Tennessee drivers with one DUI on their record.
Company | Liability Only | Full Coverage |
|---|---|---|
| State Farm | $41 | $96 |
| Progressive | $51 | $149 |
| Tennessee Farmers | $60 | $157 |
| Erie | $66 | $151 |
| GEICO | $66 | $175 |
Again, the biggest increase in rates is seen among full-coverage policies, with four of the five average rates comfortably exceeding the national average.
State Farm is an anomaly, as its $96 monthly rate for full coverage is lower than the Tennessee state average — making it the most budget-friendly option by a wide margin.
Here are answers to some commonly asked questions about car insurance in Tennessee.
State Farm is the cheapest auto insurance company in Tennessee, with average insurance rates of just $63 per month.
Drivers in Tennessee pay an average of $102 per month for car insurance.
Tennessee is the 15th-cheapest state in the country for auto insurance. Its average monthly rates are $27 less than the national average.
Drivers must purchase $25,000 in bodily liability insurance per person, $50,000 in bodily liability insurance per accident, and $25,000 in property damage liability insurance per accident.
Sources
J.D. Power, “2023 U.S. Auto Insurance Study,” Accessed November 15, 2023.
Tennessee Department of Revenue, “Why You Should Have Auto Insurance,” Accessed November 15, 2023.
Tennessee Department of Revenue, “Financial Responsibility Affidavits,” Accessed November 15, 2023.
Tennessee Department of Revenue, “Penalties for Violations and Removals of STOP,” Accessed November 15, 2023.
NOLO, “Tennessee’s DUI Laws and Conviction Penalties,” Accessed November 16, 2023.
Insurance Information Institute, “Do auto insurance premiums go up after a claim?,” Accessed November 15, 2023.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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A.M. Steinbach is a Brooklyn-based writer, editor, and content marketing strategist who has been writing for Compare.com since 2023. He's an expert in breaking down a diverse range of insurance topics into crisp, readable content.
A.M. has worked with major brands in insurance, tech, finance, and healthcare. He also contributes to The Average Joe, a personal finance newsletter that reaches more than 250,000 daily readers, and other notable publications.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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