- Best car insurance companies in Tennessee: Erie Insurance
- Cheapest car insurance companies in Tennessee: Tennessee Farmers
- Average cost of car insurance in Tennessee
- Tennessee car insurance requirements
- Cheapest car insurance companies for minimum liability coverage in Tennessee
- Cheapest car insurance cost in Tennessee by age
- Cheapest car insurance companies in Tennessee by driver profile
- Compare auto insurance rates by city in Tennessee
- Car insurance premium trends in Tennessee
- Methodology
- Compare Tennessee car insurance rates with other states
Best car insurance companies in Tennessee: Erie Insurance
Erie Insurance is the best car insurance company in Tennessee, based on an analysis by Insurance.com, with an overall rating of 3.68. Other than Erie Insurance,Travelers, State Farm, and Geico are among the top car insurance companies in Tennessee.
Below is a list of the top Tennessee insurance companies based on price, NAIC complaint ratio, and AM Best financial ratings. The total Insurance.com score is calculated out of five using these factors.
| Company | AM Best | JD Power | NAIC | Insurance.com score | Average annual premium |
|---|---|---|---|---|---|
| Erie Insurance | A+ | 829 | 0.61 | 3.68 | $1,598 |
| Travelers | A++ | 851 | 0.49 | 3.52 | $1,395 |
| State Farm | A++ | 807 | 0.7 | 3.31 | $1,677 |
| Geico | A++ | 847 | 0.91 | 3.17 | $1,565 |
| Progressive | A+ | 828 | 0.65 | 3.14 | $1,550 |
| Nationwide | A+ | 818 | 0.64 | 3.1 | $1,632 |
| Farmers | A | 857 | 0.8 | 2.88 | $1,770 |
| Allstate | A+ | 816 | 0.65 | 2.39 | $3,032 |
Cheapest car insurance companies in Tennessee: Tennessee Farmers
Based on a rate analysis by Insurance.com, USAA offers the cheapest full coverage car insurance in Tennessee, with average rates of $1,194 annually or $99 a month, but is only open to military families. Tennessee Farmers is the most affordable company overall for full coverage, state minimum, or liability coverage, and it is open to all drivers. Their average annual rate for full coverage in Tennessee is $1,355.
Comparison shopping is the key to finding the best deal on auto insurance. Get quotes from several different insurers and compare their rates. You may be surprised at how much difference there can be in rates from one company to another.
We have gathered price quotes from all the major insurance providers in Tennessee and compiled a list of the cheapest car insurance companies.
| Company | State minimum liability | 50/100/50 liability | 100/300/100 liability with $500 deductible |
|---|---|---|---|
| USAA | $266 | $375 | $1,194 |
| Tennessee Farmers | $287 | $352 | $1,355 |
| Travelers | $390 | $486 | $1,395 |
| Progressive | $605 | $663 | $1,550 |
| Geico | $316 | $409 | $1,565 |
| Erie Insurance | $307 | $395 | $1,598 |
| Nationwide | $603 | $725 | $1,632 |
| State Farm | $342 | $425 | $1,677 |
| Farmers | $536 | $753 | $1,770 |
| Allstate | $772 | $885 | $3,032 |
*USAA offers car insurance only to military members, veterans and their families.
Average cost of car insurance in Tennessee
The average car insurance rate in Tennessee is $1,677 a year for a full coverage policy with liability limits of 100/300/100 and $500 deductibles, according to a rate analysis by Insurance.com. For state minimum coverage, the average annual cost in Tennessee is $442.
Auto insurance calculator
Most & least expensive ZIP codes for auto insurance in Tennessee
Most Expensive
| ZIP code | City | Highest rate |
|---|---|---|
| 38118 | Memphis | $209 |
| 38116 | Memphis | $206 |
| 38109 | Memphis | $205 |
| 38127 | Memphis | $205 |
Least Expensive
| ZIP code | City | Lowest rate |
|---|---|---|
| 37620 | Bristol | $124 |
| 37604 | Johnson City | $124 |
| 37615 | Johnson City | $124 |
| 37601 | Johnson City | $124 |
The Tennessee Department of Commerce and Insurance says...
Most standard personal auto policies contain exclusions for livery - which essentially means driving for hire. You should contact your agent, broker or insurance company about potential gaps in your personal automobile coverage if you are driving for a [rideshare company].
- The Tennessee Department of Commerce and InsuranceTennessee car insurance requirements
Tennessee’s minimum car insurance coverage limits are 25/50/25. Tennessee's state minimum liability insurance costs an average of $436 annually or $36 monthly.
Minimum liability insurance requirements for Tennessee:
- Bodily injury liability (BI): $25,000 per person and $50,000 for accident
- Property damage liability (PD): $25,000 per accident
Cheapest car insurance companies for minimum liability coverage in Tennessee
According to Insurance.com, Tennessee Farmers provides the cheapest state minimum liability insurance, averaging $289 annually or $24 monthly. USAA offers cheaper rates but has eligibility criteria.
In the table below, see the most affordable car insurance companies with their state minimum coverage rates in Tennessee.
| Company | Liability insurance premium | Monthly liability insurance premium |
|---|---|---|
| USAA* | $262 | $22 |
| Tennessee Farmers | $289 | $24 |
| Erie Insurance | $298 | $25 |
| Geico | $312 | $26 |
| State Farm | $342 | $28 |
| Travelers | $397 | $33 |
| Farmers | $502 | $42 |
| Nationwide | $600 | $50 |
| Progressive | $601 | $50 |
| Allstate | $758 | $63 |
*USAA offers coverage only to military veterans and their family
Cheapest car insurance cost in Tennessee by age
In Tennessee, car insurance rates are higher for teenagers as they are more prone to accidents due to their lack of experience on the road.
Tennessee Farmers offers the cheapest car insurance for teen drivers in Tennessee at $3,963 per year for a full coverage policy.
Car insurance rates will decrease as teens age and keep a good driving record. Car insurance rates for adults 25+ and seniors 60+ are lower than those for teens and young adults.
In Tennessee, Tennessee Farmers offers the cheapest full coverage car insurance for adult drivers and senior drivers at $1,366 per year and $1,227 per year, respectively. USAA offers cheaper rates, if you’re eligible.
Compare car insurance rates by age
Select your age group and age below to see the insurance company and its
average annual and average monthly premium rates.
| Tennessee Farmers | $4,415 | $368 |
| Erie Insurance | $4,926 | $411 |
| State Farm | $5,878 | $490 |
| Travelers | $6,112 | $509 |
| Geico | $6,608 | $551 |
| USAA | $6,699 | $558 |
| Nationwide | $7,487 | $624 |
| Progressive | $10,460 | $872 |
| Farmers | $11,888 | $991 |
| Allstate | $16,059 | $1,338 |
*USAA offers car insurance only to military members, veterans and their families.
Cheapest car insurance companies in Tennessee by driver profile
Drivers with accidents or tickets on their record are considered a higher risk and will pay more for car insurance. The severity and frequency of the incidents impact how much insurance rates go up. In Tennessee, State Farm offers the cheapest car insurance rates for drivers with an accident, at $1,969 per year. USAA offers cheaper rates for drivers with an accident in Tennessee but has eligibility criteria.
Erie Insurance is also the cheapest option for drivers with speeding tickets at an average rate of $1,729 per year. USAA offers the cheapest car insurance for drivers with speeding tickets. However, it covers specifically the military community.
Below are average Tennessee rates by company for drivers with accidents and tickets on their driving record.
| Company | Clean record | Accident | Speeding ticket |
|---|---|---|---|
| USAA | $1,194 | $1,808 | $1,425 |
| Erie Insurance | $1,598 | $2,125 | $1,729 |
| State Farm | $1,677 | $1,969 | $1,823 |
| Progressive | $1,550 | $2,458 | $1,889 |
| Travelers | $1,395 | $2,071 | $2,130 |
| Nationwide | $1,632 | $2,674 | $2,439 |
| Geico | $1,565 | $2,994 | $2,869 |
| Farmers | $1,770 | $2,923 | $2,892 |
| Allstate | $3,032 | $4,805 | $3,405 |
*USAA offers car insurance only to military members, veterans and their families.
Compare auto insurance rates by city in Tennessee
Auto insurance rates in your city can differ significantly from the state average due to factors such as population density, increased instances of auto theft or accidents, and a few other factors. It's best to compare quotes from various insurance providers to find the most competitive rates for your specific city in Tennessee.
| City | Annual insurance premium |
|---|---|
Ashland City | $1,694 |
Dayton | $1,591 |
Knoxville | $1,580 |
Memphis | $2,161 |
Nashville | $1,708 |
Car insurance premium trends in Tennessee
Car insurance average rates increase most years and various factors contribute to these changes, including shifts in economic conditions, changes in state laws, and the number and severity of insurance claims.
That's why it's important to keep track of car insurance premiums to make better decisions. The graph below shows how insurance rates in Tennessee have increased or decreased from 2020 to 2023.
Whether you're planning to renew your policy with your current insurer or looking for a new one, this analysis is invaluable for making informed insurance choices.
Methodology
Insurance.com commissioned Quadrant Information Services in 2023 to field rates from major insurers in every state across most ZIP codes. Driver profile: male, age 40, driving a 2023 Honda Accord LX with full coverage of 100/300/100 with comprehensive and collision; $500 deductible.
The car insurance rates for drivers with accidents and tickets are averaged based on rates for the following accidents and tickets:
Accidents:
- 1 at-fault property damage accident over $2k
- 1 at-fault property damage accident under $2k
- At-fault bodily injury accident
- Single vehicle accident
Tickets:
- Distracted driving ticket
- Speeding ticket 1- 10 MPH over limit
- Speeding ticket 11- 29 MPH over limit
- Talking on cellphone ticket
- Texting ticket
Insurance.com analyzed rates from more than 34,000 ZIP codes, 56 million quotes, and 136 companies. Rates sourced from Quadrant Data Services are for comparison purposes only; your rates may differ.
Compare Tennessee car insurance rates with other states
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