In Tennessee, the average annual cost for full coverage car insurance is $1,129; minimum coverage costs $455. These rates are $167 and $140 less, respectively, than the national average.
Average Cost of Car Insurance in Tennessee
Updated: December 20, 2024
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Key Takeaways
Drivers in Tennessee pay 12.9% less for full coverage car insurance compared to the national average.
Tennessee drivers pay 23.6% less than the national average for minimum coverage.
The average cost of car insurance in the Volunteer State is $455 for minimum coverage and $1,129 for full coverage, making it one of the more affordable states for car insurance.
How Much Is Car Insurance in Tennessee?
| Full Coverage | $1,129 | $1,296 | -13% |
| State Minimum Liability Only | $455 | $595 | -24% |
Read More: Average Cost of Car Insurance
Tennessee Car Insurance Rates by Coverage Level
Your choice of coverage in the Volunteer State shapes your car insurance rate. Opting for higher liability limits and full coverage ups your rate, while a higher deductible may reduce your premium. Below, you can find the average state minimum and full coverage rates in Tennessee for various deductibles and liability limits.
| 300/500/300 | Full Coverage | $1,365 | $500 |
| 100/300/100 | Full Coverage | $1,274 | $0 |
| 300/500/300 | Full Coverage | $1,220 | $1,000 |
| State Minimum | Full Coverage | $1,182 | $500 |
| 300/500/300 | Full Coverage | $1,135 | $1,500 |
| 100/300/100 | Full Coverage | $1,129 | $1,000 |
| 100/300/100 | Full Coverage | $1,044 | $1,500 |
| State Minimum | Full Coverage | $1,036 | $1,000 |
| State Minimum | Full Coverage | $951 | $1,500 |
| 300/500/300 | Liability Only | $638 | $0 |
| 100/300/100 | Liability Only | $547 | $0 |
| State Minimum | Liability Only | $455 | $0 |
Read More: Liability vs. Full Coverage Car Insurance
Average Tennessee Car Insurance Cost by City
Car insurance rates in Tennessee cities can differ due to crime rates, traffic conditions, weather and repair costs. For example, Chattanooga's annual full coverage is $858, Memphis' is higher at $1,105 and Nashville-Davidson's is $913. Compare these rates to the state average in the table below.
| Chattanooga | $858 | -55% | $379 | -65% |
| Clarksville | $853 | -55% | $373 | -66% |
| Knoxville | $838 | -56% | $365 | -67% |
| Memphis | $1,105 | -42% | $496 | -55% |
| Murfreesboro | $841 | -56% | $368 | -66% |
| Nashville-Davidson | $913 | -52% | $407 | -63% |
Average Tennessee Car Insurance Cost by Age
In Tennessee, your age can make a difference in car insurance costs. Young drivers, seen as high-risk, often pay more. For example, 25-year-olds pay about 27% more for state minimum coverage and 35% more for full coverage than 40-year-olds. Compared to 65-year-olds, they spend 22% and 35% more, respectively.
| 25 | $1,440 | $577 |
| 40 | $1,129 | $455 |
| 65 | $1,064 | $475 |
In most places, your age can change the cost of your car insurance. But it doesn't affect what you pay for minimum coverage in California, Massachusetts and Hawaii.
Car Insurance Costs in Tennessee for Young Drivers by Gender
In Tennessee, young drivers face higher car insurance costs due to increased risk from more frequent accidents. Drivers aged 18 to 25 typically pay $1,324 per year when added to a family policy, which is 39% less than if they had an individual policy.
Gender also plays a role in determining car insurance rates for young drivers in Tennessee. On average, young female drivers pay $1,722 annually, 35% less than young male drivers, who pay $1,963. Below, you'll find the average car insurance costs for individual and family policies, broken down by gender.
Car Insurance Costs in Tennessee for Young Females
An 18-year-old female in Tennessee typically adds $1,541 to a family car insurance policy. If she chooses an individual policy, the rate jumps to $3,353, highlighting the cost-saving benefits of a family plan.
| 18 | $3,353 | $1,541 | -54% |
| 19 | $2,189 | $1,564 | -29% |
| 20 | $1,910 | $1,369 | -28% |
| 21 | $1,486 | $1,073 | -28% |
| 22 | $1,361 | $1,303 | -4% |
| 23 | $1,231 | $1,180 | -4% |
| 24 | $1,164 | $1,117 | -4% |
| 25 | $1,079 | $1,042 | -3% |
Car Insurance Costs in Tennessee for Young Males
An 18-year-old male in Tennessee pays about $3,921 for full coverage on his own. Joining a family policy drops the cost to $1,726, saving 56% annually.
| 18 | $3,921 | $1,726 | -56% |
| 19 | $2,580 | $1,735 | -33% |
| 20 | $2,239 | $1,512 | -32% |
| 21 | $1,705 | $1,159 | -32% |
| 22 | $1,525 | $1,403 | -8% |
| 23 | $1,350 | $1,244 | -8% |
| 24 | $1,252 | $1,154 | -8% |
| 25 | $1,134 | $1,055 | -7% |
Average Tennessee Car Insurance Cost by Driving Record
In Tennessee, traffic offenses may affect your car insurance, with premiums varying from 11.6% below to 9.9% above the state's annual average, depending on the violation. We've compared the average rates for drivers with at-fault accidents, speeding tickets and DUIs to those with a clean slate.
| At-Fault Accident | $1,687 | -12% | $698 | -36% |
| DUI | $2,097 | 10% | $872 | -20% |
| Ticket | $1,364 | -28% | $557 | -49% |
Read More: High-Risk Car Insurance in Tennessee
Average Tennessee Car Insurance Cost by Credit Score
In Tennessee, your credit-based insurance score plays a role in setting your car insurance rates. On average, drivers with excellent credit pay about $842 a year for full coverage, while those with poor credit may see rates as high as $1,837 annually.
| Excellent | $842 | -56% | $292 | -73% |
| Good | $1,020 | -47% | $333 | -70% |
| Fair | $1,253 | -34% | $397 | -64% |
| Below Fair | $1,488 | -22% | $465 | -58% |
| Poor | $1,837 | -4% | $544 | -50% |
CREDIT SCORES AND YOUR PREMIUM
A credit score between 670 and 739 indicates financial trustworthiness and can reduce insurance costs for Tennessee drivers. Credit-based insurance scores aren't used for pricing in states like Hawaii, Massachusetts, Maryland, California and Michigan. Meanwhile, credit scores are considered only under specific conditions in North Carolina, Oregon, Washington, Utah and Nevada.
Average Tennessee Car Insurance Cost by Company
Car insurance premiums can vary from one company to another, even in the same state. Travelers offers the most affordable average annual full coverage in Tennessee at $835. On the other end, Progressive's average is $1,448, which is nearly 60% above the state average.
| Travelers | $835 | $391 |
| Auto-Owners Insurance Co | $869 | $328 |
| Tennessee Farm Bureau | $972 | $337 |
| Farmers | $1,017 | $478 |
| Grange Insurance | $1,024 | $453 |
| Erie | $1,037 | $395 |
| Westfield | $1,074 | $290 |
| Cincinnati Insurance | $1,114 | $409 |
| State Farm | $1,179 | $428 |
| Chubb | $1,208 | $478 |
| Allstate | $1,252 | $708 |
| GEICO | $1,258 | $531 |
| Nationwide | $1,303 | $632 |
| American National P&C | $1,340 | $546 |
| Progressive | $1,448 | $413 |
Average Tennessee Car Insurance Cost by Vehicle Age
In Tennessee, insuring a newer car costs more because they're worth more and costlier to fix. On average, full coverage for a new model is $1,177 a year, compared to $852 for a car that's 10 years old.
| 10-Year-Old Vehicle | $852 | $366 |
| New Model Vehicle | $1,177 | $357 |
ACTUAL CASH VALUE
The actual cash value (ACV) is the worth of your car as assessed by your insurer right before any damage. For comprehensive or collision claims, the ACV sets the cap for repair or replacement payouts minus any deductible. This process ensures your claim matches the car's fair market value.
Read More: Used Car Insurance
Tennessee Car Insurance Rates Explained
In Tennessee, car insurance rates can be affordable compared to the national average. Costs are shaped by factors like your location, driving history and credit-based insurance score. We detail what influences the price for state minimum and full coverage plans.
Is Car Insurance Expensive in Tennessee?
Car insurance in Tennessee is affordable, with an average full coverage monthly cost of $94. This is 12.9% less than the national average for a full coverage policy.
Read More: Why Car Insurance is So Expensive
Car Insurance Costs in Tennessee vs. National Average
National Average Cost
Full Coverage Car Insurance
$108
Tennessee Average Cost
Full Coverage Car Insurance
$94TN Car Insurance Is Expensive:$14 saved
This is 13% less expensive.
Why Are Car Insurance Rates Expensive in Tennessee?
Tennessee's car insurance rates reflect the state's urban population density, severe weather events and strict insurance laws. These elements lead to more claims and higher costs for insurers, which translates to pricier policies for residents.
Read More: Car Insurance Rates by State
Estimating Your Car Insurance Costs in Tennessee
While Tennessee's average car insurance rates reflect overall trends, your rate hinges on personal details. For a tailored estimate, consider your driving record, car model and credit score.
Driving Record
A spotless driving record can lead to low insurance rates, demonstrating safe driving habits to insurers.
Age and Gender
Younger drivers and males often face higher rates. Age milestones can lower premiums, so compare rates as you age.
Credit History
A higher credit score can positively impact car insurance rates. Work on paying bills on time and reducing debt.
Vehicle Type
Insurance costs can vary based on vehicle safety, repair cost and theft likelihood, so research before buying.
Location Within Tennessee
Living in areas in Tennessee with low crime and accident rates can result in more affordable car insurance premiums.
Coverage Level
Balance your need for protection with the cost of coverage. High deductibles can lower premiums but increase out-of-pocket costs.
Marital Status
Married individuals may receive lower rates due to perceived stability. Check if your marital status qualifies you for discounts.
State Law
Tennessee has specific insurance requirements. Ensure you meet and understand how laws can influence your rates.
Read More: Tennessee Car Insurance Calculator
Minimum Car Insurance in Tennessee
Tennessee's average state minimum car insurance rate is $455, lower than the national average of $595. This minimum coverage is more affordable than full coverage, suiting those on a budget.
Tennessee Car Insurance Requirements
In Tennessee, you must have minimum coverage auto insurance. This includes $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $25,000 for property damage per accident.
Liability Limits | Description |
|---|---|
$25,000 for bodily injury liability per person | Bodily injury liability per person to cover medical expenses if you cause an accident |
$50,000 for bodily injury liability per accident | Bodily injury liability per accident ensures coverage for multiple injured parties in a single incident |
$25,000 for property damage liability per accident | Property damage liability per accident covers repairs or replacement of damaged property |
How to Lower Car Insurance Costs in Tennessee
In Tennessee, save on car insurance by comparing rates, opting for state minimum coverage and taking advantage of discounts.
- 1
Compare Multiple Quotes
Researching multiple insurance providers can help you find the most affordable car insurance in your area, potentially saving you hundreds of dollars annually.
- 2
Lower Your Risk Profile
A better credit score or a clean driving record without any at-fault accidents or moving violations can significantly lower premiums, as insurers view you as a lower risk.
- 3
Adjust Your Coverage
Review your coverage needs to ensure you're not overpaying. High deductibles can lower costs if affordable, and low-mileage drivers can save with usage-based policies.
- 4
Ask for Discounts
Check for discounts for safe driving, good grades, anti-theft devices, completing approved defensive driving courses and bundling policies, which can lead to substantial savings.
- 5
Consider the Car You Drive
Choosing a vehicle that's less expensive to insure, such as one with a high safety rating, can result in low insurance costs for residents.
Read More: How to Reduce Your Car Insurance Costs
Auto Insurance Rates in Tennessee: Bottom Line
Tennessee drivers pay about $1,129 yearly for full coverage car insurance, less than the $1,296 national average. Rates vary based on driving history, car type and coverage level. Overall, the state offers more affordable options than others.
Tennessee Car Insurance Rates: FAQ
Discover what affects car insurance costs in the Volunteer State and tips to find affordable rates. Compare insurers to find budget-friendly options.
What are the minimum car insurance requirements in Tennessee?
In Tennessee, the minimum car insurance requirements are $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident and $25,000 for property damage liability per accident.
What is the average cost of full coverage and minimum coverage auto insurance in Tennessee?
In Tennessee, the average annual cost for full coverage auto insurance is about $1,129, while state minimum coverage averages around $455.
What is the average cost of car insurance for a 25-year-old in Tennessee?
The average cost of full coverage car insurance for a 25-year-old in Tennessee is $1,440, while state minimum coverage averages around $577.
What are the cheapest car insurance companies in Tennessee?
Travelers offers the most affordable car insurance in Tennessee, with annual rates of $835 for full coverage and $391 for minimum coverage.
Tennessee Auto Insurance Cost: How We Determine Average Rates
We used a sample driver profile with the following attributes to determine average car insurance rates in Tennessee:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
We modified this driver profile by age, vehicle, credit score and driving record to determine averages for different driver profiles and needs.
Coverage Levels and Deductibles
Unless otherwise noted, average rates on this page are for a full coverage policy with comprehensive and collision coverage, a $1,000 deductible for each and the following liability limits (100/300/100):
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability per accident
When minimum coverage is specified, we used the following minimum liability-only limits as mandated by Tennessee:
- $25,000 for bodily injury liability per person
- $50,000 for bodily injury liability per accident
- $25,000 for property damage liability per accident
Learn more about MoneyGeek's car insurance methodology.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.