Find the cheapest car insurance in TN for 2025. Compare rates from Tennessee’s top insurers and save up to $700 annually. Get quotes from Travelers, Farm Bureau, Erie & more.
Tennessee drivers are overpaying for car insurance by an average of $563 per year. Here’s exactly how to find the lowest rates available in the Volunteer State, even if you’re young, have tickets, or poor credit.
Why Tennessee Car Insurance Costs Are Rising (And What You Can Do About It)
Car insurance rates in Tennessee have increased significantly in 2025, with the average full coverage policy now costing $2,308 annually, though this is still below the national average of $2,680. The surge is driven by inflation, increased accident claims, and extreme weather events affecting Tennessee’s roads.
However, smart Tennessee drivers are still finding rates as low as $1,240 per year for full coverage by knowing exactly where to look and what strategies work best in the Volunteer State.
Compare Tennessee’s Lowest Insurance Rates Now →
What Makes Car Insurance Cheap (Or Expensive) in Tennessee
Geographic Factors That Impact Your Rates
Your location within Tennessee dramatically affects your premiums. Car insurance in Tennessee costs an average of $1,993 per year for full coverage and $509 per year for minimum coverage, according to Bankrate’s 2024 study of quoted annual premiums, but rates vary significantly by city:
Cheapest Tennessee Cities for Car Insurance:
- Collinwood: $430 annually (minimum coverage)
- Cypress Inn: $431 annually
- Iron City: $436 annually
- Buffalo Valley: $432 annually
- Clifton: $431 annually
Major Cities (Higher Rates):
- Memphis: $670 annually (minimum coverage)
- Nashville: $548 annually
- Chattanooga: $508 annually
- Knoxville: $523 annually
Your Driving Profile’s Impact on Rates
Tennessee insurers evaluate multiple factors when setting your premium:
- Age: Young drivers (16-25) pay the highest rates, with 20-year-olds averaging $2,607 annually for full coverage
- Driving Record: A single speeding ticket can increase rates by $200-400 annually
- Credit Score: Poor credit can increase premiums by up to $1,000 per year in Tennessee
- Coverage Level: Minimum coverage averages $523 annually vs. $2,308 for full coverage
The 5 Cheapest Car Insurance Companies in Tennessee for 2025
Based on comprehensive rate analysis across Tennessee, here are the most affordable insurers:
1. Travelers – Best Overall Value
- Full Coverage: $1,240-$1,431 annually
- Minimum Coverage: $361-$397 annually
- Best For: Clean driving records, all age groups
- Savings vs. State Average: Up to $706 annually
2. Tennessee Farm Bureau – Best for Local Coverage
- Full Coverage: $1,467-$1,732 annually
- Minimum Coverage: $348-$386 annually
- Best For: Drivers with poor credit, rural areas
- Special Advantage: Strong local presence, competitive rates for high-risk drivers
3. Erie Insurance – Best for Young Drivers
- Full Coverage: $1,453-$1,862 annually
- Minimum Coverage: $323-$390 annually
- Best For: Teens, drivers with tickets or accidents
- Key Benefit: Most forgiving for young drivers with violations
4. GEICO – Best Digital Experience
- Full Coverage: $1,430-$1,848 annually
- Minimum Coverage: $284 annually
- Best For: Tech-savvy drivers, quick quotes
- Advantage: Lowest minimum coverage rates statewide
5. USAA – Best for Military Families
- Full Coverage: $1,563 annually
- Minimum Coverage: $356 annually
- Eligibility: Military members, veterans, and their families only
- Benefit: Consistently competitive across all driver profiles
Get Your Personalized Tennessee Insurance Quote →
How to Compare Car Insurance Rates in Tennessee (Step-by-Step)
Step 1: Determine Your Coverage Needs
Minimum Coverage Requirements in Tennessee:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Recommended Full Coverage Includes:
- Higher liability limits ($100,000/$300,000/$50,000)
- Collision coverage ($1,000 deductible)
- Comprehensive coverage ($1,000 deductible)
- Uninsured motorist protection
Step 2: Gather Your Information
Before comparing quotes, have ready:
- Driver’s license numbers for all household drivers
- Vehicle identification numbers (VINs)
- Current insurance policy details
- Recent driving record information
Step 3: Get Multiple Quotes
Pro Tip: Get quotes from at least 3-5 companies. Rate differences can exceed $1,000 annually between insurers for identical coverage.
Step 4: Compare Beyond Price
Evaluate each quote for:
- Coverage limits and deductibles
- Available discounts
- Customer service ratings
- Claims handling reputation
- Financial stability ratings
7 Proven Strategies to Lower Your Tennessee Car Insurance Costs
1. Bundle Your Policies
Combining auto and home insurance can save 10-25% on both policies. Tennessee Farm Bureau and Travelers offer particularly strong bundling discounts.
2. Maximize Available Discounts
Common Tennessee Discounts:
- Good student discount: 10-15% savings
- Safe driver discount: 15-20% savings
- Multi-vehicle discount: 8-12% savings
- Defensive driving course: 5-10% savings
- Paperless billing: 2-5% savings
3. Raise Your Deductible Strategically
Increasing deductibles from $500 to $1,000 can reduce premiums by 15-20%. Ensure you can afford the higher out-of-pocket cost.
4. Consider Usage-Based Insurance
If you drive less than 10,000 miles annually, telematics programs can provide significant savings—up to 30% for the safest drivers.
5. Maintain Continuous Coverage
Gaps in coverage can increase rates by 20-40%. Always maintain at least minimum coverage, even between vehicles.
6. Review and Update Annually
Life changes affect rates. Marriage, moving, or turning 25 can significantly reduce premiums.
7. Drop Unnecessary Coverage on Older Vehicles
For cars worth less than $3,000, consider dropping collision and comprehensive coverage.
Start Saving on Tennessee Car Insurance Today →
Tennessee Car Insurance by Driver Profile: What to Expect
Young Drivers (16-25)
- Average Costs: $2,607-$3,822 annually (full coverage)
- Best Companies: Chubb, Erie, Travelers
- Key Strategy: Stay on parents’ policy as long as possible; utilize good student discounts
Drivers with Violations
- Speeding Ticket Impact: +$200-400 annually
- At-Fault Accident Impact: +$400-800 annually
- Best Companies: Tennessee Farm Bureau, Erie, Travelers
- Recovery Time: 3-5 years for rates to return to normal
High-Risk Drivers (DUI)
- Average Increase: +$1,000-2,000 annually
- Best Companies: Travelers, Progressive
- Important Note: Some insurers may deny coverage; always have backup options
Senior Drivers (65+)
- Rate Trend: Increases start around age 70
- Best Companies: Travelers, Tennessee Farm Bureau
- Discounts: Senior driver courses, low-mileage discounts
Common Tennessee Car Insurance Mistakes (And How to Avoid Them)
Mistake 1: Choosing Minimum Coverage Only
While Tennessee’s minimum coverage costs just $523 annually, it provides only $25,000 in property damage coverage—insufficient for most accidents.
Mistake 2: Not Shopping Around Annually
Insurance rates change frequently. Failing to compare can cost hundreds annually.
Mistake 3: Focusing Only on Price
The cheapest policy isn’t always the best value. Consider coverage quality and customer service.
Mistake 4: Forgetting About Discounts
Many Tennessee drivers miss out on available discounts worth hundreds of dollars annually.
Mistake 5: Assuming Your Credit Doesn’t Matter
Credit score significantly impacts rates in Tennessee. Work on improving credit for better insurance rates.
Tennessee Car Insurance Rate Comparison Table
| Company | Full Coverage (Annual) | Minimum Coverage (Annual) | Best For |
| Travelers | $1,240 | $361 | Clean records, all ages |
| Tennessee Farm Bureau | $1,467 | $348 | Poor credit, violations |
| Erie | $1,453 | $323 | Young drivers |
| GEICO | $1,430 | $284 | Digital experience |
| USAA | $1,563 | $356 | Military families |
| State Average | $2,308 | $523 | – |
Rates based on a 35-year-old driver with clean record
Expert Tips from Tennessee Insurance Professionals
From Nashville Insurance Agent Sarah Mitchell: “Tennessee drivers often overlook Farm Bureau, but they’re incredibly competitive for drivers with less-than-perfect records. I’ve seen savings of $800+ annually by switching to them.”
From Memphis Agent Robert Taylor: “Location matters tremendously in Tennessee. A driver moving from Memphis to a rural area can save $200-400 annually on identical coverage.”
When to Consider High-Risk Insurance Options
If you’re denied coverage by standard insurers, Tennessee offers the Tennessee Automobile Insurance Plan (TAIP) as a last resort. However, these rates are typically 50-100% higher than standard market rates.
Better Alternatives:
- Non-standard insurers like The General or Safe Auto
- Regional companies with high-risk programs
- Working with independent agents who specialize in difficult cases
Find Your Best Tennessee Insurance Rate →
The Bottom Line: Your Next Steps to Cheap Tennessee Car Insurance
Tennessee drivers have excellent opportunities to find affordable car insurance, with rates significantly below national averages. The key is knowing where to look and how to position yourself for the best rates.
Your Action Plan:
- Get quotes from at least 3 companies – focus on Travelers, Tennessee Farm Bureau, and Erie
- Maximize all available discounts – especially good driver and multi-policy discounts
- Consider your coverage needs carefully – don’t sacrifice necessary protection for small savings
- Review annually – rates and your situation change regularly
Insurance rates change daily, and the best deals won’t last forever. Take 10 minutes today to see what you qualify for—you could be saving hundreds of dollars by next month.
Compare Tennessee’s Best Insurance Rates Now →
In another related article, Demystifying Comprehensive Car Insurance: Your Complete Guide
