Drivers in the state of Tennessee are relatively lucky when it comes to low cost car insurance. Scroll down for a summary of handy facts, statistics, laws, rates and comparisons pertaining to Tennessee automobile liability insurance. Reading this will help you lower your premiums, and choose the Tennessee car insurance plan that works best for you.
Tennessee Minimum Liability Coverage
Tennessee state law mandates a minimum liability insurance coverage of no less than $20,000 to cover injuries to the driver, $50,000 “per-accident” protection for injuries to others, and $15,000 in coverage against property damage. Among insurance professionals, Tennessee’s minimum car insurance coverage requirement is known as 20/50/15.
Penalties for Driving Without Insurance in Tennessee
Tennessee has the fifth highest rate of uninsured drivers in America. Roughly one in four vehicles on Tennessee roads is uninsured. The penalty for driving an uninsured vehicle in Tennessee is a fine of as high as $300, and a suspended license until proof of insurance is provided. This might help explain the state’s high rate of uninsured drivers.
Auto Insurance Rates in Tennessee
The average yearly premium for car insurance in the state of Tennessee was $1,145 in 2016, while the national average hovered around $1,347. According to reports from Top50States.com, Tennessee’s lower than average annual premiums may be due to a strong economy, combined with a relatively low cost of living, a mild year-round climate, low average mileage per vehicle, and low population density.
Low Cost Insurance Programs in Tennessee
There are a number of different ways for Tennessee car owners to keep their insurance premiums low. To cite a few examples, buy only the minimum coverage. Pay your annual premium in one lump sum each year. Increase your deductible. Drive the kind of vehicle least likely to get stolen in your area. Install vehicle safety features.
The biggest way to reduce your annual car insurance premiums is to qualify for discounts. These may include Good Driver discounts, Accident Free discounts and Vehicle Safety discounts. Academic excellence is rewarded with a Good Student discount. Senior citizens can get a discount for completing a defensive driving course. Most carriers also offer multiple policy discounts and multiple auto discounts.
Obtaining Auto Insurance Quotes in Tennessee
The auto insurance carriers most favored by Tennessee car owners are Pride National Insurance, American Security, Encompass, Great American and Phoenix. Also popular are medium sized, locally owned carriers like Direct General, Farm Bureau and Erie. Call them for quotes. Ask about those discounts. Then simply compare rates, and select the least expensive premium package that works for you. Following these simple steps can save Tennessee drivers hundreds of dollars a year in car insurance.
Tennessee Car Insurance
This page features all the most recent details about Tennessee car insurance. Look here for stats on the state of Tennessee, and find out how Tennessee drivers can cut their auto insurance premium rates. Learn how to compare auto insurance quotes from one Tennessee zip code to another, while grabbing all the discounts available to you.
Here’s where Tennessee drivers can learn all they need to know about auto insurance in the state of Tennessee. Review a list of the largest car insurance companies in Tennessee, as well as the types and amounts of coverage that Tennessee drivers need, along with Tennessee zip code data, Tennessee income stats, and (just for laughs) a collection of outdated Tennessee state traffic laws.
This text also provides descriptions of the four most expensive and the four least expensive (on average) zip codes in Tennessee to buy car insurance.
Scan this page and learn all about Tennessee car insurance.
Tennessee Car Insurance Statistics
As of 2016, the resident population of the state of Tennessee was approaching 6.7 million. Although Tennessee ranks only 36th among states in terms of land area in square miles, the state ranks 17th in total population, and 20th in population density. The median resident age of those who live in Tennessee is about 38.7 years.
The overall poverty rate in the state of Tennessee is about 16.7 percent. This is a bit above the national average poverty rate of 13.5 percent. Likewise, the unemployment rate in the state of Tennessee is 5.1 percent, which is somewhat higher than the United States average unemployment rate of 4.4 percent. Based on a study conducted by the Insurance Research Council, about 20.1 percent of drivers in Tennessee are operating uninsured vehicles. That means more than one out of every five vehicles on Tennessee roads is uninsured. In fact, Tennessee has the 6th highest rate of uninsured vehicles in all 50 states and Washington DC.
Tennessee drivers frequently ask about the statewide “average” annual premium rate for Tennessee car insurance. But statewide averages tell us nothing about the premium rates on our personal car insurance policies. Statewide averages are based on imaginary demographics, such as a 26 year old single female driver in Tennessee, with a clean driving record, a full time job, and a 2013 Volkswagen Jetta with dual airbags and a 4-cylinder engine, which she drives less than 15,000 miles a year. In other words, you’ll find no use for a statewide averages. Even if you are this person, your rates on auto insurance will still depend on your particular Tennessee zip code.
So it seems that statewide averages do not adequately reflect your personal Tennessee car insurance premium rates. For those who are interested, the statewide “average” annual premium rate for a car insurance policy in the state of Tennessee was about $1,230 last year. This figure was not far from the national “average,” which was about $1,224 at that time. Tennessee is neither the most expensive nor the least expensive state to buy car insurance.
Whatever the average quotes may be, drivers in the state of Tennessee can cut the rates of car insurance by obtaining several online quotes for Tennessee car insurance, from the websites of at least half a dozen major auto insurance companies. Get quotes for several Tennessee zip codes near where you live or work, using your own personal demographic details. Doing your research can possibly save you hundreds of dollars a year on Tennessee car insurance.
The Largest Car Insurance Companies In Tennessee
A while ago, a group of researchers conducted a statistical study and compiled a report of the top ten car insurance companies in the United States, based on each company’s total annual revenue. The study determined that the top ten car insurance carriers in America are Allstate Insurance, State Farm Insurance, Geico, Progressive Insurance, Nationwide Group, AAA, Liberty Mutual Insurance, 21st Century Insurance, GMAC, and AIG, in that order. Auto insurance companies were ranked by the dollar amount of premiums written each year, which provided a percentage of each company’s total market share.
Shown below is a list of the top ten Tennessee car insurance companies, based on each company’s total market share in the state of Tennessee.
|Market Share (%)
|State Farm Group
|TN Farmers Insurance Companies
|Allstate Insurance Group
|Berkshire Hathaway Insurance
|Progressive Insurance Group
|Liberty Mutual Insurance
|Farmers Insurance Group
There are so many major Tennessee car insurance companies to choose from, as well as quite a few smaller, regional carriers. There is no such thing as The One Best Tennessee Car Insurance Company.
American drivers are always encouraged to read recent consumer reviews of car insurance companies, to decide which one to choose. All car insurance companies are different, but most car insurance companies are competitive. That means discounts and price cuts abound! Just remember that all car insurance companies get a lot of customer complaints, and all car insurance companies get sued once in a while. Paying attention to consumer reviews should give you some idea of the integrity of an auto insurance company. To learn of a company’s financial strength, visit the website of A.M. Best.
In any case, drivers in the state of Tennessee need to compare car insurance quotes among several zip codes, and from several different Tennessee car insurance companies, if they really want to save money on Tennessee car insurance.
What Types Of Car Insurance Do Tennessee Drivers Need?
The minimum auto liability insurance coverage required by Tennessee state law is $25,000 for each person injured, and $50,000 per accident for bodily injury liability, plus $15,000 insurance coverage against property damage. However, these amounts are swiftly drained by most traffic accidents.
American insurance experts recommend that Tennessee drivers (and, in fact, all drivers) should buy more than the lowest possible amount of car insurance coverage required by state law. Insurance analysts suggest coverage in the amounts of $100,000 for personal injury liability protection, $300,000 in per accident liability protection, and at least $50,000 to cover the cost of property damage.
Also extremely recommended for drivers in the state of Tennessee is uninsured and underinsured motorist insurance (UMI). After all, more than one in five drivers on Tennessee roads is uninsured. What’s worse, most of the rest are underinsured due to the low minimum liability requirements in the state of Tennessee.
Tennessee drivers who really worry about their vehicles have the option of purchasing comprehensive and collision coverage. These types of auto insurance will shell out the cost of repair for vehicle damage caused by head-on collisions, fires, floods, flying objects, vandalism, and car theft, among other unlucky events.
Outdated Tennessee Traffic Laws
- In the state of Tennessee, it is illegal for Christian parents to make their children pick up trash from the highway on Easter Sunday.
- It is illegal in the state of Tennessee to shoot game from a moving automobile, except for whales. (We’re not making this up.)
- In Tennessee, it is illegal to put tacks on the highway. (Why would that be legal anywhere else?)
- In Fayette County, it is illegal to have more than five broken down cars on a single piece of property.
- In Knoxville, all businesses are required to have a “hitching post” in front of their buildings. (These days, we just call it a parking lot.)
- In Lenoir County, when you stop your car at a stop sign, you must fire a gun out the window to warn horses and carriage riders of your arrival.
- In Nashville, it is illegal for roller skaters to tie themselves to moving vehicles on the highway. (But it might make someone eligible for a Darwin Award.)
Best And Worst Zip Codes For Tennessee Car Insurance
As mentioned, auto insurance premium rates will vary across Tennessee zip codes. Rates are affected by things like population density, median annual income, median resident age, and neighborhood crime statistics, among other factors that tend to change between zip codes.
A research team doing a comparison study of Tennessee zip codes has come up with the four most expensive zip codes (on average) to buy car insurance in the state of Tennessee. The four priciest zip codes in Tennessee are all located in Memphis, a poorer city in southwestern Tennessee, located along the banks of the Mississippi River. Memphis is home to nearly 657,000 people, making it the largest city in the state of Tennessee. Annual premium rates in the priciest Memphis zip codes can be as low as around $1,220, or as high as more than $2,460.
The poverty rate in this neighborhood is almost double the state average of 16.7 percent. What’s more, the unemployment rate is more than three times the state average. Population density is relatively high here. Roughly one in three people in this zip code live at or below the poverty line.
For real, almost no one lives here. The population was last measured at 135. Why are car insurance premium rates so high? Probably because of the nearness of this neighborhood to poverty-stricken areas.
The median resident age in this Tennessee zip code is only 26 years, as compared to the state average of 38.7 years. This can raise car insurance premium rates, as well as the fact that more than half of the people in this neighborhood live at or below the poverty line. Unemployment is about six times the state average. Almost one out of three adults in this zip code is unemployed.
Unemployment and poverty are rather bad here too, even if not as bad as in the previous zip code.
Compare the above data to the list shown below of the four least expensive zip codes (on average) in the state of Tennessee to buy car insurance. Annual premium rates can range from around $800 to about $1,435.
|37688 (Shady Valley)
In location, Shady Valley is the opposite of Memphis. It is located way up in the northeast corner of the state. This zip code is home to less than 900 people. The median resident age in this neighborhood is 59.2 years. Unemployment is about four times the state average, but poverty falls below the state average.
|37680 (Laurel Bloomery)
This Johnson County zip code in northeastern Tennessee is home to only about 700 people. Poverty and unemployment are way high in this neighborhood. But population density is way low.
Unicoi is another town in northeastern Tennessee. The population density is hardly worth mentioning here. The unemployment rate is right around the state average. The poverty rate is just above the state average.
|37601 (Johnson City)
In this northeastern Tennessee zip code, population density is a breeze and the unemployment rate is only a tad high. However, the poverty rate far exceeds the state average.
Overall, the state of Tennessee is home to 785 zip codes throughout 95 counties encompassing 548 cities, from Adams to Yorkville and back. There’s a definite gap in rates between the cheapest zip codes and the most expensive zip codes to buy Tennessee car insurance.