Cheap Car Insurance Companies In Tennessee

The average semiannual cost of car insurance in the state of Tennessee is $725.17. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Tennessee across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 1/15/2024

The Tennessee car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in TN. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Tennessee Minimum Liability Coverage

Tennessee has minimum liability insurance requirements to ensure motorists carry enough coverage in case of an accident. The minimum requirements are:

$25,000 for bodily injury per person. This covers injuries and medical expenses for one injured person in an accident.

$50,000 for bodily injury per accident. This covers injuries and medical expenses for all injured people in a single accident, up to the $50,000 limit.

$15,000 for property damage. This covers damage to vehicles and other property in an accident, up to the $15,000 limit.

In total, this amounts to $25,000/$50,000/$15,000 in coverage, often written as “25/50/15” for short. Many insurance companies offer policies that meet or exceed these limits. For example, they may offer plans with “50/100/50,” “100/300/100,” or even higher coverage amounts.

Penalties for Driving Without Insurance in Tennessee

Tennessee law requires all drivers to have liability insurance in order to legally drive their vehicles. Failing to carry insurance can result in serious penalties, including fines, license suspension, and even jail time in some cases.

If you are caught driving without insurance in Tennessee, you will face an immediate fine of $250 to $500 for the first offense. For subsequent offenses within a three-year period, the fine increases to $500 to $1,000. These fines are in addition to any court costs you may be ordered to pay.

In addition to fines, your driver’s license will likely be suspended for up to one year for a first offense and up to two years for multiple offenses. The suspension period begins once you obtain the required insurance and provide proof of insurance to the state.

If you continue to drive during your suspension period, you could face additional penalties including jail time of up to 6 months, higher fines, and the possibility of your vehicle being impounded. Driving on a suspended license is considered a Class B misdemeanor in Tennessee.

Auto Insurance Rates in Tennessee

Auto insurance rates in Tennessee can vary widely based on several factors. Drivers should know that their rates can be affected by their driving history, credit score, age, gender, location, vehicle type and other factors.

Tennessee does not have a state minimum for auto insurance coverage, but the state does require that all drivers carry at least liability insurance. Liability coverage pays for injuries, damages and legal fees for others if you are at fault in an accident. Most insurance companies recommend carrying more comprehensive coverage as well to protect your own vehicle and yourself as a driver.

Your driving history can significantly impact your rates. Tickets, accidents and other violations on your driving record in the past three to five years may cause insurance rates to increase. The more severe the incident, the higher your rates are likely to be. Completing a defensive driving course can sometimes help mitigate the effects of violations on your rates.

Your credit score is also used to determine your premiums, with lower credit scores typically leading to higher rates. Insurance companies view credit scores as an indicator of risk, assuming that those with lower scores may be higher risk drivers. However, many good drivers have less-than-perfect credit for various reasons unrelated to driving ability.

Tennessee drivers have some options to potentially lower their insurance costs. Shopping around and comparing multiple quotes from different insurance providers can save you money. Bundling policies for homeowners, renters, and auto insurance with the same company may provide discounts as well. Maintaining a clean driving record and improving your credit score over time can also lead to lower premiums in the long run.

Low Cost Car Insurance Programs and Discounts in Tennessee

Car insurance rates in Tennessee can vary widely, making it important to find the right coverage at the lowest possible cost. There are a number of programs and discounts available to help Tennessee residents save on auto insurance premiums. Here are some options to consider:

Tennessee Auto Insurance Plan: This program offers basic liability coverage to high-risk drivers who have difficulty finding coverage through traditional insurers. Eligibility is limited to Tennessee residents who have been denied insurance by at least two companies. Coverage is only available for minimum limits, with higher deductibles to keep costs down.

Good Student Discounts: Many insurers reward students who maintain good grades, typically a B average or higher. Teen drivers with a 3.0 GPA or above can usually qualify for a discount of 15% or more on their auto insurance.

Multi-Policy Discounts: Bundling multiple policies, like auto, home, and renters insurance, with the same company often qualifies you for a multi-line discount of 5% to 15%. Check with your current insurer and compare rates with other companies to see if bundling would save you money.

Military Discounts: Active duty and retired military members and their families are often eligible for auto insurance discounts. The amount varies by insurer but can be as high as 25%.

Tennessee Car Insurance Statistics

Tennessee has some interesting statistics when it comes to auto insurance. For example, car insurance rates for Tennessee drivers tend to be lower than the national average. The average expenditure for car insurance in Tennessee is $776 per year, compared to the national average of $935. There are a few reasons for this.

First, Tennessee has a lower population density compared to many other states, meaning there are fewer cars on the road and less congestion. This translates to fewer accidents and claims for insurance companies.

Second, Tennessee has relatively mild weather with few hurricanes, tornadoes, or extreme winter storms that can damage vehicles. This also lowers insurance costs since insurance companies pay out fewer weather-related claims.

Third, Tennessee has some of the nation’s most affordable vehicle repair costs. This is because labor rates tend to be lower, especially in more rural areas of the state. When insurance companies pay out claims, the costs are often lower, allowing them to charge lower premiums overall.

The 10 Largest Tennessee Car Insurance Companies

Tennessee drivers have plenty of options when shopping for car insurance. Here are the 10 largest auto insurance companies in the state based on market share.

1. State Farm: State Farm is the largest auto insurance provider in Tennessee, covering around 22% of insured drivers. It offers coverage for all types of vehicles as well as discounts for good students, multi-policy, and more.
2. Nationwide: Nationwide has a 13% market share in Tennessee and provides coverage for cars, motorcycles, RVs, and commercial vehicles. The company is known for its strong customer service and wide range of discounts.
3. GEICO: GEICO is the third largest car insurance company in Tennessee with around 11% of the market. It offers affordable rates, 24/7 claims service, and many discounts for things like safe driving, bundling policies, and more.
4. Allstate: Allstate insures about 8% of Tennessee drivers. The company has been in business since 1931 and offers coverage for vehicles, motorcycles, RVs, and more. Allstate is known for financial stability and exceptional customer service.
5. Progressive: Progressive insures over 7% of Tennessee drivers. The company is one of the largest auto insurance carriers in the U.S. and is known for its name-your-price tool and wide range of coverage options.
6. Farm Bureau Insurance: Farm Bureau is Tennessee’s largest property and casualty insurer, covering over 7% of the state’s drivers. Membership-based rates and discounts make Farm Bureau a competitive option for many Tennessee drivers.
7. USAA: USAA provides insurance for members of the military, veterans, and their families. Though it has a smaller market share in Tennessee, around 4%, it is consistently ranked as one of the best insurance companies for customer satisfaction and financial strength.
8. Liberty Mutual: Liberty Mutual insures around 4% of Tennessee drivers. The company offers standard auto coverage as well as rideshare insurance and other specialty products.
9. TN Farmers: TN Farmers is a regional insurer that covers 3% of the Tennessee market. The company focuses on creating strong relationships with local agents and customers.
10. Travelers: Travelers provides coverage for around 2% of Tennessee drivers. The company is known for its stability, financial strength, and wide range of products.