State Farm is the cheapest insurer in Tennessee, with liability policies averaging $35 per month. Progressive has the lowest full-coverage car insurance, at an average of $75 per month.
Cheapest Car Insurance in Tennessee
State Farm, Mile Auto, and Sun Coast are among the insurers with some of the lowest estimated car insurance rates in Tennessee based on the driver profiles used for this comparison.
However, the cheapest company for one driver may not be the cheapest for another. Auto insurance premiums can vary based on your driving record, age, location, vehicle, coverage choices, claims history, credit-based insurance information where permitted, and other factors.
The rates below are estimated averages based on a driver with a clean record and good-to-excellent credit. Your actual quote may be different.
Cheapest Tennessee Car Insurance Companies
| Insurance Company | Liability-Only Average Monthly Quote | Full-Coverage Average Monthly Quote |
|---|---|---|
| State Farm | $35 | $76 |
| Mile Auto | $37 | $77 |
| Sun Coast | $37 | $79 |
| Progressive | $40 | $75 |
| Direct Auto | $41 | $96 |
| Certainly | $42 | $124 |
| USAA | $42 | $90 |
| Allstate | $46 | $108 |
| AssuranceAmerica | $46 | $112 |
| Auto-Owners | $48 | $104 |
| GEICO | $48 | $105 |
| Travelers | $48 | $104 |
| The General | $49 | $152 |
| Erie | $52 | $112 |
| Trexis | $52 | $125 |
| GAINSCO | $58 | $150 |
| Safeco | $58 | $111 |
| Trexis One | $59 | $152 |
| National General | $62 | $106 |
| First Acceptance | $64 | $177 |
| Dairyland | $65 | $202 |
| Mendota | $65 | $153 |
| Farmers | $69 | $151 |
| Liberty Mutual | $71 | $149 |
| Bristol West | $73 | $164 |
| Root | $76 | $135 |
| Elephant | $77 | $145 |
| Chubb | $100 | $217 |
| State Auto | $133 | $289 |
These are estimated rates rather than guaranteed quotes. Actual Tennessee car insurance prices can vary significantly according to individual driver and policy characteristics.
Best-Rated Car Insurance Companies in Tennessee
Price is only one part of choosing an auto insurance company. Coverage options, customer experience, financial stability, claims handling, and available discounts can also affect your decision.
Based on the source data, several insurers stand out for different customer needs.
Progressive: Competitive Full-Coverage Rates
Progressive offers competitive estimated full-coverage rates in Tennessee and provides several coverage and discount options.
The estimated rates in this comparison are:
→ Liability-only coverage: about $40 per month
→ Full coverage: about $75 per month
Progressive also offers usage-based insurance programs that can potentially help eligible drivers reduce their premiums based on driving behavior.
Customer experiences can vary. Some drivers report positive experiences with customer service and pricing, while others report concerns about premium increases or claims handling.
State Farm: Affordable Minimum Coverage
State Farm has some of the lowest estimated liability-only rates in the Tennessee comparison.
Estimated rates include:
→ Liability-only coverage: about $35 per month
→ Full coverage: about $76 per month
State Farm also provides multiple discount opportunities, including options for eligible multi-policy and multi-vehicle customers.
GEICO: Potential Savings Opportunities
GEICO has competitive rates in the Tennessee comparison, particularly for drivers who qualify for its various discounts.
Estimated rates include:
→ Liability-only coverage: about $48 per month
→ Full coverage: about $105 per month
Drivers may qualify for discounts based on factors such as safe driving, multiple vehicles, policy bundling, vehicle safety equipment, and other eligibility requirements.
Erie: Customer Service Considerations
Erie has relatively competitive estimated rates in Tennessee and is also known for offering a broad range of insurance products.
The estimated rates in this comparison are:
→ Liability-only coverage: about $52 per month
→ Full coverage: about $112 per month
When comparing insurers, customers should consider both premium costs and the coverage and service included in the policy.
How Much Is Car Insurance in Tennessee?
The average cost of auto insurance in Tennessee depends on the type of coverage you purchase and your individual driver profile.
The source data used for this comparison estimates average annual costs of approximately:
→ Liability-only coverage: $720 per year
→ Full coverage: $1,589 per year
That works out to roughly $60 per month for liability coverage and about $132 per month for full coverage.
These figures are averages and should not be interpreted as guaranteed rates.
Why Tennessee Car Insurance Rates Vary
Insurance companies consider numerous factors when calculating premiums.
Some of the most important factors include:
→ Driving record
→ Claims history
→ Age and driving experience
→ Location
→ Vehicle type and value
→ Annual mileage
→ Coverage limits
→ Deductibles
→ Credit-based insurance information where legally permitted
→ Insurance company
Tennessee drivers in different cities can therefore receive very different quotes even when they have similar vehicles and coverage requirements.
Average Car Insurance Rates in Tennessee Cities
Location can have a major influence on auto insurance costs. Population density, accident frequency, theft rates, claims activity, weather-related risks, and other local factors can affect premiums.
The following figures show estimated average monthly rates for selected Tennessee cities.
| City | Average Monthly Quote |
|---|---|
| Johnson City | $76 |
| Bristol | $79 |
| Maryville | $80 |
| Kingsport | $81 |
| Oak Ridge | $85 |
| Cleveland | $91 |
| Franklin | $94 |
| Knoxville | $94 |
| Chattanooga | $97 |
| Hendersonville | $97 |
| Jackson | $98 |
| Smyrna | $101 |
| Clarksville | $104 |
| Murfreesboro | $104 |
| Nashville | $116 |
| Memphis | $144 |
These are estimated averages, not individual quotes. Your actual premium can be higher or lower depending on your personal circumstances.
Why Location Affects Tennessee Car Insurance
Insurance companies evaluate local risk when setting premiums.
Urban areas may have greater traffic density, more vehicles, higher accident frequency, and increased theft or vandalism exposure. Rural areas can have different risks, including longer driving distances and different accident patterns.
As a result, drivers in Memphis or Nashville may receive different rates from drivers in smaller communities such as Johnson City or Bristol.
Tennessee Car Insurance Requirements
Tennessee requires drivers to maintain minimum liability insurance coverage before operating a vehicle legally on the state’s roads.
The minimum liability requirements include:
| Coverage | Per Person | Per Accident |
|---|---|---|
| Bodily Injury Liability | $25,000 | $50,000 |
| Property Damage Liability | — | $25,000 |
These limits are commonly expressed as 25/50/25 coverage.
The minimum requirement is designed to provide basic financial protection, but it may not be enough for every driver.
Why Tennessee Drivers May Need More Than Minimum Coverage
Minimum liability coverage can help satisfy the state’s legal requirements, but an accident can produce expenses that exceed those limits.
Medical treatment, vehicle repairs, legal costs, and property damage can become expensive, particularly when multiple people are injured.
Drivers with significant assets or greater financial exposure may want to consider higher liability limits.
Additional coverage may include:
→ Collision coverage
→ Comprehensive coverage
→ Uninsured/underinsured motorist coverage
→ Medical payments coverage
→ Rental reimbursement
→ Roadside assistance
The right combination depends on your vehicle, financial situation, and personal risk tolerance.
Tennessee Is an At-Fault Insurance State
Tennessee follows an at-fault system for auto accidents. Generally, the driver determined to be responsible for an accident can be held financially responsible for covered damages and injuries.
Liability insurance helps protect you from covered claims resulting from an accident for which you are legally responsible, subject to your policy limits and exclusions.
Financial Responsibility Alternatives in Tennessee
Tennessee provides certain alternatives for drivers who need to demonstrate financial responsibility.
Depending on eligibility and applicable state requirements, drivers may be able to satisfy financial responsibility obligations through options such as:
→ Posting a qualifying bond with the Tennessee Department of Revenue.
→ Making a qualifying deposit with the Tennessee Department of Revenue.
Most drivers, however, choose a standard auto insurance policy.
How to Find Cheap Car Insurance in Tennessee
The most effective way to find an affordable policy is to compare quotes from multiple insurers.
Do not compare only the monthly premium. Make sure each quote uses similar coverage limits, deductibles, and policy features.
Follow these steps:
→ Gather your driver’s license, vehicle identification number, address, and other required information.
→ Decide how much liability and optional coverage you need.
→ Request quotes from several national and regional insurers.
→ Compare equivalent coverage limits and deductibles.
→ Ask each insurer about available discounts.
→ Check whether bundling home and auto insurance could reduce your total costs.
→ Review your quotes before choosing a policy.
Improve Your Credit Profile Where Permitted
Credit-based insurance information can affect auto insurance pricing in Tennessee because state law allows insurers to consider credit-related factors when determining premiums.
A stronger credit profile may help some drivers qualify for more favorable rates.
To maintain or improve your credit profile:
→ Pay bills on time.
→ Keep outstanding balances manageable.
→ Review your credit reports for errors.
→ Avoid unnecessary new debt.
→ Monitor changes in your credit history.
Credit is only one factor insurers may consider, so improving credit does not guarantee a lower insurance premium.
Maintain a Clean Driving Record
Your driving history can have a significant effect on your insurance costs.
Speeding tickets, accidents, reckless driving violations, and DUI convictions can increase premiums depending on the insurer and circumstances.
You can potentially keep your rates lower by:
→ Following posted speed limits.
→ Avoiding distracted driving.
→ Never driving under the influence.
→ Maintaining safe driving habits.
→ Taking advantage of eligible defensive-driving or safe-driver programs.
Consider Raising Your Deductible
If you have full coverage, choosing a higher deductible may reduce your premium.
However, a higher deductible means you will have to pay more out of pocket if you file a covered claim.
Before increasing your deductible, make sure you could comfortably afford that amount after an accident or other covered loss.
Review Your Coverage
You may be paying for coverage that no longer matches your needs.
Review your policy periodically and consider whether your current:
→ Liability limits
→ Collision coverage
→ Comprehensive coverage
→ Deductibles
→ Optional endorsements
still make sense for your vehicle and financial situation.
Do not reduce important coverage simply to obtain a lower premium without understanding the potential financial consequences.
Bundle Your Insurance Policies
Some insurers provide discounts when customers purchase multiple qualifying policies from the same company.
For example, you may be able to combine:
→ Auto insurance
→ Homeowners insurance
→ Renters insurance
→ Condo insurance
Bundling does not always produce the lowest total price, so compare the combined cost with competing offers.
How Tennessee Car Insurance Costs Have Changed
Auto insurance prices can change from year to year because insurers adjust premiums in response to claims costs, repair expenses, medical costs, driving patterns, weather events, and broader insurance-market conditions.
The source data indicates that Tennessee auto insurance costs declined during 2025 and remained relatively stable during the first part of 2026.
The same data projected a small increase in Tennessee insurance costs by the end of 2026.
Because insurance pricing changes over time, drivers should treat historical rates as a reference rather than a guarantee of future premiums.
Cheapest Car Insurance for Tennessee Teens and Young Drivers
Teen drivers generally pay more for auto insurance because they have less driving experience and insurers typically consider inexperienced drivers a higher risk.
The source data identifies Progressive as having the lowest estimated full-coverage rate for Tennessee teen drivers at approximately $142 per month, while State Farm had the lowest estimated liability-only rate at approximately $70 per month.
Teen rates can vary substantially depending on age, gender, vehicle, driving record, location, and whether the teen is added to a parent’s policy.
What Factors Affect Tennessee Car Insurance Rates?
Several factors can influence what you pay for coverage.
→ Driving history
→ Age and experience
→ Location
→ Vehicle make and model
→ Annual mileage
→ Claims history
→ Coverage limits
→ Deductible
→ Credit-based insurance information where permitted
→ Discounts
→ Insurance company
Because insurers weigh these factors differently, comparing several companies can reveal significant price differences.
Why You Should Compare Tennessee Car Insurance Quotes
Insurance companies can charge very different premiums for similar coverage.
A company that offers the cheapest liability coverage may not offer the cheapest full coverage. Likewise, an insurer that is inexpensive in one Tennessee city may be more expensive in another.
When comparing quotes, make sure you compare:
→ The same liability limits.
→ The same deductible.
→ The same optional coverages.
→ The same vehicle information.
→ The same driver information.
This creates a more accurate comparison.
Tennessee Car Insurance FAQs
What Is the Average Cost of Car Insurance in Tennessee?
Based on the source data, the average Tennessee auto insurance cost is approximately $96 per month. Individual premiums can vary considerably based on driver and policy characteristics.
What Are the Cheapest Car Insurance Companies in Tennessee?
State Farm, Mile Auto, Sun Coast, and Progressive have some of the lowest estimated rates in the provided Tennessee comparison. The cheapest option depends on your individual driver profile and coverage needs.
What Is the Cheapest Car Insurance for Teen Drivers in Tennessee?
The source data identifies Progressive as having an estimated average full-coverage rate of approximately $142 per month for Tennessee teen drivers. State Farm has an estimated liability-only rate of approximately $70 per month.
Teen insurance rates can vary significantly, so parents should compare several insurers before purchasing coverage.
What Factors Affect the Cost of Car Insurance in Tennessee?
Driving record, claims history, location, vehicle type, coverage level, deductible, mileage, age, and credit-based insurance information where permitted can all affect Tennessee auto insurance rates.
What Liability Insurance Is Required in Tennessee?
Tennessee requires at least $25,000 per person and $50,000 per accident in bodily injury liability coverage, along with $25,000 in property damage liability coverage.
Is Tennessee an At-Fault State?
Yes. Tennessee uses an at-fault system, meaning the driver responsible for an accident can generally be held financially responsible for covered damages and injuries, subject to applicable law and insurance policy limits.
Final Thoughts on Cheap Car Insurance in Tennessee
Finding cheap car insurance in Tennessee requires more than choosing the company with the lowest advertised rate.
State Farm, Mile Auto, Sun Coast, Progressive, and other insurers may offer competitive prices depending on your driver profile. However, your actual premium can differ significantly from published averages.
The best way to find affordable coverage is to compare multiple insurers using the same coverage limits and deductibles. At the same time, maintain a clean driving record, take advantage of eligible discounts, review your coverage regularly, and consider your financial protection rather than focusing exclusively on price.