Tennessee Auto Insurance (2023)

Tennessee residents searching for cheap car insurance can often find savings on auto insurance by comparing rates from different companies. Because every driver is different in terms of their coverage needs and driving records, it is important to see how the best auto insurance companies vary in price based on different factors. Only then will drivers be able to find which company is truly the cheapest for them based on their individual needs. 

Continue reading to learn how to narrow down your company options in Tennessee and how to find cheap car insurance. 

Finding Cheap Tennessee Car Insurance 

A company that your friend recommends as being affordable for Tennessee car insurance may not actually be affordable for you, as rates vary drastically from driver to driver. To help you get an idea of what companies may be a good fit for you price-wise, we’ve broken down company rates by different driver categories. 

Cheap Minimum Liability Insurance 

Those looking to save on insurance for older cars that aren’t worth much may consider just carrying the minimum of insurance required in Tennessee. Rates generally range in price by a few hundred dollars between the cheapest and most expensive companies. 

Farmers and Progressive have some of the most expensive average insurance rates for minimum coverage in Tennessee. If you want cheap auto insurance rates, you may want to get car insurance quotes from the cheaper companies on the list above. 

Cheap Full Coverage Insurance 

Full coverage auto insurance costs more, as it includes comprehensive and collision insurance in addition to the required liability insurance in Tennessee. However, drivers are much better protected from financial losses than with just liability insurance. In addition, full coverage doesn’t have to be too expensive if drivers take the time to compare rates. 

State Farm is one of the cheapest companies on average for full coverage insurance, costing about $1,000 less than Allstate. Therefore, State Farm may be your best choice for cheap car insurance in Tennessee. 

Cheap At-Fault Accident Insurance 

At-fault accidents negatively affect your rates, even if you pick a cheaper company. However, you can try to lower the increased amount you have to pay by switching companies if you find your rates become too high.

State Farm and USAA once again remain some of the cheapest companies if you have an at-fault accident on your record, costing significantly less than other companies. 

Cheap DUI Insurance 

DUIs are another driving offense that drastically affects how much you pay for car insurance. However, how much you pay in rates after a DUI depends upon your choice of company. 

While Farmers is one of the more expensive companies for basic liability insurance, it is one of the cheapest providers of auto insurance for drivers with a DUI. In contrast, Geico and USAA are some of the more expensive companies after a DUI offense, even though they are generally cheaper for basic policies. 

Cheap Bad Credit Insurance 

Bad credit scores negatively affect drivers’ insurance rates if their insurance company uses credit scores as a rating factor. This is because drivers with bad credit scores are more likely to miss payments and end up driving illegally without insurance. 

State Farm and Allstate are some of the worst companies to pick if you have a bad credit score, costing thousands of dollars more on average. On the other hand, companies like Geico and USAA are some of the best auto insurance companies for bad credit.

Cheap Young Driver Insurance 

Young drivers are often charged the highest insurance rates due to their inexperience on the road. This leads to many people asking how can I find cheap car insurance for young drivers. While the cheapest option is to join a parent’s policy, young drivers shopping for their own insurance policy will notice huge discrepancies in rates between companies.

Young drivers should avoid Progressive and Allstate, where average rates are well over $5,000 per year. Instead, they should shop at cheaper companies like USAA and Geico. 

Cheap Insurance by City 

The area where your vehicle is parked every night has a huge impact on your rates. From crime to weather conditions, where you live affects your odds of filing a claim.

Memphis and Nashville have some of the most expensive insurance rates on average. If you live in one of Tennessee’s major cities, make sure to shop around at a few different companies to ensure you’re getting the best rates possible. Doing your research on the best car insurance in Nashville and other cities can save you money on car insurance. 

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Tennessee Car Insurance Laws 

A state’s laws can affect how much you pay for auto insurance and make it harder to find the cheapest car insurance, as certain states may require you to carry more insurance coverage or have stricter financial penalties for DUIs. We’ve outlined some of the major laws that affect car insurance prices in Tennessee below. 

Required Car Insurance Coverages 

All Tennessee drivers must purchase bodily injury liability insurance and property damage liability insurance to drive legally in Tennessee. The minimum limits they must purchase for each coverage are as follows: 

• Bodily injury — $25,000 per person and $50,000 per accident 
• Property damage — $15,000 per accident 

If you can afford to do so, we recommend carrying higher limits than what Tennessee requires. This is because if the damage costs exceed the limits, you will have to pay the rest, which can be financially impossible for some drivers. For more on property damage liability insurance, check out the best property damage liability auto insurance companies.

Optional Car Insurance Coverages 

Besides bodily injury and property damage liability insurance, Tennessee doesn’t legally require drivers to carry any other car insurance coverages. This means that the following coverages are optional for most drivers: 

• Comprehensive auto insurance 
• Collision auto insurance 
• GAP insurance 
• Modified car insurance 
• Non-owner auto insurance 
• Rental car reimbursement insurance 
• Roadside assistance 
• Uninsured motorist coverage
• Underinsured motorist coverage
• Umbrella Insurance 

If you have a lease or loan on your vehicle, your lender will likely require you to carry comprehensive and collision insurance on your vehicle in order to fully protect their asset. 

DUI Penalties in Tennessee 

No matter what state you live in, DUIs are a serious driving offense. DUIs in Tennessee can result in a number of penalties, such as: 

• Fines 
• Ignition interlock device (IID) 
• Increased insurance rates 
• Jail time 
• License suspension 
• Probation and substance abuse treatment
• SR-22 certificate 

Penalties will increase in severity for each subsequent DUI offense. For example, your vehicle might be seized after your second DUI, and you will have to pay multiple fines and fees to get it back.  

SR-22 Certificates in Tennessee 

SR-22 auto insurance is required in Tennessee. SR-22 certificates are a way to ensure that high-risk drivers are carrying the required insurance coverages in Tennessee. Your insurance company will submit the certificate to government authorities, so if you need an SR-22 certificate, let your insurance company know. 

If your insurance company drops you for being a high-risk driver or you don’t have insurance, your new insurance company may charge a small fee for filing your SR-22 certificate. 

Keep in mind that even if you don’t own a car, you will need to get an SR-22 certificate if requested. You can purchase non-owner car insurance in order to meet Tennessee’s insurance requirements. 

The Final Word on Cheap Tennessee Car Insurance 

Tennessee drivers can find cheaper rates for car insurance by looking carefully at how a company’s rates change based on a driver’s records. A driver with a DUI won’t find the same cheap rates at the same company that a driver with a clean record signed up with. 

If you are ready to start shopping for Tennessee car insurance, use our free quote comparison tool to find the best cheap car insurance based on your area and driving record.

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