Average Cost of Car Insurance in Tennessee in 2024

Across all demographics, the average cost of car insurance in the state of Tennessee in 2024 was $1,024 a year, which breaks down to about $85 a month, assuming you opt for full coverage car insurance.

The national average for full coverage car insurance in the United States is $1,924, or about $160. Compared nationally, the average cost of full coverage car insurance in Tennessee can be found for almost 50 percent cheaper than the national average.

By Age

Like most states, teen drivers face the highest costs for car insurance in Tennessee. The average teenager in Tennessee pays $3,835 annually for car insurance, compared to an average of $1,996 for drivers in their 20s. On the flip side, senior drivers in Tennessee have rates lower than the state average, with a sharp price drop for drivers in their 60s. Notice, however, that this price spikes again for drivers in their 70s.

By Gender

Men pay a little more than women for car insurance in Tennessee, which is par for the course compared to all other states. The difference is biggest for teen drivers, and gradually becomes less significant.

By Coverage Level

One way to save money on car insurance is by opting for minimum coverage instead of full coverage. In Tennessee, doing so will save you around $900 a year, with annual minimum coverage costing a cool $500 compared to the full coverage option of $1,406. However, minimum coverage may not offer enough protection. We often recommend getting the full coverage to be safe, but this decision varies based on your personal situation.

By Credit Score

One area that can have a heavy impact on car insurance costs is your credit score. Individuals with poor credit scores can expect to pay roughly $1,200 more for car insurance in Tennessee per year than those with good credit.

By Driving History

Similarly, expect higher costs if you’ve had a speeding ticket, at-fault accident or DUI. Individuals with a DUI pay over double the average than a driver with a clean record.

Looking for cheap car insurance in Tennessee? These companies have the lowest rates for different demographics.

Are you trying to save a few bucks on your auto insurance? Much like other states, some of the best ways to save money on car insurance in Tennessee are to explore specific discounts—such as defensive driver bonuses—as well as maintaining a clean driving record, and increasing your deductible.

Also, it is always important to compare quotes across multiple companies and policies to find the best deal. Never settle on your first option.

Finally, if you’re still struggling with auto insurance bills, as a last resort you might consider trading in your vehicle. Trucks, luxury and sports cars, and other high value vehicles are more expensive to insure than used cars, minivans, and hatchbacks.

Tennessee’s minimum coverage requirements include three essential components, sometimes referred to as 25/50/25:

• $25,000 for each bodily injury or death per accident
• $50,000 for total bodily injury or death accident
• $25,000 property damage per accident¹

This coverage is similar to the minimum requirements in many other states. For what it’s worth, we still recommend opting for higher liability limits.

Alternatively, you can post a bond or deposit cash to the department of revenue totalling $65,000 instead of paying for liability coverage. Opting for minimum coverage, however, might not sufficiently protect your assets in the case of a significant accident. For individuals financing or leasing a vehicle, your lender might also require additional protections such as comprehensive or collision coverage.

Tennessee follows an “at-fault” system for auto insurance claims. This means that after a car accident, the driver who is found to be at-fault (negligent or responsible) for causing the crash is legally and financially liable for the damages and injuries suffered by the other parties involved. The at-fault driver’s insurance company is responsible for paying claims up to the limits of their liability coverage. If the at-fault driver’s insurance limits are insufficient to cover all damages, the injured parties may be able to seek additional compensation from their own uninsured/underinsured motorist coverage or even sue the at-fault driver personally.

In most states, including Tennessee, motorists convicted of serious traffic violations like a DUI or driving uninsured might be required to obtain an SR-22 form. This can be obtained through your current insurer, who then forwards the certificate to the Tennessee Department of Safety (DOS). The SR-22 proves you hold minimum insurance requirements in the state. If you no longer own a car, you may have to purchase a non-owner policy in order to file the SR-22.

Although Tennessee’s insurance rates are well below the national average, young drivers, drivers with poor credit, and those with a checkered driving record will still need to shop around to limit the cost of their premiums. We recommend comparing quotes from different insurance companies to ensure you are getting the best rates.

Combining more than two decades of expertise linking individuals with leading car insurance companies, AutoInsurance.com has accumulated a large repository of data concerning specific demographic trends in the market. We use this information and expertise on minimum coverage requirements, fault systems, SR-22s/FR-44s, and social factors to provide a comprehensive picture of anticipated insurance costs and market projections. Accuracy and transparency are our ultimate goal, and our methodology reflects that.