Best and Cheapest Car Insurance in Tennessee (Save With These 10 Companies in 2024)

USAA, State Farm, and Geico have the best and cheapest car insurance in Tennessee.

Want more options for the best and cheapest car insurance companies in Tennessee? Take a look at our complete list of the top 10 companies below.

Company	Rank	Monthly Rates	A.M. Best	Best For	Jump to Pros/Cons
	#1	$18	Military Benefits	A++	USAA
	#2	$22	Agency Network	B	State Farm
	#3	$24	Online Convenience	A++	Geico
	#4	$26	Safety Discounts	A	Farmers
	#5	$27	Unique Coverage	A++	Travelers
	#6	$29	Loyalty Rewards	A+	Progressive
	#7	$32	Discount Availability	A	American Family
	#8	$33	Business Vehicles	A	Liberty Mutual
	#9	$37	Accident Forgiveness	A	Nationwide
	#10	$45	Claim Guarantee	A+	Allstate

Continue reading to learn more about these companies, Tennessee auto insurance requirements, and more. Want to find cheap Tennessee car insurance quotes? Compare rates now using our free quote tool.

What You Should Know

• USAA has the cheapest Tennessee car insurance
• State Farm and Geico are the next most affordable companies
• All Tennessee drivers must carry minimum auto insurance coverage

On this page:

• Top Tennessee Companies Rates and Discounts
• Cheapest Teen Car Insurance Rates in Tennessee
• Cheapest Married Couple Car Insurance Rates in Tennessee
• Cheapest Senior Car Insurance Rates in Tennessee
• Cheapest Areas in Tennessee for Car Insurance
• Most Expensive Areas in Tennessee for Car Insurance
• Tennessee Minimum Car Insurance Coverage Requirements and Limits in Tennessee
• How Tennessee Companies Calculate Car Insurance Rates
• How to Save on Tennessee Car Insurance Rates
• How Clearsurance Ranks Tennessee Car Insurance Companies
• Finding the Best and Cheapest Tennessee Car Insurance Companies

#1 – USAA: Top Pick Overall

Pros

• Military Benefits: Traveling and shopping discounts are just some of the benefits USA customers get. Read our USAA review to learn more.
• SafePilot UBI Program: Join the free program in Tennessee to earn a discount for save driving.
• Student Discounts: Show proof of good grades in Tennessee for a discount if you are under age 25 and in school.

Cons

• Eligibility Restrictions: Tennessee insurance is sold solely to veterans, military, and their families.
• No Local Agents: Tennessee agents for in-person visits are not available.

#2 – State Farm: Best for Agency Network

Pros

• Agency Network: Local Tennessee agents are available near most customers.
• Coverage Options: There are several options for Tennessee vehicles. Learn more in our State Farm review.
• Bundling Discount: Buy other Tennessee policies for a lower rates.

Cons

• Online Policy Management Limited: Most changes to policies must be through a Kansas State Farm agent.
• Financial Rating: State Farm has a low rating.

#3 – Geico: Best for Online Convenience

Pros

• Online Convenience: Tennessee customers should find it simple to manage their policies online.
• DriveEasy UBI Program: Join to save on Tennessee car insurance.
• Bundling Discount: Buy Geico renters insurance or home insurance in Tennessee along with auto insurance.

Cons

• No Gap Insurance: This could be a con for new car owners in Tennessee.
• No In-Person Assistance: Tennessee residents won’t be able to find a local agent.

#4 – Farmers: Best for Safety Discounts

Pros

• Safety Discounts: Farmers offers discounts if cars have certain safety features.
• Customizable Policies: Tennessee auto insurance policies can be customized.
• Multi-Policy Discount: Purchase home or renters insurance too to get a lower rate.

Cons

• Customer Service Ratings: Ratings from Tennessee customers and other states are average. Learn more in our Farmers review.
• Accident Forgiveness: Most Tennessee drivers won’t qualify due to strict requirements.

#5 – Travelers: Best for Unique Coverage

Pros

• Unique Coverage: Travelers has unique coverage options for Tennessee drivers, such as gap coverage or new car replacement coverage.
• IntelliDrive Program: A free program that rewards good drivers with a discount.
• Financial Rating: Travelers is financially sound. Learn more in our Travelers review.

Cons

• Customer Ratings: Customer scores are average for Travelers.
• IntelliDrive Potential Rate Increases: Bad drivers may have higher rates after completing the program.

#6 – Progressive: Best for Loyalty Discounts

Pros

• Loyalty Rewards: Progressive offers rewards like discounted rates to loyal customers.
• Snapshot Program: A free program that rewards good drivers with a discount.
• Online Management: Managing policies online should be easy for Tennessee customers.

Cons

• Potential Snapshot Rate Increases: Bad drivers may see higher rates if they do poorly in the program.
• Customer reviews: Ratings could be higher for Progressive. Find out more in our Progressive review.

#7 – American Family: Best for Discount Availability

Pros

• Discount Availability: American Family has plenty of discounts available in Tennessee, such as student discounts.
• Local Agents: Local agents are available across Tennessee.
• Good Student Discount: Proof of good grades will earn Tennessee students lower rates.

Cons

• High-Risk Driver Rates: Rates can be higher for higher risk Tennessee customers. Learn more in our American Family review.
• Online Management: Tennessee customers may find it difficult to make policy changes online.

#8 – Liberty Mutual: Best for Business Vehicles

Pros

• Business Vehicles: Liberty Mutual offers insurance for business vehicles in Tennesses.
• Affinity Discounts: There are military and veteran discounts at Liberty Mutual. Read more in our review of Liberty Mutual.
• Bundling Discount: Get home or renters insurance to lower rates on Tennessee auto insurance.

Cons

• Customer Ratings: Customer service is rated as average in Tennessee.
• High-Risk Driver Rates: Tennessee rates are high for higher risk drivers.

#9 – Nationwide: Best for Accident Forgiveness

Pros

• Accident Forgiveness: Tennessee drivers with clean driving records may not have their rates increased after an accident.
• Deductible Savings: Tennessee drivers may get lower deductibles for safe driving.
• Add-On Coverages: Nationwide offers optional coverages for Tennessee customers.

Cons

• No Rideshare Insurance: Tennessee Lyft and Uber drivers won’t be able to get rideshare insurance.
• Customer Ratings: Customer scores are average. Read more in our Nationwide review.

#10 – Allstate: Best for Claim Guarantee

Pros

• Claim Guarantee: Allstate discounts future rates with its claim satisfaction guarantee.
• Mileage-Based Insurance: Low-mileage Tennessee drivers may choose to go with Allstate’s Milewise coverage.
• Bundling Discount: Tennessee home or renters insurance can be bought with auto insurance coverage.

Cons

• Customer Reviews: Allstate’s ratings could improve. Learn more in our Allstate review.
• Teen Driver Rates: Tennessee teens buying their own policy may want to shop elsewhere, as Allstate’s rates are high.

Top Tennessee Companies Rates and Discounts

Finding the right car insurance is important for any customer. If you’re from Tennessee, you can read through Clearsurance reviews from the top rated companies Tennessee to find out which company is right for you.

We also want to ensure you understand what it takes to get cheap auto quotes from various companies, because there is such a wide range to choose from. Plus we'd also like to help outline what should be included in your auto policy within the Tennessee area.

Take a look below to see the average rates at the cheapest companies for different coverages.

Insurance Company	Minimum Coverage	Full Coverage
Allstate	$45	$144
American Family	$32	$102
Farmers	$26	$86
Geico	$24	$78
Liberty Mutual	$33	$184
Nationwide	$37	$118
Progressive	$29	$92
State Farm	$22	$72
Travelers	$27	$88
USAA	$18	$58

Our hope at Clearsurance is to help you better understand how a company performs before you even purchase a policy so you can select the best auto insurance in Tennessee. For example, the top companies in Tennessee also offer discounts to customers, from good driver discounts to bundling discounts.

With thousands of car insurance reviews from unbiased policyholders, we have reviews and rankings for hundreds of car insurance companies so you can evaluate and compare the best Tennessee car insurance companies.

Read More: What kind of car insurance do you really need?

In the tables above, you can sort through all the Tennessee car insurance companies ranked on Clearsurance. The rating next to each company — the insurer’s Clearsurance score — is based exclusively on the ratings provided by customers. Note: Only those companies with at least 25 car insurance reviews are eligible to appear in the best Tennessee car insurance rankings.

Interested in learning more about one of these Tennessee car insurance companies? You can visit the company’s profile page to find out what additional coverage they offer, any insurance discounts they offer, and read car insurance reviews to learn from the experiences of other auto insurance policyholders.

With all of this information under your belt, you'll be able to find much more affordable rates and understand why purchasing just the minimum policy may not be the best idea.

Cheapest Teen Car Insurance Rates in Tennessee

If you have a clean driving record with no at-fault accidents, speeding tickets, or DUI penalties, the chances of finding cheap car insurance rates are much higher. Still, teen drivers will probably have to ask about student discounts or take defensive driving courses in order to save money on a policy.

Read More: The Cost Benefits to Taking a Defensive Driving Course

They don't have much driving history for an insurer to reference. But rather than just take away their driving privileges if it turns out they're more of a high-risk driver, instruct them on how to practice safe driving habits, and research coverage options with various carriers.

In the table below, you can see the average teen car insurance rates by gender from the top car insurers in the state.

Insurance Company	Female	Male
Allstate	$177	$192
American Family	$93	$127
Farmers	$163	$174
Geico	$136	$139
Liberty Mutual	$225	$250
Nationwide	$117	$153
Progressive	$211	$239
State Farm	$71	$88
Travelers	$75	$92
USAA	$66	$76

USAA is the cheapest car insurance option for both male and female teen drivers in Tennessee on average. However, teens without a military or veteran affiliation can find the next cheapest rates at State Farm.

Cheapest Married Couple Car Insurance Rates in Tennessee

Out of the best auto insurance companies in Tennessee, Erie Insurance offers the cheapest car insurance rates for married couples in Tennessee on average (Read More: Best Car Insurance Companies for Married Couples). The table below displays minimum coverage rates for married couples in Tennessee at the ten cheapest companies.

Insurance Company	Monthly Rates
Allstate	$52
American Family	$40
Farmers	$43
Geico	$28
Liberty Mutual	$66
Nationwide	$48
Progressive	$44
State Farm	$31
Travelers	$30
USAA	$26

Financial stability in a relationship is important, and an auto policy is no exception. Grouping auto insurance together doesn't lessen the amount of coverage per person, but it does aid in reducing the overall cost for married couples.

Cheapest Senior Car Insurance Rates in Tennessee

USAA provides the cheapest car insurance rates for male and female senior drivers in Tennessee on average. If you don't qualify for USAA, though, there are still plenty of affordable options. The table below shows minimum coverage rates for senior drivers at the cheapest Tennessee companies.

Insurance Company	Female	Male
Allstate	$43	$44
American Family	$29	$29
Farmers	$23	$26
Geico	$21	$21
Liberty Mutual	$43	$48
Nationwide	$33	$33
Progressive	$24	$26
State Farm	$20	$20
Travelers	$22	$23
USAA	$16	$16

Senior drivers often have lower rates due to driving experience. Senior drivers are also less likely to be on the road during busy commute hours, lessening the chances of senior being in a traffic accident.

While rates will creep up again as drivers reach their 80s, defensive driving courses and clean driving records will help keep rates affordable in Tennessee, especially if they shop at the best companies (Read More: Best Car Insurance for Senior Drivers).

Cheapest Areas in Tennessee for Car Insurance

The area you live in matters when it comes to cheap car insurance rates.

Read More: Top Ways Customers Have Saved Money on Car Insurance Rates

In Tennessee, your car insurance rates can vary based on where you live because of factors such as crime rate, weather and number of accidents that happen in your area. The table below displays the top 10 cheapest areas in Tennessee for car insurance based on average rates for a single adult.

Area	Monthly Rates
Blountville	$90
Bristol	$90
Johnson City	$90
Piney Flats	$90
Watauga	$91
Telford	$91
Elizabethton	$91
Bluff City	$91
Mountain Home	$91
Jonesborough	$91

The cheapest areas in Tennessee include areas like Blountville, Bristol, and Johnson City. Of course, just because you live in a cheaper area doesn't automatically mean you'll have cheap rates. Your driving record, choice of insurer, and other factors will also play a role.

Most Expensive Areas in Tennessee for Car Insurance

Some areas of Tennessee are more expensive for car insurance if the area is at a higher risk to car insurance claims (read more: Why is car insurance so expensive?). The table below displays the top 10 most expensive areas in Tennessee for car insurance based on average rates for a single adult.

Area	Monthly Rates
Memphis	$132
Cordova	$120
Germantown	$117
Eads	$117
Ellendale	$116
Millington	$116
Brighton	$116
Arlington	$116
Collierville	$116
Silerton	$115

Memphis, Tennessee is the most expensive city for auto insurance. If you live in Memphis, expect to pay slightly higher rates, even if you have a clean driving record and shop at the cheapest companies.

Tennessee Minimum Car Insurance Coverage Requirements and Limits in Tennessee

Tennessee has one mandatory requirement for drivers: liability car insurance. This coverage helps you pay for property damage and includes bodily injury liability for injuries to other drivers and their passengers in an accident that you cause.

The minimum limits set by the state are listed below, but you should consider purchasing higher than the minimum coverage requirements in order to make sure you have sufficient auto insurance coverage in the event of a costly accident.

While you could only purchase liability insurance and be a legal driver in the state, you should consider optional coverages, such as collision or comprehensive insurance, which will help cover any damage to your vehicle. Collision will help in the event of a crash with another vehicle, where comprehensive helps if your vehicle suffers through a natural disaster or vandalism.

Read More: Collision vs. Comprehensive Coverage

You should also look into buying medical payments coverage to make sure that any injury-related bills from an accident are covered, regardless of fault. By purchasing higher limits than the minimum requirements, you'll be paying more overall for your policy, but you won't be landed with having to pay compensation for another driver's medical expenses out of your own pockets.

Tennessee state minimum car insurance requirements:

Liability:

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

Bodily injury liability provides coverage for injuries sustained by the other vehicle’s driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal claims.

Property damage liability provides coverage in the event you damage someone else’s property in a car accident, most commonly the other vehicle, but also things like a home or fence. You can also look into personal injury protection, which helps should you end up with medical bills from a hospital visit. There is also uninsured and underinsured motorist coverage, which can be helpful when it comes to the information we provide below.

Tennessee Uninsured Motorist Percentage

Tennessee drivers would be wise to consider another optional coverage: uninsured motorist coverage. According to 2015 data from the Insurance Information Institute, 20 percent of drivers in Tennessee are uninsured, which is the fifth highest of any state in the country.

Without this coverage, you’ll be responsible for your own bills in the event you are hit by an uninsured driver. Tennessee has a high percentage of uninsured drivers, so this coverage also protects you from hit-and-run drivers and drivers who don’t have enough insurance.

Your coverage rates may increase the more protection you end up having included in your policy, however it still would be better to be safe rather than financially sorry.

How Tennessee Companies Calculate Car Insurance Rates

When searching and comparing insurance quotes from the best auto insurance companies in Tennessee, it can be frustrating trying to understand how your insurance rates are calculated.

While there is no exact formula that each car insurance company uses when providing you a quote, there are many factors that do contribute to the price you pay for your insurance. Among the factors that car insurers consider are:

• Age, Gender, & Marital Status
• Driving Record & Annual Mileage
• Your Car’s Make, Model, and Year
• Location & Credit Score
• Amount of Car Insurance Coverage

One of the biggest misunderstandings when it comes to insurance rates is that the history of drivers in your area also contributes to how much you pay. For instance, even if you go two years without an accident, if there were a lot of accidents near you recently, your rates might still go up. Why is that the case?

Insurance companies disperse risk across all policyholders so that when it comes time to pay a claim, they have enough money to pay out. But imagine a scenario where they only raised rates for drivers with an accident or a bad driving record.

Learn More: What is considered a clean driving record?

For drivers who had an expensive claim, the drivers simply wouldn't be able to afford the raised rates that are based off how much their insurer had to pay after an accident. So instead, insurance companies slightly increase rates across the board to offset the costs, though of course the at-fault driver may see a larger increase.

How to Save on Tennessee Car Insurance Rates

At the end of the day, we’d all like to have the best coverage at a cheap, affordable price from one of the best Tennessee car insurance companies. The average cost of car insurance in Tennessee is 30% lower than the national average while Tennessee ranks 15 out of 50 for having the most affordable car insurance.

While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can get cheap car insurance.

Here are five ways you may be able to lower your car insurance rates:

• Bundle your car insurance with other policies
• Consider raising your deductibles
• Pay your car insurance policy in full
• Try usage-based car insurance
• Shop for better insurance rates

You can also ask your insurance carrier for any potential discounts that they may offer. Remember, the cheapest rate from the cheapest companies won't always offer you the protection you need in the event of an accident.

The more expensive policies may not seem worth it at first, but if you take the above mentioned steps to heart, you could end up offsetting their cost with just a little research.

How Clearsurance Ranks Tennessee Car Insurance Companies

Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:

• Price
• Customer Service
• Claim service
• Likelihood to renew

The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.

Learn More: Insurance Claims Rating for Top 10 Largest Car Insurance Companies

This might center on the coverage policy itself, the way they handle their customer service, or even how fast their approach to fulfilling claims turns out to be. This way, we're not just looking at the cheapest providers — we want to cover all the options that are available to you.

The Clearsurance customer ratings and rankings are derived entirely from customer reviews and ratings. We make sure that we provide accurate content so that you can make your financial decisions with confidence.

Finding the Best and Cheapest Tennessee Car Insurance Companies

Whether you’re buying your insurance direct or going through an agent, understanding the different car insurance coverage options is a must. Do you know what is covered by comprehensive coverage? Are you familiar with uninsured motorist coverage? Do you know how a deductible works?

We want to make sure you’re equipped with a proper knowledge of car insurance, so check out our practical guide for understanding car insurance. Looking for more educational information about car insurance? Check out our car insurance blog for more information and topics related to car insurance.

Enter your ZIP in our free quote tool to find cheap Tennessee insurance quotes today.