The best and cheapest car insurance in Tennessee

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Farm Bureau Insurance of Tennessee is the best car insurance company in Tennessee, earning 4.37 out of 5 stars in our analysis of pricing, customer satisfaction and financial strength. It offers average annual rates of $2,146, which is $89 less than the state average.

Drivers in Tennessee pay an average of $2,235 a year or $186 a month for car insurance coverage.

The table below shows the best car insurance companies in Tennessee.

How we picked the top auto insurance companies

When choosing the top car insurance companies in Tennessee, we looked at more than just the average cost of coverage. We also considered customer satisfaction scores from J.D. Power, financial strength ratings from AM Best and complaint data from the National Association of Insurance Commissioners (NAIC). If state or regional data wasn’t available, we relied on national averages to keep our comparisons consistent and fair.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Which company offers the cheapest car insurance in Tennessee?

With an average annual rate of $1,686, GEICO is the most affordable car insurance company in Tennessee.

Other low-cost options include:

• Auto-Owners, at $1,907 per year or $159 per month
• Erie Insurance, averaging $2,142 annually, which works out to about $179 a month

Meanwhile, Allstate ranks as the most expensive insurer in the state, with average premiums of $3,152 a year.

Keep in mind that your individual rate may vary. Insurance companies factor in your driving record, credit score, age, vehicle and ZIP code when setting premiums, so the cheapest insurer for one driver may not be the cheapest for another.

Below are the cheapest car insurance rates by company, based on a 40-year-old driving a Honda Accord LX to ensure fair comparisons. All rates reflect full coverage policies.

What is full coverage car insurance?

Full coverage car insurance is a combination of coverages that provide broader financial protection. It typically includes liability insurance (required in most states) plus collision and comprehensive coverage, which pay for damage to your own vehicle from accidents, theft, weather, vandalism and other non-collision events. While it offers more protection than minimum coverage, it also costs more and may be especially valuable if you have a newer, financed or higher-value car.

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

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How to find the best car insurance in Tennessee

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. That means checking:

• The same liability limits
• The same deductibles
• The same coverage types

For example, if one quote shows 25/50/25 in liability coverage and another shows 50/100/100, the lower price may simply reflect lower protection — not a better deal. Many agents recommend at least 50/100/100, and higher limits may make sense depending on your income and assets.

You can also lower your premium by:

• Maintaining a strong credit score
• Avoiding tickets and accidents
• Bundling home and auto insurance with the same carrier

Which companies have the cheapest car insurance for seniors in Tennessee?

Senior drivers in Tennessee generally pay higher car insurance rates than most age groups, though teens still tend to pay the most overall.

The cheapest car insurance companies for seniors in Tennessee are:

• GEICO: $1,690 a year ($141 a month)
• Farm Bureau Insurance of Tennessee: $1,843 a year
• Auto-Owners: $1,988 a year

Insurers typically charge seniors more because premiums reflect overall risk trends, including claim frequency and age-related driving factors such as slower reaction times and vision changes. That said, many seniors can still find lower rates by keeping a clean driving record, driving fewer miles and taking advantage of mature driver or safe driver discounts.

The chart below shows the average car insurance premiums for senior drivers in Tennessee.

Which company has the cheapest car insurance for young adults in Tennessee?

Young adults (21-25) pay less than teens, but they still pay more than more experienced drivers. In Tennessee, GEICO is the cheapest option for young adults with a yearly premium of $2,766 or $231 a month.

Farmers is the next most affordable with an average rate of $3,080 followed by Auto-Owners at $3,278.

Young drivers who maintain a clean driving record can expect their rates to drop even more as they reach their late 20s.

The table below shows the best insurers for young drivers in Tennessee:

Which companies have the cheapest car insurance for teen drivers in Tennessee?

In Tennessee, Erie Insurance offers the cheapest car insurance for teen drivers, with average premiums of $5,288 per year or $441 per month.

“Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

GEICO is the next most affordable option at $5,558 per year or $463 per month, followed by Farm Bureau Insurance of Tennessee at $5,904 per year.

The chart below shows average premiums for teens in Tennessee:

Why your cheapest car insurance option may vary

An insurer with the lowest average premium may not offer you the lowest price. Car insurance rates are personalized, and companies calculate risk differently based on individual driver profiles.

Several factors can affect what you pay, including:

• Driving history
• Credit profile (where permitted)
• Age and marital status
• The type of vehicle you drive
• Your ZIP code and local claim trends

Age plays a major role in pricing. Adding a teen to a policy can significantly increase premiums because teens are the least experienced drivers and tend to have higher accident rates.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

To help offset higher premiums, parents can explore good student discounts, choose a more affordable vehicle or reconsider certain coverages if the car’s value is low.

What is the average cost of car insurance in Tennessee?

The average cost of car insurance in Tennessee is $2,235 a year.

Car insurance rates vary widely from state to state because insurers base premiums on overall risk trends, including claim frequency, repair costs, state regulations and local accident data. Even within the same state, drivers can see different quotes depending on their driving history, age, vehicle and ZIP code.

The chart below displays the average rate in Tennessee for a 40-year-old driver with 100/300/100 coverage and a $500 collision and comprehensive deductible driving a Honda Accord LX.

Which cities and ZIP codes in Tennessee are the most expensive for car insurance?

Memphis has the highest car insurance rates in Tennessee, with average premiums reaching $2,807 per year across its most expensive ZIP codes.

Insurers use ZIP code data to assess localized risk factors, including traffic density, crime rates and exposure to severe weather. Urban areas with higher accident frequency or vehicle theft claims typically have the highest premiums.

According to our analysis of city and ZIP code data, the following areas are the most expensive in Tennessee for car insurance:

Which Tennessee cities and ZIP codes are the cheapest for car insurance?

When it comes to cheap car insurance in Tennessee, these ZIP codes have the most affordable coverage. The area around Bristol has the lowest premiums in Tennessee with an average premium of $1,782.

How where you live in Tennessee affects car insurance rates

Where you live in Tennessee plays a major role in determining your car insurance premium. Insurers evaluate local risk factors such as accident frequency, traffic congestion, repair expenses and weather-related claims when calculating rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Gao.

Since each insurer applies its own pricing formula to these geographic risks, drivers with similar profiles can receive very different quotes depending on which part of the state they live in.

Which companies have the cheapest car insurance for high-risk drivers in Tennessee?

Traffic violations and accidents can significantly increase your car insurance rates because insurers may classify you as a higher-risk driver.

For example, a speeding ticket can raise the average premium to $3,226 and typically affects your rates for up to three years. An at-fault accident tends to have a larger impact, pushing the average cost of coverage to around $3,824.

A DUI is considered a major violation and usually leads to the steepest increase, with average premiums rising to $3,875.

The table below shows how much car insurance rates increase on average after common driving incidents.

Minimum car insurance requirements in Tennessee

To legally drive in Tennessee, you’re required to carry at least 25/50/25 in liability car insurance. This minimum coverage pays for bodily injury and property damage you cause to others in an accident.

But state minimum limits are designed to meet legal requirements – not necessarily to fully protect your finances. In a serious crash, medical bills and repair costs can quickly exceed those limits. If that happens, you could be responsible for the remaining balance out of pocket.

That’s why many insurance experts suggest carrying higher limits, such as 100/300/50, to better protect your assets, income and long-term financial security.

The table below shows the minimum liability limits drivers must carry to legally drive in Tennessee.

Final thoughts on the best and cheapest car insurance in Tennessee

The right car insurance company in Tennessee ultimately depends on your budget, driving history and coverage preferences. Farm Bureau Insurance of Tennessee stands out for its overall value, combining competitive pricing with strong customer satisfaction and financial stability.

Still, the cheapest company for the average driver may not offer you the lowest rate. Your age, driving record, vehicle type and ZIP code all affect your premium, which makes comparing multiple insurers essential.

To find the best deal in Tennessee, get quotes from at least three companies, review coverage limits carefully – not just the price – and look for discounts such as bundling, safe driver programs, telematics or good student savings. Taking time to compare options can help you lower costs without cutting important protection.

What our experts say

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups

Methodology

Our car insurance analysis is based on 2026 rate data across all 50 states and Washington, D.C., covering 29,159 cities and 34,595 ZIP codes.

For standard rate comparisons, we analyzed 65,756,440 quotes from 195 companies across 73 insurer groups. Rates reflect a 40-year-old male and female driving a Honda Accord LX with 100/300/100 liability limits, $500 collision and comprehensive deductibles, a good insurance score, no violations, a 12-mile commute and 10,000 annual miles. The national average premium for this profile is $2,578 per year.

To measure the impact of risk factors, we reviewed an additional 95,071,152 quotes modeling at-fault accidents, DUI/DWI, speeding violations and poor credit, using the same base profile for consistency.

Company rankings are weighted as follows:

• J.D. Power (30%) – customer satisfaction
• Annual premium (25%) – average cost
• AM Best (25%) – financial strength
• NAIC (20%) – complaint index

Alisha Ambre

 

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Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.

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