Car Insurance in Tennessee
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Introduction: Car Insurance in Tennessee
Tennessee has over 5 million licensed drivers, making auto insurance a crucial part of driving in the state. Whether you’re navigating Nashville’s busy streets, driving through the Great Smoky Mountains, or commuting in Memphis, car insurance in Tennessee is essential for legal compliance and financial protection.
Tennessee has lower-than-average car insurance rates compared to the national average. According to the National Association of Insurance Commissioners (NAIC), the average annual cost of full coverage in Tennessee is $1,338, which is below the national average of $1,674.
Tennessee Car Insurance Requirements (State Laws & Minimum Coverage)
Minimum Liability Coverage (25/50/15 Rule)
According to the Tennessee Department of Commerce & Insurance (TDCI), drivers must carry at least:
✔ $25,000 for bodily injury per person
✔ $50,000 for bodily injury per accident
✔ $15,000 for property damage per accident
Why Minimum Coverage May Not Be Enough:
- Medical expenses after an accident can exceed $25,000 per person.
- Vehicle repair costs often surpass $15,000, especially for newer models.
- Tennessee has a high number of uninsured drivers, making Uninsured/Underinsured Motorist (UM/UIM) coverage essential.
Recommended Full Coverage for Better Protection
For greater financial security, many Tennessee drivers choose full coverage, which includes:
| Coverage Type | What It Covers | Recommended For |
|---|---|---|
| Collision Coverage | Pays for damage to your car in an accident | Drivers with new or financed vehicles |
| Comprehensive Coverage | Covers theft, vandalism, and weather damage | Important due to Tennessee’s frequent storms |
| Uninsured/Underinsured Motorist (UM/UIM) | Covers injuries from uninsured drivers | Crucial since many Tennessee drivers lack insurance |
| Medical Payments Coverage (MedPay) | Covers medical expenses regardless of fault | Helpful for drivers without health insurance |
Average Cost of Car Insurance in Tennessee
Car insurance rates in Tennessee vary based on location, driving history, and vehicle type. Below is an average cost breakdown:
Tennessee Car Insurance Cost by Coverage Type
| Coverage Type | Average Annual Cost |
|---|---|
| Minimum Liability | $611 |
| Full Coverage | $1,338 |
Car Insurance Costs by Major Tennessee Cities
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Nashville | $870 | $1,900 |
| Memphis | $950 | $2,100 |
| Knoxville | $750 | $1,600 |
| Chattanooga | $730 | $1,550 |
| Clarksville | $780 | $1,650 |
| Murfreesboro | $810 | $1,700 |
| Franklin | $850 | $1,850 |
| Jackson | $740 | $1,580 |
| Johnson City | $720 | $1,520 |
| Kingsport | $710 | $1,500 |
Car Insurance Costs by Age Group
| Age Group | Minimum Coverage | Full Coverage |
|---|---|---|
| 16-19 Years | $3,800 – $5,800 | $6,500 – $8,500 |
| 20-24 Years | $1,900 – $2,800 | $3,800 – $5,200 |
| 25-34 Years | $1,200 – $1,900 | $2,800 – $3,800 |
| 35-44 Years | $1,000 – $1,700 | $2,500 – $3,500 |
| 45-54 Years | $950 – $1,500 | $2,300 – $3,200 |
| 55+ Years | $900 – $1,400 | $2,000 – $3,000 |
✔ Teen Drivers (16-19 Years): Pay the highest premiums due to inexperience and higher accident risks. Many insurers offer good student discounts to help lower costs.
✔ Young Adults (20-24 Years): Rates decrease as driving experience improves but remain higher than mid-age drivers.
✔ Mid-Age Drivers (25-49 Years): Experience the lowest insurance premiums due to lower accident risks and a longer driving history.
✔ Senior Drivers (70+ Years): Rates increase again as older drivers face higher accident risks due to slower reaction times and medical conditions.
Factors Affecting Car Insurance Rates in Tennessee
Several factors influence car insurance rates in Tennessee, including:
- Driving Record: Accidents, DUIs, and speeding tickets impact premiums significantly.
- Location: Urban areas like Memphis and Nashville have higher rates due to congestion and theft.
- Credit Score: Tennessee insurers use credit history when determining premiums.
- Annual Mileage: More miles driven increases accident risk.
- Vehicle Type: High-performance and luxury vehicles cost more to insure.
- Weather Conditions: Tennessee’s severe storms, flooding, and tornadoes contribute to higher claims.
- Coverage Level: Full coverage is more expensive but offers better financial protection.
Best Car Insurance Companies in Tennessee (2025)
Finding the right insurer depends on affordability, coverage, and customer satisfaction. Here are some top options:
| Company | Best For | Average Annual Cost (Full Coverage) |
|---|---|---|
| GEICO | Cheapest Rates | $1,250 |
| State Farm | Best for Customer Service | $1,350 |
| Progressive | Best for High-Risk Drivers | $1,500 |
| Allstate | Best Full Coverage Options | $1,700 |
| USAA (Military Families) | Lowest Rates for Military | $1,200 |
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FAQs
Tennessee law requires 25/50/15 liability coverage: $25,000 per person for injuries, $50,000 per accident, and $15,000 for property damage.
The average minimum coverage costs around $51 per month, while full coverage averages $112 per month.
Smaller cities like Kingsport and Johnson City tend to have lower rates compared to Memphis and Nashville.
No, Tennessee does not require uninsured motorist coverage, but it is highly recommended.
Yes, but high-risk drivers may face higher premiums. Taking defensive driving courses and shopping around can help lower costs.
About the Author
Alex Huber is a content writer for Atoz Insurances and he is a very experienced and well-rounded freelance content writer who specializes in the insurance and finance niches. His writing is engaging and informative, and he has a strong understanding of the industries he writes about.