Cheapest Car Insurance in Tennessee
If you’re searching for cheap auto insurance in Tennessee, make sure to get quotes from State Farm and Erie. These two companies offer some of the best rates to drivers with various auto insurance needs, according to the latest rate analysis by QuoteWizard. Since there are many choices, here’s what you need to know about finding cheap car insurance in Tennessee.
In this article:
Who offers the cheapest car insurance in Tennessee?
Our analysis shows that State Farm offers the cheapest rates to motorists who meet a variety of driver profiles, including those seeking minimum and full-coverage auto insurance, as well as those with blemishes on their driving record. Erie and USAA, which is only available to members of the military community, are also among the price leaders for Tennessee auto insurance.
Cheapest rates for minimum-coverage car insurance
For a policy meeting Tennessee’s minimum liability insurance requirements, State Farm charges $414 a year, which works out to $35 a month. Erie has the next lowest monthly rate, $38 per month, followed by USAA, at $40 per month. The average monthly cost of minimum-coverage car insurance in Tennessee is $60 per month, or $722 a year.
| Company | Average annual rate | Average monthly rate | ||
|---|---|---|---|---|
| State Farm | $414 | $35 | ||
| Erie | $460 | $38 | ||
| USAA | $483 | $40 | ||
| Farm Bureau Insurance | $578 | $48 | ||
| GEICO | $632 | $53 | ||
| Progressive | $646 | $54 | ||
| Allstate | $729 | $61 | ||
| Nationwide | $831 | $69 | ||
| Farmers | $978 | $82 | ||
| Travelers | $1,465 | $122 | ||
| State average | $722 | $60 | ||
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Cheapest rates for full-coverage car insurance
When it comes to full-coverage car insurance, which includes liability, collision and comprehensive coverages, State Farm still has the best rate, $78 a month, followed by USAA, $83 a month, and Erie, $98 a month. The average monthly rate for full-coverage car insurance in Tennessee is $138.
| Company | Average annual rate | Average monthly rate | ||
|---|---|---|---|---|
| State Farm | $936 | $78 | ||
| USAA | $1,001 | $83 | ||
| Erie | $1,177 | $98 | ||
| Progressive | $1,323 | $110 | ||
| GEICO | $1,592 | $133 | ||
| Allstate | $1,683 | $140 | ||
| Farm Bureau Insurance | $1,744 | $145 | ||
| Nationwide | $1,814 | $151 | ||
| Farmers | $2,019 | $168 | ||
| Travelers | $3,224 | $269 | ||
| State average | $1,651 | $138 | ||
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
In our analysis, we reviewed rates available to a typical driver from 10 leading insurance companies, including national and regional carriers.
Insurance companies evaluate several rate factors to determine your premium, including your driving record, claims history, age, ZIP code and vehicle characteristics, as well as the coverage you choose.
Since each company has its own rating system, it’s possible that you will qualify for higher or lower rates than those shown for each company in our analysis. This is why it’s best to compare rates from multiple companies when you shop.
Cheapest car insurance after a speeding ticket or accident
A speeding ticket bumps the average monthly rate of car insurance in Tennessee up to $150, compared to $138 for a driver with a clean record. Our research shows that State Farm, USAA and Erie offer the best rates for a driver with a speeding ticket.
| Company | Average monthly rate | |||
|---|---|---|---|---|
| State Farm | $85 | |||
| USAA | $99 | |||
| Erie | $101 | |||
| GEICO | $133 | |||
| Farm Bureau Insurance | $145 | |||
| Progressive | $152 | |||
| Allstate | $158 | |||
| Nationwide | $182 | |||
| Farmers | $230 | |||
| Travelers | $305 | |||
| State average | $159 | |||
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
If you meet certain requirements, you can have a speeding ticket dismissed by attending a driver safety class. Doing so can prevent the speeding ticket from increasing your insurance rates.
An accident bumps the average monthly cost of car insurance in Tennessee up to $188. State Farm, USAA and Erie offer the best rates to motorists with an accident on their record.
| Company | Average monthly rate | |||
|---|---|---|---|---|
| State Farm | $93 | |||
| USAA | $120 | |||
| Erie | $124 | |||
| Farm Bureau Insurance | $145 | |||
| Progressive | $182 | |||
| Allstate | $206 | |||
| GEICO | $210 | |||
| Nationwide | $226 | |||
| Farmers | $248 | |||
| Travelers | $324 | |||
| State average | $188 | |||
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Cheapest insurance for a driver with a DUI in Tennessee
A DUI increases the average cost of insurance in Tennessee to $220 a month, which is 59% more than a driver with a clean record. State Farm offers the cheapest rate for a driver with a DUI, followed by Progressive and Erie.
| Company | Average monthly rate | |||
|---|---|---|---|---|
| State Farm | $85 | |||
| Progressive | $129 | |||
| Erie | $147 | |||
| USAA | $157 | |||
| Allstate | $194 | |||
| Farm Bureau Insurance | $232 | |||
| Farmers | $257 | |||
| Nationwide | $284 | |||
| GEICO | $358 | |||
| Travelers | $358 | |||
| State average | $220 | |||
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Which companies offer the best customer service?
When it comes to customer service, USAA, Farm Bureau Insurance and Erie have the highest customer satisfaction scores from J.D. Power. Farm Bureau Insurance, Progressive and State Farm have the lowest complaint rates, according to the National Association of Insurance Commissioners (NAIC).
J.D. Power’s customer satisfaction scores are based on surveys across Tennessee and seven other Southeastern states. The insurance companies were rated on a 1,000-point scale on the following criteria: billing process, policy information, claims, interaction, policy offerings and price.
| Company | Customer satisfaction score | |||
|---|---|---|---|---|
| USAA | 890 | |||
| Farm Bureau Insurance | 883 | |||
| Erie | 874 | |||
| State Farm | 859 | |||
| GEICO | 843 | |||
| Allstate | 838 | |||
| Nationwide | 831 | |||
| Travelers | 831 | |||
| Progressive | 828 | |||
| Farmers | 818 | |||
| Regional average | 847 | |||
| Source: J.D. Power 2021 U.S. Auto Insurance Study, Southeast region | ||||
The NAIC Complaint Index compares insurance companies based on the number of confirmed complaints, which are those that lead to findings of fault by the insurance commissioner of the state in which the complaint is filed.
The National Complaint Index is 1.0. A company with a 2.0 index has twice as many confirmed complaints as expected for its size. A company with a 0.5 index has half as many as expected. A lower Complaint Index is better.
The Complaint Index is based on a company’s overall performance in all of the states in which it conducts business. The chart below shows the overall Complaint Index for each company, as well as the number of confirmed auto insurance complaints each one had in Tennessee in 2020.
| Company | Complaint Index | Complaints in Tennessee | ||
|---|---|---|---|---|
| Farm Bureau Insurance | 0.06 | 2 | ||
| Progressive | 0.22 | 3 | ||
| State Farm | 0.70 | 4 | ||
| USAA | 0.73 | 3 | ||
| GEICO | 0.79 | 0 | ||
| Farmers | 0.82 | 3 | ||
| Travelers | 0.87 | 0 | ||
| Allstate | 0.88 | 4 | ||
| Nationwide | 1.03 | 1 | ||
| Erie | 1.32 | 1 | ||
| Source: National Association of Insurance Commissioners Complaint Index, based on data from 2020. | ||||
Tennessee’s best overall auto insurance companies
The best insurance company is one that provides the coverage you need at a reasonable price and fulfills its claims obligations in a timely, courteous manner. Based on price, customer service scores and policy features, here’s a look at the national and regional carriers that stand out in Tennessee.
Best national insurance companies in Tennessee
In addition to having the lowest prices for many different driver profiles, State Farm ranks well for customer satisfaction and has a low complaint rate.
Although Allstate does not offer the lowest rates found in our analysis, the company offers other ways to save. Allstate’s Deductible Rewards feature, for example, reduces your collision deductible by $100 after every year you avoid an accident, which could save you money if you ever have to file a claim. And Allstate’s Accident Forgiveness protects you from rate increases after an accident, provided you meet the eligibility requirements.
Farmers and Progressive are among the national companies that also offer accident forgiveness.
Best regional carriers in Tennessee
Based on rates alone, Erie, which provides auto insurance in 12 states plus the District of Columbia, is a great choice for Tennesseans. Erie also offers discounts on vehicles dedicated entirely to farm use. The company’s policy features include accident forgiveness as well as a program that limits rate increases on policy renewals.
Farm Bureau Insurance’s high J.D. Power score and low Complaint Index reflect its high standards for customer service. You don’t have to be a farmer to buy Farm Bureau Insurance, but you do have to be a Tennessee Farm Bureau member, which requires an annual $30-per-family fee. Member benefits include discounts on a variety of products and services and access to health and safety programs.
Best car insurance for the military community
A consistently high customer satisfaction score reflects USAA’s commitment to meeting the needs of military families. In addition to accident forgiveness and safe-driver discounts, USAA provides discounts for low-mileage vehicles and those garaged on military bases.
GEICO is among the national carriers that offer discounts to current and former military members, including those deployed to imminent danger areas.
Financial responsibility requirements in Tennessee
Tennessee’s financial responsibility law requires you to carry liability insurance with bodily injury limits of at least $25,000 per person and $50,000 per accident, as well as a liability limit of at least $15,000 for property damage.
As an alternative, you can post a $65,000 bond or deposit $65,000 with the Tennessee Department of Revenue.
The state’s Electronic Insurance Verification System checks the customer databases of insurance companies to make sure that each registered vehicle is insured. The penalty for owning or operating an uninsured vehicle includes fines and a suspension of your vehicle’s registration.
SR-22 insurance in Tennessee
If you violate the state’s financial responsibility law or commit certain other violations, including DUI, you may be required to file an SR-22 form through your insurance company with the Tennessee Department of Safety & Homeland Security.
To meet the SR-22 requirement, you need to notify your insurance company about the SR-22 requirement, and the insurance company will file the form with the Department of Safety. Many insurance companies charge a filing fee for an SR-22, and SR-22 customers tend to pay higher premiums, based on the rate impacts of the violations that led to the SR-22 requirement.
If you are ordered to obtain an SR-22 filing, you will not have your driving privileges reinstated until you do so, and you may be required to maintain the SR-22 filing for up to five years.
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