Key Takeaways
- Tennessee homeowners can find their cheapest home insurance rates from Erie, followed by USAA and State Farm.
- The average cost of home insurance in Tennessee is 20% more than the national average.
- You can compare quotes to get the best combination of cost and coverage.
In this article
What are Tennessee's cheapest home insurance companies?
Erie has the cheapest average rate for home insurance in Tennessee, at $152 a month. USAA is next at $158, then State Farm at $167.
| Company | Monthly rate |
|---|---|
| Erie | $152 |
| USAA | $158 |
| State Farm | $167 |
| Tennessee Farmers | $171 |
| Allstate | $218 |
| Farmers | $229 |
| Shelter | $233 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
How much does Tennessee home insurance cost?
Tennessee homeowners insurance costs an average $190 a month. That's 20% more than the national average home insurance rate of $159 a month.
When calculating your home insurance quote, insurers look at various factors, including:
- Your ZIP code
- The age of your home
- Construction materials
- Your insurance claim history
The coverage offered in a standard home insurance policy doesn't change much from provider to provider. The reason for the price difference between home insurance companies is that they put different risk values on each factor. For example, the age of your house might have a greater weight with one company than another. To get the best coverage at your best price, compare home insurance quotes from multiple providers.
The deductible you choose also affects your final rate. The higher your deductible, the lower your premium. The table below shows the average rates provided by the major home insurance companies in Tennessee based on deductible amounts.
| Company | $500 | $1,000 | $1,500 | $2,000 |
|---|---|---|---|---|
| Allstate | $209 | $198 | $190 | $182 |
| Erie | $147 | $133 | $126 | $120 |
| Farmers | $224 | $210 | $200 | $171 |
| Shelter | $246 | $203 | $185 | $172 |
| State Farm | $175 | $147 | $136 | $129 |
| Tennessee Farmers | $158 | $158 | $148 | $138 |
| USAA | $155 | $144 | $129 | $129 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
The dwelling coverage amount you choose also affects your quote. You'll want to make sure you carry enough dwelling coverage to rebuild your home after a total loss. The table below shows how average home insurance rates in Tennessee differ based on dwelling coverage limits.
| Coverage amount | Annual rate | Monthly rate |
|---|---|---|
| $200,000 | $1,693 | $141 |
| $350,000 | $2,426 | $202 |
| $425,000 | $2,844 | $237 |
| $500,000 | $3,260 | $272 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
See how much you could save on home insurance
Best home insurance companies in Tennessee
We found Erie, USAA and State Farm to be Tennessee's best choices for home insurance. Here's why.
Erie: cheapest rate and best replacement coverage
Erie has the lowest rate for homeowners insurance in Tennessee, at $152 a month. That's 20% cheaper than the average premium in the state of $190. On top of that, Erie's replacement cost coverage is some of the best you can get. If you suffer a total loss, Erie's guaranteed replacement cost coverage takes care of all of the rebuild cost, even if it exceeds your policy's dwelling coverage limit.
USAA: best for veterans
USAA is often considered the best of the best among insurance companies, both for customer satisfaction and financial strength. In J.D. Power's 2022 U.S. Home Insurance Study, USAA received a score of 884 out of 1,000, which is the highest score in the study. In terms of financial capability, A.M. Best gives USAA a financial strength rating of A++, which is the highest rating a company can get.
The main disadvantage of USAA is that it only provides insurance to current and veteran military members, as well as their immediate families. However, Tennessee has the 14th-highest population of veterans in the country, according to Statista. If you're one of the over 390,000 veterans living in Tennessee, USAA is definitely worth considering.
State Farm: most popular provider
As well as having some of the cheapest rates for home insurance in Tennessee, State Farm is the most-used insurance company. According to the National Association of Insurance Commissioners, State Farm holds 9.04% of the national market share for property and casualty insurance, which encompasses homeowners insurance.
A large part of State Farm's popularity comes from its long-standing trend of excellent insurance claims resolution and satisfaction. J.D. Power gave State Farm an above-average ranking of 880 out of 1,000 in its 2023 U.S. Property Claims Satisfaction Study.
Cheapest home insurance in Tennessee by city
Of the 10 biggest cities in Tennessee, Johnson City enjoys the cheapest average home insurance rates, at $1,716 a year. Memphis has the highest average rate of $2,854 a year.
| City | Annual rate |
|---|---|
| Johnson City | $1,716 |
| Knoxville | $1,868 |
| Franklin | $1,999 |
| Chattanooga | $2,022 |
| Hendersonville | $2,032 |
| Clarksville | $2,063 |
| Nashville | $2,130 |
| Murfreesboro | $2,307 |
| Jackson | $2,562 |
| Memphis | $2,854 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Johnson City
Erie is the cheapest home insurance company in Johnson City, at $1,091 a year, followed by State Farm at $1,470 a year. The average annual rate for home insurance in Johnson City is $1,716.
| Company | Annual rate |
|---|---|
| Erie | $1,091 |
| State Farm | $1,470 |
| USAA | $1,481 |
| Farmers | $1,781 |
| Tennessee Farmers | $1,813 |
| Allstate | $2,120 |
| Shelter | $2,254 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Knoxville
Knoxville gets the cheapest rate for home insurance from Erie, at an average $1,280 a year. It's followed by Allstate, at $1,624 a year. The average annual rate for home insurance in Knoxville is $1,868.
| Company | Annual rate |
|---|---|
| Erie | $1,280 |
| Allstate | $1,624 |
| State Farm | $1,647 |
| USAA | $1,712 |
| Tennessee Farmers | $1,933 |
| Farmers | $2,271 |
| Shelter | $2,612 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Franklin
Franklin gets the cheapest rate for home insurance from Erie, at an average rate of $1,323 a year. It is followed by Tennessee Farmers, at $1,783 a year. The average annual rate for home insurance in Franklin is $2,000.
| Company | Annual rate |
|---|---|
| Erie | $1,323 |
| Tennessee Farmers | $1,783 |
| State Farm | $1,905 |
| USAA | $1,945 |
| Allstate | $2,186 |
| Farmers | $2,354 |
| Shelter | $2,501 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Compare home insurance quotes from top providers
Tennessee's cheapest home insurance by county
In looking at the biggest counties in Tennessee, Sullivan County has the lowest rate, at $1,688 a year. Shelby County has the most expensive homeowners insurance, at $2,770 a year.
| County | Annual rate |
|---|---|
| Sullivan | $1,688 |
| Washington | $1,746 |
| Blount | $1,855 |
| Knox | $1,870 |
| Hamilton | $2,007 |
| Montgomery | $2,080 |
| Davidson | $2,124 |
| Sumner | $2,202 |
| Rutherford | $2,307 |
| Shelby | $2,770 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Frequently asked questions
Tennessee home insurance costs an average $190 a month, which is 20% more than the national average rate of $159 a month.
Erie has the lowest rate for home insurance in Tennessee, at $152 a month, on average. That's 20% cheaper than the average rate in the state.
Methodology
We collected quotes from every ZIP code in Tennessee for a standard HO-3 homeowners insurance policy using the following coverages:
- $275,000 dwelling coverage (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions. All content and services provided on or through this site are provided "as is" and "as available" for use. QuoteWizard.com LLC makes no representations or warranties of any kind, express or implied, as to the operation of this site or to the information, content, materials, or products included on this site. You expressly agree that your use of this site is at your sole risk.