The best cheap car insurance in Tennessee


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Car insurance in Tennessee is fairly affordable, with the average driver paying about $820 a year for coverage according to the Insurance Information Institute. Considering that the average US driver pays $935 for coverage, auto insurance in Tennessee is fairly affordable. 

If you're looking for car insurance in this state, it's worth understanding a bit about how car insurance works. Insurance companies look at lots of different factors, including your age, gender, where you live in the state, and even your credit score to determine your rates. Each insurance company looks at these factors differently. That means they'll price your premium, or the amount you'll pay for coverage, differently too. 

It's important to shop around and make sure that you're getting the best coverage for your money. Here are a few ideas on where to start shopping. 

The following are the most popular car insurance companies in Tennessee, based on the percentage of insured Tennessee  drivers who use them:

CompanyMarket share (%)
State Farm20.34
Tennessee Farmers Insurance16.34
GEICO10.04
Progressive9.92
Allstate6.32
USAA*5.61
Liberty Mutual4.74
Erie Insurance3.03
Nationwide2.82
National General Holdings2.15
Travelers1.96
Farmers Insurance1.93
Shelter Insurance1.71
Auto-Owners Insurance1.40
Alfa Mutual Group1.38
American Family Insurance1.25
MetLife1.03
Grange Insurance0.59
First Acceptance0.49
Westfield Insurance0.48

*USAA is only for active military, veterans, and their families.

Data from S&P Global Market Intelligence

Customer satisfaction with car insurance providers may factor into your decision. According to J.D. Power, a consumer research company that surveys customers, these are the top car insurance companies in the Southeast region (which includes Tennessee):

  1. Farm Bureau Insurance TN
  2. Erie Insurance
  3. Alfa Insurance
  4. GEICO
  5. Auto-Owners Insurance
  6. North Carolina Farm Bureau
  7. Kentucky Farm Bureau
  8. Region Average
  9. Progressive
  10. Allstate 
  11. Safeco
  12. State Farm
  13. Farmers
  14. National General
  15. Nationwide
  16. Travelers
  17. Liberty Mutual
  18. MetLife

Consumer Reports compiled a list of all car insurance pricing formulas from all companies in every state. It used an average single adult driver to find the best pricing in each state, and found that three companies came out on top for three different credit levels. Here are the three best companies and their average price for coverage:

Drivers with excellent credit, FICO score 800-850, will see some of the best average rates on car insurance.

  • USAA car insurance: $754 per year
  • Tennessee Farmers car insurance: $860 per year
  • State Farm car insurance: $1,029 per year

Drivers with good credit, FICO score 670-739, will see the best coverage from these three companies, on average:

  • USAA car insurance: $850 per year
  • Tennessee Farmers car insurance: $906 per year
  • State Farm car insurance: $1,260 per year

Those with poor credit, FICO score 300-579, will pay more for their car insurance, on average.

  • GEICO car insurance: $1,046 per year
  • USAA car insurance: $1,874 per year
  • Nationwide car insurance: $2,090 per year

For a driver in Tennessee age 25 or older with no accidents and one vehicle, the following companies provide the best average rates:

CompanyAverage monthly insurance premium
Safeauto$108
Root$110
State Farm$111
GEICO$129
Progressive$134
Allstate$139
Liberty Mutual$144
Esurance$150
Travelers$172
USAA*$173

*USAA is only for active military, veterans, and their families.

Above data obtained from Savvy, based on 1,469 policyholders in the state of Tennessee 

For a driver in Tennessee age 25 or older, with one or more accidents and one vehicle, the following companies provide the best average rates:

CompanyAverage monthly insurance premium 
GEICO$145
Progressive$161
Allstate$172
Esurance$173

Above data obtained from Savvy, based on 1,469 policyholders in the state of Tennessee 

Below is the estimated average annual premium of auto insurance policies per household in Tennessee's most populous cities:

CityAverage annual insurance premium 
Nashville-Davidson$1,407
Memphis$1,261
Knoxville$1,258
Chattanooga$1,287
Clarksville$1,365
Murfreesboro$1,421
Franklin$1,605
Johnson City$1,303
Jackson$1,271
Hendersonville$1,456
Bartlett$1,523
Smyrna$1,429
Kingsport$1,262
Collierville$1,679
Cleveland$1,280
Brentwood$1,780
Spring Hill$1,591
Columbia$1,316
La Vergne$1,449
Gallatin$1,388
Germantown$1,610
Lebanon$1,400
Cookeville$1,227
Mount Juliet$1,586
Oak Ridge$1,370
Morristown$1,235
Maryville$1,352
Bristol$1,272
Shelbyville$1,294
Farragut$1,637
East Ridge$1,256
Tullahoma$1,303
Springfield$1,323
Goodlettsville$1,388
Sevierville$1,297
Dyersburg$1,251
Dickson$1,328
Greeneville$1,272
McMinnville$1,217
Athens$1,228

Data from S&P Global Market Intelligence

As the estimates above show, drivers with the best credit scores generally get some of the best rates for car insurance. But, there are still a few things you can do to make sure that you're getting the best possible rate for you. 

It might be worth doing a little bit of work to raise your credit score before shopping around — it could make a big difference in the amount you'll pay for coverage. 

Shopping around is essential to getting the best rate for you. Car insurance rates can vary widely, so it's worth doing some research to get the best price. To do this, get several quotes from different insurance companies and compare them. Take a look at the coverage types and limits and also the deductible, or the amount you'll pay out-of-pocket if you get into an accident. 

Once you've looked at what several different insurance companies have to offer, you'll be able to get the best insurance policy for your money. 

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