Insurance Curator Shopping for car insurance in the Volunteer State can feel like a moving target—rates shift every year, vary by ZIP code, and depend on dozens of personal factors. Below, we break down the current 2024 averages, explain why premiums rise or fall, and share expert-backed tips to keep more money in your pocket.
How Much Does Car Insurance Cost in Tennessee in 2024?
Recent data from Quadrant Information Services shows Tennessee drivers pay well below the national average for both minimum-liability and full-coverage policies.
| Coverage Level | Average Annual Premium | Average Monthly Premium | National Average (Annual) |
|---|---|---|---|
| State-minimum liability | $371 | $31 | $622 |
| 50/100/50 liability | $489 | $41 | $756 |
| Full coverage (100/300/100 + comp & collision, $500 deductible) | $1,295 | $108 | $2,014 |
Key takeaways
- Tennessee’s full-coverage rates are roughly 36% cheaper than the U.S. average.
- Minimum liability is 40% lower than the national benchmark.
- Premiums are trending up about 5–7% year-over-year due to higher repair costs and severe weather claims.
Source: Quadrant Information Services, 2024 rate filings.
Tennessee vs. Neighboring States
Wondering how Tennessee stacks up to its neighbors? The table below compares full-coverage averages across the Southeast.
| State | Average Annual Premium | % Difference vs. TN |
|---|---|---|
| Tennessee | $1,295 | — |
| Alabama | $1,485 | +15% |
| Georgia | $1,982 | +53% |
| Kentucky | $2,124 | +64% |
| North Carolina | $1,263 | –2% |
| Missouri | $1,799 | +39% |
Tennessee holds its own, beating every bordering state except North Carolina.
Factors That Influence Your Premium in Tennessee
Insurers evaluate a long list of underwriting variables before quoting your policy. In Tennessee, the biggest price movers include:
- Age & driving experience
Teen drivers can pay up to 4× the adult average. - Driving record
A single at-fault accident may add 30–40% to your renewal. - Credit-based insurance score
Tennessee allows credit scoring; poor credit can double your rate. - ZIP code & traffic density
Urban areas like Memphis and Nashville see higher theft and collision frequencies. - Coverage level & deductibles
Choosing state minimum keeps costs low but leaves you exposed. - Vehicle type & mileage
Luxury, sports, and high-miles vehicles all cost more to insure. - Eligible discounts
Bundling home and auto, telematics programs, and paperless billing often shave 5–25%.
City-by-City Breakdown
| City | Full Coverage (Annual) | Minimum Liability (Annual) |
|---|---|---|
| Nashville | $1,430 | $402 |
| Memphis | $1,760 | $511 |
| Knoxville | $1,260 | $355 |
| Chattanooga | $1,280 | $361 |
| Clarksville | $1,360 | $382 |
| Murfreesboro | $1,300 | $374 |
Memphis drivers pay the most, largely because of higher accident and theft rates.
Minimum Car Insurance Requirements in Tennessee
To register and legally operate a vehicle, Tennessee drivers must carry at least:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability
Failure to show proof of coverage can result in a $300 fine, license suspension, and the need for SR-22 Insurance in Tennessee.
For a deeper dive, see our guide to Minimum Car Insurance Requirements in Tennessee.
Full Coverage vs. State Minimum: Which Is Right for You?
Choosing between basic liability and full coverage boils down to vehicle value and risk tolerance.
State Minimum
- Cheapest option (around $31/month)
- Pays only for damage you cause to others
- Leaves your own car unprotected
Full Coverage
- Costs about $108/month on average
- Adds collision and comprehensive to repair your vehicle
- Required by most lenders and leasors
Rule of thumb: If your vehicle is worth more than $4,000–$5,000 or is still financed, full coverage usually makes financial sense.
How to Find Cheaper Car Insurance in Tennessee
Follow these five proven steps to trim your bill:
- Compare quotes every 6–12 months
Start with at least three carriers—our list of the Best Car Insurance in Tennessee is a solid launchpad. - Raise your comprehensive and collision deductibles
Jumping from $500 to $1,000 can save 10–15% annually. - Leverage telematics or usage-based programs
Safe driving discounts can reach 30% after just 90 days. - Bundle policies
Pairing auto with home, renters, or life can net multi-policy discounts. (If you rent, see Best Renters Insurance in Tennessee.) - Improve your credit score
Even a 20-point boost can unlock lower tiers.
For more wallet-friendly options, check our roundup of the Cheapest Car Insurance in Tennessee or snag instant Car Insurance Quotes in Tennessee.
Average Cost by Driver Profile
| Driver Profile | Full Coverage (Annual) | % Above State Avg. |
|---|---|---|
| 18-year-old male | $4,752 | +267% |
| 25-year-old with clean record | $1,558 | +20% |
| 40-year-old with speeding ticket | $1,795 | +39% |
| 40-year-old with at-fault accident | $2,095 | +62% |
| 65-year-old with clean record | $1,215 | –6% |
Frequently Asked Questions
Is Tennessee a no-fault state?
No. Tennessee follows a traditional at-fault (tort) system—see how it compares in No-Fault Insurance States: How Tennessee Compares.
Do I need uninsured motorist coverage?
It’s optional, but with roughly 23% of Tennessee drivers uninsured, adding UM/UIM can be a smart, low-cost layer of protection.
How often should I shop for new quotes?
Experts suggest every policy renewal or whenever a major life event occurs—new job, move, marriage, or vehicle purchase.
The Bottom Line
The average cost of car insurance in Tennessee is $1,295 per year for full coverage and just $371 for state-minimum liability—well below national norms. Your exact price, however, hinges on personal variables such as age, credit, driving record, and even your street address.
By comparing multiple carriers, leveraging discounts, and selecting the right coverage levels, Tennesseans can lock in robust protection without breaking the bank. For tailored recommendations, explore our curated lists of the Best Car Insurance in Tennessee and Cheapest Car Insurance in Tennessee today.
Written and reviewed by licensed insurance experts at InsuranceCurator.com. Rates referenced are averages; your individual quote may differ.