The average cost of car insurance differs with each state. Our latest research shows that Tennesseans pay $371 per year for minimum coverage, and $1,338 for full coverage. We know that this is lower than the $1,674 annual rate for full coverage. However, it’s still a good idea to learn how to reduce car insurance. Insurance is essential for Tennessee residents, as 70% drive and there have been 204,673 accidents in Tennessee in 2019.
Tennessee has the cheapest car insurance
Finding cheap car insurance in Tennessee that gives great coverage requires a little bit of legwork. The best car insurance companies in Tennessee are the cheapest. The following five companies are the most affordable in Tennessee for auto insurance.
Geico
Geico is the least expensive on our list. It also offers the most discounts. The discounts can offer significant savings if that isn’t enough. Insuring multiple vehicles with Geico may get you a 25% discount, driving without any accidents for five years may get you up to a 26% discount and having air bags for both the driver and the passenger may save you up to 40 percent. There are many other ways to reduce your premium. Geico can also be used for condo, homeowner, and renters insurance. This is a quick and simple way to lower your premium. The amount you could save will vary, so talk to an agent if you are interested. You might also consider adding optional coverage such as rental reimbursement, emergency roadside assistance and mechanical breakdown insurance.
USAA
USAA is unique in that it only insures current and retired military, as well as their eligible immediate family members. This applies to you? USAA is a provider that has been praised for being one of the most accommodating. USAA doesn’t offer any discounts beyond what you would find on the market, but they do have benefits for military personnel. USAA might offer a discount of up to 60% if you have to park your vehicle while deployed.
State Farm
State Farm is well-known throughout the country for a reason: their premiums are affordable and J.D. State Farm consistently receives high customer service ratings from Power. Discounts-wise, State Farm mostly has the standard array of ways drivers can save, including multi-car discounts, anti-theft discounts and accident-free discounts. The Drive Safe & Save discount is a standout option for safe drivers. This discount uses an app to analyze your driving habits. State Farm may offer a discount if it likes what you see. With an A++ (Superior) rating from AM Best, you can also count on State Farm to pay your claims when you file them.
Erie Insurance
Although Erie is not the most expensive on our list, it should not discourage you from requesting a quote if that interests you. J.D. Power says that Erie is one of the best companies when it comes to customer satisfaction. Power, Erie is one of the best companies when it comes to customer satisfaction– which means that if you file a claim, you have a high chance of feeling satisfied with your experience. Erie offers many discounts that can help you lower your premium, including those for students and young drivers. Erie offers rate locks that can lock your auto premium, even if you need to file a claim.
All over the country
Nationwide allows you to easily customize your policy by adding on coverage such as roadside assistance, gap insurance, towing, labor coverage and classic car insurance for your vintage vehicle. Nationwide also has two usage-based programs for your car insurance, its SmartRide and SmartMiles programs that can save you extra money each month. Accident forgiveness is available with a vanishing or total loss waiver. This will make things easier in the event of an unthinkable.
Tennessee drivers need minimum coverage
Tennessee requires its drivers to have 25/50/15 coverage. Your basic liability must include:
- $25,000 per person to cover bodily injury/death
- $50,000 for bodily injury/death
- $15,000 per accident in property damage
Insurance companies recommend that drivers buy more liability than this. If you just consider property damage, for example, $15,000 in many situations will not be able to cover many damages you may inflict upon another car. New cars are often $20-30 thousand more expensive. If you decide to purchase one, you will need to pay the rest out of your pocket. Buying more liability insurance than the minimum required can help you avoid financial hardship down the road.
How to Get Cheap Car Insurance in Tennessee
There are certain things that you can’t control. However, there are some things that you can do to lower your insurance costs.
- Compare rates: Insurance companies have their own pricing algorithms that determine the true cost for your quote. Rate factors that are common include driving history, car type, distance traveled, location, and other personal information. Each company weighs the importance of each factor differently.
- Compare discounts: After you have received quotes, it is worth looking at the car insurance discounts that are available to you. Some providers may be less expensive than others if they offer discounts. Also, you might consider discounts such as auto-pay or pay-in-full options to see how they affect your costs.
- Consider a higher deductible: Some people opt for a higher car insurance deductible to save money on premiums. This has the obvious drawback that you may not receive a payout in the event of an accident.
- Improve your credit score: A little known fact about car insurance is that your premium is affected by your credit score. Your credit score will not improve overnight. This is why you should consider it part of your long-term strategy.
Questions frequently asked
What is the best Tennessee car insurance?
The best car insurance in Tennessee will depend on a variety of factors, including your own personal coverage needs, available discounts, rating factors and customer service scores. You can find the right company by shopping around and comparing providers and quotes.
What is the average cost for car insurance in the United States?
The average cost of car insurance in the U.S. is $565 annually for minimum coverage, but the average expenditure is $1,674 for a full coverage policy. Tennessee drivers pay lower than this average, paying $371 annually for minimum coverage, and $1,338 per year for full coverage.
Is Tennessee a state of no-fault?
No, Tennessee is not a no-fault state. You will need to be fully covered in the event of a major accident. You will be responsible for any excess to your liability coverage.
Is Tennessee home to a large number of uninsured drivers
Yes, Tennessee does have a lot of uninsured drivers. According to the Insurance Information Institute, Tennessee is the 5th worst state for uninsured motorists. At the moment, 20% or more of drivers drive uninsured.