What car insurance costs in Tennessee

Tennessee's average bill, line by line

The National Association of Insurance Commissioners (NAIC) publishes what insurers actually collected in each state. In its latest state tables, for 2023, the average Tennessee expenditure was $1,050 per insured car, up 14% from $924 in 2022. That average blends cars with liability only and cars with full coverage. A car carrying all three main coverages had a combined average premium of $1,212.

Every Tennessee line sits below the national figure, but not by the same amount. Liability, at $542, is about 26% under the U.S. average. Collision ($441) and comprehensive ($229) are only a few percent lower. So the gap with the rest of the country is mostly about the cost of covering damage you cause to others, not the cost of repairing your own car. Where you garage the car still moves your own price a lot; see how ZIP code affects a premium.

Coverage Tennessee requires

Tennessee's financial responsibility law sets the floor at $25,000 for injury to one person, $50,000 for injuries to two or more people and $25,000 for property damage in one accident, or a single limit of $65,000. The Department of Commerce and Insurance states the minimum as 25/50/25.

• Uninsured motorist coverage must be part of every policy, at limits equal to your bodily injury liability limits. Any named insured can reject it in writing or choose lower limits, though not below the state minimums.
• About 21.3% of Tennessee drivers were uninsured in 2023, by the Insurance Research Council's estimate, against 15.4% nationally. That makes the coverage you get to decline more likely to be needed here than in most states.
• Collision and comprehensive are not required by the state. A lender or leasing company will usually insist on them for a financed car.

Signing away uninsured motorist coverage lowers the premium, and the rejection binds everyone on the policy. Before you sign, compare what you save with what an injury could cost you; our page on limits and deductibles shows how to weigh that trade.

How Tennessee rules shape a premium

Tennessee's Department of Commerce and Insurance posts a document on personal auto policy rate changes on its Auto Insurance 101 page. It is worth opening before a renewal, so a higher bill doesn't come as a surprise.

Credit can count, within limits set by Tennessee Code § 56-5-402. An insurer may not deny, cancel or refuse to renew a personal policy, or set your renewal rate, solely on the basis of credit information; other factors independent of credit must be considered. An insurance score may not use income, gender, address, ethnic group, religion, marital status, nationality, education or occupation, and a company can't penalize you only because you have no credit history. Read more about credit-based insurance scores.

When regular insurers say no

A driver who can't find a policy in the normal market can be placed through Tennessee's residual-market plan, one of the state automobile insurance plans run through AIPSO. An agent can submit the application. Coverage there usually costs more, so it works best as a bridge while tickets and accidents age off your record. Our guide to assigned risk plans explains how they work.

Ways to lower a Tennessee bill

1. 1 Price the same policy at several insurers. Keep limits and deductibles identical so the quotes are comparable, and look at the department's rate-change document before renewal.
2. 2 Keep uninsured motorist coverage in view. If you need to cut cost, look at deductibles and optional extras first, since one driver in five here may have no insurance to pay you.
3. 3 Test a higher deductible. Raising the collision and comprehensive deductible lowers the premium; the deductible break-even calculator shows how long it takes to pay off.
4. 4 Ask for help if something looks wrong. Raise the problem with the company or agent first. If that fails, file a complaint online with Consumer Insurance Services; an insurance specialist answers general questions at 615-741-2218 or 1-800-342-4029 from outside Davidson County.

Questions drivers ask