Car insurance in Tennessee costs between $60 and $136 per month on average, well below the national average of $142 per month. Minimum coverage averages $60 to $66 per month, while full coverage runs approximately $130 to $136 per month. Tennessee is an at-fault state, meaning the driver who causes an accident is responsible for all resulting costs, making adequate liability coverage especially important. Rates vary based on your city, age, driving record, and credit score.
Tennessee drivers are among the more fortunate in the U.S. when it comes to car insurance affordability. The Volunteer State ranks 13th lowest for average monthly rates nationally, according to Insurify’s 2026 data. After a 7% rate decrease in 2025, full coverage rates are projected to edge up just 0.7% by the end of 2026, meaning now is a great time to lock in a competitive rate. Whether you’re looking for the cheapest minimum coverage or a full-coverage policy with maximum protection, this guide covers everything Tennessee drivers need to know.
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| Coverage Type | Monthly Rate Range | Annual Rate Range |
|---|---|---|
| Minimum / Liability Only | $50 – $75/mo | $600 – $900/yr |
| Full Coverage | $110 – $145/mo | $1,320 – $1,740/yr |
Source: insurify.com
Note: Rates are based on averages and may not reflect your specific profile.
Tennessee’s rates are noticeably below the national average, partly because it is a relatively rural state with smaller urban centers than neighboring states. That said, Memphis consistently posts the highest premiums in the state due to traffic congestion, vehicle theft rates, and higher claim frequency. Drivers in smaller cities and rural areas typically pay the least.
Yes, Tennessee is an at-fault (tort) state. This means that if you cause a car accident, you are legally and financially responsible for the damages you cause to others, including medical expenses, property damage, and legal costs. The injured party can file a claim with your liability insurance or sue you directly.
| Coverage Type | Minimum Requirement |
|---|---|
| Bodily Injury Liability (per person) | $25,000 |
| Bodily Injury Liability (per accident) | $50,000 |
| Property Damage Liability (per accident) | $25,000 |
Source: insurify.com
Note: Rates are based on averages and may not reflect your specific profile.
| City | Avg. Monthly Range (Full Coverage) | vs. State Average |
|---|---|---|
| Memphis | $120 – $165/mo | Above Average |
| Nashville | $100 – $140/mo | Near to Above Average |
| Chattanooga | $90 – $125/mo | Near Average |
| Knoxville | $85 – $120/mo | Below Average |
| Clarksville | $80 – $115/mo | Below Average |
| Murfreesboro | $80 – $115/mo | Below Average |
Source: insurify.com
Note: Rates are based on averages and may not reflect your specific profile.
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| Driver Profile | Avg. Monthly Range | Avg. Annual Range | vs. Clean Record |
|---|---|---|---|
| Teen Driver (16–19) | $200 – $340/mo | $2,400 – $4,080/yr | 2–3x higher |
| Young Adult (20–25) | $140 – $200/mo | $1,680 – $2,400/yr | 1.3x higher |
| Adult Driver (30–55) | $60 – $136/mo | $720 – $1,632/yr | Baseline |
| Senior Driver (65+) | $80 – $145/mo | $960 – $1,740/yr | Slightly higher |
| After 1 At-Fault Accident | $150 – $210/mo | $1,800 – $2,520/yr | +25–40% |
| After a DUI / DWI | $180 – $260/mo | $2,160 – $3,120/yr | +60–68% |
| After a Speeding Ticket | $115 – $180/mo | $1,380 – $2,160/yr | +25–27% |
| Poor Credit Score | $160 – $230/mo | $1,920 – $2,760/yr | +40–75% |
Source: insurify.com
Note: Rates are based on averages and may not reflect your specific profile.
Several Tennessee-specific factors influence what drivers across the state pay for car insurance:
Tennessee uses an electronic insurance verification system that monitors coverage status automatically, you don’t have to get pulled over to be flagged for driving uninsured. Penalties include:
Tennessee’s electronic verification system means lapses in coverage are automatically reported to the state, even if you never receive a citation. Maintaining continuous coverage, even at the minimum level, is essential to avoid fees and suspension.
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Tennessee car insurance costs between $50 and $75 per month for minimum coverage and $110 to $145 per month for full coverage, based on 2026 Insurify data. Tennessee ranks 13th lowest nationally for average monthly car insurance rates, well below the national average of $142 per month.
Tennessee requires all drivers to carry a minimum of 25/50/25 in liability coverage: $25,000 per person in bodily injury liability, $50,000 per accident in bodily injury liability, and $25,000 per accident in property damage liability. Tennessee does not require uninsured motorist coverage or PIP, though both are recommended.
Yes. Tennessee is an at-fault (tort) state. The driver who causes an accident is financially responsible for damages. The injured party may file a claim against the at-fault driver’s liability insurance or sue them directly. This makes it especially important for Tennessee drivers to carry liability limits well above the state minimum.
Based on 2026 data, Mile Auto, Tennessee Farm Bureau, Travelers, and State Farm are among the most affordable options for Tennessee drivers. Tennessee Farm Bureau is notable for applying no rate surcharge for speeding tickets or at-fault accidents, making it a standout option for high-risk drivers. The cheapest option for you depends on your driver profile, comparing multiple quotes is always recommended.
A DUI in Tennessee typically raises full coverage premiums by 60–68%, or approximately $70–$130 per month more than a clean-record rate. Most DUI-related rate increases last three to five years. Drivers with a DUI in Tennessee may also need to file an SR-22 certificate with the state. Travelers and State Farm offer some of the most competitive post-DUI rates in Tennessee.
Yes. Tennessee does not restrict the use of credit-based insurance scores. Drivers with poor credit can pay 40–75% more than drivers with good credit for the same coverage level. Poor credit is actually the single largest rate factor for liability-only coverage in Tennessee, even exceeding the surcharge for a DUI. Improving your credit score over time is one of the most effective ways to lower your car insurance premium.
Tennessee uses an electronic verification system to automatically detect uninsured drivers. Penalties include a $25 coverage lapse fee, a $25 reinstatement fee, and a one-year license and registration suspension if involved in an accident while uninsured. Drivers with serious violations may also be required to file an SR-22 certificate for three years.
Tennessee’s below-average rates are driven by its relatively rural population distribution, lower average vehicle repair costs, and smaller city footprints compared to neighboring states. Full coverage rates fell more than 7% in 2025 and are projected to increase by less than 1% in 2026, making Tennessee one of the more stable and affordable markets in the Southeast.
No. Tennessee does not require drivers to carry uninsured or underinsured motorist coverage. However, an estimated 20% of Tennessee drivers are uninsured, one of the highest uninsured driver rates in the country. Insurance experts strongly recommend carrying uninsured motorist coverage in Tennessee to protect yourself if you’re hit by a driver with no coverage.
Explore state-by-state car insurance trends to understand where drivers pay less on average.
Lauren Lewthwaite Lauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.
