Find Tennessee car insurance cost for both new and used cars. Also see what coverage you need, how your car’s value and credit score affect your rate, and where you can cut costs without leaving yourself in trouble.
Tennessee drivers pay less than the national average — full coverage runs $1,233-$2,214 per year depending on the source, while minimum coverage averages $425-$570 annually. The state ranks 15th for full coverage and 21st for minimum coverage affordability, making it one of the more budget-friendly states for car insurance.
Curious about car financing? See real Tennessee car loan rates shared by our community.
Tennessee’s 25/50/25 Minimums: What You’re Required to Have
Tennessee requires:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident.
- Property Damage Liability: $25,000 per accident.
Tennessee increased its property damage minimum from $15,000 to $25,000 in January 2023. If you had a policy that auto-renewed without updating, check your declarations page to make sure you’re carrying the current legal minimums.
These minimums apply to all registered vehicles including cars, trucks, motorcycles, and any vehicle with a regular passenger or motorcycle license plate.
UM/UIM: Must Be Offered, Can Be Rejected
Uninsured/Underinsured Motorist coverage is not required in Tennessee. Insurers must include UM/UIM in every quote, but you can reject it in writing.
Given that roughly 20% of Tennessee drivers are uninsured (the 4th-5th highest rate nationally), rejecting this coverage is risky. If an uninsured driver hits you and you don’t have UM/UIM, you pay your own medical bills and vehicle repairs out of pocket.
MFP Tip: Tennessee is one of the few states that offers Uninsured Motorist Property Damage (UMPD), which covers your vehicle repairs when hit by an uninsured driver. Most states only offer bodily injury coverage. Take advantage of this option.
Alternatives to Traditional Insurance
Instead of a liability policy, Tennessee allows you to post a $65,000 bond or make a $65,000 cash deposit with the Tennessee Department of Revenue. This is impractical for most drivers but exists as an option for those who prefer self-insurance.
Tennessee New Car Insurance Costs
Tennessee ranks 15th for full coverage and 21st for minimum coverage affordability. For context, the national average is $1,582-$2,677 for full coverage and $664-$807 for minimum coverage.
| Car Value | Coverage | 750+ (Excellent) |
700–749 (Good) |
650–699 (Fair) |
600–649 (Below Fair) |
|---|---|---|---|---|---|
| Under $30K | Full | $146 | $181 | $208 | $395 |
| Standard | $106 | $131 | $151 | $286 | |
| Liability only | $70 | $87 | $100 | $190 | |
| $30K–$60K | Full | $172 | $213 | $245 | $466 |
| Standard | $125 | $155 | $179 | $340 | |
| Liability only | $77 | $95 | $109 | $207 | |
| Over $60K | Full | $212 | $263 | $302 | $575 |
| Standard | $153 | $189 | $217 | $413 | |
| Liability only | $83 | $103 | $118 | $225 |
Tennessee Used Car Insurance Costs
| Car Value | Coverage | 750+ (Excellent) |
700–749 (Good) |
650–699 (Fair) |
600–649 (Below Fair) |
|---|---|---|---|---|---|
| Under $15K | Full | $85 | $105 | $121 | $230 |
| Standard | $71 | $88 | $101 | $193 | |
| Liability only | $48 | $60 | $69 | $131 | |
| $15K–$25K | Full | $102 | $126 | $145 | $275 |
| Standard | $85 | $105 | $121 | $230 | |
| Liability only | $56 | $70 | $80 | $152 | |
| $25K–$40K | Full | $115 | $143 | $164 | $312 |
| Standard | $96 | $119 | $137 | $261 | |
| Liability only | $61 | $75 | $86 | $164 | |
| Over $40K | Full | $132 | $164 | $188 | $358 |
| Standard | $110 | $136 | $156 | $297 | |
| Liability only | $67 | $83 | $95 | $181 |
What Each Coverage Level Means
Full Coverage: Includes collision, comprehensive, and liability beyond state minimums. Typical limits are 100/300/100. This pays to repair or replace your car after accidents, theft, vandalism, or weather damage. Required if you finance or lease.
Minimum Coverage: Tennessee’s 25/50/25 liability only. Protects others if you cause an accident. Does not cover your medical bills, your vehicle, or accidents caused by uninsured drivers.
MFP Tip: Farm Bureau Insurance of Tennessee offers the cheapest minimum coverage at around $287/year. State Farm offers among the cheapest full coverage at around $863/year. Get at least three quotes — rates vary widely.
Location Matters
Memphis drivers pay the most in Tennessee — about 35% above the state average — due to high traffic, accident rates, and one of the nation’s worst car theft rates. Bristol has the lowest rates at around $946/year average. Nashville falls between these extremes but faces elevated theft rates, with car thefts up 123% in early 2024 compared to 2023.
Credit Scores Create Big Rate Differences in Tennessee
Tennessee allows insurers to use credit-based insurance scores when setting premiums. The impact is massive: drivers with poor credit pay nearly 3 times more than drivers with good credit — $287/month vs. $100/month on average.
Tennessee law does have some protections. Insurers cannot deny, cancel, or refuse to renew a policy based solely on credit information — they must weigh other factors too. But your credit score remains one of the largest factors affecting your premium.
Your premium is influenced by:
- Credit-based insurance score: Poor credit can mean premiums nearly 3x higher.
- Driving record: A DUI increases rates by 100-123% in Tennessee. An at-fault accident raises rates 20-30%.
- Age: 16-year-olds pay around $7,926/year for full coverage vs. roughly $1,109 for drivers ages 50-59.
- Location: Memphis costs 35% more than the state average. Bristol has the lowest rates.
- Vehicle type: Hyundai and Kia models (2010-2021) cost more due to high theft rates.
MFP Tip: Credit is the third biggest factor (after provider and age) in determining your Tennessee car insurance rate. Improving your credit can save you hundreds of dollars per year.
How to Choose the Right Coverage
Buying a New Car
If you’re financing or leasing, your lender will require full coverage including collision and comprehensive. You don’t have a choice — it protects their investment until you own the car outright.
Beyond lender requirements, gap insurance is worth looking into. New cars depreciate 20-30% in the first year. If your car is totaled, insurance pays the actual cash value (what it’s worth today), not what you owe. Gap insurance covers the difference.
Tennessee requires you to register your vehicle through your local county clerk’s office. Car insurance follows the vehicle in Tennessee, not the driver — meaning as long as your car meets insurance requirements, you can let someone else drive it.
Buying a Used Car
With a used car you own outright, you have more flexibility. The key question: does it make financial sense to pay for collision and comprehensive coverage?
The 10% Rule: Add up your annual collision and comprehensive premiums. If that total exceeds 10% of your car’s current market value, you might save money by dropping those coverages and setting aside funds for repairs or a replacement.
Example: Your 2019 Toyota Camry is worth $18,000. If collision and comprehensive cost $1,500/year (8.3%), keeping those coverages makes sense. If your 2011 Nissan Altima is worth $5,000 and collision plus comprehensive runs $600/year (12%), you might be better off banking the premium savings.
Tennessee Exceptions — Theft and Weather: Memphis has one of the nation’s highest car theft rates (2,550 per 100,000 residents). Hyundai and Kia models from 2010-2021 remain prime targets due to a viral TikTok theft method. Tennessee also averages 30 tornadoes per year and faces frequent hail and flash flooding. Comprehensive coverage is more valuable here than in safer, calmer states.
Tennessee’s Coverage Gaps
1 in 5 Drivers Has No Insurance
Tennessee’s uninsured motorist rate hovers around 20% — the 4th-5th highest in the nation. Roughly one in five drivers you pass on the highway has no insurance, even though it’s illegal.
UM/UIM coverage is not required in Tennessee. If an uninsured driver hits you and you don’t have UM/UIM, you pay your own medical bills and vehicle repairs. You can sue the uninsured driver, but collecting from someone who couldn’t afford insurance is often impossible.
Tennessee law has a wrinkle: you cannot settle with the at-fault driver’s liability carrier without permission from your UM/UIM carrier, or you may forfeit your UM/UIM rights. This matters in accidents where the at-fault driver has some insurance but not enough to cover your damages.
MFP Tip: Tennessee allows “stacking” of UM/UIM coverage — you can combine coverage limits from multiple vehicles on your policy. If you have two cars with $50,000 UM/UIM each, you can stack them for $100,000 in total coverage.
Memphis and Nashville Face Major Crime Risks
Memphis has one of the highest car theft rates in the nation — about 2,550 stolen vehicles per 100,000 residents. Nashville and Knoxville also have theft rates well above national averages. In early 2024, Nashville car thefts were up 123% compared to the same period in 2023.
Hyundai and Kia models from 2010-2021 remain prime targets due to viral “Kia Boy” social media theft methods. If you own one of these vehicles, comprehensive coverage is worth keeping regardless of the car’s age.
Comprehensive coverage protects against theft, vandalism, and break-ins. In Memphis and Nashville, this coverage is more valuable than in safer areas like Bristol or Signal Mountain.
What Shapes Tennessee Rates
Tennessee is an At-Fault State with Modified Comparative Negligence
Tennessee uses a traditional at-fault (tort) system. The driver who causes an accident is responsible for paying for the other party’s damages through their liability insurance.
Tennessee also uses modified comparative negligence with a 50% bar (sometimes called the “49% rule”). If you’re partially at fault, your damages are reduced by your percentage of fault. If you’re 30% at fault and have $100,000 in damages, you recover $70,000.
The key difference from some other states: if you’re 50% or more at fault, you recover nothing. Even being 50% at fault bars you from any recovery. This makes proving the other driver was more at fault a priority in Tennessee accident claims.
30 Tornadoes Per Year, Plus Hail and Flash Floods
Tennessee experiences an average of 30 tornadoes annually. In May 2024, multiple tornadoes struck Middle Tennessee, causing fatalities and major property damage across eight counties. The May 8, 2024 storms brought golf-ball to apple-sized hail across Robertson, Montgomery, Davidson, and other counties.
Tennessee also faces flash flooding — Nashville has experienced multiple flood emergencies including the historic 2010 flood that caused over $2 billion in damages. Flash floods can total vehicles parked in low-lying areas or driven through rising water.
Comprehensive coverage protects against:
- Tornado and wind damage.
- Hail damage to body, windows, and paint.
- Flood damage (a common exclusion in home policies, but covered under auto comprehensive).
- Falling trees and debris.
Without comprehensive, weather-related damage comes out of your pocket. Tennessee’s position in Tornado Alley makes this coverage more valuable than in states with milder weather.
How to Lower Your Tennessee Car Insurance Costs
Shop around aggressively. Farm Bureau Insurance of Tennessee averages $287/year for minimum coverage — hundreds less than some competitors. State Farm averages $863/year for full coverage. Get at least three quotes.
Improve your credit. With poor-credit drivers paying nearly 3x more in Tennessee, improving your credit score can save you hundreds of dollars per year. Check your credit report for errors and pay down balances if possible.
Bundle your policies. Combining auto and homeowners or renters insurance often saves 10-30%.
Try pay-per-mile insurance. If you drive less than 600 miles per month, pay-per-mile insurers like Progressive or Nationwide can save you money. You pay a low base rate plus a few cents per mile driven.
Raise your deductible. Increasing your deductible from $500 to $1,000 can cut collision and comprehensive premiums by 15-25%.
Ask about discounts. Common Tennessee discounts include good driver, multi-vehicle, homeowner, military/veteran, good student, low mileage, and paying your premium in full.
Maintain continuous coverage. Gaps in coverage can increase your premium when you restart. Even if you’re not driving, keeping a minimal policy active avoids this penalty.
MFP Tip: Married drivers in Tennessee save an average of $81/year compared to single drivers — more than the national average of $76. If you recently got married, make sure to update your policy.
Buying a Car in Tennessee? Here’s What to Do
Get Insurance First
Tennessee requires proof of insurance before you can register a vehicle. You must carry liability insurance that meets the state’s 25/50/25 minimums.
Penalties for driving without insurance include:
- Fines of $300+ (increased from $200 in 2015).
- Driver’s license suspension.
- Vehicle registration suspension.
- SR-22 requirement (proof of insurance filing) for up to 5 years.
- Class A misdemeanor if an accident causes bodily injury or death — up to $2,500 in fines and up to 11 months, 29 days in jail.
Tennessee uses an Electronic Insurance Verification System (the James Lee Atwood Jr. Law) that automatically checks if registered vehicles are insured. Getting caught without insurance now happens through database checks, not just traffic stops.
Register Within 30 Days
New residents have 30 days after moving to Tennessee to register their vehicle through the local county clerk’s office.
Residency is established when you:
- Obtain Tennessee employment.
- Register to vote in Tennessee.
- Enroll children in Tennessee schools.
- Declare Tennessee as your primary residence for any legal purpose.
You’ll need to surrender your out-of-state title, provide proof of Tennessee insurance, and pay applicable fees and taxes. Students from other states attending Tennessee schools can keep their out-of-state registration if they maintain legal domicile elsewhere.
No Safety or Emissions Inspections
Tennessee eliminated emissions testing in February 2022. The state does not require safety inspections for passenger vehicles. Out-of-state vehicles need a VIN inspection before registration.
End Note
Tennessee’s 25/50/25 minimums are moderate, and rates run 15-30% below national averages. But don’t let the lower prices create a false sense of security. Tennessee has the 4th-5th highest uninsured motorist rate in the nation at roughly 20%, and UM/UIM coverage is optional.
The state also faces serious crime and weather risks. Memphis has one of the highest car theft rates in the country. Tennessee averages 30 tornadoes per year, with frequent hail and flash flooding. And the 49% comparative fault rule means proving you’re less than half at fault is required to recover anything.
Key recommendations for Tennessee drivers:
- Add UM/UIM coverage — with 20% of drivers uninsured, you need this protection.
- Take advantage of Tennessee’s UMPD option for vehicle damage from uninsured drivers.
- Keep comprehensive coverage if you live in Memphis, Nashville, or own a Hyundai/Kia (2010-2021).
- Comprehensive is also valuable for tornado, hail, and flood protection across the state.
- Improve your credit — it can cut your premium by hundreds of dollars.
- Shop rates aggressively — prices vary widely between insurers.
Use the rate tables above to estimate your costs, then get quotes from at least three insurers. Tennessee’s below-average rates are a starting point — build coverage that addresses the state’s 20% uninsured rate and serious weather risks.