Tennessee Car Insurance

Everything You Need to Know About Auto Insurance in Tennessee

Auto insurance in Tennessee is a must-have for every driver navigating the state’s diverse roads — from the music-lined streets of Nashville to the winding roads of the Great Smoky Mountains. Tennessee is a state rich in history, natural beauty, and culture, making it a wonderful place to live and drive.

The state’s capital, Nashville, is home to the Grand Ole Opry, the Country Music Hall of Fame, the Music City Center, and the now-defunct Opryland amusement park. Elvis Presley’s Graceland, Dolly Parton’s Dollywood, and Beale Street, home of the blues, made famous by such African Americans as Louis Armstrong and B.B. King, are three other notable destinations in the state.

The risk of natural disasters is part of life in the state. Its location makes it prone to tornadoes, severe storms, flooding, earthquakes, and snowfall. This weather may come on suddenly, creating precarious driving conditions, especially when coupled with ongoing road construction.

You can help give yourself peace of mind as you drive by having the best auto insurance at the best price in Tennessee. Your InsureOne agent can answer all your questions (including “What are the car insurance laws in Tennessee?”) and find you a high-quality policy customized for your unique needs.

How Much Does Car Insurance Cost in Tennessee?

Tennessee drivers pay about $2,214 a year for full coverage car insurance and about $515 for minimum liability coverage. These numbers mean drivers pay a little more than the national average of $2,014 for full coverage and a little less than the national average of $622 for the minimum liability coverage.

The state’s weather plays a significant role in the cost of coverage. The number of natural disasters, including earthquakes, extreme temperatures, wildfires, and floods, is on the rise. As of mid-October 2025, there were 49 tornadoes across the state. These statistics play an important role in helping insurers determine rates.

What Does It Mean If Tennessee Is an At-Fault State?

In an at-fault state like Tennessee, when you cause an accident, you are financially responsible for the damage, including medical bills and car repair or replacement costs. Liability coverage steps in to help take care of these bills, but if these expenses go over your policy limits, you will pay the rest out of your pocket.

In a no-fault state, each driver pays for their own medical bills regardless of fault, but the at-fault driver pays property damage costs.

Your agent will be happy to provide more information about Tennessee’s at-fault vs. no-fault rules and how they apply to your unique situation.

Affordable Car Insurance Rates Comparison by Cities in Tennessee

Where you live helps determine your auto coverage costs. Insurers look at different statistics, including accident and car theft rates, in your ZIP code. The chart below shows the monthly cost of insurance in some of the state’s cities and towns:

City	Full Coverage Insurance	Liability Insurance Coverage
Nashville	$206	$53
Memphis	$266	$66
Knoxville	$187	$47
Chattanooga	$192	$48
Gallatin	$185	$47
Bristol	$157	$39
Lakeland	$220	$57
Sweetwater	$185	$43

We arrive at our average auto insurance costs by using a male driver, aged 30, with a clean driving record. Liability coverage is the state‑required minimum. Full coverage is a 100K/300K/100K policy. Your costs will be different and based on your individual factors.

Auto Insurance Discounts in Tennessee

Most insurers offer several discounts for car insurance in Tennessee. You may be eligible for any of the following:

• Military
• Low mileage
• Senior driver
• No accidents
• Good student
• Claim-free record
• Safety driving course

Ask your agent about other ways to lower your car insurance premium, like raising your deductible or improving your credit score.

Tennessee Car Insurance Laws

Tennessee auto insurance laws require drivers to carry minimum insurance limits of 25/50/25 to drive legally. Here is some more information about these requirements:

What Are the Mandatory Car Insurance Requirements in Tennessee?

Tennessee’s DMV insurance requirements mandate that all drivers carry vehicle coverage to protect other drivers from potential damage from at-fault accidents. The required minimum limits for liability insurance in Tennessee are:

• Bodily injury or death for one person: $25,000
• Bodily injury or death total per accident: $50,000
• Property damage per accident: $25,000

The state verifies auto coverage by matching it with vehicle registration through its electronic verification system. If a vehicle shows it is unconfirmed, the Department of Revenue will send a notice to the vehicle owner, who must then provide proof of coverage through the Drive Insured Tennessee website. At that website, the vehicle owner can verify coverage with the policy number, coverage start date, and insurer’s NAIC five-digit identification code listed on the insurance card. Drivers who fail to comply may receive fines and lose their vehicle registration.

You may want to increase your liability limits for extra protection from potential damage you may cause in a serious at-fault accident. Accidents, such as a multi-car pileup on I-40 near Cookeville, sparked by a sudden snowstorm, could cause damage well beyond your limits.

While liability covers damage you cause to other vehicles, it excludes coverage for your own vehicle. Collision insurance covers your own car in a crash, and comprehensive pays for damages to your car from fire, flood, theft, and other non-collision losses.

Ask your agent about full coverage, which includes both collision and comprehensive insurance.

What Is the Penalty for Driving Without Insurance in Tennessee?

Driving without state-mandated insurance is illegal in this state. If a police officer catches you driving without it, you may lose your license and registration. To reinstate your license, you must provide proof of insurance, and you may need to retake the driver’s license exam.

You may also need to pay fines of up to $300 and acquire Tennessee SR-22 insurance. These insurance certificates for high-risk drivers are mandatory for three years for each offense.

If you cause an accident while driving uninsured, you also face paying for all the accident damage you have caused out of pocket, which could be financially devastating. When you pay just about $43 a month for liability coverage, you could potentially save a bundle in the long run.

What Factors Does Tennessee Law Allow in Determining Your Premiums?

There are several factors most states consider when determining your premium. Tennessee agents review such information as:

• Your age
• Credit rating
• Marital status
• Your vehicle’s age
• Your driving record
• Your credit information
• Your vehicle’s make and model

What Happens If I Damage Property?

If you get distracted on Dollywood Parks Boulevard and crash into another driver, who pays for the damage? You do — by filing a claim with your liability coverage. Whether you are in Pigeon Forge or anywhere else in Tennessee, no matter what type of property you crash into — a car, barn, fence, house, or any other property — you are covered by your liability insurance.

The good news is that $25,000 liability coverage is available to help cover the property damage you caused. But if you crash into a high-end car and the damage costs $35,000, you will be on the hook for paying that $10,000 out of your bank account.

Your agent is happy to provide you with specific choices for high-quality coverage. Your InsureOne agent will do all the work, so you do not have to search your phone for “auto insurance near me.”

How Many Crashes Occur in Tennessee?

Statistics from the National Highway Traffic Safety Administration show 1,219 fatal accidents in Tennessee in 2023. The chart below shows where some of these accidents happened:

City	Annual Average Number of Fatal Car Crashes
Nashville	100
Memphis	220
Knoxville	58
Chattanooga	35
Gallatin	6
Bristol	0
Lakeland	1
Sweetwater	2

 

Uninsured/Underinsured Motorists in Tennessee

In 2023, 21.3% of drivers in Tennessee had no auto coverage. This means one out of five drivers on the state’s roadways is uninsured.

But there is a way to protect yourself when an uninsured driver hits you on Due West Avenue in Nashville or anywhere else in the state — ask your agent about adding uninsured motorist coverage to your policy. Uninsured bodily injury covers medical bills, lost wages, and pain and suffering. Uninsured property damage covers damage that uninsured or hit-and-run drivers may cause.

FAQs

How Much Does Car Insurance Cost in Tennessee?

Full coverage car insurance in Tennessee runs about $2,214 a year ($185 a month), and the minimum liability coverage runs about $515 a year ($43 a month).

What Are the Minimum Car Insurance Requirements in Tennessee?

The minimum requirements in Tennessee are 25/50/25: $25,000 in bodily injury or death per person; $50,000 in bodily injury or death per accident (for more than one person); and $25,000 in property damage per accident.

Is Tennessee an At-Fault or No-Fault State for Car Insurance?

Tennessee is an at-fault state. If you caused the accident, you pay for the costs through your liability coverage. If the damage costs exceed your policy limits, you are responsible for the remainder.

What Factors Influence Car Insurance Rates in Tennessee?

Insurers review such factors as your age, marital status, driving record, car information, and ZIP code. Agents also review auto theft and accident rates in your area, as well as auto repair and healthcare costs.