📊 Tennessee at a Glance
Avg Annual Premium
$1,945
full coverage
National Ranking
#18
cheapest
vs National Avg
-$752
below avg
Uninsured Rate
21.3%
#3 worst!
⚠️ Warning: 1 in 5 Drivers Uninsured
Tennessee has the 3rd highest uninsured driver rate in the country at 21.3%. This means you have a 1 in 5 chance of being hit by someone without insurance. UM/UIM coverage is essential, even though it's optional.
📋 Tennessee Minimum Coverage Requirements
| Coverage Type | Minimum Required |
|---|---|
| Bodily Injury (per person) | $25,000 |
| Bodily Injury (per accident) | $50,000 |
| Property Damage | $25,000 |
| Uninsured Motorist (UM) | Optional (STRONGLY recommended) |
| PIP / Personal Injury Protection | Not required |
⚠️ Critical: With 21% of TN drivers uninsured, the optional UM coverage becomes a hidden mandatory cost for financially prudent drivers. Budget for it.
⚖️ How Tennessee's Insurance System Works
At-Fault (Tort) State
The driver who causes the accident pays. Their insurance covers your damages.
Modified Comparative Fault
You can recover damages if you're less than 50% at fault. Your award is reduced by your fault percentage.
💰 Cheapest & Most Expensive Cities
✓ Cheapest Cities
✗ Most Expensive Cities
Memphis is significantly more expensive due to higher theft and accident rates. East Tennessee cities offer the best rates.
🏆 Best Insurance Companies in Tennessee
| Insurer | Best For |
|---|---|
| State Farm | Strong local presence, bundling |
| GEICO | Good drivers (often cheapest) |
| Progressive | Drivers with violations |
| Erie Insurance | Rate Lock feature, regional favorite |
| Tennessee Farm Bureau | Rural drivers, local service |
💳 Credit Score Impact
Credit-based insurance scoring is allowed in Tennessee.
Poor credit can significantly increase your rates. Improving your credit score is one of the best ways to lower premiums.
🎁 Available Discounts
Defensive driving course (insurers required to offer in TN)
Good student discount
Bundle home + auto
Low mileage discount
TN law requires insurers to offer defensive driving discounts. Always ask—it's guaranteed savings!
💡 Tips for Tennessee Drivers
- ✓ Buy UM/UIM coverage - With 21% uninsured drivers, it's essential
- ✓ Take a defensive driving course - TN requires insurers to offer the discount
- ✓ Quote Tennessee Farm Bureau - Regional favorite for rural areas
- ✓ Consider Erie's Rate Lock - Prevents increases unless you change policy
- ✓ Use TN Dept of Commerce & Insurance - tn.gov/commerce for resources
The Bottom Line
Tennessee has affordable rates ($1,945/year, 18th cheapest) but a serious problem: 21% of drivers are uninsured. This hidden risk makes UM/UIM coverage a necessity, not an option. Factor it into your budget.
Best strategy: GEICO often offers the lowest rates for good drivers. Always take the defensive driving course—TN law requires insurers to offer the discount. Bundle home+auto and max out UM/UIM coverage.