How Much Is Auto Insurance in Tennessee?

Paying for auto insurance in Tennessee isn’t always enjoyable, especially when rates increase after an accident. However, it’s a legal and financial necessity. While car insurance premiums have fluctuated over the past few years, improved vehicle safety technology and better driver awareness are helping stabilize costs. Accidents and tickets also fall off your driving record after a few years, which can lower your rates. With some research and comparison, your auto insurance costs in Tennessee might be less than you think.

Auto Insurance Tennessee Requirements

Tennessee, like all states except New Hampshire and Virginia, requires drivers to carry liability auto insurance. But the coverage limits vary among states. Drivers can choose one combined policy for all coverage rather than individual limits. Tennessee requires drivers to maintain liability insurance with a minimum coverage of 25/50/25. For those unfamiliar with auto insurance limits, this represents $25,000 of bodily injury coverage for accidents involving one injured person, $50,000 of combined bodily injury coverage to cover accidents with multiple wounded parties, and $15,000 worth of property damage coverage. While these limits meet legal requirements, they may not be enough to cover all costs in a serious accident. Because of rising medical and repair costs, it’s wise to consider higher limits or additional coverage to avoid paying out of pocket.

Tennessee DUI Laws

As of 2024, Tennessee continues to enforce strict DUI laws. A blood alcohol concentration (BAC) of 0.08% or higher constitutes a DUI. However, if a driver is arrested with a BAC of 0.15% or higher, they are required to install an ignition interlock device (IID) to regain driving privileges, even on a first offense.

The IID prevents a vehicle from starting if alcohol is detected in the driver’s breath. The state also imposes mandatory jail time, license suspension, fines, and required DUI education courses, depending on the offense level. Tennessee remains firm in prosecuting DUIs to reduce repeat offenses and improve road safety.

Additional Types of Auto Insurance Tennessee

Comprehensive and collision insurance are often recommended for consumers financing or leasing their vehicles. Comprehensive insurance covers damage to a person’s car due to bad weather, such as hurricanes, fires, or floods. It also covers damage inflicted by animals or vandals. Collision insurance pays for repairs to a damaged car after colliding with another vehicle or an object. However, the state does not mandate these other types of car insurance coverage.

Other common types of auto insurance are personal injury protection (PIP), uninsured motorist coverage, GAP insurance, medical payments coverage, and more. Regardless of what type of vehicle you own, it’s essential to understand the types of auto insurance. Building a well-rounded auto insurance policy for your unique needs would be best.

Average Auto Insurance Rates in Tennessee

Auto insurance rates in Tennessee depend on several factors, including:

• Driving history
• Age and gender
• Location (urban vs. rural)
• Credit score
• Type of vehicle

However, when it comes to the comparison of Tennessee auto insurance rates compared to other states, residents enjoy premiums about 17%–22% below the national average. For a driver with a clean record, the average cost of auto insurance in Tennessee is around $85–$95 per month, or approximately $1,100–$1,200 per year.

Tennessee’s Traffic Accident Statistics

Traffic safety in Tennessee has seen both improvements and setbacks. In 2023, the state reported 1,329 traffic fatalities, an increase from previous years, according to the Tennessee Department of Safety and Homeland Security. Key findings include:

• Alcohol-impaired drivers were involved in ~30% of all fatal crashes
• Speeding contributed to a significant portion of fatalities
• Rural areas still see more fatal crashes than urban areas

In 2022, Tennessee recorded 6,112 crashes linked to drivers under the influence of alcohol. These collisions led to 299 deaths, representing nearly 23% of all traffic-related fatalities in the state. On a national scale, roughly one-third of all deadly crashes that year were caused by alcohol-impaired driving.

While vehicle safety has improved, distracted driving and impaired driving remain major concerns.

Finding Cheap Auto Insurance in Tennessee

Auto insurance can be a big part of the overall cost involved in owning a car. It makes sense to do whatever you can to find the least expensive premiums possible. Auto insurance companies offer many discounts, such as paying your policy in full (vs. monthly payments), insuring multiple vehicles with the same company, combining your auto insurance with homeowners or another type of insurance, and more. Each auto insurance company has its own methods for setting premiums, and drivers can benefit from obtaining several quotes to see which insurer offers the best price for the most features and highest amount of coverage.