Tennessee drivers pay around $2,001 a year for full coverage — about 26% under the national average. The state follows an at-fault model with a 25/50/25 liability minimum, and insurers may weigh credit history. Here's the coverage you must carry, what Tennesseans pay, and how to find a cheaper rate.
Tennessee uses an at-fault (tort) framework with a 25/50/25 liability minimum and no mandated PIP or uninsured-motorist coverage. Full coverage averages roughly $2,001 a year, about 26% under the national average, aided by a competitive market and moderate traffic outside the major metros. Severe-weather exposure and a meaningful uninsured-driver rate are the main cost factors, and credit history is a permitted rating factor.
The coverages below are the minimum a driver must legally carry in Tennessee. Source: Bankrate minimum-coverage requirements and state insurance department filings.
| Coverage | Minimum limit | Notes |
|---|---|---|
| Bodily injury liability | $25k / $50k | Per injured person / per crash |
| Property damage liability | $25k | Mandatory |
| Uninsured motorist | Optional | Offered; may be waived |
| Personal injury protection | Not required | Tennessee follows an at-fault model |
Independent market estimates based on Bankrate's 2026 rate data and NAIC filings, shown against the U.S. average. Actual rates vary by ZIP, carrier, and individual profile.
| Coverage level | Est. annual premium | vs. U.S. avg. | Notes |
|---|---|---|---|
| Full coverage | $2,001/yr | 26% below U.S. | Comprehensive and collision included |
| Minimum coverage | $513/yr | 39% below U.S. | Liability only at 25/50/25 |
Estimates apply national rate-increase multipliers to Tennessee's full-coverage average. Approximate (“~”) figures multiply the state average by a national factor and will vary by carrier.
| Driver profile | Est. annual premium | vs. state avg. | Notes |
|---|---|---|---|
| Clean record, 30–45 | ~$2,001/yr | Baseline | Statewide full-coverage average |
| One at-fault accident | ~$2,861/yr | +43% | 2,001 × 1.43 per Bankrate |
| Speeding ticket | ~$2,481/yr | +24% | 2,001 × 1.24 per Bankrate |
| DUI on record | ~$3,762/yr | +88% | 2,001 × 1.88 per Bankrate |
| Young driver (18–24) | ~$4,002/yr | ≈2× | About double per Bankrate |
| Poor credit score | ~$3,402/yr | +70% | 2,001 × 1.70 per Bankrate |
ⓘ Source: Bankrate 2026 rate data and NAIC filings. Figures are independent estimates, not quotes. Verify pricing with a licensed agent or carrier.
Tennessee's below-average pricing is appealing, but the high uninsured-driver rate makes adding uninsured-motorist coverage worthwhile even though it isn't required, and the 25/50/25 minimum contributes nothing toward your own car. With credit and location driving differences between carriers — Nashville and Memphis run higher — comparison shopping is the most reliable way to lock in Tennessee's low baseline.
Tennessee is an affordable state for auto insurance, though uninsured drivers and a liability-only minimum make a case for full coverage plus UM. Weighing carriers and keeping your credit healthy is the best way to keep a Tennessee rate low.
Disclaimer: RateWire is an independent lead generation and comparison service. Rate figures for Tennessee are independent market estimates compiled from publicly available Bankrate, NAIC, and state regulatory data — not quotes. Coverage requirements summarized here are for general information only and may change; always confirm current minimums with the Tennessee insurance department. By submitting your ZIP code, you may be connected with licensed insurance agents or carriers who will provide actual quotes based on your individual profile. Always verify coverage terms and pricing directly with a licensed agent before purchasing.