Auto-Owners Insurance Co is the cheapest auto insurance company for minimum and full coverage policies in Tennessee. It also offers the lowest rates for members of the military and sports car drivers. State Farm is the most affordable insurer for young drivers, seniors and people with speeding tickets, while Tennessee Farm Bureau is the most affordable for drivers with low credit scores. Some cities in Tennessee have cheaper car insurance premiums than others because insurance companies consider the driver's zip code when calculating their premium, as well as other factors.
The Tennessee Department of Commerce & Insurance is responsible for monitoring the state's insurance companies and approving their rates. Some cities may have a high incidence of traffic accidents, car thefts, or other risk factors, making car insurance more expensive. If that happens, you may be able to apply for car insurance in your state, as many states offer programs to link high-risk drivers with partner insurers. Car insurance for teens can be expensive, but families can save if they take advantage of discounts for young drivers.
Cheap rates may make car insurance with minimal coverage seem like the best option, but if you're involved in an accident, you could end up paying more in the long run. Tennessee drivers can find cheap car insurance with “no deposit” or “no down payment,” but what it really means is that you only have to pay the first month's premium to get coverage. If you don't drive much and are willing to have your driving monitored, you might consider usage-based car insurance. Young drivers will pay more for car insurance than their parents (assuming the parents have a good driving record), largely because of the difference in driving experience.
Tennessee drivers with a recent speeding ticket pay an average of 22% more for car insurance than good drivers. On average, car insurance rates for adolescent boys tend to be significantly more expensive than for adolescent girls. Car insurance is a necessary expense if you drive, but trying to find the cheapest rates can be a slow process. Married drivers typically pay cheaper rates for car insurance than single drivers because they are statistically less likely to have car accidents.