How To Find The Most Affordable Car Insurance in Tennessee

Fran
Lucy Lazarony
July 28, 2020

The average auto insurance rate in Tennessee is $1,315 per year, which is almost 8 percent less than the national average. Beating the national average is a good thing but the people of Tennessee can do even better on their car insurance. There are tips and strategies for saving money on car insurance. And we will get to those a little bit later on. But first we will take a closer look at car insurance in Tennessee.

State Minimum Liability Requirements

If you ever cause a car accident, liability insurance pays for other people’s injuries and property damage, up to your liability limit. Each state has minimum liability requirements for the drivers in their state.

In Tennessee, the state minimum liability requirements are $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident and $15,000 property damage liability coverage per accident.

This minimum liability coverage costs around $500 per year.

Tennessee Is an At-Fault State

When it comes to insurance, Tennessee is an at-fault state. This means Tennessee drivers are responsible for any damage they cause to another vehicle. An insurance adjuster determines who is at fault in an accident.

A More Robust Policy Costs More

A more robust policy with collision coverage and comprehensive coverage and $1,000 deductibles costs an average of $1,153.

Collision insurance is coverage that helps to repair or replace your car if it is damaged in an accident with another vehicle or object such as a tree or a fence. Comprehensive insurance covers events that aren’t covered by collision coverage. These events include vandalism, theft, fire and damages from weather such as a windstorm, a hailstorm, a tornado and a hurricane.

If there is a loan on your car, your lender may require you to carry both collision insurance and comprehensive insurance.

A deductible is the amount you need to pay before your insurance company begins to pay for damages to your car or losses.

Choosing a high deductible is one way to save money on your insurance premium.

Find Affordable Car Insurance

Cheapest and Most Expensive Cities

In Tennessee, the city with the cheapest car insurance is Johnson City. The city with the most expensive car insurance is Memphis.

Johnson City is in east Tennessee and is known for outdoor activities. Memphis is a city on the Mississippi River in southwest Tennessee and is famous for its music.

How to Save Money on Car Insurance

Ready for those tips on how to save money on car insurance? Here they come. Use as many as you can to save money on your car insurance premiums.

Be a Married Motorist. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for car insurance than singles. In Tennessee, married motorists save $81 per year on car insurance.

Maintain Excellent Credit. Insurance companies use consumer credit data to assign risk pools and set insurance rates. Drivers with excellent credit get the best insurance rates. Drivers with poor or no credit pay much more for car insurance. In Tennessee, a driver with excellent credit saves around $1,563 each year on car insurance compared with a driver with bad credit. Need to boost your credit? Get current on all past due bills, pay down debt and avoid taking on new debt. Get in the habit of paying your credit bills on-time. This will help you build a positive payment history, which is good for your credit score.

Be a Safe Motorist. If you are a safe and responsible driver and you follow the rules of the road, you will save money on your car insurance. In Tennessee, drivers without a recent, at-fault accident save 26 percent on their car insurance. But get reckless and break some rules and premiums go up. Premiums increase 31 percent after a DUI, 26 percent after an at-fault accident and 15 percent after a speeding ticket. A first, minor, at-fault accident increases premiums by about $448 a year. So be a safe driver and save on your car insurance.

If you have been a good driver, be sure to ask for a good driver discount. You’ve earned it with your driving behavior out on the road.

Pay Less Often. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Get a Multi-Car Discount. Insure more than one car with the same auto insurance company and enjoy a multi-car discount.

Try Bundling. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and save money.

Spend Less on Older Cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision coverage and comprehensive coverage any longer.

Check Safety Features. Having certain anti-theft or safety features on your car will lower your car insurance. So check the features on your car to see if you are due a discount.

Review Memberships. Members of some professional organizations and affiliates get discounts on car insurance. So review your membership information and see if you are eligible for a discount.

Age Matters. Drivers who are younger than 25 and older than 65 have more serious accidents and pay more for their car insurance. Drivers of the ages in-between pay less.

Be a Lady Driver. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Keep Miles Low. If you are a heavy commuter that racks up the miles, you are going to pay more for your car insurance. If you are a low-mileage driver, you will save money on car insurance. So drive less and save money on your car insurance.

Stick with Coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save money.

Choose a High Deductible. As mentioned earlier, choosing a high deductible will save you money on your car insurance. Just be sure to put the deductible amount in a small emergency fund. This way the money will be there should you need to make an insurance claim.

Choose a Safe Neighborhood. If you live in a neighborhood with high accident claims and auto theft, you are going to pay more for your car insurance. If you live in a neighborhood with low accident claims and low crime, you are going to pay less for your car insurance. So choose a safe neighborhood and save money on car insurance.

Buy a House. Statistics show people who own homes drive more safely. So let your insurance company know that you own a home and enjoy the savings on your auto insurance premium.

Reach out for Discounts. A good driver discount has been mentioned. There are discounts for students and veterans as well. So reach out if you qualify.

Shop Around. One of the best ways to save money on car insurance is to shop around. SmartFinancial makes this easy to do. Just input the type of insurance you are looking for and a zip code to start. Next, answer a few, quick questions and you will be comparing auto insurance rates in Tennessee in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the coverage and price that you want. So shop smart for auto insurance and drive safely along the roadways of Tennessee.

Get a Free Auto Insurance Quote Online Now.

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