Average full-coverage premium in Tennessee: $1,590/year — ranked #24 most expensive state in the US.
Avg Annual Premium
$1,590
Minimum Coverage
$25K/$50K/$15K
Uninsured Driver Rate
16.7%
| City | Avg Annual Premium | vs State Average |
|---|---|---|
| Memphis | $2,010/yr | +26.4% |
| Nashville | $1,750/yr | +10.1% |
| Knoxville | $1,420/yr | -10.7% |
Source: Rate estimates based on NAIC data and carrier filings, March 2026.
Tennessee requires all drivers to carry minimum liability insurance of 25/50/15 (Bodily Injury per person / Bodily Injury per accident / Property Damage):
Tennessee is a tort state where Memphis and Nashville drive the statewide average higher than the state's rural character would suggest. Tennessee's uninsured motorist rate of approximately 16.7% is elevated, making UM/UIM coverage an important component of any Tennessee policy. The state does not require uninsured motorist coverage by statute, meaning drivers must affirmatively elect it — a gap that can create significant financial exposure after accidents with uninsured drivers.
Memphis consistently ranks among the most expensive mid-sized cities for auto insurance in the Southeast, driven by high vehicle theft rates, significant accident frequency, and elevated bodily injury claim rates. Nashville's rapid population growth has increased congestion on I-40, I-24, and I-65 corridors, pushing rates upward in Davidson County. East Tennessee — particularly the Knoxville area and the Smoky Mountains corridor — offers lower rates, as does rural West Tennessee outside the Memphis metro. Tennessee drivers benefit from shopping aggressively among the many carriers competing for business in the state.
Compare quotes from at least 5 insurers — rates can vary by $500–$1,500 for the same coverage
Bundle auto with homeowners or renters insurance for 10–20% savings
Ask about all available discounts: safe driver, good student, military, professional association
Consider a higher deductible ($1,000 vs $500) to lower your premium by 15–20%
Use telematics/usage-based programs if you're a safe, low-mileage driver
Maintain a clean driving record — even one ticket can increase rates 20–40%
Check your credit score — most states allow credit-based insurance scoring
Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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Important Disclaimer
This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.