By Brad Burton, Founder & Editor·Updated June 2026·How we research this

Car Insurance in Tennessee

Tennessee is an at-fault (tort) state, meaning the driver who causes an accident bears financial responsibility for the other party's injuries and property damage. Unlike no-fault states, Tennessee does not require Personal Injury Protection (PIP); instead, the at-fault driver's liability coverage pays for the harm caused. This framework keeps minimum premiums relatively affordable compared to no-fault states like Michigan or Florida, but it also means carrying adequate liability limits matters more — if your coverage falls short, you can be sued personally for the difference.

Tennessee's Financial Responsibility Law requires every registered vehicle to carry at least the minimum liability limits listed below. Since January 2023, those limits have been 25/50/25 — an update from the prior 25/50/15 requirement. Always confirm your policy meets current law before renewing.

Tennessee Minimum Coverage Requirements

The following limits are mandated by Tennessee law (verified via the Tennessee Department of Revenue):

Coverage Type Minimum Limit What It Covers
Bodily Injury — per person $25,000 One injured person per accident
Bodily Injury — per accident $50,000 All injuries combined in one accident
Property Damage — per accident $25,000 Damage to others' vehicles or property

Important: These are legal minimums, not recommended limits. A single serious accident can exceed these amounts quickly. Most insurance professionals recommend at least 100/300/100 liability, plus uninsured/underinsured motorist (UM/UIM) coverage — Tennessee drivers have an estimated uninsured rate of roughly 20%.

If you finance or lease your vehicle, your lender will almost certainly require collision and comprehensive coverage in addition to liability. Lenders may also set their own deductible limits.

What Drives Tennessee Premiums

Driving Record

A single at-fault accident or speeding conviction can raise a Tennessee driver's premium by 30–60% at renewal. DUI convictions carry the steepest surcharges — often 80–100% or more — and stay on your record for several years. Tennessee is an at-fault state, so your insurer tracks your record closely because they bear the cost of the accidents you cause.

Credit-Based Insurance Score

Tennessee permits insurers to use credit-based insurance scores as a rating factor. Drivers with credit scores below 600 typically pay substantially more than drivers with scores above 750 for the same coverage profile. Improving your credit over time is one of the most cost-effective ways to lower your long-term premium.

Location Within Tennessee

Urban areas such as Memphis, Nashville, and Knoxville carry higher premiums than rural counties, reflecting higher rates of accidents, vehicle theft, and vandalism. A driver in a Memphis ZIP code may pay 20–40% more than a rural driver in West Tennessee with an identical profile.

Vehicle Type and Age

Newer vehicles, luxury models, and vehicles with expensive parts cost more to insure for collision and comprehensive. Trucks and SUVs common in Tennessee can vary widely — some have lower injury claim rates (favorable), while others carry high theft rates (unfavorable).

Age and Experience

Young drivers under 25 face the highest surcharges. Teen drivers added to a family policy can significantly increase that policy's premium. Rates typically stabilize in the late 20s for drivers with clean records.

Tennessee Average Premium Ranges (2026 Estimates)

The figures below are labeled estimates compiled from multiple industry sources including Experian, MoneyGeek, and Insurify (data published in 2025–2026). Rates vary considerably by driver profile, insurer, and ZIP code. Use these as a reference range, not a quote.

Coverage Level Estimated Annual Range Estimated Monthly Range
State Minimum (25/50/25 liability only) $500 – $800/yr ~$42 – $67/mo
Full Coverage (liability + collision + comprehensive) $1,400 – $1,900/yr ~$117 – $158/mo

Source note: Range reflects aggregated 2025–2026 industry estimates for a 35-year-old Tennessee driver with a clean record and good credit. Individual quotes may fall outside this range. For the most accurate rate, compare quotes from at least three insurers. Official regulatory guidance: Tennessee Department of Commerce & Insurance.

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Frequently Asked Questions

What are Tennessee's minimum car insurance requirements?
Tennessee requires minimum liability coverage of $25,000 for bodily injury per person, $50,000 for total bodily injury per accident, and $25,000 for property damage per accident — commonly written as 25/50/25. This is established by Tennessee's Financial Responsibility Law and confirmed by the Tennessee Department of Revenue. Note: the property damage minimum was raised from $15,000 to $25,000 in January 2023.
Is Tennessee a no-fault or at-fault car insurance state?
Tennessee is an at-fault (tort) state. The driver who causes an accident is responsible for the resulting injuries and property damage. There is no mandatory PIP requirement. You can pursue compensation from the at-fault driver's liability insurer or file a lawsuit to recover damages beyond their policy limits.
Can credit scores affect car insurance rates in Tennessee?
Yes. Tennessee law allows insurers to use credit-based insurance scores as a rating factor when setting premiums. Drivers with lower credit scores often pay significantly more for the same coverage. This makes maintaining or improving your credit score an important long-term strategy for managing insurance costs in Tennessee.
How much is car insurance in Tennessee on average?
Based on multiple industry sources, Tennessee full coverage averages roughly $1,400–$1,900 per year and minimum liability coverage averages roughly $500–$800 per year for a typical driver with a clean record and good credit. Urban drivers in Memphis or Nashville tend to pay toward the higher end of these ranges. Always compare quotes from multiple insurers for the most accurate estimate for your specific situation.