Cheap Car Insurance Tennessee

If you’re a Tennessee driver looking for affordable car insurance that won’t skimp on coverage, you’re in the right place.

At Budget Insurance Agency, we believe every driver should have access to cheap car insurance in Tennessee—without the hidden fees, confusing fine print, or surprise rate hikes. Whether you’re commuting to work in Memphis, navigating Knoxville’s backroads, or cruising through the scenic Smokies, you deserve coverage that protects you and your wallet.

Let’s explore everything you need to know about getting cheap car insurance quotes in Tennessee, including how much you can expect to pay, what coverage you actually need, and how to unlock the best rates in the state.

What Is Considered “Cheap” Car Insurance in Tennessee?

“Cheap” means different things to different people. For some, it’s the lowest monthly premium possible. For others, it’s full coverage at a fair price.

In Tennessee, the average cost of minimum coverage is around $430 per year, while full coverage averages about $1,400 annually, according to 2024 data from ValuePenguin. But those numbers can shift dramatically depending on your age, location, driving history, and credit score.

Here’s a quick breakdown of average monthly premiums across the state:

Pro Tip: Don’t just look at the price tag. Consider what you’re getting for that rate — some “cheap” policies might leave you underinsured when you need help the most.

Tennessee’s Minimum Car Insurance Requirements

To legally drive in Tennessee, you’re required to carry at least:

• $25,000 for bodily injury per person

• $50,000 for bodily injury per accident

• $25,000 for property damage per accident

This is often called 25/50/25 coverage. It’s enough to meet the law, but it may not be enough to fully protect you financially after a serious accident.

If you finance or lease your car, your lender may also require comprehensive and collision coverage.

How to Find Cheap Car Insurance in TN Without Sacrificing Coverage

You don’t have to compromise protection to find a rate you can afford. Here are five smart ways to get cheap full coverage car insurance in Tennessee that still delivers peace of mind:

1. Compare Multiple Quotes

Prices can vary by hundreds of dollars between providers. Always compare quotes from local and national carriers to find the best deal for your situation.

2. Bundle Your Policies

Have renters or homeowners insurance? Bundling it with your auto policy can save you up to 25%.

3. Ask About Discounts

Budget Insurance Agency offers discounts for safe drivers, students, multi-car households, military members, and more. You’d be surprised how much you can save just by asking.

4. Raise Your Deductible (If You Can Afford It)

Choosing a higher deductible means you’ll pay more out-of-pocket after a claim, but your monthly premium could drop significantly.

5. Use Telematics or Driver Tracking Apps

Some insurance companies reward good driving habits. If you’re a safe, low-mileage driver, these programs can reduce your rate fast.

Who Typically Gets the Cheapest Car Insurance Quotes in Tennessee?

• Drivers over 25 with clean records

• People with good credit

• Residents in lower-risk areas (like Franklin or Johnson City)

• Those who drive older, paid-off vehicles

• Policyholders who bundle their coverage

Anecdote: One of our customers in Murfreesboro switched to Budget Insurance and saved over $400 a year just by bundling auto and renters insurance — all without sacrificing coverage or service.

Full Coverage vs. Minimum Coverage — What’s Right for You?

While Tennessee only requires minimum coverage, it’s not always the smart choice, especially if:

• You drive a newer or financed car

• You rely on your vehicle for daily work or commuting

• You want help covering damage to your own car after an accident

Full coverage includes:

• Collision coverage

• Comprehensive coverage

• Uninsured/underinsured motorist protection

Yes, it costs more — but it can save you thousands after just one accident, theft, or storm-related loss.

Why Budget Insurance Agency Is a Smart Choice for Tennessee Drivers

We’ve been helping Tennessee drivers find cheap car insurance that fits their lives for over two decades. We’re not a giant corporation — we’re your local insurance partner, and we know Tennessee roads like the back of our hand.

When you work with Budget Insurance Agency, you’re not just getting a policy — you’re getting:

• Personalized service from real people (no bots!)

• Access to multiple top-rated insurers, so you get the best deal

• Support during claims, renewals, and life changes

• No-pressure advice from licensed insurance agents who care