Introduction
With new rates and policies taking effect in 2024, obtaining Tennessee auto insurance quotes this year is more important than ever. While auto insurance is legally required in Tennessee, the exact rates and coverage options can vary greatly between providers.
How Auto Insurance Quotes Work in Tennessee
When requesting a quote from an insurer, there are several key details they will need to provide an accurate price:
Your personal information – Insurers will ask for your name, date of birth, license information, marital status, and more. This data helps determine your risk level.
Your vehicle(s) – You’ll need to provide the make, model, year, VIN, and other details on all vehicles you want covered. Newer vehicles cost more to insure.
Your location – Where you garage your vehicle(s) heavily influences rates. Urban areas see higher premiums than rural zones.
Your driving history – Insurers review your record for accidents and violations for the past 3-5 years, which impacts insurance eligibility and rates.
Your coverage options – Liability insurance is mandatory in Tennessee, but you’ll choose deductible amounts and add optional coverages. Customizing coverage alters quotes.
Once you provide this information, insurers will analyze it and use proprietary algorithms and your individual risk factors to calculate an auto insurance quote. Companies consider thousands of data points to underwrite each policy.
Shop Around For the Best Rates
The only way to find the cheapest auto insurance is to request quotes from multiple providers. Rates can vary significantly between insurers based on their underwriting approach. We recommend getting quotes from at least 3-5 insurers to compare your options:
- Major carriers like State Farm, Geico, and Progressive
- Regional insurers focused on Tennessee like USAA, Liberty Mutual, and TN Farm Bureau
- Smaller local insurance agencies
Be sure to provide consistent, accurate information for each quote request. Apples-to-apples rate comparisons allow you to identify the most economical insurer for your needs. You may be surprised at how prices can differ between companies.
Don’t stop at the initial quote either – ask about discounts. Insurers offer many ways to save, like good student status, multi-policy, low-mileage, anti-theft devices, and more. Additional discounts can lower rates substantially.
Understanding Your Coverage Options
Tennessee requires all vehicle owners to purchase minimum liability insurance but doesn’t regulate the types of additional coverage you can add. When comparing quotes, here are the primary coverage options to consider:
Liability Insurance
- Bodily Injury Liability – Pays for injuries to others in an at-fault accident you cause, up to the limits selected (usually $25k/person, $50k/accident).
- Property Damage Liability – Covers repairs to other vehicles or property damaged in an accident for which you are at fault, often with a $25k limit.
Collision Coverage
- Pays for repairs to your vehicle following an accident regardless of fault, minus your deductible (typically $500-$1,000 out of pocket). More expensive but protects your investment.
Comprehensive Coverage
- Covers repairs from events other than collisions like falling objects, explosions, natural disasters, hitting an animal, and more. Also has a deductible.
Medical Payments (MedPay)
- Provides medical expense payments to you, passengers, or others injured while in your vehicle, regardless of fault, up to the selected limit (often $5k).
Uninsured/Underinsured Motorist (UM/UIM)
- Pays for your injuries and losses if an at-fault driver without insurance hits you or carries insufficient liability coverage. Highly recommended in Tennessee.
Play around with adding or removing optional coverage while getting quotes. Customizing your policy directly impacts the price. Stick to minimum liability only if necessary, but consider your risks for higher protection.
Factors That Impact Your Tennessee Rates
In addition to your personal driver’s profile and chosen coverage amounts, several other rate factors come into play depending on your individual situation:
Your Driving Record
- Traffic violations and at-fault accidents increase rates significantly for 3-5 years. Clean driving shows insurers lower risk.
Your Credit-Based Insurance Score
- Insurers use credit reporting data like payment history as a statistical indicator of risk. A better score often means lower premiums.
Your Age and Marital Status
- Younger, unmarried drivers typically pay the highest premiums which decrease with age and marriage over time.
Your Vehicle and Its Features
- Newer models warrant higher liability costs due to repair expenses. Sports cars also see larger rate hikes. Safety features discount premiums.
Where You Live
- Urban centers in Tennessee carry more expensive insurance than rural areas, with Memphis at the top. ZIP codes affect quotes.
How Much You Drive Annually
- The fewer miles driven per year, the lower the risk and rates. Insurers provide discounts for low-usage drivers.
Understanding how these rating variables impact your own situation prepares you to present the best picture possible to insurers when shopping for coverage. Address any issues upfront to ask insurers about solutions.
Maintain Coverage with the Right Provider
After gathering multiple quotes and assessing the coverage you require, choose a Tennessee auto insurance policy tailored to your needs and budget. When selecting a provider:
- Consider financial strength and customer service reviews
- Check for ongoing discounts beyond your initial policy period
- Confirm covered perils and limitations of different policies
- Ask about paperless billing and payment options
- Discuss claims processes in the event of an accident
- Verify license and insurance ID cards arrive promptly
Maintain continuous coverage year-round as required by law. Pay bills on time to retain discounts and keep your insurer updated on any life changes too. This builds a positive history that insurers reward with lower future rates.
FAQs About Tennessee Auto Insurance Quotes
Here are answers to some frequently asked questions:
Do I need uninsured/underinsured motorist coverage in Tennessee?
UM/UIM coverage is optional but strongly advised, as over 10% of Tennessee drivers are uninsured. It protects you if an at-fault driver lacks liability insurance or has insufficient limits to cover damages from severe injuries or vehicular losses.
Is there a grace period if my auto policy expires or if I change insurers?
Yes, Tennessee allows for a 10-day lapse in coverage without penalties. However, you risk driving without valid insurance during this time if an accident occurs, which is illegal. Maintain continuous protection.
What if I can’t afford auto insurance?
Contact insurers about high-risk plans if you have a lapse or poor driving history, elevating rates. You may qualify for a conditional or assigned risk policy. As a last resort, check assistance programs like Low Income Auto Insurance in Tennessee.
Do I need commercial auto insurance for rideshare driving?
Yes. Using your personal vehicle for rides, hail, or food delivery requires commercial liability coverage to protect you on the job. Contact your insurer about upgrading your personal policy for business use.
How often can I shop for cheaper rates?
It’s always a smart idea to check rates annually at renewal. However, insurers allow requesting new quotes as frequently as every six months. Life changes like moving, jobs, or vehicles warrant re-shopping between standard intervals, too.
