Tennessee Auto Insurance Prices & Rules

It has a serious problem with Uninsured Drivers. At 24% it is one of the largest in the country and well above 14% average. It is almost a revolt against the local authority that sets and enforces the laws requiring minimum liability coverage when a quarter of the residents refuse to comply with the rules. Politics of the matter aside, you should make sure that you are protected agains them, as the chance of one of them causing you damages is pretty high. What is puzzling is that despite these numbers, you can still get cheap Tennessee car insurance prices.

Living costs are pleasingly low here compared to the rest of the nation. That may make the price look high, especially considering household incomes are low too. But people can reduce it if they pay attention and make sure they can get the discounts they qualify. Another option is to spread the cost by setting up installment plans. It is probably better than running the risk of facing huge losses and liability claims on your own.

This Southeastern state isn’t one of the largest in size but it is home to 6.6 million people. The Appalachian Mountains dominate the eastern part, and the Mississippi River forms the western border. And of course Memphis is the hometown of Elvis.

Tennessee Automobile Insurance Rules

Here are the basic requirements;

  • Tennessee Auto Insurance Laws$25,000 for bodily injury or death per person.
  • $50,000 total for bodily injury or death per accident.
  • $15,000 for property damage. 

Uninsured Motorist coverage pays for your injuries and damages up to liability limits if you are hit by one of those ignorant or poor people. The laws don’t mandate but this is probably the first addition you should have because 1/4 of 4.6 million licensed Tennessean drivers don’t have any policy. Then, who is going to settle your and family’s medical bills if you don’t have health plan when they cause the harm? And you need to pay for repairs to your car unless you have Collision coverage.

Policyholders in the Volunteer State end up paying for the damages and injuries caused by these motorists one way or another. If another motorist runs off after crashing onto your car you will have to claim on own policy. In other words, your vehicle insurer will cover an accident that was caused by someone who hasn’t paid any premium. It will further increase your rates at next renewal. Simply, existing policyholders will have to pay enough to cover all the claims. It isn’t hard to imagine the additional burden.

There is a $300 fine and a license and vehicle registration suspension if you are caught driving without coverage in Tennessee. Low fine shouldn’t encourage anyone because consequences of license suspension can be costly in many ways and it can be very embarrassing.

These figures can be check on the official website. You may also visit other good sites to help you. There are plenty sources of information and guidance online these days that there is hardly any excuse not to be informed.

Car Insurance Costs in Tennessee

Despite above discussed negative factors getting good prices remain to be easier in comparison with many other states. This may be because the local authority takes on larger portion of the problem. This would mean that they would allocate some of the taxes for it. Still particularly high premiums in cities may be the catalyst behind very low policy purchase ratios.

Average cost of auto insurance is $704 in Tennessee and it is $137 cheaper than the US. Also full coverage is reasonably priced, as the average estimate is $1,145. Again, it is $180 cheaper than the national average for it. However, there are big premium differences among zip codes and you may have to spend a lot more in cities like Memphis and Nashville.

Most Affordable Car Insurance Companies in Tennessee 

These names listed are the cheapest for basic liability coverage and they can save you a lot of money in most places here. If you aren’t with one of the lowest priced companies you may be spending a lot more than above-mentioned low rates.

  1. GEICO, $487
  2. Utica National, $752
  3. Auto-Owners, $844

Also, premiums would be affected by zip codes. The risks involved with living and driving in a sleepy town is different from risks in large cities. These additional exposures will be well reflected on the quotes.

Automobile Insurance Memphis TN

It is just about the largest city with 660,000 residents. The Bluff City is one of the most sang about in the world and hometown of Elvis Presley. It all sounds beautiful but it is also known to be a crime-ridden place. That is why it has the highest rates. A typical Memphis policyholder pays about 1/3 more than the state average. Drivers in Downtown may have to spend even more due to increased risks in certain zip codes. If you are looking for good quotes in Memphis you should start with getting them from the above carriers and get a few more from others. It may be a lot easier and faster to compare options online.

Auto Insurance Nashville TN

The state capital Nashville is another large one and very closely behind Memphis with 650,000 residents. However, the Music City is better known for its musical heritage and The Country Music Hall of Fame, rather than high premiums. Motorists can struggle to get affordable rates here, considering the fact that it cannot be said to be peaceful and crime free. Average cost in Nashville is only slightly higher than the state average, which we know is affordable. It can get even cheaper if you find the best value carrier.

There are plenty sources that offer quotes. Comparison websites may be the best bet. They are quick in delivering the results and open all hours. Perhaps it is easier to keep renewing a policy year after year. However, studies show that this is certainly not the most beneficial or cost effective. If you don’t question the renewal quote you don’t force them work harder for you. Underwriters are smart enough to find a way to benefit from laziness of customers. A better way of doing it is to find out about possible vehicle insurance discounts you can qualify and further make sure that you get the highest amounts for them. Each company offer a different percentage saving for each qualification.

You certainly have plenty alternatives to go to when you are not happy with the current one and cannot agree with an amicable solution. Not saying or doing anything will mean that you are happy with prices and terms. Would you still be happy if you learned that they are offering much better rates to new customers? Loyal policyholders may not be getting the best values. This is almost a scandal when there are so many drivers who are struggling to afford premiums.

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