If you're driving in Tennessee, here's something you need to know: about one in five cars on the road doesn't have insurance. That's right—Tennessee has one of the highest uninsured motorist rates in the country at around 20%. This means that even if you follow the rules and carry insurance, there's a pretty good chance you could get hit by someone who doesn't. But here's the good news: Tennessee is one of the most affordable states for car insurance, and protecting yourself from uninsured drivers doesn't have to break the bank.
What Tennessee Requires
Tennessee law requires you to carry liability insurance with minimum limits of 25/50/25. In plain English, that means $25,000 per person for bodily injury, $50,000 total per accident for all injuries, and $25,000 for property damage. The state actually increased that property damage minimum from $15,000 to $25,000 in 2023, recognizing that cars are more expensive to repair than they used to be.
These minimums are just that—the bare minimum the law requires. But here's the problem: if you cause an accident that seriously injures someone, those limits won't come close to covering the costs. A single night in the hospital can easily exceed $25,000, and medical bills from a serious car accident can run into the hundreds of thousands. If your insurance maxes out, you're personally responsible for the rest.
What You'll Actually Pay
Tennessee drivers pay an average of $2,094 per year for full coverage car insurance, or about $174 per month. That's significantly lower than the national average, making Tennessee the 13th most affordable state for auto insurance. If you just want minimum liability coverage, the average drops to around $515 to $570 per year—roughly $43 to $47 per month.
Your actual rate depends on several factors: your age, driving record, credit score, where you live in Tennessee, and what kind of car you drive. A 40-year-old driver with good credit might pay around $1,233 annually for full coverage, while younger drivers or those with accidents on their record will pay more. The good news is that Tennessee's competitive insurance market means shopping around can save you hundreds of dollars a year.
The Uninsured Driver Problem
This is where Tennessee gets tricky. With approximately 20% of drivers on the road uninsured, Tennessee ranks as the 4th highest state in the nation for uninsured motorists. Only Washington D.C., New Mexico, and Mississippi have higher rates. While the state has made progress—the rate dropped from 23.7% in 2019 to about 20% in recent years—that's still one in five drivers.
Think about what that means when you're driving down I-40 or navigating Nashville traffic. If you get hit by someone without insurance, your own liability coverage won't help you at all—it only covers damage you cause to others. This is exactly why uninsured motorist coverage isn't just a nice-to-have in Tennessee; it's essential protection.
Uninsured motorist coverage steps in when the other driver can't pay for your injuries or damages. It covers your medical bills, lost wages, and pain and suffering when an uninsured driver is at fault. The cost is typically a small fraction of your total premium—often just $50 to $100 extra per year—but it can protect you from thousands in out-of-pocket expenses.
Building Better Coverage
Beyond the state minimums, consider these coverage types that actually protect you, not just other people. Collision coverage pays to repair your car when you're in an accident, regardless of who's at fault. Comprehensive coverage handles damage from things like theft, vandalism, hail, or hitting a deer. If you're financing your car, your lender will require both of these.
Given Tennessee's high uninsured rate, also consider underinsured motorist coverage. This kicks in when the at-fault driver has insurance but not enough to cover your damages. If someone with minimum coverage hits you and causes $75,000 in medical bills, their $25,000 policy won't cut it. Underinsured motorist coverage fills that gap.
Many Tennessee drivers also choose higher liability limits than the state minimum. Bumping up to 100/300/100 coverage—$100,000 per person, $300,000 per accident, and $100,000 for property damage—costs more but provides real peace of mind. If you cause a serious accident, you want enough coverage to protect your assets and future earnings from a lawsuit.
Getting Started
The best way to find affordable car insurance in Tennessee is to compare quotes from multiple companies. Rates can vary by hundreds of dollars for the same coverage, and the cheapest company for your neighbor might not be the cheapest for you. Get quotes from at least three insurers, and make sure you're comparing the same coverage levels.
Ask about discounts too. Most insurers offer savings for bundling home and auto policies, maintaining a clean driving record, completing defensive driving courses, or having safety features in your car. Some give discounts for paying in full, setting up automatic payments, or going paperless. These can add up to significant savings.
Tennessee's combination of affordable rates and high uninsured driver numbers creates a unique situation. You can get solid coverage without spending a fortune, but you need to be smart about what you buy. Don't just settle for the minimum—protect yourself from the one in five drivers who won't have insurance when they hit you. Get quotes, compare coverage options, and make sure uninsured motorist protection is part of your policy. Your future self will thank you.
