Cheapest Low-Income Car Insurance In Tennessee 2024

My detailed research concludes that State Farm has the lowest car insurance premiums in Tennessee for low-income drivers.

We’ve saved shoppers an average of $600 per year on their car insurance.

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Written by Bob Phillips
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It can be really challenging to find affordable car insurance in Tennessee. Families with low incomes, making 50% or less of the area’s median income, often find it particularly difficult.

Low-income Tennessee residents can still find affordable car insurance that keeps them compliant with state laws for driving on public roadways.

Having worked in insurance for 15 years and been a car insurance customer for over 35 years, I have comprehensive knowledge of the various insurance companies and their strengths in assisting drivers in Tennessee.

Cheapest Low-Income Car Insurance In Tennessee, 2024

Low-Income Car Insurance, Tennessee 2024

Compare Low-Income Car Insurance Companies In Tennessee

Overall Rating Best Suited For A.M. Best Rating J.D. Power Rating Average Monthly Cost* Get A Quote
Nationwide
4.6

Seniors

A+

NR

$88

Instant Quote
GEICO
4.7

Poor Credit

A++

801

$212

Instant Quote
State Farm
4.9

Cheapest Overall

A++

838

$72

Instant Quote
Scroll to see comparisons

Cheapest Low-Income Car Insurance Companies In Tennessee


Cheapest Overall

Overall Rating
4.9

Key Statistics

10/10 Affordability
9/10 Customer reviews
9/10 Claim payouts
10/10 Coverage level

Why We Like Them

Amidst stiff competition in Tennessee’s car insurance industry, State Farm is the clear winner in terms of affordability.

Based on our extensive research and analysis of Tennessee car insurance premiums, it’s evident that State Farm provides highly affordable full-coverage options, with rates starting at $94 per month.

For drivers who want thorough protection without spending too much, this advantage is noteworthy.

State Farm offers more than just affordable rates; it is consistently rated as one of the top car insurance companies overall. The company’s reputation is bolstered by its diverse range of discounts and coverage options tailored to various needs.

State Farm gains a competitive advantage in Tennessee’s car insurance market through its provision of affordability, flexibility, and comprehensive coverage, making it an appealing choice for drivers prioritizing value and quality.

Securing low-cost car insurance in Tennessee is essential. It allows you to drive without the worry of financial burdens from potential damages or liabilities. Considering the high accident rate on Tennessee’s busy roads, affordable insurance is especially important.

It’s important to know that affordable insurance can still be high quality. By comparing options carefully and making informed decisions, you can secure comprehensive coverage that suits your budget without straining your finances.

Benefits & Drawbacks

Benefits
  • Superior AM Best financial strength rating
  • Many coverage options and discounts available
  • Cheapest rates for drivers in Tennessee
Drawbacks
  • You have to buy from a State Farm Agent

Cheapest Low-Income Car Insurance Rates In TN

Insurance company Monthly Rate
State Farm $89
USAA $93
GEICO $106
Erie $115
Tennessee Farmers $134

Best for Poor Credit

Overall Rating
4.7

Key Statistics

9/10 Affordability
8/10 Customer reviews
9/10 Claim payouts
8/10 Coverage level

Why We Like Them

GEICO is considered the best and most affordable car insurance option in Tennessee for drivers with poor credit. Reports and studies repeatedly identify GEICO as the most economical choice for those grappling with less-than-perfect credit.

GEICO manages to offer affordability without sacrificing quality or service. With comprehensive coverage options and excellent customer support, GEICO provides strong protection for all drivers, regardless of credit score, making it a reliable choice for Tennessee with poor credit.

Moreover, GEICO knows that a low credit score doesn’t equate to being a high-risk driver. While other insurers might hike rates for poor credit, GEICO considers various other factors, including driving record and vehicle type, to determine rates fairly.

By utilizing this nuanced assessment, GEICO can offer competitive rates to drivers with poor credit, positioning it as the preferred choice for many Tennessee drivers.

Low income is often associated with poor credit scores, leading to certain insurers charging double the rates for drivers with poor credit compared to those with excellent credit.

To maintain affordable premiums, drivers with poor credit should consider insurers that provide discounts and strive to avoid moving violations.

Benefits & Drawbacks

Benefits
  • Most affordable rates for Tennessee drivers with poor credit
  • Variety of coverage options and discounts offered
  • High AM Best financial strength rating
Drawbacks
  • Digital tools available but not as extensive as those of some competitors
  • Fewer GEICO agents in Tennessee than many larger competitors

Cheapest Low-Income Car Insurance Rates For Poor Credit

Insurance company Monthly Rate
GEICO $165
State Farm $189
Tennessee Farmers $194
USAA $205
Erie $218

Cheapest for Seniors

Overall Rating
4.6

Key Statistics

9/10 Affordability
8/10 Customer reviews
8/10 Claim payouts
9/10 Coverage level

Why We Like Them

Nationwide is the leading and most budget-friendly car insurance provider for seniors in Tennessee, with strong support from industry research and positive customer feedback..

With highly competitive rates tailored for seniors, Nationwide emerges as the go-to choice for budget-conscious seniors looking for comprehensive car insurance.

With age, drivers might notice a rise in their car insurance premiums, as insurers often regard them as higher risk, similar to how they view teenage drivers.

Slower response times, health problems that could impact driving, and a higher probability of serious injuries in crashes all contribute to this perceived risk.The study by the Insurance Institute for Highway Safety (IIHS) indicates that fatal crash rates start to climb significantly from age 70, with the highest rates seen in those aged 85 and older.

Therefore, older drivers might see their insurance premiums go up to cover the possible cost of claims.

Fortunately, insurers provide discounts tailored to older drivers, which helps to lower premiums and offer affordable coverage.

Benefits & Drawbacks

Benefits
  • Auto, homeowners, life, and other insurance products available
  • High financial strength ratings
  • Comprehensive mobile app for digital policy management
Drawbacks
  • Can only buy from Nationwide agents
  • Not rated by J.D. Power for customer service

Cheapest Low-Income Car Insurance Rates For Seniors

Insurance company Monthly Rate
Nationwide $56
State Farm $63
AAA $70
GEICO $77
USAA $91

In Tennessee, it’s a legal requirement for drivers to have car insurance to handle accident costs. The minimum coverage, called 25/50/25, means each policy must include at least:

  • $25,000 for bodily injury per person: This is the most your insurer will pay for the medical expenses of one individual injured in an accident you cause.
  • $50,000 for bodily injury per accident: This is the total amount your insurer will pay for all medical expenses if several people are injured in an accident you cause.
  • $25,000 for property damage liability: This covers the cost of damage you cause to another person’s property, such as their car, in an accident.

Though these are the legal minimums, you need to evaluate if this coverage will be sufficient to protect you financially in an accident. If expenses go beyond your coverage limits, you could be liable for the remainder.

Consequently, many drivers prefer higher levels of coverage to ensure they are fully protected.

Full Coverage Options

While the term “full coverage” isn’t officially used by insurance companies, it generally means a combination of coverages that offer extensive protection against a range of damages and losses. This typically includes liability coverage (bodily injury and property damage), collision coverage, and comprehensive coverage.

Liability coverage pays for injuries or property damage you cause to others in an accident. Collision coverage takes over when your vehicle is damaged from hitting another car or object.

Comprehensive coverage handles non-collision-related incidents such as theft, vandalism, fire, or natural disasters. Essentially, full coverage insurance is a comprehensive package meant to give you peace of mind both on and off the road.

Does Tennessee have a government-sponsored car insurance program for low income families?

Unlike certain states, Tennesee does not have a government-funded car insurance program for low-income families. Nevertheless, having car insurance is a legal requirement for registering and driving your vehicle in the state.

Does income affect car insurance rates in Tennessee?

Despite common assumptions, income is not a factor that directly influences car insurance rates in Tennessee. Insurers typically calculate premiums based on factors such as age, location, driving record, vehicle type, and chosen coverage levels.

How to save on car insurance costs in Tennessee

Navigating the complexities of car insurance in Tennessee can be tough, but with the right strategies, you can lower your premiums significantly. Here are three proven tips that Tennessee drivers can use to save on car insurance expenses.

1. Compare Rates from Different Providers

Saving on car insurance is achievable by comparing rates from different providers. These rates are calculated based on factors like age, driving history, location, and more.

Thus, insurance premiums can vary greatly from one provider to another. Therefore, it’s crucial to obtain quotes from several insurers and select the one that offers the best value for your specific needs and budget.

2. Leverage Discounts

Discounts offered by insurance companies can lead to premium reductions. These discounts might involve safe driving rewards, bundling insurance policies, academic achievement benefits, or vehicle safety feature incentives. Contact your insurer to discuss discount options and determine your eligibility.

3. Adjust Your Coverage and Deductibles

You can save on car insurance costs by adjusting your coverage and deductibles. For older cars, it’s worth considering removing collision and comprehensive coverage if their cost outweighs the car’s value.

Increasing your deductible can be a way to lower your premium. Just ensure that the deductible is an amount you can comfortably afford in case you need to file a claim.

 

Our Methodology

Using a comprehensive approach that encompasses customer service scores, product variety, pricing details, and insights from online reviews and user feedback, I've developed a comprehensive perspective on car insurance providers. Utilizing my more than 15 years of direct involvement in the industry as a licensed agent, numerous engagements with representatives from diverse companies, and firsthand buying experiences in Tennessee, this perspective is well-informed and finely crafted.

93

Quotes Analyzed

41

Brands Reviewed

15+

Years of experience

25+

Research Hours

FAQs

How can low income families get affordable car insurance in Tennessee?  

Getting the best deal on car insurance in Tennessee requires comparing quotes, exploring available discounts, and shopping around among different insurers.

What is the minimum amount of car insurance you have to carry in Tennessee?  

It’s required by law in Tennessee for all drivers to have a minimum level of car insurance. This includes $25,000 coverage for bodily injury per person, $50,000 for bodily injuries per accident, and $25,000 for property damage.

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