Insurance in Tennessee: A Guide to Auto & Home Coverage
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From Appalachia to the urban centers of Nashville and Memphis, Tennessee is a geographically and demographically diverse state. That creates unique insurance needs for residents. Not only must you comply with legally required insurance minimums, but you also need coverages that work for your budget and your specific needs. Fortunately, we're here to break down everything you need to know about insurance in Tennessee.
Types of Insurance Coverage Available in Tennessee
From Tennessee auto insurance to business insurance, there are many types of insurance in Tennessee. Each type has specific rules and regulations.
Auto Insurance in Tennessee
As in almost every state, there are legal minimums for car insurance in Tennessee.
In addition, uninsured motorist coverage — which helps pay for damages caused by uninsured drivers who are not compliant with state laws — is also a requirement under Tennessee law.
Although these are the only legally required types, it's still a good idea for Tennesse drivers to get additional coverages as well. For instance, most drivers nationwide opt for collision coverage and comprehensive coverage to help pay for injuries or damages caused by accidents, theft, vandalism, and environmental hazards. Full coverage can also help pay for medical payments incurred by you or the other driver.
Home Insurance in Tennessee
Homeowners insurance is not legally required in Tennessee, but mortgage lenders will almost always require it as a condition of providing a loan. Depending on where you are in the state, you may want to opt for a variety of coverages. Severe weather risks like tornadoes and flooding are important coverage considerations for any homeowner in Tennessee.
Remember, flood insurance is usually separate from a basic homeowners insurance policy. If you're in a floodplain, you should get this additional policy.
Average Cost of Insurance in Tennessee
Insurance costs in Tennessee tend to be lower than the national average, but depending on your insurance company and policy, the coverage type, location, and more factors, you may pay more than the state average cost. These are the average premiums for common insurance in TN:
- Car insurance: $2,005 to $2,388 per year
- Homeowners insurance: $432 to $1,828 per year
Naturally, you'll pay less for minimum coverage than you would for full coverage with any of these insurance types.
Factors Affecting Insurance Rates in Tennessee
A wide range of factors can impact the price of Tennessee insurance, depending on the type of coverage you're considering. These are some of the common factors insurance providers consider for each type:
- Car insurance: Driving record and history, driver age, vehicle type, vehicle location (urban vs. rural) credit score
- Homeowners insurance: Home size, home type, home location (urban vs. rural), proximity to floodplains and natural disaster zones, credit score
Across all insurance types, you'll typically pay more for insurance in urban areas than rural ones. That's because more congested areas often lead to higher car accident incident rates and property crime. However, if you're in a tornado-prone or flood-prone area, you'll likely wind up paying more for homeowners insurance.
Likewise, teenagers and people over the age of 65 usually have to pay more for Tennessee car insurance, while older residents will pay more for health and life insurance.
Useful Tennessee Insurance Resources
If you have questions about Tennessee insurance requirements or state regulations, you can always contact the Tennessee Department of Commerce and Insurance.
Whether you're looking to switch insurance providers or you need to get a new policy, use EverQuote's comparison tools to find cheap car insurance in Tennessee and compare quotes and coverages. With the intuitive tools, you can find the best insurance policies for you and your unique situation.