Tennessee variant. This is a Tennessee-specific version of the Auto Insurance Premium Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Auto Insurance Premium Estimator.
Tennessee's average annual auto insurance premium is $1,373 - near the national average. Rates reflect state regulation, traffic density, weather, and uninsured-driver rates.
Why Tennessee auto premiums look the way they do
At $1,373/year ($114/month), Tennessee premiums are shaped by minimum-coverage laws, litigation environment, repair costs, and theft/accident frequency.
Your individual rate depends on driving record, vehicle, credit (where allowed), and coverage limits. The estimator above lets you adjust these to localize the Tennessee average.
About taxes and housing in Tennessee
Tennessee levies no state income tax on wages, having fully repealed its tax on interest and dividend income in 2021.
Tennessee's effective property tax rate is relatively low near 0.67%, with median home values around $320,000.
Tennessee's economy includes music and tourism in Nashville and Memphis, automotive manufacturing, and healthcare.
Worked example: monthly budget in Tennessee
The $1,373 state average works out to $114/month. A clean record and higher deductible can pull you below this; a recent claim or young driver pushes above it.
Quick reference
- State income tax: No state income tax (eliminated Hall tax in 2021)
- State sales tax: 7% (plus 2.55% avg local)
- Median home value: $320,000
- Median household income: $67,631
- Effective property tax rate: 0.67%
- Avg auto insurance: $1,373/yr
Frequently Asked Questions
What is the average car insurance cost in Tennessee?
About $1,373 per year, or $114 per month.
How can I lower my Tennessee premium?
Raise your deductible, bundle policies, maintain a clean record, and compare quotes - rates vary widely between insurers in Tennessee.