Cheapest Auto Insurance for Low Mileage Drivers in Tennessee

Comparing rates for low-cost auto insurance is hard enough, and figuring out which company has the cheapest car insurance rates for low mileage drivers takes even more diligence.

Each insurer has a different formula to determine rates, so let’s begin by taking a look at the most budget-friendly car insurance companies in Tennessee. It’s a good idea to be aware that Tennessee car insurance rates are impacted by many things which can substantially decrease or increase the cost of coverage. This is why Tennessee drivers need to shop around with many companies to find the most budget-friendly car insurance quotes for low mileage drivers. Insurance rates can be altered by many things and change dramatically, so the most economical option two years ago may now be quite expensive.

Find the Best Cheap Insurance in Tennessee

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Utica National has some of the most affordable car insurance rates in Tennessee at around $737 each year. Auto-Owners, Cincinnati Insurance, Tennessee Farmers, and Penn National also rank well as some of the cheaper Tennessee auto insurance companies.

In the rate table above, if you currently buy coverage from Tennessee Farmers and switched to Utica National, you might realize an annual premium reduction of in the vicinity of $186. Customers with Penn National may save as much as $189 a year, and USAA customers might cut rates by $220 a year.

Understand that those rates are averaged for all drivers and vehicles and do not factor in a rate decrease for low mileage drivers. So the company that has the cheapest rates for you may not even be in the chart above. That points out the importance of why you need to get rate quotes using your own personalized driver profile and vehicle information.

The type of vehicle that is being insured is probably the biggest factor that determines the availablility of the cheapest auto insurance for low mileage drivers in Tennessee. Vehicles with high performance, poor passenger safety features, or high incidents of liability claims will cost much more to insure than more economical and safe models. The data below shows auto insurance costs for a number of the cheapest automobiles to insure in Tennessee.

Data variables include married female driver age 40, no speeding tickets, no at-fault accidents, $500 deductibles, and Tennessee minimum liability limits. Discounts applied include claim-free, multi-vehicle, safe-driver, multi-policy, and homeowner. Estimates do not factor in garaging location in Tennessee which can raise or lower insurance rates significantly.

By looking at the data, you can expect vehicles like the Subaru Forester, Honda CR-V, Ford Escape, Jeep Grand Cherokee, and Chevrolet Impala are likely to be the more affordable vehicles to insure for infrequent drivers.

Selecting the highest-rated auto insurance company is hard considering how many choices there are in Tennessee. The company rank data shown next may help you select which coverage providers you want to consider comparing rates from.

These ratings are for large, nationwide insurance companies, so companies that have a smaller presence are not included in this list. To compare rates from these companies and more, click here.

Top 10 Large Car Insurance Companies in Tennessee Ranked by Value

1. Travelers
2. American Family
3. Safeco Insurance
4. AAA Insurance
5. The Hartford
6. Progressive
7. Erie Insurance
8. Esurance
9. 21st Century
10. Titan Insurance

Top 10 Large Car Insurance Companies in Tennessee Ranked by Customer Service

1. USAA
2. Travelers
3. AAA Insurance
4. Nationwide
5. Safeco Insurance
6. Progressive
7. State Farm
8. The Hartford
9. The General
10. Esurance

Price comparison of only insuring for liability

Finding the cheapest auto insurance for low mileage drivers in Tennessee is probably important to the majority of vehicle owners, and a good way to find cheaper insurance is to not buy full coverage. The chart below shows the comparison of car insurance rates when comparing full coverage to liability only. The price estimates are based on no tickets, no at-fault accidents, $250 deductibles, single status, and no other discounts are factored in.

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Averaged for all ages 20 through 70, physical damage coverage costs $1,681 per year more than just insuring for liability. That raises the question if buying full coverage is a good investment. There is no set guideline to exclude physical damage coverage, but there is a broad guideline. If the yearly cost of comp and collision coverage is more than 10% of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.

For example, let’s say your vehicle’s claim settlement value is $6,500 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, the most you would get paid by your company is $5,500 after the policy deductible has been paid. If you are paying more than $550 annually for comprehensive and collision coverage, then it might be time to buy liability only.

There are some conditions where dropping physical damage coverage is not financially feasible. If you still owe money on your vehicle, you must maintain physical damage coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your savings is not enough to buy a different vehicle in the even your car is totaled, you should not buy liability only.