Tennessee drivers enjoy some of the most affordable car insurance rates in the country. The average cost of liability car insurance in TN is $52 a month, which is about 16% less than the national average of $62 a month. If you’re looking for cheap liability car insurance in Tennessee and drive an older vehicle, a liability-only policy could save you hundreds per year.

Tennessee’s minimum car insurance requirements are really basic, but finding the right insurer and policy at the best price requires strategy. In this guide, you will find out what insurers offer cheap liability car insurance in Tennessee, and valuable tips on saving more of your hard-earned money.

What Is Liability Car Insurance?

Liability car insurance is the basic required coverage to drive a vehicle in Tennessee legally. It provides financial protection when you’re at fault in an accident, paying for injuries to others and damage to their property. However, it does not cover your own vehicle or medical expenses. It’s ideal for drivers who want to meet state requirements without the higher cost of full coverage policies.

In Tennessee, state law mandates that all drivers carry liability insurance at the following minimum levels:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $25,000 for property damage per accident

These limits, often referred to as 25/50/25, represent the minimum coverage required. While this might be sufficient for minor accidents, serious incidents could easily exceed these limits, leaving you financially responsible for the difference.

Average Cost of Liability Insurance in Tennessee

Tennessee drivers benefit from relatively affordable car insurance compared to the national average. On average, liability-only coverage costs about $52 per month, while full coverage auto insurance in TN costs approximately $143 per month. The exact premium you end up paying depends on multiple factors, like your driving history, vehicle type, age, and location within the state.

Metropolitan areas like Memphis or Nashville may see slightly higher rates due to increased traffic and accident frequency, while rural areas tend to offer lower premiums.

The key to securing the best state minimum liability auto insurance in TN lies in comparison shopping and understanding how your risk profile affects your rates.

The 5 Cheapest Liability Insurance Providers in Tennessee

When it comes to getting cheap liability coverage in Tennessee, not all insurers are created equal. Some companies specialize in providing affordable minimum coverage, while others focus on bundling or loyalty discounts. Here are five insurers that consistently offer low-cost liability insurance in the Volunteer State.

Prefer local expertise? Compare free Tennessee liability quotes at Rodney D. Young Insurance.

Real-World Quote Examples

Insurance quotes can vary widely depending on your location, driving record, and vehicle. (Below are sample quotes for a 35-year-old Tennessee driver with a clean record, driving a 2012 Toyota Camry)  

Cheap Liability Car Insurance for Seniors in Tennessee

Seniors in Tennessee often enjoy some of the best car insurance rates thanks to their extensive driving experience and typically cautious driving habits. However, as drivers reach their late 70s or 80s, some insurers may begin to increase rates due to perceived risk. Still, seniors have access to several discounts and strategies to keep liability insurance costs low.

The Cheapest Liability Only Insurers For Senior Citizens 

• Westfield – Approximately $29/month for a 65‑year‑old on minimum coverage
• Tennessee Farm Bureau – About $30/month
• Auto Owners – Around $31/month
• Erie – Roughly $34/month
• Progressive – About $41/month

Understanding how insurers evaluate older drivers can help you take advantage of age-related benefits while avoiding rate hikes. Additionally, some companies offer specific senior discounts, low-mileage pricing, and defensive driving incentives that can further reduce premiums.

Here are several ways seniors in Tennessee can save on their liability coverage:

• Low-mileage discounts for driving less than 7,500 miles per year
• Defensive driving courses approved by the Tennessee DMV
• Retired driver discounts from companies like State Farm
• Bundling policies (home and auto) to unlock multi-policy savings
• Using telematics apps like Drive Safe & Save or GEICO’s DriveEasy to prove safe driving habits

Cheap Liability Insurance for Teens in Tennessee

Teen drivers in Tennessee face some of the highest liability insurance rates due to their inexperience and higher likelihood of accidents. Fortunately, there are still ways for families to secure affordable coverage, especially by keeping teens on a parent’s policy and taking advantage of student-based discounts.

Adding a teen to an existing policy is often much cheaper than buying a separate policy. Encouraging responsible driving habits and academic achievement can also lead to substantial discounts. Telematics programs can further incentivize teens to drive safely, lowering premiums over time.

Here are some strategies to reduce liability costs for teens:

• Add your teen to a parent’s existing policy to reduce premiums
• Maintain a B average or better for a good student discount (up to 25%)
• Enroll in a certified driver’s education course
• Use a telematics program like Progressive Snapshot or State Farm Drive Safe & Save
• Choose a safe, older vehicle with low insurance risk

10 Tips to Save More on Tennessee Liability Car Insurance

No matter your age or driving history, there are multiple ways to reduce the cost of liability insurance in Tennessee. Many drivers focus solely on the monthly rate, but smarter strategies like bundling, choosing the right car, or paying in full can provide even greater long-term savings.

Below are ten proven tips that can help you get the lowest possible price without sacrificing coverage quality:

1. Shop Around Annually: Get quotes from 3–5 different insurers each year to stay on top of rate changes.
2. Raise Your Deductible: Though not applicable to liability-only, increasing deductibles on optional coverages reduces premiums if you have them.
3. Bundle Policies: Combine auto insurance with home or renters insurance to save up to 25%.
4. Use Telematics: Sign up for usage-based programs that reward safe driving with discounts.
5. Ask for Discounts: Always inquire about savings for good drivers, paperless billing, autopay, or affiliation-based discounts.
6. Drop Unnecessary Coverage: If your car is older and not financed, consider dropping collision and comprehensive coverage.
7. Maintain a Clean Driving Record: Avoiding tickets and accidents is the best long-term way to keep premiums low.
8. Pay Semi-Annually or Annually: Many insurers offer 5–10% discounts for upfront payment in full.
9. Improve Your Credit Score: Tennessee insurers use credit-based insurance scores to set rates.
10. Choose a Vehicle with Low Insurance Costs: Avoid luxury or high-performance cars that carry higher liability risk.

Liability Insurance vs Full Coverage in Tennessee

Choosing between liability-only and full coverage depends largely on the value of your car and your financial situation. Liability is the legal minimum, but full coverage adds protection for your own vehicle through collision and comprehensive policies.

If your car is older or paid off, and you can afford to replace it in the event of an accident, liability-only makes financial sense. On the other hand, if your car is newer or you still have a loan on it, full coverage may be the wiser option.

Here are a few guidelines to help you make a better informed decision

• Opt for liability-only if your car is worth less than $4,000
• Consider full coverage for cars under 10 years old or worth more than $5,000
• Always factor in your ability to cover repair or replacement costs out of pocket

What to Watch Out For

While shopping for cheap liability insurance, it’s important to avoid common pitfalls that could leave you underinsured or paying more in the long run.

Understanding the limitations of minimum coverage and reading the fine print on your policy can prevent costly surprises.

Tennessee’s minimum coverage may not fully protect you in serious accidents. Property damage and medical costs can easily exceed 25/50/25 limits, leaving you personally liable. Optional coverages like uninsured motorist protection and medical payments are affordable and can greatly enhance your safety net.

Be cautious of these red flags:

• Bare-bones policies that lack crucial add-ons like roadside assistance
• High APR payment plans disguised as “no down payment”
• Limited coverage for high-risk drivers from discount insurers

Final Thoughts: How to Get the Best Liability Deal in Tennessee

Finding cheap liability car insurance in Tennessee doesn’t mean you have to sacrifice peace of mind. By comparing providers, leveraging discounts, and tailoring coverage to your situation, you can get the protection you need at a price that fits your budget.

Whether you’re a retiree in Knoxville, a student in Murfreesboro, or a parent insuring a teen in Memphis, smart choices can save you hundreds annually. Stick with liability if your vehicle qualifies, but don’t hesitate to explore broader coverage if your financial risk justifies it. Now that you know how to get cheap liability car insurance in Tennessee, it’s time to compare quotes with Rodney D. Young Insurance. Get quoted now from top insurers in Tennessee and save hundreds with direct rates.