Tennessee Car Insurance Calculator – How Rating Factors Affect Your Rates

As a driver in Tennessee, car insurance is mandatory to operate your motor vehicle legally on state roads. The minimum coverage required by state law is liability coverage which covers property damage and medical expenses for other parties involved in an accident you cause up to your policy limits. Comprehensive and collision coverage are optional but typically increase total annual costs by about $360 in Tennessee.

As with any insurance rate, your premium depends on many variables including coverage level selection, driving history review, location and credit score. Tennessee average annual rates average out at around $1,329 annually but your individual premium could vary between higher or lower depending on your profile. Below is a list of rating factors and how they influence premium costs so you can get the most cost-effective premium possible.

Credit Score: Your credit score plays a pivotal role in your auto insurance rates. People with better scores tend to be seen as lower risk drivers and will therefore usually enjoy cheaper policies than those with lesser scores. Luckily, though, improving your score can be achieved through timely bill payment and restricting credit card use.

Driving Record: Maintaining a good driving record is one of the best ways to save money on car insurance premiums. Even minor violations such as speeding tickets can significantly raise rates, making it all the more essential that drivers maintain clean records.

Consider how many miles you drive annually as this will have an effect on your premium. Drivers who cover more miles tend to be considered higher risks and thus typically pay more for car insurance policies.

Your car’s type can have an effect on its auto insurance rates; luxury or sports models will typically cost more than sedans to insure.

As a final note, it is always worth it to shop around and obtain quotes from different insurance providers to ensure you are receiving the most affordable rates possible. A small change to your deductible could have an immense effect on your premium costs; bundling policies together and taking advantage of discounts could save hundreds of dollars each year on auto insurance in Tennessee alone – it is definitely well worth your while!