The vehicle requiring insurance is a large consideration when looking for the most affordable insurance for drivers with good credit. Vehicles with high performance, a lack of modern safety features, or a high likelihood of having liability claims will cost more to insure than safer, lower-performance models.
The list below features car insurance premiums for a number of the most economical vehicles to insure in Tennessee.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 4WD||$1,024|
|Hyundai Elantra GLS Touring Station Wagon||$1,147|
|Honda Odyssey EX W/Rear Entertainment||$1,160|
|Dodge Grand Caravan Crew||$1,206|
|Chevrolet Silverado 3500HD LT Crew Cab 2WD||$1,290|
|Dodge Ram 3500 Crew Cab ST 2WD||$1,313|
|Toyota Tacoma 2WD||$1,335|
|Ford Focus S 4-Dr Sedan||$1,343|
|Ford Escape Limited 4WD||$1,335|
|Volkswagen Jetta 2.0T Station Wagon||$1,340|
|Ford Edge SE 2WD||$1,347|
|Kia Optima EX||$1,353|
|Toyota RAV4 Limited 4WD||$1,360|
|Ford F-150 XL Regular Cab 4WD||$1,376|
|Dodge Ram 2500 Crew Cab ST 4WD||$1,386|
|Honda Civic LX-S 4-Dr Sedan||$1,406|
|Toyota Camry SE||$1,431|
|Toyota Corolla S||$1,441|
|Nissan Altima 2.5 4-Dr Sedan||$1,453|
|Jeep Grand Cherokee Laredo 4WD||$1,460|
|Chevrolet Equinox LTZ AWD||$1,456|
|Chevrolet Silverado 2500HD LTZ Crew Cab 4WD||$1,465|
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Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include multi-vehicle, safe-driver, multi-policy, claim-free, and homeowner. Estimates do not factor in vehicle location which can affect prices noticeably.
By looking at the data, vehicles like the Honda CR-V, Hyundai Elantra, Honda Odyssey, and Dodge Grand Caravan will be some of the cheaper vehicles to insure for financially responsible drivers.
For financially responsible drivers, one of the more important things that are used to help calculate the amount you pay each year for auto insurance is where you call home. Regions with larger populations or more claims are more likely to have higher rates, whereas areas with less people or fewer weather incidents have the enjoyment of a little cheaper coverage.
The illustration below rates the most costly cities in Tennessee for drivers with good credit to purchase auto insurance in. Nashville is ranked at #16 with a yearly premium of $1,165 for the average insurance policy, which is about $97 each month.
|Rank||City||Premium Per Year|
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Rate information is approximated as zip code location can increase or decrease prices significantly.
How to get discounts on Nashville insurance
Auto insurance companies that provide coverage for drivers with good credit could also offer premium discounts that can lower rates by as much as 35% if you are eligible to receive them. Large insurance companies and the discounts they provide can be read below.
- 21st Century offers premium reductions for student driver, automatic seat belts, theft prevention, teen driver, air bags, and early bird.
- Progressive offers discounts including online signing, continuous coverage, multi-policy, online quote discount, and good student.
- State Farm policyholders can earn discounts including accident-free, driver’s education, multiple autos, multiple policy, and student away at school.
- Nationwide has discounts for good student, defensive driving, anti-theft, family plan, and business or organization.
- Esurance may have discounts that include safety device, Switch & Save, anti-theft, emergency road assistance, defensive driver, and online quote.
- The Hartford includes discounts for good student, air bag, driver training, bundle, and anti-theft.
The diagram below illustrates the comparison of insurance costs with and without discounts. The rate quotes are based on a female driver, no driving violations, no at-fault accidents, Tennessee state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with passive restraint, claim-free, accident-free, safe-driver, multiple policy, and homeowner discounts applied. In this example, theaverage amount saved on insurance for drivers with good credit is 27% or $398.
Cost of full coverage in Nashville
Reducing the cost of insurance is important to most vehicle owners, and a good way to save on the cost of insurance for drivers with good credit is to only pay for liability coverage. The chart below visualizes the comparison of yearly insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The information is based on no accidents or driving violations, $1,000 deductibles, single marital status, and no policy discounts are applied.
On average, comprehensive and collision coverage on your policy costs $1,217 per year over and above liability coverage. At some point, almost every driver questions when is it safe to stop buying full coverage. There is no definitive formula for dropping full coverage on your policy, but there is a broad guideline. If the annual cost of coverage is more than 10% of the replacement cost minus the deductible, then it could be time to drop full coverage.
For example, let’s assume your vehicle’s settlement value is $4,500 and you have $1,000 deductibles. If your vehicle is totaled, the most your company will settle for is $3,500 after paying your policy deductible. If premiums are more than $350 a year for comprehensive and collision coverage, the it may be a good time to stop paying for full coverage.
Careless drivers pay higher rates
The ideal way to earn the best insurance premiums for financially responsible drivers is to be a safe driver and not have accidents or get tickets. The chart below illustrates how traffic citations and at-fault accidents can raise car insurance costs for different age groups. The premiums are based on a married female driver, full physical damage coverage, $100 deductibles, and no discounts are factored in.
The chart shows that the average cost of a car insurance policy per year with no violations or accidents is $1,742. Add in one speeding ticket and the average cost surges to $2,025, an increase of $283 each year. Then add one accident along with the one speeding ticket and the yearly cost of insurance for drivers with good credit increases to an average of $2,835. That’s an increase of $1,093, or $91 per month, just for not keeping your driving record clean!
Why you should be comparing rates
Tennessee insurance rates are calculated based on many things that control the price you have to pay for coverage. Simply improving your credit, getting divorced, or getting a ticket for careless driving can trigger changes in premium that can now make some companies cheaper than before.
Not only that, but car insurance companies file new rates every year or even multiple times each year to help ensure profitability. Heavier than normal losses can result in rate increases, while better underwriting can cause cheaper Nashville car insurance rates.
To illustrate this example, the graph below shows the company with the cheapest car insurance in Nashville, TN for a 35-year-old male driver with a clean driving record, no accidents, and a good credit history. If we compare prices based on his personal profile, Utica National might offer the lowest car insurance rates in Nashville at $862 a year. This is $466 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and Tennessee Farmers are the remaining cheapest Nashville, TN auto insurance companies.
In this example, we will give the driver from the above example some claims, bad credit, and a traffic ticket or two. Due to the fact that every auto insurer has their own process to set their prices, analyzing rate quotes may now show a significantly different list of the cheapest Nashville car insurance companies as shown below.
Erie now has the cheapest rate in Nashville, TN with Allied, Nationwide, Westfield, and GEICO now being in the top five. This example proves why consumers need to spend some time comparing rates when trying to find the lowest auto insurance rates for drivers with good credit. Car insurance prices can be determined by many risk factors and can change without notice, so the cheapest company when you last compared rates may now be costing you a lot of money.