Car insurance on the rise in Tennessee

NASHVILLE, Tenn. (WKRN) — If you live in Tennessee, you’ve likely experienced recent sticker shock from your car insurance.

Across the country, car insurance rates have risen by nearly 24 percent so far this year. In Tennessee, rates have risen by nearly 12 percent since the end of 2023. News 2 spoke with Chase Gardner, data insights manager at Insurify , about the recent uptick.

“We have found that prices are rising fast across the country — and rising nearly $200 annually just in Tennessee over the first six months of the year,” Gardner said. “It’s a 12 percent increase. Tennessee drivers now paying close to $1,800 a year for a full coverage car insurance policy.”

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Insurance experts noted three main contributing factors leading to rate hikes: driving behavior, inflation, and car damage due to severe weather. Since the pandemic, the Insurance Information Institute (III) said that there have been more crashes, and they’ve been more severe.

Scott Holeman, a spokesperson for the III, said that those crashes have affected rates.

“We’re also seeing more fatalities and injuries on the road and that has led to more litigation with claims,” Holeman told News 2. “You probably see TV commercials or billboards from attorneys who claim they can get you money if you’ve been injured in an automobile accident. Something we call ‘lawsuit abuse’ is having a very negative impact on the insurance industry causing rates to go up.”

Tennessee car thefts are also behind costly claims. Davidson County has seen 400 more cars stolen than this time last year. Between 2022 and 2023, the county saw a 73 percent increase in car thefts.

Yet, experts emphasized that inflation is also still having a big impact.

“Supply chain problems that continue to lead to higher costs for cars and replacement parts, as well as labor,” Holeman said. “If you can’t get in to get someone to fix your car, you’re going to be without it longer and that costs more money.”

Both Holeman and Gardner explained that expensive safety features and technology in vehicles are also more costly to repair. Gardner added that storm damage to cars from severe weather has also driven up insurance rates.

“There are a lot of national narratives out there about how climate change in particular might be affecting home insurance, but it does play an impact on car insurance as well,” Gardner said.

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One silver lining is that insurance experts do believe rates will begin to level out by the end of 2024. Some ways you can save money include bundling your insurance, taking on a higher deductible, and comparing rates with online tools, such as Insurify.

If you’re working from home, Holeman suggested talking with your insurance agent about a lower mileage rate. If you have a student on your insurance policy, they may qualify for a good grades discount.

Before selecting an insurance policy, Holeman said that it’s smart to check your state’s insurance complaint index for any issues others have had with that company.

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