Best Pay-As-You-Go Auto Insurance in Tennessee for 2025 (Top 10 Companies Ranked)

Progressive, AAA, and Root Insurance are the top companies offering the best pay-as-you-go auto insurance in Tennessee. These providers have the cheapest rates in Tennessee.

Our Top 10 Company Picks: Best Pay-As-You-Go Auto Insurance in Tennessee

They deliver strong roadside assistance and reliable support, making them the top choice for usage-based auto insurance in Tennessee.

Safe drivers can also get additional discounts. Keep reading to compare the pros and cons of pay-as-you-go car insurance companies.

Enter your ZIP code into our free auto insurance quote comparison tool to protect your vehicle at the best rates.

#1 – Progressive: Top Overall Pick

Pros

• Snapshot Program: Progressive Snapshot lowers TN auto insurance rates by tracking and rewarding safe driving habits with discounts of up to 30%. Learn more in our Progressive Snapshot review.
• Comprehensive Policy Perks: Progressive pay-as-you-go auto insurance in Tennessee features flexible coverage and extra benefits.
• User-Friendly Mobile App: The intuitive mobile app simplifies managing pay-as-you-go auto insurance in Tennessee, providing easy access to policy details and claims.

Cons

• Mixed Reviews on Claims Processing: Tennessee pay-as-you-go auto insurance Reddit reviews report inconsistencies in the claims processing experience.
• Telematics Data Concerns: The Snapshot program’s use of telematics data might raise privacy concerns for some drivers considering switching to pay-as-you-go insurance in Tennessee.

#2 – AAA: Best for Roadside Assistance

Pros

• Top-Tier Roadside Assistance: AAA pay-as-you-go auto insurance in Tennessee includes exceptional roadside assistance, providing peace of mind for drivers on the go.
• Trusted Brand: AAA’s long-standing reputation adds reliability to their pay-as-you-go auto insurance offerings in Tennessee. Read our AAA review for more details.
• Membership Discounts: AAA members enjoy discounts on travel and vacations while saving money on Tennessee car insurance.

Cons

• Membership Fee: AAA roadside assistance in Tennessee and discounts require a membership fee.
• Expensive Rates: On top of an annual fee, AAA pay-as-you-go insurance rates in Tennessee are the most expensive on this list at $65 per month.

#3 – Root: Best Customer Service

Pros

• Excellent Customer Support: Root is known for its outstanding customer service, making pay-as-you-go auto insurance in TN easier to manage. Find out more in our Root auto insurance review.
• User-Friendly App: The Root app provides seamless customer interactions, enhancing the experience for those opting for pay-as-you-go auto insurance in Tennessee.
• Safe Driving Rewards: Only safe drivers qualify for Root insurance, reducing overall Tennessee insurance rates for all drivers.

Cons

• Limited Physical Presence: Root’s strong online focus means fewer in-person service options for pay-as-you-go auto insurance in Tennessee.
• No High-Risk Coverage: Drivers with accidents or those who drive at night may not be eligible for Root car insurance in Tennessee.

#4 – Metromile: Best for Tech-Savvy Drivers

Pros

• Advanced Technology Integration: Metromile’s tech-driven approach provides detailed tracking for pay-as-you-go insurance in Tennessee, which you can learn about in our Metromile review.
• Real-Time Monitoring: Tech-savvy drivers benefit from Metromile’s real-time monitoring, optimizing their pay-as-you-go auto insurance in Tennessee based on actual usage.
• Innovative App Features: Metromile’s app offers trip tracking and expense reports. It also allows you to get a Metromile insurance quote.

Cons

• Learning Curve: Advanced technology may present a learning curve for some users, complicating pay-as-you-go auto insurance in Tennessee.
• Potential Privacy Concerns: Continuous monitoring might raise privacy concerns among some drivers opting for TN pay-as-you-go auto insurance.

#5 – Allstate: Best for Low-Mileage Drivers

Pros

• Low-Mileage Discounts: Save up to 30% on Tennessee car insurance if you drive less than 10,000 miles per year.
• Multi-Vehicle Discounts: Insure more than one vehicle with Allstate and get 25% off Tennessee pay-as-you-go auto insurance.
• Flexible UBI: TN drivers can choose between Allstate Milewise, which only tracks mileage, or go for bigger discounts with Allstate Drivewise. See how much you can save in our Allstate Drivewise review.

Cons

• Expensive Rates: Allstate pay-as-you-go auto insurance in Tennessee will be more expensive for high-mileage drivers or those who drive at night.
• Poor Customer Service: Tennessee auto insurance reviews of Allstate rank it below average for customer satisfaction in the region.

#6 – Nationwide: Best for Safe Drivers

Pros

• Accident Forgiveness: Tennessee drivers who remain claim-free won’t see their base rates go up after their first accident.
• Vanishing Deductibles: Safe drivers enjoy $50 off their deductible every year they avoid filing a TN auto insurance claim.
• Flexible UBI: In TN, choose between Nationwide SmartRide, which monitors driving habits, and SmartMiles, which tracks mileage only. Learn more in our Nationwide SmartMiles review.

Cons

• Poor Customer Service: Nationwide ranks lower in customer and claims satisfaction than its competitors for usage-based auto insurance in Tennessee.
• Expensive Rates: Tennessee drivers will get cheaper pay-as-you-go insurance rates with other companies on this list.

#7 – State Farm: Best for Personalized Policies

Pros

• Customizable Coverage: State Farm offers highly personalized policies, making pay-as-you-go auto insurance in Tennessee adaptable to individual needs.
• Dedicated Agents: The availability of dedicated agents helps tailor pay-as-you-go auto insurance in Tennessee to specific driver profiles. Find out more in our State Farm review.
• Flexible Payment Options: State Farm’s flexible payment plans allow for better management of pay-as-you-go auto insurance in Tennessee, suiting different financial situations.

Cons

• Higher Premiums: Personalized policies can sometimes result in higher premiums for pay-as-you-go auto insurance in Tennessee.
• Complex Policy Choices: The wide range of options may overwhelm some customers seeking straightforward pay-as-you-go auto insurance in Tennessee.

#8 – American Family: Best for Local Agents

Pros

• Local Agents: American Family has local agents who provide personalized service for pay-as-you-go auto insurance in Tennessee.
• Tailored Policies: Local agents in Tennessee offer customized pay-as-you-go auto insurance plans designed to fit individual requirements. For a complete list, read our American Family review.
• KnowYourDrive Discount: Avoid using your phone while driving to get a 10% discount on AmFam auto insurance in Tennessee.

Cons

• Higher Rates: The presence of local agents may contribute to higher operating costs, which can increase pay-as-you-go auto insurance rates in Tennessee.
• Inconsistent Service: Experiences vary by location, with drivers in some cities having complaints about Tennessee auto insurance customer service.

#9 – Geico: Best for Multi-Policy Discount

Pros

• Generous Multi-Policy Discount: Geico offers substantial discounts of up to 25% for bundling multiple policies with TN pay-as-you-go auto insurance.
• Affordable Rates: Known for competitive pricing, Geico provides affordable pay-as-you-go auto insurance in Tennessee, averaging $48 monthly. Compare free quotes in our Geico review.
• Easy to Use: Geico’s website and mobile app make managing pay-as-you-go auto insurance in Tennessee and multiple policies straightforward.

Cons

• Poor Customer Service: Geico ranks below average for customer service and claims for pay-as-you-go auto insurance in Tennessee.
• Discount Restrictions: Not all customers may qualify for a multi-policy discount, limiting potential savings on pay-as-you-go insurance in Tennessee.

#10 – Liberty Mutual: Best Usage-Based Discount

Pros

• Significant Savings Potential: Liberty Mutual offers substantial discounts for usage-based or pay-as-you-go auto insurance in Tennessee, rewarding low-mileage drivers.
• Driving Behavior Insights: Their program provides insights into driving behavior, which can help lower rates for pay-as-you-go auto insurance in Tennessee.
• Customizable Discounts: Discounts tailored to driving habits make pay-as-you-go auto insurance in Tennessee more affordable. Discover additional details in our Liberty Mutual review.

Cons

• Strict Monitoring Requirements: Some who seek pay-as-you-go auto insurance in Tennessee may find the need for consistent monitoring to qualify for discounts intrusive.
• Variable Savings: Savings from usage-based discounts can vary, potentially leading to less predictable costs for pay-as-you-go auto insurance in Tennessee.

Comparing Monthly Rates for TN Pay-As-You-Go Auto Insurance

This table compares monthly rates for auto insurance in Tennessee, showing minimum and full coverage pay-as-you-go auto insurance costs.

TN Pay-As-You-Go Auto Insurance Monthly Rates by Coverage Level & Provider

Rates vary significantly, with Metromile offering the lowest minimum coverage rate at $29 per month and the cheapest full coverage at $70 per month.

In Tennessee, pay-as-you-go auto insurance offers a modern and flexible approach to vehicle coverage. Pay-as-you-go car insurance isn’t like traditional Tennessee insurance.

This type of insurance allows you to pay for coverage based on how much you drive, making it an ideal choice for those who drive infrequently or want to match their insurance costs closely with their driving habits.

Learn More: Cheap Usage-Based Auto Insurance

How to Get Lower Pay-As-You-Go Auto Insurance Rates

Understanding your discount options for pay-as-you-go auto insurance in Tennessee is the first step toward securing the best deal. By comparing auto insurance discounts across different providers, you can make an informed choice that aligns with your budget and coverage needs.

Explore top auto insurance discounts for pay-as-you-go plans from leading pay-as-you-go auto insurance companies in Tennessee. Save with options like low mileage, safe driver, or good student. Learn how to save money by bundling insurance policies and get a discount.

Several other key factors can significantly impact your rates and coverage options. Understanding how vehicle type, location, coverage choices, and personal factors influence pay-as-you-go insurance rates will enable you to select a policy that fits your specific driving behavior and usage and aligns with your financial situation.

• Vehicle Make and Model: You can get lower car insurance rates by driving an older vehicle with a high safety rating.
• Location: Where you park your vehicle (e.g., in a garage, on the street, or in a driveway) can influence your insurance costs. (Read More: Best Garaging Auto Insurance Discounts)
• Coverage Options: Choosing minimum coverage can lower your premiums, but opting for full coverage provides greater protection.
• Personal Factors: Age and gender impact Tennessee auto insurance costs, with younger drivers, particularly males, often facing higher premiums due to statistically higher risk factors.

If you choose pay-as-you-go auto insurance in TN, remember to monitor and improve your credit score and maintain your safe driving habits to keep costs low.

Pay-Per-Mile Car Insurance May Not Be as Good as It Sounds

Pay-per-mile car insurance, or pay-as-you-go car insurance, is designed for drivers who log fewer miles and want to save on premiums. This type of policy includes a base rate plus a per-mile charge, making it ideal for remote workers, retirees, or those who drive occasionally.

While it can lower costs for some, it may not be the best option for frequent drivers, who could end up paying more than with traditional insurance.

For Tennessee residents, comparing options from the best auto insurance providers in Tennessee is essential. Companies like GoAuto offer budget-friendly policies, and checking GoAuto Insurance reviews can help determine customer satisfaction with pricing and claims handling. Additionally, flexible GoAuto Insurance payment options may appeal to drivers looking for affordable coverage.

Is pay per mile car insurance as good as it sounds?
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Those needing low-income car insurance in Tennessee might find pay-per-mile insurance useful, but it’s important to ensure that base rates and mileage fees fit within their budget. Some insurers, like Metromile, offer additional perks, such as Metromile accident forgiveness, which prevents premium increases after minor accidents.

However, Tennessee’s best auto insurance rates depend on individual driving habits and coverage needs. While pay-per-mile insurance can be cost-effective for some, it is important to compare quotes, coverage options, and policy restrictions before committing. Additionally, looking into the best auto insurance companies that don’t raise rates after a claim can help ensure affordable and reliable coverage over time.

Case Studies: Pay-As-You-Go Coverage in Tennessee

Whether you’re an infrequent driver, managing multiple vehicles, or seeking discounts for safe driving, this flexible usage-based insurance model can be a game-changer:

• Case Study #1 – Infrequent Driver Saves Big With Progressive: John, a retired teacher who rarely drives, saved on insurance by choosing the Progressive Snapshot pay-as-you-go plan, which matched his low mileage with cost-effective coverage.
• Case Study #2 – Family with Multiple Vehicles Saves with Geico: The Smith family reduced their insurance costs by 15% and streamlined policy management by using Geico’s multi-policy discount and pay-as-you-go option to save on auto insurance for three vehicles.
• Case Study #3 – Young Professional Gets Low Rates With AAA: Sarah in Nashville chose AAA’s pay-as-you-go insurance for its safe-driving discounts and membership perks she can use while traveling for work.

You can make a more informed decision by examining how different insurance providers cater to a range of needs and utilizing available discounts, including multi-policy discounts.

This approach ensures that you select a policy that matches your unique driving habits and financial goals.

Top Pay-As-You-Go Auto Insurance Providers in Tennessee

Pay-as-you-go options offer an ideal solution for Tennessee drivers seeking flexible and cost-effective auto insurance. The leading providers include Progressive, AAA, and Root Insurance for comprehensive coverage with competitive rates.

Progressive excels in overall affordability and policy perks. AAA is known for superior roadside assistance coverage.

Root shines for safe drivers without accidents or claims. Metromile has the cheapest pay-as-you-go car insurance rates, starting at $29 monthly.

To find the best coverage, compare quotes from multiple companies and consider factors like driving habits and vehicle type. Start saving on your auto insurance by entering your ZIP code and comparing quotes.