Renting a Car in Tennessee: 2026 Guide

Renting a car in Tennessee involves state-specific laws, fees, insurance requirements, and seasonal considerations that can affect your trip and your final bill. This guide covers everything you need to know before you book a Tennessee rental.

Tennessee rental car laws

Tennessee has no state income tax but high sales tax. Open container in passenger area is legal. DUI laws strictly enforced.

Seat belt and phone laws: All passengers required. Hands-free phone law since 2019.

Required insurance in Tennessee

Minimum liability $25K/$50K/$15K. Most credit cards cover TN rentals.

Best airports for rental cars in Tennessee

BNA (Nashville), MEM (Memphis), TYS (Knoxville for Smokies), TRI (Tri-Cities).

Seasonal warnings for Tennessee

Tennessee-specific tips that save money

1. Nashville to Memphis is 3 hours — cross-state rentals are common. Some brands charge for one-way returns even within Tennessee
2. Smoky Mountains driving requires extra caution — rental damage from low-clearance roads is common
3. Tennessee gas prices are typically lower than most US — self-fill is especially worth it here

How to avoid hidden fees in Tennessee

The biggest fee traps in Tennessee are the same as everywhere else, but with state-specific multipliers:

• Refueling charges — typically $9-$11 per gallon at major brands. Self-fill 5-10 minutes before return saves $40-$80.
• Counter insurance upsells — $20-$40 per day. Almost always cheaper through your auto policy or credit card.
• Toll passes — $4-$15 per day even on days you do not use a toll. Decline unless you know you will use them.
• Underage surcharge — standard $20-$35 per day under 25 in Tennessee. AAA membership often waives this at participating brands.

Frequently asked questions