Usssa And Auto Insurance: Shore Veterans' Unique Needs

USAA and auto insurance are closely linked, with USAA offering exclusive auto insurance to veterans, active-duty military personnel, and their families. This includes spouses and children, as well as pre-commissioned officers. USAA is widely regarded as the best option for auto insurance for veterans and active-duty military, with competitive rates and discounts for those living on a military base or storing their vehicles during duty.

Other insurance companies like Geico, Farmers Insurance, and State Farm also offer competitive rates and discounts for veterans and military personnel. These companies provide various discounts and benefits, such as Geico's dedicated military support team and State Farm's Steer Clear program for drivers under 25.

When considering auto insurance, it is essential for veterans and military personnel to compare rates, discounts, and specific benefits offered by different insurance companies to find the best option for their unique needs.

Discounts for veterans and active military members

Auto insurance can be complicated for veterans and military personnel, but there are many companies that offer special discounts for both veterans and active-duty service members.

USAA

USAA offers auto insurance exclusively for veterans, active-duty military, and their families. USAA is the only major insurance company that caters solely to former and current service members and their families. USAA offers discounts of up to 15% off comprehensive coverage for a vehicle parked in a garage on a military base in most states. If you aren't driving your car and store it in a secure location, you can receive up to a 60% discount on auto insurance. This benefit can be helpful for military members on deployment, but it's not available in Hawaii, North Carolina, or Virginia. USAA also has high customer satisfaction ratings and is a one-stop shop for insurance, as well as banking and investing products.

Geico

Geico offers a Military Discount of up to 15% on the total insurance premium for those on active duty, retired from the military, or a member of the National Guard or Reserves. Geico also offers an Emergency Deployment Discount of up to 25% for military members deployed to "imminent danger pay areas" defined by the Defense Department and who store their cars under an approved storage protection plan. Geico has a dedicated military customer service team, staffed with veterans from all military branches, who are available 24/7.

State Farm

State Farm offers a military discount of 25% off a customer's auto insurance premium, but only in Louisiana. This discount is available to eligible members of the US Armed Forces community who are based in Louisiana or whose spouse and/or dependents live there.

Allstate

Allstate also has a military discount of 25% off a customer's auto insurance premium, but again, only in Louisiana. This discount is available to eligible members of the US Armed Forces community who are based in Louisiana or whose spouse and/or dependents live there.

Liberty Mutual

Liberty Mutual offers a competitive 10% military discount for car insurance, as well as additional savings for members of the Military Benefits Association. Liberty Mutual's comprehensive-only insurance option makes it a good choice for active service members anticipating deployment.

Arbella

Arbella offers a 10% discount for Massachusetts customers deployed on active duty at least 100 miles from their car.

Armed Forces Insurance

Armed Forces Insurance caters exclusively to the military community and offers competitive rates and comprehensive-only insurance. Active-duty members can also avoid penalties for lapses in coverage. Coverage is available to active-duty service members, retired veterans, military spouses, children and spouses of current members, Service Academy cadets, current or former Department of Defense civilian employees, and active or former commissioned officers of NOAA and PHS.

Insurance while deployed

If you're in the military, it's important to ask your insurance agent about possible deployment issues before buying a policy. Here are some key things to consider when it comes to insurance while deployed:

Arrange Premium Payments

Think about how you will pay your premiums or renew your policy while deployed. You might be able to set up automatic payments from your bank account or renew your policy early. If you let your policy expire or don't pay on time, you may struggle to get a new policy or face higher rates.

Check Coverage for Personal Items

If you have a homeowners or renters policy, ask your agent if your personal items will be covered if they are lost, stolen, or damaged while you are deployed. The military usually doesn't pay to repair or replace property that is damaged or stolen in military housing or in a war zone. Homeowners insurance typically covers personal property when you are travelling, but most policies won't pay for damage in a war zone.

Evaluate Life Insurance Needs

Active-duty military personnel, including reservists and National Guard members, are automatically insured for $400,000. If you need more coverage, compare policies and get price quotes from several companies. The Department of Veterans Affairs has a life insurance needs calculation tool and information on plans.

Change Your Auto Coverage

If no one will be driving your car while you are deployed, talk to your agent about changing your auto insurance. You might be able to drop some coverages to save money. If you are leaving your car in someone else's care, check with your insurance company about their specific policies.

Suspend or Cancel Your Policy

If you won't be using your car during deployment, you may be able to suspend your policy. This means paying a significantly reduced rate, while still being covered if your vehicle is damaged or destroyed in storage. Suspending your policy is generally preferable to cancelling it, as it helps you avoid "break-in-coverage" penalties. However, if you are single or your family members have their own insurance, cancelling your policy may be a good option to save money. Just be aware that you may face higher rates or be denied coverage altogether when you return.

Leave Your Car With Family

If you leave your car with family members, consider removing yourself from your policy. This can lower your premium, allow your family to still use the car, and help you avoid lapsed coverage penalties. Just be sure to add yourself back to the policy if you return on leave.

Reinstating Your Insurance After Deployment

When you return from deployment, be sure to obtain car insurance before driving. Take out a policy reflecting your home of record, carry proof of insurance, and keep your documents up to date. Assess previous claims experiences and choose an insurer with good reviews and a strong financial stability score. Beware of the "patriot penalty," where carriers charge higher rates to customers reinstating coverage after a lapse.

Car Insurance Discounts for Service Members and Veterans

Some companies offer discounts for active-duty service members and veterans. USAA, for example, offers a discount of up to 15% for vehicles parked on a military base, and up to 60% for vehicles stored during deployment. GEICO offers a discount of up to 15% for retired or active-duty military, and up to 25% for those deployed to "imminent danger pay areas."

Insurance for vehicles stored on military bases

Continuing to Pay Insurance

The first option is to continue paying your auto insurance premiums while you are deployed. This option ensures that you maintain a good payment history and continued coverage, which may benefit you with reduced rates and better deals in the future. However, it is also the most expensive option and can be a significant financial drain, especially if you have a family at home managing finances while you are away.

Cancelling Your Insurance

If you are single or your family members have their own auto insurance, you may decide to cancel your car insurance during deployment. This option can provide financial relief, especially if money is tight. However, cancelling your insurance leaves you vulnerable to potential disasters, such as damage or theft, and you may face higher rates or even be denied coverage when you return and attempt to purchase a new policy.

Suspending Your Insurance

Another option is to suspend your auto insurance while deployed. Not all states or insurance companies allow for coverage suspension, so it is essential to check with your insurance provider and state insurance department beforehand. Suspending your insurance may leave you unprotected against damage caused by weather, "Acts of God" (e.g., floods, fires, earthquakes), or vandalism. To protect against these risks, you will need to maintain "comprehensive" coverage.

Discounts for Stored Vehicles

Some auto insurance companies offer discounts for stored vehicles, including those kept on military bases. For example, USAA offers a discount of up to 15% for vehicles garaged on military installations, and Geico provides a discount of up to 15% for active-duty and former service members. Additionally, some states, like Louisiana, mandate a 25% discount on specific coverage types for active-duty service members.

Storing Your Vehicle on a Military Base

Many military bases offer designated parking lots for vehicles while their owners are deployed. If you choose to store your vehicle on a military base, be sure to follow guidelines for safe storage. Contact your insurance provider to inform them of your situation and inquire about any discounts or other options available to you.

Insurance for family members

USAA offers insurance for military members and their families, including spouses, children, step-children, and widows. USAA membership can be passed on to the spouse and children of a USAA member. Former spouses who haven't remarried are also eligible if the member joined USAA during the marriage.

USAA offers several discounts for auto insurance, including good driving record, defensive driving/driver training course, good student discount, bundled/stacked discounts, breaks for newer vehicles, driving less, multi-vehicles, and anti-theft devices. USAA also offers discounts from retail partners, such as FTD Flowers, FedEx, fitness centers, and prescription drugs through GoodRx.

USAA's auto insurance is available in all 50 states and Washington, D.C., and some international locations. USAA has low average rates across a variety of policies and consistently receives top marks for customer service.

USAA membership is not extended to parents or siblings of a USAA member. However, if a member remarries, their new spouse's children are eligible for USAA membership. Nieces and nephews of a USAA member can become members if their aunt or uncle is their legal guardian. Grandchildren of a USAA member can become members if they are legally adopted by their grandparent or if their parent is also a USAA member.

USAA offers a 10% legacy discount if a member's parents were also USAA members. This discount can be passed down to the next generation if the eligibility criteria are met.

Insurance for veterans' organisations

Veterans Affairs (VA) offers a range of insurance options for veterans, service members, and their families. Here is an overview of the insurance programmes available for veteran organisations:

Servicemembers' Group Life Insurance (SGLI):

SGLI is a low-cost group term life insurance program for active-duty service members, including those in the Ready Reserve and National Guard. It also covers members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service, as well as cadets and midshipmen of the U.S. military academies and ROTC members. SGLI coverage is automatic for most eligible individuals, and they can designate beneficiaries or make changes to their coverage through the SGLI Online Enrollment System (SOES).

Veterans' Group Life Insurance (VGLI):

VGLI allows veterans to convert their SGLI coverage to a civilian program of lifetime renewable term coverage after separation from service. Service members with full-time SGLI coverage are eligible to convert to VGLI.

Family Servicemembers' Group Life Insurance (FSGLI):

FSGLI provides insurance coverage for spouses and dependent children of service members enrolled in SGLI. Spousal coverage cannot exceed the service member's coverage, while dependent children are automatically covered at no charge. FSGLI is also available to spouses and dependent children of veterans with VGLI coverage.

Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI):

TSGLI is an automatic feature of SGLI that provides financial support to service members who suffer severe injuries, such as amputations, blindness, or paraplegia, due to traumatic events during their service. TSGLI covers all service members insured by SGLI and can help with the costs of recovery and rehabilitation.

Veterans Affairs Life Insurance (VALife):

VALife is a new life insurance program introduced in 2023 for veterans with service-connected disabilities. It offers guaranteed acceptance whole life coverage of up to $40,000, with lesser amounts available in increments of $10,000. The coverage takes effect two years after enrollment, provided that premiums are paid during that period.

Veterans' Mortgage Life Insurance (VMLI):

VMLI provides mortgage life insurance protection to disabled veterans who have been approved for a VA Specially Adapted Housing (SAH) grant. This insurance is available to veterans who have received an SAH grant, hold the title to their home, and have a mortgage on it.

In addition to these programmes, VA also offers various health care benefits, including regular check-ups, specialist appointments, home health care, geriatric care, medical equipment, prescriptions, and mental health services. VA health care can be used alongside other insurance plans, such as private insurance, Medicare, Medicaid, or TRICARE.

For more detailed information on insurance options and eligibility, it is recommended to refer to the official Veterans Affairs website.

Frequently asked questions