Auto Insurance For Military Personnel: Getting Covered

Military personnel and their families have unique auto insurance needs. Whether it's insuring stored vehicles while they're away on active duty or dealing with vehicles registered and insured in one state but used in another, it's important to understand how to stay within the law and get the best coverage. Military members often have special rules when it comes to car insurance, and many states allow them to continue registration and insurance coverage from their home state, regardless of where they're stationed. However, if a service member or their spouse is employed in the new state, the vehicle may need to be registered and insured there. It's crucial to check the specific state rules.

Discounts for active-duty military personnel and veterans

Several auto insurance companies offer discounts for active-duty military personnel and veterans. These discounts can be a percentage off your insurance premium or special rates for stored vehicles. Here are some of the companies that offer these discounts:

Geico

Geico offers a Military Discount of up to 15% on your total insurance premium for active-duty, retired military, or members of the National Guard or Reserves. They also provide Emergency Deployment Discounts of up to 25% for military members deployed to “imminent danger pay areas” and 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 can answer any questions about rates, discounts, and savings during deployment.

USAA

USAA exclusively serves the military community, including active-duty, retired, and honorably discharged military members, and their families. They offer a discount of up to 15% off comprehensive coverage when you garage your vehicle on a military base and up to 60% off coverage if you store your vehicle during deployment. USAA also provides competitive rates, great customer service, and flexible policies curated to meet the unique needs of the military community.

State Farm

State Farm offers a military discount of 25% off auto insurance premiums, but this is currently only available in Louisiana for eligible members of the United States Armed Forces based in the state or with spouses/dependents living there.

Allstate

Similar to State Farm, Allstate offers a 25% military discount on auto insurance, but this is also only available in Louisiana for eligible members of the United States Armed Forces based in the state or with spouses/dependents living there.

Liberty Mutual

Liberty Mutual offers a competitive 10% military discount on car insurance, as well as additional savings for members of the Military Benefits Association. They also offer a comprehensive-only insurance option, which can be beneficial for active service members anticipating deployment.

Armed Forces Insurance

Armed Forces Insurance caters exclusively to the military community and offers competitive rates, comprehensive-only insurance, and the ability for active-duty members to avoid penalties for lapses in coverage. They also provide coverage for retired veterans, military spouses, children of current members, and other affiliated individuals.

Arbella

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

How to manage auto insurance while deployed

Managing auto insurance while deployed can be a tricky business, but there are a few options to consider. Firstly, it is important to note that the military does not pay for car insurance, so you will need to make arrangements yourself. Here are some ways to manage your auto insurance while deployed:

Suspending Your Policy

If you are the only person who drives your car and you are going to be deployed, you may choose to suspend your policy for the duration of your deployment. This means you won't have to pay premiums while you're away, but your car won't be covered for any damage. However, you can ask your insurance agent about changing to a comprehensive-only policy, which will cover your car in case of theft, storm damage, etc.

Cancelling Your Coverage

If you don't plan on driving your car at all while deployed and no one else will be using it, you may want to consider cancelling your coverage. This can save you money in the short term, but be aware that you may face penalties or higher rates when you return and want to reinstate your policy. You will also not be covered for any damage to your car while it is not insured.

Leaving Your Car with Family

If you have family members who will be using your car while you are deployed, you can leave the car with them. In this case, it may make sense to remove yourself from the policy, which can lower the premium for your family members. However, be sure to add yourself back to the policy if you return on leave, as driving without insurance is illegal.

Taking Advantage of Discounts

Many insurance companies offer significant discounts for military personnel. For example, USAA offers a discount of up to 60% for deployed drivers, while Geico offers a 15% base discount for anyone who is serving or has served in the military, as well as additional discounts for membership in certain military organizations. Some companies also offer discounts for storing your vehicle while deployed or for parking your car on a military base.

Reinstating Your Insurance After Deployment

When you return from deployment, be sure to obtain car insurance before you start driving again. You may need to take out a new policy reflecting your home of record, especially if you are returning to a different state. Keep your documents up to date, including your car registration, title, and insurance.

Other Considerations

Before deploying, think about how you will pay your premiums or renew your policy while you are away. You may be able to set up automatic payments or renew your policy early. Also, check with your insurance agent about coverage for personal items you take with you on deployment, as homeowners insurance typically does not cover damage in a war zone. Finally, evaluate your life insurance needs, as active-duty military personnel are automatically insured for $400,000.

How to reinstate your insurance after deployment

If your policy has been cancelled, you may be able to get it reinstated by contacting your insurance provider, depending on their rules and your state's laws. However, reinstating a policy after a deployment may be a little more complicated, especially if your coverage has lapsed.

Contact Your Insurance Provider

The first step to reinstating your insurance after deployment is to contact your insurance provider. You will need to explain your situation and ask about their specific policies regarding reinstatement. Some companies are strict and don't allow any reinstatements after cancellations, while others are more flexible. It's important to note that you can only reinstate your policy with the same carrier and under the same policy you previously had – you cannot transfer the policy to a new insurer.

Pay Any Outstanding Premiums and Fees

If your policy was cancelled due to non-payment, you will likely need to pay your premium in full, along with any late fees and/or interest charges that may apply. Some insurance companies may also charge a reinstatement fee, which can range from $10 to $35 or more. Additionally, if your coverage has lapsed, you may need to pay a higher premium to get your policy reinstated.

Provide Required Documentation

In some cases, you may be required to provide documentation to your insurance company before they will reinstate your policy. This could include a "statement of no loss," which states that you have not experienced any losses during the lapse in coverage and will not file a claim for that time period. You may also need to provide proof of insurance, especially if your vehicle is stored at an official military vehicle processing centre.

Update Your Information

Make sure to update your insurance information, especially if you are returning to a different state than where you left your vehicle. Your insurance policy should reflect your home of record, which is typically the state from which you joined the military. Additionally, keep your documents up to date, including your car registration, insurance information, and vehicle title.

Compare Rates and Shop Around

If your previous insurance company is unable or unwilling to reinstate your policy, you may need to initiate a new policy with a different insurer. In this case, it's a good idea to compare rates and shop around for the best deal. Consider both companies that cater specifically to military members and those that serve the general public. By shopping around, you can find the most affordable and comprehensive coverage for your needs.

How to choose the right deductible

Choosing the right deductible is an important step in selecting an auto insurance plan. A deductible is the amount you pay out of pocket before your insurance carrier starts paying for repairs. You will have to pay the deductible every time you file a claim. For example, if you have a $3000 repair and a $1000 deductible, you will be responsible for paying the first $1000, after which the insurance company will pay the remaining $2000.

There is an inverse relationship between your insurance deductible and the rate you pay for your policy. Plans with lower deductibles usually have higher monthly premiums, and plans with higher deductibles have lower insurance rates. When selecting a deductible, it is important to consider the following:

• Your likelihood of filing a claim: If you are more likely to file a claim, a low-deductible plan will result in lower total costs. Conversely, if you are unlikely to file a claim, a high-deductible plan will be more cost-effective.
• The value of your car: If your car is not worth much, a lower deductible is generally better. This is because insurance companies will only pay up to the actual cash value of your vehicle if it is declared a total loss.
• Your cash savings: If you do not have savings to cover a high deductible, a low-deductible policy is a safer option.
• Your tolerance for risk: Choosing a high-deductible plan assumes that you will not have to file a claim. If you are risk-averse, a low-deductible plan may be a better option.

The average auto insurance deductible is $500, but deductibles can range from a few hundred dollars to $2500. It is important to choose a deductible that you can afford if you need to file a claim.

How to get the best coverage at the best price

Getting the best coverage at the best price for auto insurance while in the military requires some research. Here are some tips to help you get the most favourable deal:

• Plan ahead when buying a car: Opting for a car without a lot of bells and whistles can save you money right from the start. Also, consider which cars are frequently stolen as insurers charge more to cover those models.
• Improve your credit score: Insurers take credit scores into account when determining rates, so pay your bills on time and pay off any overdue debts to improve your score.
• Compare rates from different companies: While military-oriented financial companies are often recommended for the best rates, it's worth checking rates for your vehicle with other insurers to ensure you're getting the best deal.
• Understand special military rules: Many states allow service members to continue registration and insurance coverage from their home state, regardless of where they are stationed. However, if you or your spouse are employed in the new state, the vehicle may need to be registered and insured there.
• Explore deployment options: Some insurers will waive penalties if you choose to drop coverage while serving. Others will encourage you to retain a low level of coverage for a stored or inactive vehicle. Ask your insurance agent about your options.
• Consider different types of coverage: In addition to standard liability coverage, you may want to add medical coverage, uninsured/underinsured motorist coverage, or gap coverage for new cars. Choose the types of coverage that best fit your needs and budget.
• Choose the right deductible: Opting for a higher deductible can lower your premium. By choosing a higher deductible, you can save up to 30% on premiums.
• Look for discounts: You may be eligible for discounts based on your age, driver training, car features, or having multiple policies with the same insurer. Be sure to ask about any discounts you may qualify for.
• Shop around: Compare rates from multiple companies to find the best deal. USAA and GEICO are often recommended for military members, but it's worth getting quotes from other insurers as well.
• Bundle your insurance: You can often get a discount by bundling your auto insurance with other types of insurance, such as homeowners or renters insurance.
• Take advantage of military discounts: Many insurers offer discounts for active-duty military, veterans, and members of the National Guard. These discounts can result in significant savings on your premium.
• Consider other factors that affect your rate: Your rate is influenced by factors such as your driving history, the type of vehicle you own, your credit score, and your annual mileage. Improving these areas can help lower your rate.

Frequently asked questions