Auto Insurance Discounts For Military Personnel: What You Need To Know

Auto insurance for military personnel and veterans can be complicated, but there are many companies that offer special discounts and coverage options to help them save money. USAA, an insurance company that caters exclusively to military members, veterans, and their families, is often considered the cheapest option. Other companies like Geico, Armed Forces Insurance, Farmers, and Liberty Mutual also offer military discounts. Additionally, the state of Louisiana offers a special insurance discount for service members, and some companies provide discounts for storing your vehicle while on active duty or keeping it on a military base. When shopping for auto insurance, it's important to compare quotes from multiple companies and consider factors such as coverage options, discounts, and customer satisfaction ratings to find the best deal.

USAA: Cheapest car insurance for veterans and military

If you are a veteran or active member of the military, you and your family might be eligible for some of the best car insurance rates. USAA is the only major insurance company that caters exclusively to former and current service members and their families. This includes:

• Those currently enlisted in the Air Force, Army, Coast Guard, Marines, Navy, National Guard, and Reserves.
• Retired or honorably discharged military members.
• Those in U.S. service academies, in advanced ROTC or on ROTC scholarship, plus officer candidates within 24 months of commissioning.
• Family, including widows, widowers, and unremarried former spouses who had USAA insurance while married, as well as children whose parents have or had USAA insurance.

USAA offers a great set of discounts and has high customer satisfaction ratings. Policies are available in all states and Washington, D.C.

USAA also offers a discount of up to 15% on comprehensive coverage for members who store their vehicles in a garage on a military base in most states. If you are deployed and not using your car, you can receive up to a 60% discount on auto insurance. This benefit is not available in Hawaii, North Carolina, or Virginia.

According to a January 2024 rates analysis, USAA has the cheapest minimum car insurance for veterans and military members on average.

Geico: Best military car insurance discount

If you are a veteran or active member of the military, you and your family may be eligible for some of the best car insurance rates. Many auto insurance companies offer discounts for active-duty military personnel, veterans, and members of the National Guard.

Geico offers a discount of up to 15% on car insurance for retired or active-duty military, National Guard members, those enlisted in the Reserves, and members of military professional organizations like the Navy Federal Credit Union. This discount is available nationwide and can be combined with other discounts, such as for good grades or a good driving record, to help you save even more on your car insurance.

In addition to the standard discount, Geico also offers an emergency deployment discount of up to 25% for military members who are deployed to "imminent danger pay areas" as defined by the Defense Department and store their cars according to an approved storage protection plan.

Geico also offers tools through its Military Deployment Center to assist you and your family in preparing for deployment.

Other insurance companies offering military discounts

Several other insurance companies offer military discounts, including:

• Farmers Insurance
• Liberty Mutual
• Armed Forces Insurance
• Progressive
• Allstate
• Arbella
• Travelers
• Nationwide

Arbella: Best deployment discount from a small company

Arbella Insurance is a small, regional insurance company headquartered in Quincy, Massachusetts, offering car, home, and business coverage in Massachusetts and Connecticut, as well as business coverage in New Hampshire and Rhode Island. The company has six claims offices in New England and works with local independent agents.

Arbella offers a 10% discount to Massachusetts customers deployed on active duty at least 100 miles from their car. This discount is also available to college students who go to school more than 100 miles away and leave their car at home.

Although Arbella is too small to be rated by NerdWallet, it ranked 7th out of 11 among other New England insurers in J.D. Power's 2023 Auto Insurance Study for customer satisfaction. Arbella also had fewer complaints than expected to state regulators, according to three years' worth of data from the National Association of Insurance Commissioners.

Armed Forces Insurance: Best military car insurance agency

Armed Forces Insurance is an agency that provides auto insurance for veterans, active-duty personnel and their families. It also covers active or retired Department of Defense employees.

• It offers a personal insurance agent dedicated to you.
• It provides coverage plans built with the unique needs of the military in mind.
• It offers flexible options to protect your property and budget.
• It saves you time and money by comparing options through its partnerships with top-rated national carriers.
• It is highly committed to reflecting your commitment to duty, honour and integrity.

Types of Auto Insurance Coverage

Armed Forces Insurance offers the following types of auto insurance coverage:

• Auto Liability Coverage: This covers damage if you are legally responsible for accidentally injuring someone or damaging another vehicle or property in an auto accident. It also pays legal defence and court costs.
• Personal Injury Protection (PIP): This covers reasonable and necessary medical expenses for covered persons due to an auto accident, including rehabilitation, lost earnings, replacement services and funeral expenses.
• Collision Coverage: This covers damage to a covered vehicle caused by a collision with another vehicle or object, or a vehicle rollover. A deductible is required.
• Comprehensive Coverage: This covers loss of or damage to an insured vehicle not caused by a collision or vehicle rollover, such as fire, wind, hail, flood, vandalism, theft or hitting an animal. A deductible may apply.
• Uninsured Motorist Coverage: This covers damages when a covered person is injured in an auto accident caused by an uninsured driver. In some states, this may also pay for property damage.
• Underinsured Motorist Coverage: This covers damages when a covered person is injured in an auto accident caused by a driver with insufficient liability insurance.
• Rental Reimbursement: This covers rental services when your vehicle is disabled due to an auto accident.
• Emergency Road Service: This covers towing services if your vehicle breaks down.

Who Is Covered Under Armed Forces Insurance?

An auto insurance policy from Armed Forces Insurance typically covers relatives who live in your home and other licensed drivers who have permission to drive your insured vehicle.

Louisiana and Montana: States that mandate military car insurance discount

Louisiana and Montana are the only two states that mandate that all car insurance companies provide a military discount.

Louisiana

In Louisiana, auto insurance companies must offer a 25% discount on any auto liability policy to active military personnel based in the state, as well as Louisiana Air National Guard and Louisiana Army National Guard personnel. This discount applies to the service member, their spouse, and their dependent children who are on the same policy.

To be eligible for the discount, you must be a Louisiana resident, be on full-time active duty, and buy your insurance in Louisiana. If you are stationed outside of Louisiana, you must be single, or your family must live in Louisiana.

To apply for the discount, contact your insurance agent or the Louisiana Department of Insurance. You will need to fill out a form and have it signed by your commanding officer.

Montana

In Montana, a discount must be given to members of the Montana National Guard who have taken a defensive driving course. The discount lasts three years, but the law does not specify a discount percentage.

Other Discounts

In addition to state-mandated discounts, many auto insurance companies offer their own discounts for military personnel and veterans. For example, Geico offers a discount of up to 15% for active-duty, retired, National Guard, and Reserve members. They also offer an emergency deployment discount for those deployed to "imminent danger pay areas."

Other companies that offer military discounts include Farmers Insurance, Liberty Mutual, and Arbella. USAA, which caters exclusively to military members and veterans, offers some of the lowest rates on average.

Frequently asked questions