Car Insurance for Veterans & Military (2024 Guide)

More and more insurance companies recognize the sacrifice and specific needs of active-duty and retired military of the U.S. armed forces. Several companies are responding with reduced rates and discount options that will significantly impact the cost of auto insurance coverage for servicemembers and their families. 

Finding the best car insurance for veterans and active-duty military means looking beyond the cheapest coverage. In this article, we’ll cover what car insurance companies best suit your family’s needs at the lowest cost with the greatest customer satisfaction. 

Key takeaways

• Military auto insurance discounts are designed to help cut costs for military service members and veterans whether the car is used on base, off base, or stored while deployed.
• The five best insurance companies for veterans have a combination of low rates, military and veteran discounts, and excellent customer service.
• Many non-military discounts can reduce the overall cost of an auto insurance policy for military service members and veterans.
• Consider your options before canceling car insurance coverage during deployment.
• Family members of active duty and retired service members may also qualify for discounted insurance rates. 

Military auto insurance discounts

There are multiple discount options available to current military and veteran families. Many insurers give a discount to military service members and veterans simply as a “thank you” for your military service. Additional discounts may apply for active-duty military members serving more than 100 miles away from where their vehicle is being garaged or who qualify for an emergency deployment discount. Discounts are available for low-use, good driving, clean driving records, bundling, and telematics to collect data on driving characteristics. 

The types of discounts for active-duty military and veterans vary by insurer. However, most insurers are proud to offer options for lower rates for military members and veterans through discount opportunities. Some military discounts are also extended to the family of military members and veterans. Additionally, both Louisiana and Montana have state mandates that require auto insurers in those states to offer National Guard member discounts. 

Understanding what is available and required in your state can help you find the best car insurance rates for your military family and their unique needs. 

Best car insurance for veterans and military families

One of the main criteria for getting car insurance quotes from some of the best companies for veterans and military families should be financial strength. Car insurance that won’t or can’t be there when you need it is not valuable. Fortunately, many great insurance companies are financially secure and motivated to provide the best auto rates for military service members, both active-duty and retired. 

Secondly, it’s important to look for an insurance company that understands the needs of members of the military and has flexible options based on your current military status. There may also be factors other than military status that make one insurer a better choice over another. Some factors include driving history, credit, youthful operators in the household, and whether or not you can bundle insurance policies. 

In addition to cost, consider whether a national insurance carrier is a better choice for you than a regional insurance company. If you move from Virginia to California, will you have to get a new auto or home insurance company? A national insurer will make it easier to transfer from state to state for frequent military moves, ensuring you can take advantage of long-term policyholder discounts for years to come. 

All things considered, USAA, Nationwide, Travelers, State Farm, and Geico are the five most veteran—and military-friendly insurance companies in terms of rates and service. 

Veteran Car Insurance Rates

Below are the five best car insurance companies that offer the cheapest rates and military-friendly discounts to active-duty military personnel and veterans. 

Many factors, including military service, will determine your best insurance rate. Talk to your insurance agent about your insurance portfolio and how your car insurance fits with your other asset protection goals. The best insurance company for your neighbor may not be the best choice for you and your family. You should be able to locate their contact number and your policy information on your insurance ID card. 

Other ways veterans and military personnel can save on car insurance

Veterans and military personnel can save money on their car insurance in many other ways. One example is insurance product bundling (multi-policy discounts). An insurance company may seem to have better car insurance rates for military members and veterans but doesn’t offer homeowner’s or renter’s insurance, or its rates aren’t competitive in those areas. Life insurance and other policy types may also qualify for bundling discounts. Considering your overall insurance portfolio and how that relates to your car and home insurance premium can make a significant difference in your total premium for all policies. 

Keeping a good driving record and participating in optional car insurance discounts like defensive driving courses and telematics programs can also help reduce your auto insurance rates. Paperless discounts and paying in full are other ways to save money on your car insurance. 

Looking at your coverage options is another area where you may be able to save money on your car insurance. Review your deductibles and determine if you are currently receiving the best value based on your options. 

If you have young drivers, the cheapest auto insurance may be the one with the best rates and discounts for young drivers. Companies with good student discounts, driver training discounts, and accident forgiveness would be good considerations. 

Many military personnel consider canceling their car insurance during deployment to save money. However, that can be a dangerous choice for multiple reasons, including state insurance requirements, potential uncovered damage to your vehicle, and the risk of force-placed insurance. Unfortunately, garaging your vehicle is not a surefire way to protect it from damage during deployment or to prevent fines and other consequences of canceling your car insurance. 

State insurance requirements

Many states require minimum liability insurance and some states require other coverages as well if a car has a current state tag. If you have a current tag on your vehicle and cancel your insurance, you could receive a no-insurance fine from the state. If not paid, your license or registration may be suspended. Not only could this be costly, but the time spent resolving these issues could be significant.

Damage to vehicle

The most common damage to a vehicle comes from a collision with another vehicle, animal, or object. However, there are many things that can happen to your vehicle that are unrelated to a collision, even while in storage. Examples include fire, storm damage, and theft. Canceling your car insurance while deployed puts your vehicle at risk for damage.

Lender requirements

If you have a loan on your vehicle, it’s likely that you agreed to carry full-coverage insurance on your vehicle at all times as part of your loan contract. There may also be a provision for force-place insurance to be applied if you do not keep your insurance in force. Force-placed insurance is costly, added to your loan, and often not the coverage you would choose for yourself. 

There are other options that will allow you to stay compliant with the state and your lender while protecting your vehicle when it is stored during deployment without canceling your insurance. 

• File an affidavit on non-use with your state’s Department of Motor Vehicles (DMV) and remove liability insurance (or other possible state-required coverages like uninsured motorist) if the car definitely won’t be driven. 
• Ask your insurer if there are any deployment discounts or storage rates. These discounts for non-use can be substantial.
• Consider a partial suspension of coverages you are certain you won’t need and that won’t impact state or lender requirements. For example, if you don’t have a loan, have filed a non–use affidavit with the state, and are certain the vehicle won’t be driven, you may consider suspending all coverages other than comprehensive coverage to protect from property damage related to other-than-collision claims. 

FAQ: Car insurance for veterans

Can I cancel my car insurance for an upcoming deployment? 

It may seem like canceling insurance on a vehicle that you won’t be using while on deployment is a good way to save money, but it can create problems. State insurance requirements, damage unrelated to driving, and lender requirements are just a few reasons to consider other alternatives to canceling your insurance during deployment. 

Many insurers offer deployment discounts that can be as much as 60% off the current rate. There may also be discounts for your car insurance if your car is primarily used on the military base. Your insurance agent will be able to guide you through the options available to you to avoid the potential pitfalls of canceling your car insurance during deployment or unnecessarily reducing to minimum coverage that could have negative consequences. 

Does Geico offer a veteran discount?

When looking for the best military car insurance for veterans, Geico should definitely be on the list of insurance companies to consider for military and veterans, Geico offers a 15% discount for active-duty military members and veterans. In addition, it offers a 25% discount when military members are deployed to an imminent danger zone. Geico provides global coverage and a dedicated customer service line staffed by veterans. 

What qualifies a person for USAA insurance?

USAA is a unique insurance company in that it is member-owned and only offers insurance and military-based perks for its members. Eligibility is extended to active duty U.S. uniformed personnel, retirees, and their family members, including:

• Active duty military member of the U.S. Army, Navy, Air Force, Marines, Coast Guard, National Guard, and Reserves. 
• Retired or honorably discharged veterans of the U.S. military
• Pre-commissioned officers, such as cadets and midshipmen
• Family members of current USAA members

Family members of current USAA members include spouses, widows, widowers, and un-remarried former spouses of USAA auto insurance members who had USAA while married, and children whose parents joined USAA. 

While USAA places a focus on military members and their families, the only way to determine if it is the best auto insurance company for your family and its auto insurance needs is to compare USAA car insurance rates, financial stability, and customer service to other military-friendly car insurers, including companies such as Progressive, Liberty Mutual, Farmers Insurance, and others.

Article written by Shawnette Good. 

Shawnette is an insurance professional with 30 years of industry experience helping consumers understand complex insurance topics. Outside of writing, Shawnette enjoys long nature walks and volunteering in her community.