What You Need to Know about Auto Insurance for Military Veterans

Are you a veteran who has just recently purchased a car and is looking for the right auto insurance plan? You may be overwhelmed with all of the information and feel unsure about choosing a plan that truly meets your needs. After all, as a veteran, you have some very specific considerations to keep in mind. But don’t worry — we’ve got you covered.

In this guide, we’ll discuss what military veterans need to know before obtaining auto insurance so that they can find the best policy for their unique situation.

What Is the Minimum Auto Insurance Required for Military Veterans?

Auto insurance for veterans can be tricky to determine, as all military members are subject to the exact auto insurance coverage requirements as the general public. Fortunately, numerous auto insurance providers offer the best options for military personnel and veterans. (For more information, read our “Understanding Auto Insurance for Military Personnel and Veterans“).

In most cases, veteran auto insurance policies must meet at least their state’s minimum liability auto insurance requirements. In addition, if a vehicle were financed or leased instead of purchased outright, you’d need to include collision and comprehensive coverage within the auto policy per the financing or lease agreement terms.

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What Are the Best Military Discount Options for Veterans?

• Mileage discount: If you’re a military veteran who doesn’t drive often, USAA and Geico have launched programs designed to give you extra savings. USAA has a mileage-based discount depending on how many miles you drive yearly. Geico went further by rolling out their DriveEasy program, which uses an app to track your mileage and award discounts if your driving is below average. Learn more in our Geico DriveEasy review.
• Military discount: Military veterans have long deserved extra recognition for their service, and military discounts on car insurance are a great way to recognize and reward that hard-earned experience. One of the go-to military discount options for veterans is military auto insurance. Geico, Farmers, and Liberty Mutual offer military veterans the chance to receive discounts ranging from 5% up to 15% off their premiums. 
• Vehicle storage discount:  Several car insurers offer vehicle storage discounts to help veterans significantly reduce their car insurance costs while deployed. USAA and Geico are just two companies providing this car insurance opportunity for military retirees.
• On-base discount:  One of the best military discounts available is on-base car parking with USAA. By taking advantage of this offer, retirees can enjoy a secure car garage and excellent car insurance rates – all while saving big time. In addition, USAA car insurance for military retirees offers flexible coverage beyond just life and home protection, so take full advantage of your hard-earned discount.
• Bundling: As a veteran, saving money is likely something you value. Luckily, bundling your insurance policies with the same insurance carrier has become common practice, and it can significantly save you money. Companies like USAA offer bundled policy discounts of up to 10%, while Geico offers varying percentage amounts depending on the state you live in. 

How Deployment and Active Duty Affect Auto Insurance

Auto insurance can be a tricky subject for those in the military who are deployed abroad or on active duty. One of the main considerations when thinking of auto insurance is the cost. Three potential choices are available to you – continue to pay your auto insurance, cancel your policy, or suspend it. 

While continuing to pay for insurance will undoubtedly hurt your wallet, it may save you money down the road, as many companies will base their eligibility requirements and prices on your payment history and evidence of coverage. 

On the other hand, for those in difficult financial situations or who already have family members with their own auto insurance policies, canceling might make more sense – but remember that this choice could cost you later. When you return to buy new insurance, you may be charged higher prices or denied coverage entirely.

Suspending your motor insurance while deployed is an appealing option if permitted in your state and by your chosen insurance carrier. It may be a great way to save money while you’re away since you won’t have the vehicle with you.

However, check if your state and insurance company allow such coverage suspension before deployment. Depending on the rules, you will likely have to pay the same premium rate when restarting coverage after deployment, as opposed to a different rate like what new customers would typically expect. 

If coverage suspension is allowed, discuss any policy limitations or other stipulations with your insurance provider before finalizing decisions.

Military-Friendly Insurance Companies

USAA

USAA is best known as one of the best auto insurance providers for veterans. In addition to offering affordable rates, USAA offers a wide range of coverage options to ensure that the insured and their family are cared for during tough times. 

From comprehensive and collision coverage, liability for bodily harm, uninsured motorist protection, and car rental reimbursement benefits – not to mention their excellent customer service – USAA is truly military friendly. 

And best of all, at an average rate of just $1000 per year, you can rest assured that your family will be covered while you serve our country. Read our USAA auto insurance review to learn more.

Geico

If you’re a retired member of the military, car insurance can often be an expensive prospect. Fortunately, Geico offers car insurance plans explicitly tailored for retirees – providing comprehensive coverage options at great rates. 

For example, Geico protects against bodily harm, property damage liability, collision, and comprehensive car insurance. It also offers personal injury insurance and uninsured motorist protection to ensure you’re covered no matter what happens on the road. 

Plus, they offer roadside assistance in an emergency and car rental reimbursement if your car needs some time in the shop. Combined with a competitive average rate of $1,148, Geico is an excellent choice for car insurance for military retirees.

Farmers Insurance

As a veteran, you should know that Farmers car insurance offers an extensive list of coverage possibilities tailored to meet your exact needs. Not only can you choose from the typical coverage types, but Farmers also allows for additional add-ons such as new car replacement, accident forgiveness, and full windshield coverage. 

Plus, if you’ve made improvements to your vehicle, like a custom stereo or wheels, Farmers offers customized equipment coverage, so the extra accessories are protected too. 

On top of all that, the average cost per year of car insurance with Farmers is a reasonable $1,598 for full coverage and $534 for minimum coverage. 

Liberty Mutual

Liberty Mutual is an outstanding option for military personnel, offering several features not typically included in auto insurance policies. Their lifetime repair guarantee means that you can use Liberty-approved shops to fix your car, with the repairs being guaranteed for the life of the car.

If your older vehicle is ever totaled, they offer enough money to get a newer model-year car that has 15,000 fewer miles. On top of that, they also provide Mexico insurance – don’t forget MexPro if you’re considering a road trip south of the border. Liberty Mutual works hard to ensure you’ll always have quality coverage and competitive rates to fit every budget.

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Auto Insurance for Veterans: What’s the bottom line?

Car insurance is an integral part of keeping yourself and your family safe, and veterans have several great options available to them. The right car insurance policy will ensure that you and your loved ones are protected on the road while providing peace of mind. 

With a variety of military-friendly car insurance providers out there, you can rest assured that you’ll be able to find an affordable car insurance policy that meets your needs. No matter which provider you choose, compare policies, read the fine print, and decide what coverage you need before finalizing any decisions.

 

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