There are nearly 1.5 million active duty military members and over 17 million veterans in the United States. These men and women have dedicated portions of their lives to keeping our country safe at home and abroad and there are a few car insurance companies that reward them for their service.
Companies like USAA and Armed Forces Insurance are only for those who are current or former members of the military while GEICO, Farmers, and Liberty Mutual offer military discounts on their regular policies. We analyzed our data to determine which company might be best for your situation.
How Much Can Veterans Save on Car Insurance?
The national average for an adult driver with a clean record for full coverage ranges from between $107 a month ($1,285/year) in Maine to $363 ($4,356/year) in Michigan. While there are several companies that only service those who are current or former members of the military and their families, there are also a few companies that offer military discounts of between 5% and 15% to their existing policies.
Cheapest Car Insurance for Current Military Members and Veterans
In our analysis, USAA scored the highest of all major national insurance companies in customer satisfaction as well as in many areas when reviewing common driving infractions. They also extend their services to children and spouses of current and former military members who have used USAA for their insurance and financial needs in the past. Even if you didn’t follow your parent’s footsteps into the military, with USAA you can still reap the benefits of their service to the country.
With USAA, an adult driver with a good record can save nearly $3,000 a year in Michigan by switching, with a yearly premium of $1,454. For those drivers with infractions against them, such as speeding tickets, accidents, and DUIs, USAA could potentially save thousands a year. For example, a driver with an accident in Texas pays an average of $4,192 for car insurance a year. With USAA, that drops down to $1,925, a cost-savings of close to $200 a month. In Washington, DC, for someone with a speeding ticket on their record, the average driver can expect to shell out $257 a month ($3,094/year) for car insurance. Vets at USAA with a speeding ticket pay less than half that at $96 a month ($1,147/year).
The biggest savings potential from USAA is with young drivers. Drivers under the age of 25 typically pay more for their premiums than more seasoned drivers. In Connecticut, young drivers with good driving records and are not connected to their parents insurance plans pay $10,495 a year on average for insurance. With USAA, they pay only $4,206 a year, a nearly $500 monthly decrease. For those who have newly enlisted in the military and have left their parent’s home, USAA may be a way to save on what can be a costly endeavor.
Average USAA Yearly Premiums for 16-25 year olds |
Average Yearly Premium for 16-25 year olds |
Potential Savings |
|
$2,560 |
$6,240 |
$3,680 |
|
$2,683 |
$4,594 |
$1,911 |
|
$1,967 |
$3,286 |
$1,319 |
|
$2,578 |
$6,302 |
$3,724 |
|
N/A |
N/A |
N/A |
|
$3,652 |
$8,349 |
$4,697 |
|
$4,206 |
$10,495 |
$6,289 |
|
$4,002 |
$9,292 |
$5,290 |
|
N/A |
N/A |
N/A |
|
$4,960 |
$8,025 |
$3,065 |
|
$1,128 |
$1,781 |
$653 |
|
$1,946 |
$4,799 |
$2,853 |
|
$3,262 |
$5,796 |
$2,534 |
|
$4,109 |
$4,109 |
$0 |
|
N/A |
N/A |
N/A |
|
$3,344 |
$5,352 |
$2,008 |
|
$4,113 |
$8,132 |
$4,019 |
|
$3,605 |
$9,322 |
$5,717 |
|
$1,754 |
$4,090 |
$2,336 |
|
$3,012 |
$6,998 |
$3,986 |
|
N/A |
N/A |
N/A |
|
$3,014 |
$10,285 |
$7,271 |
|
$2,721 |
$5,200 |
$2,479 |
|
$2,215 |
$5,960 |
$3,745 |
|
$1,871 |
$6,511 |
$4,640 |
|
$3,087 |
$6,003 |
$2,916 |
|
$2,611 |
$5,035 |
$2,424 |
|
$4,914 |
$9,787 |
$4,873 |
|
$2,393 |
$6,649 |
$4,256 |
|
N/A |
N/A |
N/A |
|
$2,476 |
$5,605 |
$3,129 |
|
$5,978 |
$7,791 |
$1,813 |
|
N/A |
N/A |
N/A |
|
$3,317 |
$5,885 |
$2,568 |
|
N/A |
N/A |
N/A |
|
$3,433 |
$6,364 |
$2,931 |
|
$3,045 |
$6,743 |
$3,698 |
|
$1,367 |
$4,779 |
$3,412 |
|
$4,840 |
$12,013 |
$7,173 |
|
$4,951 |
$6,379 |
$1,428 |
|
$3,094 |
$5,582 |
$2,488 |
|
$2,703 |
$6,262 |
$3,559 |
|
$2,316 |
$7,066 |
$4,750 |
|
$4,070 |
$6,971 |
$2,901 |
|
$2,430 |
$4,650 |
$2,220 |
|
$2,374 |
$4,991 |
$2,617 |
|
$3,848 |
$6,726 |
$2,878 |
|
$3,994 |
$6,839 |
$2,845 |
|
$1,775 |
$4,276 |
$2,501 |
|
N/A |
N/A |
N/A |
|
N/A |
N/A |
N/A |
Another benefit of USAA insurance is that they have several discounts that are unique to military members. There is a 15% discount available If you store your car on base. Furthermore, if you store your car while being deployed overseas, you can get a reduction of nearly 60% on your monthly premiums. This prevents a lapse in insurance coverage for when you return stateside.
USAA’s generous policy of allowing children, spouses, and widows of former military members to use their services makes it one of the best options among all available insurance companies for those that qualify.
Another company to consider is Armed Forces Insurance. While available in all 50 states, AFI is a small company that does not have a lot of data to analyze. They have non-specific discounts available for military members, veterans, their children and spouses and also extend their coverage to civilians working for military institutions. They claim to offer competitive rates and when shopping for insurance needs, may be worth checking out. However, unlike USAA, they only supply insurance to those who live in the same household as the qualifying member.
Best Car Insurance Discount for Current Military and Veterans
GEICO, the nation’s second largest insurance company, provides members of the military, including National Guard, the Reserves, and veterans, a 15% discount on their policies. In California, the average driver with a good driving record spends about $150 a month ($1,817/year) on car insurance. With GEICO’s military discount, it’s almost $50 a month cheaper at $101 a month ($1,217/year). Unfortunately, children of the qualifying member are not eligible for the discount.
GEICO also offers premium reductions to store a car while deployed overseas as well as a host of other discounts that may be coupled together to give you the best rate.
Both Farmer’s Insurance and Liberty Mutual offer military discounts as well. While these companies tend to be more expensive than GEICO and USAA overall, if you have already established a relationship with your insurance company and would like to continue, they are still worth checking out. Farmer’s Insurance advertises a 5% discount for military personnel and Liberty Mutual offers up to a 10% discount.
Every state has a wide variety of rules and regulations regarding car insurance, so it is important to get an individualized quote that helps you find the best insurance for your circumstances.
How do you prove military status for car insurance discounts?
When applying to get military discounts for car insurance or to take advantage of policies from military-only companies, you will be asked to prove your military status. There are a number of ways to do this:
- Discharge paperwork: DD Form 214. This is usually given to you when you are discharged from service.
- For Reservists: DD Form 256, issued at the time your service ends. For National Guard members it is the NGB Form 22
- Military ID card
- Veterans ID card (after 2017)
- Veterans designation on state driver’s license
If you are looking into getting USAA insurance based on the service of a parent, you will need to provide proof of their service and association with USAA to be eligible.
Military-only insurance companies, as well as those companies who discount their policies for military personnel, reward the men and women and their families who have sacrificed for our country. They provide solutions to unique problems that active military members face when dealing with their insurance needs. If you are an active member or veteran of the U. S. Armed Forces, check out these companies to see if you qualify for a lower car insurance rate.