The cheapest car insurance for military families and veterans
Key takeaways
- For military members and veterans, USAA may offer some of the lowest annual average rates.
- Both Armed Forces Insurance and USAA specialize in coverage for military members and veterans.
- Farmers, Geico and Liberty Mutual offer military discounts on policies.
Active duty members of the military, veterans and their families can often benefit from a variety of discounts on their car insurance. Some companies even cater exclusively to the military community. Just like other drivers, military families should compare quotes from multiple companies before they make a choice. The cheapest military car insurance for your family will depend on a variety of factors.
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
What are the cheapest car insurance companies for veterans?
When searching for the cheapest car insurance for military members, you may want to start your search by getting auto quotes from Farmers, Geico and USAA. Armed Forces Insurance (AFI) and Liberty Mutual may be worth looking into, as well — both have historically offered good rates to veterans; however, average premiums are not available for 2024.
Cheapest auto insurance for veterans by coverage level
For many people, price is a consideration when shopping for most things. While the average cost of car insurance is $2,458 per year for full coverage and $678 per year for minimum coverage, several companies offer far lower average rates. Even better, some providers offer a military discount to help you save that much more.
Below, we showcase some of the best car insurance companies for active-duty military and veterans.
| Insurance company | Bankrate Score | Avg. annual minimum coverage premium | Avg. annual full coverage premium | |
|---|---|---|---|---|
| USAA | 4.2 | $1,128 | $1,992 | |
| Geico | 4.4 | $558 | $2,107 | |
| Progressive | 4.4 | $706 | $2,418 |
Factors that impact cheap rates for veterans
While your status within the military may not directly affect rates, there are other factors that can impact your ability to get cheap auto insurance for military members:
- Discharge status: According to the U.S. Department of Veteran Affairs, a veteran is someone who “served in the active military, naval or air service, and who was discharged or released therefrom under conditions other than dishonorable.” If you were dishonorably discharged, you are not considered a veteran and likely will not qualify for military-focused insurance or military discounts.
- Rank: Some insurers may consider your military rank in the underwriting process. Certain ranks may qualify for different discount levels or have access to different rating profiles.
- Choice of insurer: Not all insurance companies cater specifically to military members, as USAA and AFI do. Among the companies that are also open to civilians, only some offer a discount for veterans and military members. Rates vary by insurance company, but finding a company that offers a military discount or works specifically with military families may help you find the cheapest car insurance for veterans and military members.
- Age: While veterans can span a wide range of ages, it’s helpful to keep in mind that age is one of the biggest rating factors when it comes to car insurance. Younger drivers typically pay higher premiums in most states, but rates tend to drop as you age and gain experience behind the wheel (assuming you keep a clean driving record). This means that older veterans may pay less for coverage than younger veterans.
- Location: ZIP code can also affect the cost of insurance for military families. Areas with higher rates of theft, extreme weather or serious accidents may see an increase in rates.
How veterans can save on auto insurance
Finding cheap auto insurance for military veterans and active-duty service members may involve some time and research. Some companies may not advertise military insurance discounts on their website, but it’s always worth asking if one is available. You might find savings that you didn’t know were available. Here are some other tips to lower your car insurance premium if you are a veteran:
- Shop around: Even if you get quotes from a company that specializes in military insurance or has a military discount, it may help to shop around and compare quotes from other companies. Rates vary based on a number of factors, so you could find cheap car insurance for military veterans even from a company with no veteran-specific perks.
- Utilize discounts: In addition to potential military discounts, non-military-focused discounts can save you quite a bit of money. These include paperless policies, telematics programs and student discounts for young drivers. You could also consider bundling your home insurance or renters insurance with your car insurance to earn savings.
- Maintain an active policy: While you’re an active service member, you may not be driving your vehicle, especially if you are in training or deployed. As long as you still own the vehicle, though, you’re required to have an active insurance policy. You can usually put your vehicle in “storage mode” — which removes all coverage except comprehensive — while you aren’t driving it. However, you should check with your financial institution before making changes if you have a loan or lease.
- Keep a clean driving record: This tip benefits all drivers. Your driving record is one of the most important factors for an insurer when determining your premium. Driving safely and avoiding incidents like tickets and at-fault accidents can help you avoid costly surcharges and might even earn you a safe driver discount.
Car insurance discounts for veterans
Car insurance discounts are one of the easiest ways to save on your premium. Here are some common discounts that veterans may be able to take advantage of:
- Military discounts: Some companies offer discounts specifically for veterans and military members. For example, Geico offers a discount of up to 15 percent if you are on active duty, retired from the military or a member of the National Guard or Reserves. Military members can also get an emergency deployment discount from Geico if they are deployed into imminent danger locations.
- Low-mileage discounts: If you don’t drive often, you may qualify for a low-mileage discount. This might be especially appealing if you’re fully retired or work from home. To qualify, you need to drive fewer than a set number of miles, typically 7,500 or 10,000 per year. If you are deployed, there’s a good chance you can qualify for this because you’ll be away from your car and unable to drive. You may also qualify for special deployment discounts.
- Organization and affinity discounts: If you belong to certain organizations, like alumni or professional groups, you might save money on your car insurance. The group doesn’t have to be military-related, but there might be savings for some military-related organizations. For example, Geico offers discounts to members of the Association of the United States Army, Armed Forces Benefit Association and Navy League of the United States.
- Bundling discounts: Buying multiple insurance products, such as homeowners and auto insurance, from the same company has a lot of perks, including easier policy management and often substantial discounts.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze November 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Bankrate Score
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
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