Auto Insurance Discounts for Veterans: What You Need to Know

Auto Insurance Discounts for Veterans: What You Need to Know

Serving in the military comes with a long list of benefits. Besides reaping the benefits of VA loans and TRICARE, several companies and organizations offer veterans and active military auto insurance discounts. In addition to getting military discounts, Veterans and active military members can even claim state auto insurance discounts.

Here’s what you need to know about auto insurance discounts for veterans.

Cost of Veteran Car Insurance

On average, the cost of Veteran car insurance for minimum coverage is less than $515/year. On the other hand, the cost of car insurance for maximum coverage is $1,720/year.

You must also note that full coverage options are slightly expensive for military drivers. However, minimum coverage options are cheaper for military drivers as compared to non-military drivers.

The national annual average for non-military drivers for minimum coverage would be $565, and for maximum coverage, it would be $1,674. However, the national annual average for minimum coverage for military drivers is $514 and $1,719 for maximum coverage.

Standard/Recommended Coverages

To figure out the least coverage options, you would need to consider the following things-

  • What are the minimum state requirements?
  • What are the lender’s requirements?
  • What is the value of your assets, including your car, savings, and home?

There might be some coverage options mandated by the state, like liability insurance, collision insurance, and comprehensive insurance. Uninsured and underinsured motorist insurance is also necessary for most states.

Personal Injury Protection might be mandatory in states that follow no-fault insurance as well. You must figure out your state’s requirements to find out the best insurance policy for yourself.

What Factors Will Impact My Monthly Car Insurance Premium?

Some factors can affect the insurance premium, including:

The Type of Car

If you own a vintage car, you might be required to get extra coverage. If you have customized your vehicle by installing an upgraded stereo or getting a custom paint job, you would be required to pay extra for custom equipment coverage.

Driving Habits

If your record involves multiple accidents, you would be charged more for the premium. Also, how much you drive will also impact your insurance rates. If you use the vehicle way too frequently, you would have to pay higher premiums.

Type of Coverage

Your monthly premiums would depend hugely on the type of coverage you choose. If you choose full coverage for your vehicles, you will have to pay more than you usually would for a minimum coverage option.

Limits and Deductibles

In simpler terms, limit is the maximum amount the insurance company will pay for your claim; Deductible is the amount you would pay before the insurance claim helps you with the incurred loss.

The more limits you opt for, the more premium you would have to pay. On the other hand, choosing a higher deductible means spending less on the premium.

Demographic Factors

Where you live, your age and gender are also huge determinants for figuring out insurance premiums. If you live in an urban area, you would have to pay more premium as the area would be more prone to accidents, theft, and vandalism.

How Is Car Insurance Different for Active Duty Members vs. Veterans?

Current and former military members can claim unique discounts on auto insurance from many companies. When the vehicle is in storage while you are deployed, some offers might provide reduced coverage.

Benefits for Veterans and active military might differ. Veterans might be able to get additional benefits for their disability or type of service. On the other hand, service members might get different coverage discounts like mileage discounts, on-base discounts, and vehicle storage discounts.

Companies That Offer Auto Insurance Discounts for Veterans

Here’s an overview of some companies that offer military discounts to service members and their families-

USAA

When it comes to serving military families, USAA is one of the top-rated military insurance companies offering the best discounts. USAA has always claimed the top rating in JD Power’s Customer Satisfaction index, from competitive rates to the best customer service.

Members can get customized insurance policies according to their needs. The organization also offers flexible coverage options that offer unique discounts, mainly to service members deployed overseas.

Besides offering auto insurance to military members and families, USAA also offers banking facilities.

Here’s a list of auto insurance discounts for Veterans and the active military offered by USAA.

  • Defensive driving discount
  • Discount for drivers under 21 who have completed an introductory car driving course
  • Safe driver discount
  • Bundling discount
  • Good student discount
  • Multi-vehicle discount
  • Discount for new vehicles
  • Family discount
  • Keeping your vehicle on or near a military base will reduce your comprehensive coverage.
  • Length of membership discount
  • Vehicle-in-storage discount
Related:The Exclusive Guide to Auto Insurance for Veterans

GEICO

Unlike USAA, GEICO is not exclusively open for service members and their families. However, they provide a wide range of auto insurance discounts for Veterans, service members, and families. The company offers an immediate discount of up to 15% off on civilian pricing.

Operating in all 50 states, GEICO is the second-largest auto insurance company known for providing competitive rates and online quotes. The company offers a wide variety of online features and above-average customer satisfaction.

There are several kinds of insurance coverage offered by GEICO, including bodily injury and property damage liability, uninsured/underinsured motorist protection, collision coverage, comprehensive coverage, mechanical breakdown coverage, and rideshare coverage.

In addition, they offer discounts on:

  • Wearing seatbelts
  • Having good grades.
  • Driving without accidents for more than five years
  • Being a retired/active federal employee
  • Participating in emergency deployment
  • Bundling policies from GEICO
  • Being a member of a sports group or other organization

FARMERS

The seventh-largest insurance company in the country, Farmers Insurance, offers insurance, mutual funds, and annuities. In addition to providing the basic coverage options, the company also offers additional coverage options like new car replacement, loss of use, accident forgiveness, customized equipment coverage, and OEM coverage.

The company offers the following discounts:

  • Multi-vehicle discount
  • Good driver discount
  • Discount for people under age 25
  • Teen driver discount
  • Discount for paying for the full policy at once
  • Electronic payment discount
  • Homeowner discount
  • Good student discount
  • Bundling discount
  • Continous coverage discount
  • Discount for passing a driver safety course

When you use the Farmer’s app- Signal, you can get up to a 5% discount for downloading the app and an additional 15% discount or more based on your record.

LIBERTY MUTUAL

Offering discounts to active military personnel, veterans, and reservists, Liberty Mutual provides a long list of coverage options, depending upon your needs.

The company has average or below-average customer service and is the sixth-largest auto insurance provider in the country. Besides offering basic coverage options, the company also provides additional coverages like gap insurance, deductible fund, better car replacement, new car replacement, and accidental forgiveness.

Liberty Mutual also offers additional coverage options like collision coverage, personal property coverage, and vandalism loss protection in some states.

Additionally, you’ll receive discounts on the following items:

  • Driving an electric vehicle
  • Being a student with good grades or leaving the vehicle at home while you live near the campus
  • Insuring multiple vehicles
  • Being a service member
  • Getting a quote online
  • Receiving paperwork electronically
  • Paying for the premium in full at once

STATE FARM

Known as the most prominent personal auto insurer in the country, State Farm offers a variety of financial products and great discounts to military members and their families. While the company does not grant gap insurance, it provides additional coverages like drive safe and safe, rental car and travel expense coverage, and rideshare insurance, except for basic coverage.

The company also offers discounts

  • Accident-free driving
  • Being a good student
  • Installing anti-theft gadgets
  • Insuring multiple vehicles

Tips for Reducing Your Car Insurance Costs 

Here are some tips for reducing your auto insurance premiums:

  • Claim Deployment Discount- If you are getting deployed overseas and storing your vehicle for a long time, you can ask the insurance provider for a deployment discount, which could reduce your insurance cost to a certain level.
  • You can claimnon-military discounts to reduce the premium cost. You can get discounts for safe driving, taking a defensive driving course, downsizing your vehicle, increasing your deductibles, and improving your credit score.
  • Bundle Insurance- You can purchase different types of insurance, including life insurance, health insurance, etc., from the same insurance provider to get bundled discounts.
  • Multi-Car Discount – You can get discounts for insuring multiple vehicles. However, to qualify, you must meet specific eligibility criteria.
  • Another way to get discounts is by installing an anti-theft devicein your vehicle.
  • You can work on your credit score.
  • You can shop around and compare different insurance quotes.

Best Insurers for Military Veterans

USAA offers the best insurance rates at significant discounts to veterans and family members. The organization also provides the best customer service. However, if you’re in search of the best military discounts, GEICO is the best option. On the other hand, Armed Forces Insurance is known for providing the best deals to Veterans and retired service members. Additionally, Esurance is a perfect choice for the active military.

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