Are you a veteran or active service member? If so, you may qualify for a military car insurance discount. As they do for many other things such as bundling policies or having a good driving record, several companies reward our warriors with lower premiums. Depending on your company or state, you could save a certain percentage on your rates for your service.
Keep in mind that you’ll need to provide some proof of service. Also, each insurer and state will handle the military discount in their own way. Some companies may not even offer it. And some states may not even allow it. The exact amount you save depends on these and other rate factors.
It’s worth mentioning that some companies, such as USAA, exclusively offer auto insurance coverage to members of the military and their families. This typically comes with specific benefits and a veteran discount, as well as competitive prices.
This article will explore the basics of the military discount on car insurance, including:
- How service members qualify
- How much a military discount saves you
- Companies with a military insurance discount
- Frequently asked questions
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How the Military Car Insurance Discount Works
Discounts are a helpful way to lower your rates. This is especially true if they’re higher than you think they should be. Many insurers lower premiums by rewarding policyholders that save them money. Below are a few examples:
Then, of course, there is the military auto insurance discount. You can only qualify by being a current or former member of the armed forces that was honorably discharged. You may even qualify if you’re attending a United States service academy. Depending on your insurer, you also save if you’re on a policy with a close family member, such as a spouse or parent, who qualifies. Be sure to speak with your agent to learn more about what your provider offers.
As you might expect, you’ll need to prove that you served to qualify. This typically comes in the form of official documents, such as forms and letters. These papers often suffice as valid proof of your service:
- Military orders
- Certificate of discharge (DD Form 214)
- NGB Form 22 for members of the National Guard
- Leave and Earnings Statement (LES)
- Letter of appointment to the military academy
Companies Offering a Military Discount on Car Insurance
Many major insurers reward active or former service members with lower rates. But not every company does. For example, there’s no State Farm military discount. Some providers may also offer specific benefits to those who serve, such as savings if you’re suddenly deployed or need to keep your car on base.
These are some well-known companies that offer discounts to members of the military:
USAA
USAA offers coverage and plenty of benefits to US military members, veterans, and their families. This insurer also provides numerous savings opportunities to their customers. For example, USAA’s on-base discount can save you up to 15% on your coverage if you store your car while deployed.
GEICO
GEICO allows armed forces personnel to save up to 15% on their premiums. This insurer also offers savings during an emergency deployment of up to 25% to designated imminent danger pay areas. You could also get a deal from GEICO for certain affiliations to groups, like:
- Association of the United States Army (AUSA)
- Armed Forces Benefit Association (AFBA)
- Navy League of the United States (NLUS)
- Navy Federal Credit Union (NFCU)
Contact your agent to find out more about GEICO’s savings for military members, as well as how you might qualify.
Liberty Mutual
If you currently serve in the military or reserves, Liberty Mutual reduces rates up to 10%. These savings are also passed on to veteran policies. Get in contact with an agent to find out more.
Farmers
Farmers offers savings to active duty service members and veterans. However, the insurer doesn’t mention exactly how much it lowers premiums. Remember that it’ll likely vary by driver and situation. We recommend talking to an agent to figure out how much you can save.
Shelter
Shelter provides reduced car insurance rates to active-duty members of the military in the state of Louisiana. The company also extends savings to spouses and children of active-duty service members. However, Shelter doesn’t spell out the savings on its website. So, you’ll need to contact Shelter directly to learn more.
Kemper
This applies to both members of the military and the National Guard. To qualify, you must be on active duty. There are few details about it on Kemper’s website. So, you’ll need to contact the insurer to learn how much you can save.
Direct Auto
Direct Auto offers generous savings to active duty members of the US Armed Forces living in the states of:
- Alabama
- Florida
- Louisiana
To qualify, you must provide Direct Auto with a document that proves active service.
State Farm
State Farm offers veterans or active duty personnel many ways to save. It’s a good option for military members because it offers other programs, such as Steer Clear and Drive Safe & Save, that any service member can take advantage of. State Farm also has affordable rates and excellent customer service that you’d expect from America’s most popular insurer.
The above companies represent only a few insurers that reward you for your service. If you’d like to explore more ways for members of the military to save, compare prices from several companies. One might fit your needs more than another.
We took a look at what each provider offers service members. Check out our article on the best insurance companies for military members and their families.
Military Insurance Discount by Company
| Insurance Company | Max Savings |
|---|---|
| USAA | 15% |
| GEICO | 15% |
| Liberty Mutual | 10% |
| Farmers | 5% |
| Shelter | N/A |
| Kemper | N/A |
| Direct Auto | 25% |
Louisiana Military Car Insurance Discount
Many carriers, such as Progressive, State Farm, and Allstate, don’t offer military discounts. But the state of Louisiana has a law that requires insurers to lower the rates of active duty residents by at least 25%. This applies to any carrier in Louisiana, even if they don’t provide the savings in any other states. To qualify, you must:
- Be an active service member
- Be a Louisiana resident
- Have a spouse or dependent who lives in Louisiana while you’re out-of-state
- Buy your car insurance in Louisiana
Frequently Asked Questions
Is USAA only for military members?
Yes, only US military members and their families can get car insurance from USAA. Per their website, the following are eligible family members who can join USAA:
- Spouses
- Widows or widowers
- Former spouses who haven’t remarried
- Children, including stepchildren
Keep in mind that siblings and parents of a USAA policyholder aren’t eligible to join. If you’re unsure about how to join, contact USAA directly to see if you’re eligible.
Do veterans get a car insurance discount?
Yes, they do. Veterans are almost always eligible to receive a break from insurers. However, these discounts are not always published on auto insurance company websites. So, make sure to mention your service when an agent is putting your quote together.
Do members of the military reserves qualify?
Yes, both active and retired members of the reserves qualify for a military insurance discount. How much you save varies by state, company, and your personal situation.
How do I prove to my car insurance company that I’ve served?
Valid proof includes showing your insurer official documents, forms, or letters related to your service. This could be a discharge certificate, military orders, or even an academy letter. Double-check with your insurance carrier to see what types of proof they prefer.
