Transitioning back to civilian life can be challenging, and veterans on fixed budgets may benefit even more from comparing providers and understanding eligibility rules, which can result in significant annual savings. Here’s what you need to know to maximize your car insurance discounts.
What is Military car insurance?
Military car insurance is designed for active-duty members, retirees, veterans, and military families. Offered by companies like USAA, these policies provide savings for military service, emergency deployment, and affiliations with military organizations.
Military and veteran discounts on insurance
The percentage of savings offered by different military car insurance discounts can vary widely, ranging from 3 per cent to 25 per cent or more, depending on the specific discount, according to TrustedChoice.
For instance, USAA, a car insurance provider that caters specifically to active duty members, retired military personnel, veterans, and their family members, offers discounts that can range from 3 per cent up to 60 per cent.
- Active-Duty Service Members
- Many companies provide discounts of up to 15 per cent for active-duty personnel.
- Some insurers offer reduced premiums if a vehicle is stored during deployment, with discounts up to 60 per cent, as per military.com.
- Keeping a car on a military base may also make some discounts available.
- Veterans
- Veterans may be eligible for discounts depending on the insurer and their service status.
- Bundling policies, such as auto and home insurance, can increase savings.
Insurers offering military and veteran discounts
- USAA: Available for active-duty members, veterans, and their families. Offers competitive rates and resources. Membership requires proof of service (branch, rank, service start and end dates) and honorable or general discharge status.
- GEICO: Provides discounts of 15 per cent for retired members of the military, with additional discounts for affiliations with certain military organizations.
- Farmers: Up to 10 per cent discount for retired or honorably discharged veterans.
- Liberty Mutual & Clearcover: Varying discounts for current and former military members.
State-specific regulations
While no state requires auto insurance discounts specifically for veterans, Louisiana and Montana have regulations regarding discounts for military personnel.
- Louisiana: Requires auto insurers to offer a 25 per cent discount on liability policies to active-duty members. Tax incentives encourage discounts for veterans with at least a 50 per cent disability rating, as per an autoinsurance article.
- Montana: Members of the National Guard who complete a defensive driving course may qualify for a discount. Veteran eligibility depends on the insurer.
How to apply for veteran auto insurance discounts
Veteran benefits, including discounts and USAA membership, are available to service members with an honorable or general discharge. Those with a dishonorable discharge typically do not qualify.
To add a veteran discount to your insurance policy or check eligibility, contact an agent, as each company has different procedures. Proof of veteran status will be required, which may include:
- Veterans typically need proof of military service, such as:
- VA Benefit Summary Letter
- DD Form 214
- State-issued ID with veteran designation
- Each insurer has different eligibility requirements; contact an agent for details.
Other ways to save
In addition to military and veteran discounts, all drivers may be eligible for other standard auto insurance savings, including:
- Bundling multiple policies
- Multi-vehicle coverage
- Usage-based telematics programs
- Good driver discounts
- Safety and anti-theft equipment discounts
- Lowering coverage for older vehicles
- Maintaining good credit (except in states where credit cannot be used to set rates)
Active-duty service members and veterans can access multiple auto insurance discounts and programs. Providers such as USAA, GEICO, Farmers, Liberty Mutual, and Clearcover offer military-specific savings.
Comparing quotes and understanding eligibility requirements can help maximize potential discounts while maintaining required coverage.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.