Military Car Insurance – Are Special Discounts Available?

As a way of thanking troops for their services, many car insurance companies offer discounts to military personnel that are not available to the public. Servicemen are considered special cases because, without discounts, they would be penalized with higher insurance rates due to deployment and continually moving around the country.

Obtaining Discounts on Insurance

All members of the armed forces should consider taking advantage of generous military discounts, some as high as 15 percent off the normal rate. While some insurance companies that routinely work with the military do not offer discounts because their rate are already lower than other companies, some insurers like USAA offer the lowest rates around military bases.


USAA allows military personnel to save on auto insurance by offering safe driver, driver training and defensive driving discounts for individuals who maintain a good driving record and successfully complete basic training courses. For children of military personnel, there is a “good student” discount to reward high academic achievement. To enroll with USAA’s program, you must be an active duty officer or enrolled in the National Guard and Reserves. Those who are enlisted in programs like the Academ, OTS and OCS, and ROTC contract are also eligible, as are the spouse and children of a current USAA member.


The other major play in auto insurance for military personnel is GEICO (Government Employees Insurance Company). Discounts of up to 15 percent of your total insurance premium are awarded to various personnel including those who are both on active duty and retired veterans, as well as members of the National Guard or Reserves. If you are assigned to serve in a designated imminent danger pay area, GEICO has an emergency deployment discount.

If your orders direct you to one of the dangerous Department of Defense areas or if your vehicle is currently stored under GEICO’s approved storage-protection plans, you are also eligible for the discount. Certain other military organizations offer discounts to their members. However, do your research because there are some geographic limitations and some military operations are not included with the discount.

GEICO has an overseas policy when coverage is needed while the individual is out of the country. The 12-month policy is a competitive rate and GEICO will provide you with all of the documents you need to register your vehicle overseas. However, cars that are used strictly for business cannot be covered under this policy and the only way a rental car will be covered is if your personal vehicle is undergoing repairs. You cannot insurance someone else’s car either, just your own.

Armed Forces Insurance

Armed Forces Insurance provides car insurance in only 10 states but they partner with Progressive to provide insurance in an additional 28 states. While not all states are covered, they do offer insurance across most of the country. You are required to show paperwork as evidence of your service in the armed forces, or if you were honorably discharged, you need to have proof of that as well. Widows, children and spouses of current Armed Forces Insurance members are also eligible for discounts.

Look for Military-Oriented Companies

Since many insurance companies do not fully understand the lifestyle of military personnel, it will be to your benefit if you can locate one who knows the impact that deployments and temporary duty assignments can have on a family.

Keep Your Insurance

If you know you will be deployed, it is imperative that you do not cancel your car insurance. Some service members mistakenly think that because they will not be using their vehicle and put it in storage that they do not need their policy any longer. This is not recommended because if something happens to your vehicle while it is in storage, there is no coverage to pay for damages.

If the car insurance lapses for an extended period of time, you may have a harder time getting another policy when you return. Insurance companies that regularly work with the military can offer you a storage-only policy that will cover your vehicle if damages are incurred while you are away. For example, United States Automobile Association (USAA) offers an 80 percent discount to those who store their vehicles under their policy.

Cover Your Family

While you are deployed, it is important to make sure the policy will continue to cover your spouse and your children in your absence. Just because you are not in this country does not mean that your family should not be protected and eligible for your military discount. Make sure your discount continues for you and your family after you return to the states. You are entitled to a deployment waiver that allows you to keep your discount, even if the coverage had the potential to lapse while you were overseas. Most car insurance companies provide this option.

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