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Military and Veteran Car Insurance: Discounts and Deployment Tips

Military life is hard on car insurance. You move every few years, sometimes across the country or overseas. You may deploy for months and leave a car sitting in a driveway. You might be young, on a junior enlisted salary, with a first car and a tight budget. At the same time, insurers know that service members tend to be responsible drivers, and many companies reward that with discounts and special policies built around military life.

This guide covers the discounts you can ask for, what to do with your policy before a deployment or a move, who qualifies for the best-known military insurers, and the mistakes that cost service families money.

Who counts as military for insurance purposes?

Definitions vary by company, so always ask. In general, discounts and special programs are open to:

Active-duty members of every branch.
National Guard and Reserve members, with some companies limiting certain discounts to those on active orders.
Veterans, including retirees and those who were honorably discharged.
Cadets and midshipmen at the service academies and in ROTC programs at some companies.
Spouses and, in some cases, children and other family members.

USAA is the best-known option and sells only to people with a qualifying military connection. Eligibility covers active duty, honorably discharged veterans and cadets, along with the spouses and children of existing members, and once you are a member you generally keep eligibility for life. GEICO, Liberty Mutual, Farmers and others also offer military or veteran discounts with broader eligibility rules, so even if you are not eligible for USAA there is likely a company that rewards your service.

Discounts to ask about

Discounts are not always applied automatically. Tell the agent you are military or a veteran and ask for every program the company offers. Common ones include:

Military or veteran discount. A percentage off for active duty, retired or honorably discharged service members. The size varies widely by company and state.
Vehicle storage discount. If your car will be stored while you are away, some insurers cut the price dramatically. USAA advertises storage savings of up to 60%.
Garaged on base discount. A reduction for vehicles kept on a military installation, where theft and weather risk can be lower.
Emergency deployment discount. GEICO, for one, offers a discount for members deployed to certain imminent danger pay areas.
Multi-policy and multi-car discounts. Combining car and renters or home coverage usually lowers both bills.
Low mileage and telematics discounts. If you drive very little, programs that track usage can reward you.

Military discounts stack with the usual ones, such as good driver, good student and vehicle safety features. See our full list of auto insurance discounts to make sure nothing is missed.

Before you deploy: what to do with your policy

The biggest mistake service members make is cancelling insurance outright when they leave. A policy with a gap can raise your quotes when you return, and a parked car with no coverage is exposed to theft, vandalism, falling branches and storm damage. A better plan has three parts.

Call your insurer well before you leave. Most companies need advance notice to apply a deployment discount or change coverage. Some ask for a copy of your orders.
Reduce coverage instead of dropping it. If the car will be stored, ask about comprehensive-only or storage coverage. It costs far less than full coverage but still protects against non-driving damage and keeps your insurance history continuous.
Check your state’s rules. Some states require you to submit a form to the motor vehicle agency if you cancel or suspend coverage on a registered vehicle. Others penalize a lapse even when the car is not driven.

If you decide to sell the car before leaving, a non-owner policy can keep your record free of gaps. Our blog post on what to do with your insurance when you sell a car covers the steps. Keep a family member as an authorized contact, and make sure they know your insurer’s phone number and your policy details.

Moving with the military

Permanent change of station orders often mean a new state, and with it a new set of rules. Your rate depends largely on where the car is garaged, so a move can raise or lower your price. Tell your insurer your new address as soon as you know it. Depending on your situation, you may be able to keep your home state registration and license under federal protections for service members, but the insurance requirements follow state law. Compare your old and new state minimums, because required coverage levels differ. Our guide to moving to a new state walks through the process.

Shop again after each move. The company that gave you the best price at one base may not be the cheapest at the next, and every move is a natural moment to compare.

Driving overseas

If you are stationed abroad, you will need to check what your policy covers outside the United States. Some insurers, including USAA, offer coverage in a number of countries, and rules vary. Japan, for example, has strict insurance requirements, and some members arrange coverage through partner insurers there. Ask your installation’s legal or transportation office what is required, and never assume your U.S. policy applies automatically.

Veterans and retirees

Leaving the service does not end your savings. Many companies extend their discounts to veterans and retirees, and veteran status can still count when you buy a new policy. USAA keeps veterans who qualify, while GEICO and several others offer broad veteran pricing. Honorable discharge is often the requirement, so keep your paperwork handy.

Paying on a service member’s budget

Young service members with a first car often face high rates because of their age and a thin driving record. Several things help. Choose a deductible you can afford to pay. Take a defensive driving course if the company offers a discount. Ask about monthly payment plans, and in some cases payment by military allotment. If cash is short when you arrive at a new duty station, a low-start plan can help you stay legally insured while you settle in. Read our guides on no down payment car insurance and first car insurance, and on how to insure a younger family driver.

Mistakes to avoid

Cancelling coverage entirely while deployed.
Forgetting to tell the insurer about a move or a change in where the car is kept.
Assuming a military discount was applied. Ask to see it on the quote.
Buying only from one company without comparing. USAA is often cheap, but not always the cheapest for every driver.
Letting a spouse or family member drive without being listed on the policy.

Compare military-friendly quotes

Whether you are active duty, in the Guard or Reserve, or a veteran, a few minutes of comparison can save real money. Get a free quote and see which companies offer the best rate for your situation.