Best Car Insurance for Military Members and Veterans
Active duty military, veterans, and their families qualify for some of the best car insurance rates available. The average American pays $1,771/year for full coverage—military members with USAA pay closer to $1,200/year for equivalent coverage. That's a 32% savings just by using the right carrier.
This guide covers every major insurance program available to military personnel, veterans, National Guard members, and reservists—along with their families.
| Carrier | Who Qualifies | Avg Annual Premium | Key Military Benefit |
|---|---|---|---|
| USAA | Active duty, veterans, spouses, children | $1,198 | Lowest rates + full service |
| GEICO | Active duty, veterans, National Guard | $1,456 | Up to 15% military discount |
| Armed Forces Insurance | Active duty, National Guard, reserves | $1,512 | Specialized military coverage |
| USAA via AUSA | Association of US Army members | $1,267 | Access for some non-members |
| Progressive | Active duty, veterans | $1,623 | Deployment storage discount |
| State Farm | All service members | $1,689 | Storage discount, local agents |
Rates for a 30-year-old active duty member driving a 2020 Toyota Camry with full coverage (100/300/100 liability, $500 deductible).
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GEICO Military Quote Progressive Quote State Farm QuoteUSAA: Best Car Insurance for Military (If You Qualify)
USAA consistently ranks #1 for military car insurance in every major survey—J.D. Power, Consumer Reports, and independent rate comparisons. If you or an immediate family member served in the US military, USAA should be your first quote.
Who Qualifies for USAA?
- Active duty US military (Army, Navy, Air Force, Marines, Coast Guard, Space Force)
- Honorably discharged veterans
- Cadets and midshipmen at US service academies
- Officers, officer candidates, and ROTC members
- National Guard and Reserve members
- Spouses and children of USAA members
- Widows and widowers of USAA members
USAA Military-Specific Benefits
- Deployment storage discount: Reduce coverage on stored vehicles by up to 90% when deployed overseas
- Overseas coverage: Available in select countries for deployed members
- Military installation discounts: Lower rates when vehicle is stored on base
- Flexible payment: Defer payments during deployment
- Accident forgiveness: Built into policies after 5+ years
USAA limitation: Not available to civilians. If you don't qualify, the next best options are GEICO, Armed Forces Insurance, or Progressive.
GEICO Military Discount Program
GEICO offers the best military discounts among non-USAA carriers. Active duty members with federal pay grades E-1 through E-6 receive special rates, and all military members (including veterans) get a standard 15% discount.
GEICO Military Benefits
- 15% discount for active duty, honorably discharged veterans, and National Guard/Reserve members
- Emergency deployment discount for vehicles stored (not driven) during deployment
- Comprehensive coverage only option for stored vehicles (stops paying for liability/collision while deployed)
- AUSA (Association of the United States Army) member discount
- Available in all 50 states, including overseas military installations
Best for: Veterans and National Guard members who don't qualify for USAA, or drivers who want to compare rates. See how GEICO compares to other top carriers →
Deployment: How to Save During Active Deployment
One of the biggest advantages for military insurance is the deployment storage discount. When you're deployed and not driving your vehicle, you can slash your insurance bill by 60-90% by switching to storage-only coverage.
| Coverage Type | Standard Monthly Cost | Storage Monthly Cost | Monthly Savings |
|---|---|---|---|
| Full coverage (100/300/100) | $148 | $22 | $126/month |
| Standard liability | $89 | $15 | $74/month |
| Comprehensive only | $32 | $22 | $10/month |
Important: Storage coverage only covers damage to your parked vehicle (theft, weather, fire). You cannot drive the vehicle at all. If a family member will drive the car, keep full coverage.
Most carriers require 30+ days of deployment to qualify for storage discounts. Provide a copy of deployment orders when requesting the change. More ways to lower your premium →
Veterans Car Insurance: What Changes After Discharge
Honorably discharged veterans keep USAA eligibility for life. For non-USAA options, most military discounts apply to veterans too—GEICO, Armed Forces Insurance, and USAA all offer permanent veteran discounts regardless of when you served.
Post-Discharge Considerations
- Keep USAA: Don't switch after discharge—USAA remains available and rates stay competitive
- VA disability: Doesn't directly affect insurance, but some carriers offer extra discounts to 100% disabled veterans
- Moving to civilian address: Rates may change when leaving base housing—compare before committing
- Driving record: Military driving records don't transfer perfectly to civilian records—shop carriers that look at full history
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Try Quote Calculator GEICO QuoteNational Guard and Reserve Members
National Guard and Reserve members often get overlooked for military discounts—but most major carriers treat them the same as active duty. USAA, GEICO, and Armed Forces Insurance all offer full military pricing to Guard and Reserve members.
Key consideration: If you're activated for training or deployment, notify your insurer immediately to get deployment storage discounts. Many Guard members miss this savings opportunity because they forget to update their policy status.
Military Car Insurance: Frequently Asked Questions
Does USAA have the cheapest rates for military?
Yes, in most cases. USAA averages 25-35% cheaper than major carriers for active duty and veterans. However, rates vary by driver profile—always compare quotes before assuming USAA is cheapest for your specific situation.
Can military family members get USAA?
Yes. Spouses, children, and widows/widowers of USAA members qualify. Children of USAA members can open their own account even if parents are deceased. Stepchildren and adopted children also qualify if they live in the household.
What happens to my car insurance if I'm deployed overseas?
Notify your carrier immediately. Switch to storage/comprehensive-only coverage to save 60-90% on premiums while deployed. Your vehicle is still protected from theft, weather, and fire. When you return, reinstate full coverage before driving.
Is GEICO or USAA better for veterans?
USAA wins on price for most veterans—averaging $1,198/year vs GEICO's $1,456/year. However, GEICO offers broader availability, local agents in more locations, and sometimes lower rates for veterans with accidents or poor credit.
Do military discounts apply to SR-22 requirements?
Yes—military discounts stack on top of standard rates. However, a DUI or serious violation significantly raises premiums even with military discounts. USAA may not be the cheapest option for military drivers with SR-22 requirements. See rates for drivers with DUI →
Can I get car insurance while stationed overseas?
USAA offers coverage in some overseas locations. For countries not covered, use the host nation's mandatory insurance or a military-specific overseas policy through your installation's legal office.
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