Are You Paying Too Much for Your
Veteran and Military Auto Insurance?
You May Be Eligible for Veteran and Military Car Insurance Discounts
One of the easiest ways to save money on car insurance is by taking advantage of a discount. Most major car insurance providers offer some kind of markdown off-the-top — for students, good drivers, members of specialty organizations, and especially veterans and active military.
As a current service member or veteran, you may be paying too much for car insurance if you are not taking advantage of one of these discounts.
Armed Forces car insurance discounts may extend to:
- Coast Guard
- National Guard
- U.S. Air Force
- U.S. Army
- U.S. Marine Corps
- U.S. Navy
- Veterans & spouses/ family members
Veterans and members of the service are highly esteemed. Popular insurance providers like Geico, Farmers, and Progressive are likely to offer a sizable military discount;
Geico offers up to a15% discount
Farmers Insurance offers an estimated5% discount
Progressive offers military discounts inselect states
There’s a reason that car insurance discounts are so common among the military, and it has to do with reputation.
Car insurance rates are calculated based on statistical risk variables. You may have already noticed that your car insurance rates naturally decrease with age if you have a good driving record — because you’re less likely to get into an accident. In the same way, military members and veterans are known for their discipline and training. This translates into trustworthiness and responsibility, rewarded with discounted insurance rates.
how to qualify for discounts
on veteran and military auto insurance
So now you know that a military car insurance discount is available, but how do you take advantage of it?
Most big-name car insurance companies will offer some type of military or veteran discount when you request a quote. Several specialty car insurance providers offer exclusive military rates that are deeply discounted compared to average market rates.
Highly rated for its benefits and discounts, USAA only offers insurance coverage for active duty service members and military veterans who have been honorably discharged.
USAA was first created by 25 army officers as a low cost auto insurance option for fellow service members and veterans. Since the company was formed in 1922, it has grown to provide coverage for millions of servicemen and women around the world. To access these exclusive military benefits, you must prove eligibility and apply for membership through USAA. USAA estimates $409 in annual savings when switching from a competing provider.
Armed Forces Insurance (AFI), established in 1887, is another specialty auto insurance provider, well-rated for its military and veteran discounts.
Armed Forces Insurance offers membership to active duty, retired, or honorably discharged military (including National Guard and Reserves); Department of Defense civilian employees; NOAA or PHS officers; Service Academy members; and spouses and children. In states where AFI coverage is not available, Armed Forces Insurance can insure through an affiliate provider in 48 states.
The only way to find out if you qualify for a military discount from a standard or specialty provider is to ask for a free quote.
An insurance company can crunch the numbers based on your personal risk factors and military status to provide a more accurate discounted rate. The best way to do this is to buy auto insurance online. It makes the comparison option easy and instant.
how much will you save
with veteran and military auto insurance
When you’re looking for cheaper car insurance, money talks.
Again, the only sure way to find out what kind of military discount you are eligible for is to request multiple quotes from competing car insurance providers. By most estimates, you can expect to save an average of 15% off your annual premium if you are a veteran or are currently serving in the military.
Run by an active duty Air Force officer, The Military Money Manual gathered military discounted 2015 car insurance estimates for six months of coverage from leading providers:
Your personal risk factors, such as age, vehicle type, driving history, geographic location, and gender, can also influence a discount.
For example, if you have a serious driving infraction on your record, like a DUI, you may pay more than a civilian does for car insurance, even with a military discount. In most cases, men pay more for car insurance than women as they are seen as riskier drivers. In the next section, we’ll discuss exactly what you can do to fully utilize your discount and keep your car insurance rates low.
8 quick tips for cheaper
veteran and military auto insurance
These military and veteran discounts are available, but the rest is up to you.
It takes commitment and effort to “work the system” in your favor and leverage lower rates. There are several variables out of your control, like gender and age, that can impact car insurance. Yet many other factors are within your control and can be used to minimize your premium.
Here are eight ways to pay less on car insurance as a military member or veteran:
Drive safeThis seems like a no-brainer, but it’s true. Your car insurance rates are directly impacted by your driving history. State Farm offers drivers a 5% discount just for signing up for their Drive Safe & Save defensive driving program.
Bundle cars If you have more than one driver under your roof, you’re in luck. Adding two or more vehicles to the same policy could offer savings of up to 20%.
Bundle policies Lumping together renter’s, homeowner’s, condo and/or life insurance with the same provider could offer a discount of up to 22%.
Cancel collision If you are deployed and won’t be driving your car at home for an extended period of time — more than a month — make sure to tell your car insurance provider. Many insurers will allow you to cancel additional collision coverage during deployment when a vehicle is not in use.
Pay upfront If you have the means to set aside a sizable chunk of cash, now is the time to do it. Paying for your premium annually instead of month-by-month will offer an extra discount, on top of a discounted military rate.
Raise your deductible If you can afford it, do it. Your deductible amount is inversely related to your car insurance premium; meaning, if you are able to afford a higher deductible — $1000, for example — you’ll pay less in annual insurance.
Quit smoking Most insurance premium quotes are cheaper for non-smokers than smokers, up to a 5% discount. Quitting can improve your health and deflate your car insurance rates.
Compare providers This last point is perhaps the most important of all, and it can’t be overstated: When you comparison shop and receive quotes from a minimum of three car insurance providers, you’ll get a better idea of a fair market military discount rate.
- A simple comparison could save you hundreds of dollars a year on your premium