Finding the right car insurance for you starts with evaluating your needs. Veterans may have unique needs to consider when shopping for coverage. Bankrate can help you navigate the challenges so you can find the right cheap military auto insurance for you. Fortunately, several companies offer discounts for veterans and military service members, and a few companies focus entirely on coverage for those who are active or have served. Our research found that USAA and Geico sell cheap auto insurance for military veterans, with Farmers also offering relatively low rates.
What are the cheapest auto insurance companies for veterans?
Bankrate researched 122 insurers to find the best auto insurance companies and the cheapest auto insurance companies. If you’re looking for cheap auto insurance for veterans, our research has revealed that starting your search with auto quotes from Armed Forces Insurance (AFI), Farmers, Geico, Liberty Mutual and USAA can provide the most affordable coverage.
- USAA offers the lowest annual average full coverage and minimum coverage premiums on our list, at $1,209 and $354, respectively.
- Both Armed Forces Insurance and USAA specialize in coverage for military members and veterans.
- Boere, Geico and Liberty Mutual all offer veteran discounts on their policies, which are available to both military members and civilians.
Cheapest car insurance for veterans by coverage level
If you’re looking for auto insurance as a veteran, you may be considering price. While the average cost of auto insurance is $1,771 per year for full coverage and $545 per year for minimum coverage, according to Quadrant Information Services, several companies have rates that are much lower on average, and some carriers offer a military discount to help you save even more. Below we show five cheap car insurance companies that either cater specifically to military service members or offer savings for veterans.
Average annual full coverage rates
|Armed Forces Insurance (AFI)||Not rated||N/A||N/A||N/A|
*Based on full cover premiums using our base profile
Average annual minimum coverage rates
|Armed Forces Insurance (AFI)||Not rated||N/A||N/A||N/A|
*Based on minimum coverage premiums using our base profile
Cheapest car insurance for veteran military members by status
Being affiliated with the military isn’t the only nuance to consider when shopping for auto insurance. You may also wonder if your status from your time in the military affects how much you pay. Below, we compare car insurance rates for six different military statuses, including active duty, active and inactive reserve, and retired. The numbers don’t vary much, but knowing the averages can help you determine whether your quoted premium from any given company is competitive.
Bank rate insights
Military status generally doesn’t have much of an impact on car insurance rates. According to our research, there is only a 0.5 percent difference between the highest and lowest average full coverage rates for different military statuses. However, your status may determine whether you qualify for a company’s military discount or for coverage from a company that specializes in military coverage. For example, many companies will not give a discount to those with a dishonorable discharge type.
Factors that affect cheap rates for veterans
While your status within the military does not directly affect rates, there are other factors that can affect your ability to get cheap auto insurance for veterans:
- Discharge Status: According to the US Department of Veterans Affairs, a veteran is someone who “served in active military, naval, or air service, and who was otherwise dishonorably discharged or discharged.” If you’ve been dishonorably discharged, you’re not considered a veteran and likely won’t qualify for military-focused insurance companies or military discounts.
- Rank: Some insurers may consider your active duty military rank in their underwriting process. Certain ranks may qualify for different discount levels or have access to different rating profiles.
- Choice of insurer: Not all insurance companies cater specifically to military members, such as USAA and AFI. Among the companies that are also open to civilians, only some offer a discount for veterans and military members. Rates vary by insurance company, but finding a company that offers a military discount or works specifically with military families can help you find the cheapest coverage.
- Age: Although veterans can span a wide range of ages, it’s helpful to keep in mind that age is one of the biggest rating factors when it comes to car insurance. Younger drivers tend to pay higher premiums, but rates tend to drop as you get older and gain experience behind the wheel (assuming you keep a clean driving record). This means that older veterans may pay less for coverage than younger veterans.
How Veterans Can Save on Car Insurance
Finding cheap car insurance for military veterans can involve time and research. Here are some tips to lower your car insurance premium if you are a veteran:
- Shopping: Even if you get quotes from a company that specializes in military insurance or from a company that has a military discount, it can help to shop around and compare quotes from other companies. Rates vary based on a number of factors, so you can find cheap auto insurance for military veterans even with a company with no veteran-specific perks.
- Ask about military discounts: Even if you get quotes from a company that doesn’t advertise a military discount on its website, ask if one is available. Companies don’t always advertise every discount they offer, so you might find savings you didn’t know were available.
- Use other discounts: Veterans can still take advantage of non-military-focused discounts, such as paperless policies, telematics programs and student discounts for any young drivers listed on their policies. You can also consider bundling your home insurance as a military member, which could earn you a discount on both policies.
- Maintain an active policy: You’ll need to put this tip into practice even before you become a veteran if you already have a car, but it can also help keep your rates down. While you are an active duty member, you may not drive your vehicle, especially if you are in training or deployed. However, as long as you still own the vehicle, you must have an active insurance policy. You can usually put your vehicle into “storage mode” – which removes all but comprehensive coverage – while you’re not driving it, although you should check with your financial institution before making any changes if you have a loan or lease.
- Have a clean driving record: This tip benefits all drivers, not just veterans. Your driving record is one of the most impactful rating factors car insurance companies consider when evaluating your policy. Driving safely and avoiding incidents like tickets and at-fault accidents can help you avoid expensive deductibles and may even earn you a safe driver discount.
General auto insurance discounts for veterans
Auto insurance discounts are one of the easiest ways to save on your premium. Here are some common discounts veterans can take advantage of: