Rates differ by state, but USAA often provides the best deals. Some companies, like Esurance, offer unique savings options for active-duty members. To maximize savings, compare quotes, explore discounts and adjust coverage as life changes.
Cheapest Car Insurance for Veterans and Military
Updated: January 20, 2025
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Key Takeaways
USAA and State Farm offer the cheapest full coverage car insurance on average, with USAA offering the most affordable policies in most states.
Deployed members can elect to suspend their coverage or maintain comprehensive-only insurance to save on insurance.
You can stack military discounts on top of common car insurance discounts to further drive down costs.
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Cheapest Car Insurance for Military Members and Veterans
The cheapest insurance providers for military members, veterans and their families are:
- USAA: $679 per year, $57 per month
- State Farm: $883 per year, $74 per month
Use the table below to compare rates from providers based on age and desired coverage level.
Data filtered by:Results filtered by:
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Age Group:30-59
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Coverage:100/300/100 Full Cov. w/$1,000 Ded.
| USAA | $679 | $57 |
| State Farm | $883 | $74 |
| Nationwide | $930 | $78 |
| GEICO | $936 | $78 |
| Travelers | $1,037 | $86 |
| Progressive | $1,120 | $93 |
| Allstate | $1,124 | $94 |
| Farmers | $1,192 | $99 |
Like many other auto insurance providers, USAA lets members stack various discounts, such as student and vehicle safety feature discounts, on top of unique military benefits. However, since each provider sets its own prices, drivers should actively compare options to find the cheapest insurance.
If you plan to include young drivers, seniors or new drivers on your policy, look for a provider that offers competitive rates for these groups.
Who is eligible for USAA car insurance?
Eligibility for USAA Membership
U.S. Military Members and Veterans
- Active Duty, Guard or Reserve: Those currently serving. Must provide branch of service, rank and entry to active service date.
- Veterans: Individuals separated or retired from the U.S. Armed Forces with an Honorable discharge. They must provide: branch of service, rank and service start and end dates.
Pre-commissioned Officers
- Contracted Cadet or Midshipman: Those attending a U.S. Service Academy, Prep School or ROTC program. They need to provide branch of service, commissioning source and commissioning date
- Certain cadets from the U.S. Service Academy who separated before commissioning might still qualify
Officer Candidates
- Those commissioning within the next 24 months. Required information includes branch of service, commissioning source and commissioning date.
Current Spouses of Military Members or Veterans
- If marrying someone currently serving, not yet a USAA member: Need to create the military member's profile first
- If marrying a USAA member: Provide the member's Social Security number
Former Spouses and Widowed
- Divorced from a USAA member and not remarried: The former spouse must have joined USAA before or during the marriage
- Widows or widowers: If the deceased spouse was a USAA member
Children (including step-children)
- They qualify if a parent is/was a USAA member. Note: Membership for deceased parents can't be posthumously established
Siblings and Parents of USAA Members
- They are not directly eligible for USAA membership
Individuals Eligible for USAA Services Through Member Relationships:
- Adult children and former spouses of USAA members
- Former USAA members
- Military personnel and candidates: Active duty officers and enlisted, National Guard/Reserve officers and enlisted or officer candidates in commissioning programs
- Retired or separated military personnel who aren't currently USAA members
DO YOU STILL NEED COVERAGE WHEN DEPLOYED?
Yes, even when deployed, military members should maintain state minimum car insurance requirements. Going without coverage, even briefly, can lead to higher premiums later due to a lapse in coverage. Additionally, if your car is financed or leased, your lender or lessor will likely require comprehensive and collision coverage (also known as full coverage).
Many insurance providers, like USAA, offer discounts for deployed members who place their cars in long-term storage, ensuring you remain covered without a hefty price tag. Esurance may not even charge you for a lapse in coverage, allowing you to reinstate your policy at no additional charge.
Cheapest Car Insurance for Military Members and Veterans by State
Car insurance rates vary by state — drivers in Idaho pay the least for a full coverage policy, while those in Florida pay the most for insurance.
Overall, USAA provides the cheapest rates nationwide. State Farm is the cheapest option in seven states, and American National is the most affordable in four states.
Data filtered by:Results filtered by:
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Coverage:Full Coverage
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Age Group:30-59
| Alabama | USAA | $660 | $55 |
| Alaska | USAA | $523 | $44 |
| Arizona | Root Insurance Company | $682 | $57 |
| Arkansas | USAA | $553 | $46 |
| California | AAA California | $1,001 | $83 |
| Colorado | American National P&C | $541 | $45 |
| Connecticut | GEICO | $693 | $58 |
| Delaware | USAA | $802 | $67 |
| District of Columbia | GEICO | $662 | $55 |
| Florida | State Farm | $1,058 | $88 |
| Georgia | Country Financial | $665 | $55 |
| Hawaii | USAA | $557 | $46 |
| Idaho | American National P&C | $299 | $25 |
| Illinois | Country Financial | $663 | $55 |
| Indiana | USAA | $457 | $38 |
| Iowa | State Farm | $509 | $42 |
| Kansas | USAA | $608 | $51 |
| Kentucky | Nationwide | $790 | $66 |
| Louisiana | USAA | $988 | $82 |
| Maine | USAA | $460 | $38 |
| Maryland | USAA | $648 | $54 |
| Massachusetts | State Farm | $483 | $40 |
| Michigan | USAA | $692 | $58 |
| Minnesota | State Farm | $797 | $66 |
| Mississippi | USAA | $572 | $48 |
| Missouri | USAA | $522 | $43 |
| Montana | Progressive | $437 | $36 |
| Nebraska | American National P&C | $405 | $34 |
| Nevada | USAA | $922 | $77 |
| New Hampshire | USAA | $465 | $39 |
| New Jersey | Plymouth Rock Assurance | $895 | $75 |
| New Mexico | USAA | $511 | $43 |
| New York | Kemper | $781 | $65 |
| North Carolina | Erie | $630 | $52 |
| North Dakota | USAA | $426 | $35 |
| Ohio | USAA | $476 | $40 |
| Oklahoma | USAA | $563 | $47 |
| Oregon | State Farm | $706 | $59 |
| Pennsylvania | Nationwide | $580 | $48 |
| Rhode Island | State Farm | $700 | $58 |
| South Carolina | American National P&C | $463 | $39 |
| South Dakota | Allstate | $746 | $62 |
| Tennessee | USAA | $562 | $47 |
| Texas | State Farm | $699 | $58 |
| Utah | USAA | $657 | $55 |
| Vermont | USAA | $472 | $39 |
| Virginia | American Family | $601 | $50 |
| Washington | PEMCO | $534 | $44 |
| West Virginia | USAA | $623 | $52 |
| Wisconsin | USAA | $481 | $40 |
| Wyoming | USAA | $638 | $53 |
If you've been temporarily relocated to another state, consider shopping around for car insurance. Your current liability coverage might not meet your new state's minimum requirements, and some states naturally offer lower insurance rates.
However, if your relocation is permanent, you'll need to cancel your old policy, secure a new one and ensure your vehicle is registered in the new state.
MONEYGEEK EXPERT TIP
If leaving your car with family, consider reducing your policy to state minimum liability-only coverage. Alternatively, discuss suspending your policy with your insurer to avoid potential premium hikes from coverage lapses. Notably, USAA offers active-duty members up to a 60% discount when placing their cars in long-term storage, providing an excellent way to save.
Companies Offering Military Discounts
Military members can access a range of car insurance discounts, including specialized coverage rates, percentage-based reductions on key coverages and allowances for deployment distances from their vehicle's location. Some companies allow active-duty members to cancel policies without penalties, while others offer benefits for vehicles garaged on military bases.
Company | Discounts |
|---|---|
AFI | If you are eligible for a membership with the Armed Forces Insurance, you may be able to benefit from its specialized car insurance coverage and get competitive premiums. |
ALFA | Active military personnel in Alabama, Mississippi or Georgia can benefit from Alfa’s discounts on car insurance for military members. |
Active-duty military members deployed more than 100 miles from their car's garaging address may qualify for Arbella’s 10% discount on car insurance. | |
Direct Auto | Eligible military members can get a discount of up to 25% on key coverages, such as liability, comprehensive, collision and uninsured motorist coverage. Only available in Alabama, Florida and Louisiana. |
Get a military discount at Direct General if you are an active service member and can provide acceptable documentation verifying your status. | |
Esurance does not offer a discount on car insurance for military members, but it does allow active-duty members to cancel their insurance without penalty while they are away. This can help active members save significantly on premiums. | |
Farm Bureau (Kentucky) | Military members who take a military driving course approved by the U.S. Armed Forces may qualify for a discount, so long as a certificate showing completion is submitted. |
Farmers offers discounts to active duty, active reserves, retired and honorably discharged military veterans. | |
Current or former members of the U.S. Armed Forces can get a discount on their car insurance with Freeway. | |
Military drivers can get a discount of up to 15% on their total premium at GEICO. Those on emergency deployment and individuals who are part of military associations can get discounts as well. | |
Eligible active-duty military and National Guard members may be able to save with Kemper’s military auto insurance discount. | |
Active, retired or reserved members of the U.S. Armed Forces can qualify for a military discount at Liberty Mutual. | |
Military personnel based in Louisiana, along with their spouses and children, are eligible for car insurance premium discounts. | |
If you’re based in Louisiana, you may qualify for a military discount of up to 25%. | |
If you garage your vehicle on base, you may qualify for a discount. | |
Wawanesa | At Wawanesa, military members can qualify for discounts whether they are active, retired or reserve. |
How Military Members and Veterans Can Save on Insurance
Shop around with various providers to find special discounts. When setting up a family policy, focus on insurers with favorable rates for all driver types. If you're anticipating deployment, look for insurers offering tailored coverage and discounts for situations like storing your vehicle, suspending your policy or canceling it.
Shop around
Rates can vary widely depending on factors like the age, location and driving histories of everyone on the policy. This is especially true for family policies, so it's a good idea to pinpoint companies that cater to your specific needs at favorable rates.
Compare car insurance quotes from at least three different providers.
Take advantage of special discounts
Military members, veterans and their families often qualify for unique discounts. Many insurance providers allow you to combine these dedicated military savings with other common car insurance discounts, such as those for paying in full, being a student or maintaining a stellar driving record.
Adjust your coverage based on your changing situation
If you're deployed and your car stays behind, consider switching to liability-only coverage. If your vehicle is tucked away in storage, think about opting for storage insurance, which usually means comprehensive-only coverage.
Maintain continuous coverage
If you're anticipating deployment, it might be more beneficial to suspend your policy rather than canceling it. Having a lapse in coverage can result in higher future premiums. Keeping your coverage active, even in suspension, can offer financial benefits when it's time to reactivate.
For the most cost-effective car insurance, select a provider with the lowest base rate — that's the rate before any discounts come into play. However, if deployment is on the horizon, prioritize providers offering favorable storage coverage rates. Additionally, consider the ease of reinstating your policy if you're thinking about suspending or canceling it.
Frequently Asked Questions
If you're in the military or a veteran, finding affordable car insurance that meets your needs is crucial. This FAQ section will help you navigate options to find the cheapest and most comprehensive coverage.
Who is eligible for USAA car insurance?
USAA car insurance is tailored to U.S. military members, veterans with an Honorable discharge, pre-commissioned officers and immediate family members, including spouses and children. However, siblings and parents of USAA members aren't eligible.
What insurance companies cover military personnel and their families?
Many insurers cater to the military community. While USAA is a standout choice, other providers like GEICO, Progressive and State Farm also offer military-specific discounts and programs.
Do active-duty military members need insurance even if they’re deployed?
Yes, deployed military members are advised to maintain some form of auto insurance. Keeping coverage in place, even in a suspended state, prevents potential higher premiums in the future due to coverage gaps.
How can military members save on car insurance?
Military members can access unique discounts and rates. Combining military-specific discounts with others, such as safe driving, can amplify savings. It's beneficial to compare rates tailored to military situations.
Are there specialized car insurance policies for deployed military members?
Yes, insurers often provide tailored options for deployed military personnel, like reduced rates for stored vehicles or policy suspension. Before deployment, discussing these options with your insurer can ensure the best fit.
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
sources
- USAA. "Auto Insurance Discounts." Accessed January 20, 2025.