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 car insurance for you. Fortunately, several companies offer discounts for veterans and military service members, and a few companies wholly focus on coverage for those who are actively in the service or who have served. Our research found that USAA and Geico sell cheap car insurance for military veterans, with Farmers also offering relatively low rates.
What are the cheapest car insurance companies for veterans?
Bankrate researched 122 insurers to find the best car insurance companies and the cheapest car insurance companies. If you’re shopping for cheap car insurance for veterans, our research revealed that starting your search by getting auto quotes from Armed Forces Insurance (AFI), Farmers, Geico, Liberty Mutual and USAA may yield the most affordable coverage.
Key takeaways
- 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.
- Farmers, Geico and Liberty Mutual all offer veteran discounts on their policies, which are available to military members and civilians alike.
Cheapest auto insurance for veterans by coverage level
If you’re shopping for car insurance as a veteran, you may be taking price into consideration. While the average cost of car 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 far lower on average, and some carriers offer a military discount to help you save even more. Below, we showcase 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 |
| Farmers | 3.8 | $127 | $1,524 | -$247 |
| Geico | 4.8 | $108 | $1,297 | -$474 |
| Liberty Mutual | 3.9 | N/A | N/A | N/A |
| USAA | 5.0 | $101 | $1,209 | -$562 |
*Based on full coverage premiums using our base profile
Average annual minimum coverage rates
| Armed Forces Insurance (AFI) | Not rated | N/A | N/A | N/A |
| Farmers | 3.8 | $46 | $550 | +$5 |
| Geico | 4.8 | $30 | $365 | -$180 |
| Liberty Mutual | 3.9 | N/A | N/A | N/A |
| USAA | 5.0 | $30 | $354 | -$191 |
*Based on minimum coverage premiums using our base profile
Cheapest auto insurance for veteran military members by status
Being affiliated with the military isn’t the only nuance to consider when shopping for car 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 could help you determine if your quoted premium from any given company is competitive.
| Active | $1,719 | $514 |
| Active reserve | $1,719 | $513 |
| Inactive reserve | $1,719 | $513 |
| Pre-commissioned officer | $1,719 | $513 |
| Retired | $1,719 | $513 |
| Separated | $1,727 | $509 |
Bankrate insights
Military status generally does not have much of an influence on car insurance rates. According to our research, there’s just a 0.5 percent difference between the highest and lowest average full coverage rates for different military statuses. Your status could, however, determine if you qualify for a company’s military discount or for coverage from a company that specializes in military coverage. Many companies will not extend a discount to those with a discharge type of dishonorable, for example.
Factors that impact cheap rates for veterans
While your status within the military may 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 U.S. Department of Veteran Affairs, a veteran is someone who “served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable.” If you were dishonorably discharged, you are not considered a veteran and likely will not qualify for military-focused insurance companies or military discounts.
- Rank: Some insurers may consider your rank within the military, when you were still active, in its 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, like 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 may help you find the cheapest coverage.
- Age: While 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 age 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 auto insurance
Finding cheap auto insurance for military veterans may involve some time and research. Here are some tips to lower your auto insurance premium if you are a veteran:
- Shop around: Even if you get quotes from a company that specializes in military insurance or from a company that has a military discount, it may help to shop around and compare quotes from other companies. Rates vary based on a number of factors, so you could find cheap car insurance for military veterans even from a company with no veteran-specific perks.
- Ask about military discounts: Even if you’re getting 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 that you didn’t know were available.
- Utilize other discounts: Veterans can still take advantage of non-military-focused discounts, like paperless policies, telematics programs and student discounts for any young drivers listed on their policies. You could also consider bundling your home insurance as a military member, which might 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 low. While you’re an active service member, you may not be driving your vehicle, especially if you are in training or deployed. As long as you still own the vehicle, though, you’re required to have an active insurance policy. You can usually put your vehicle in “storage mode” — which removes all coverage except comprehensive — while you aren’t driving it, although you should check with your financial institution before making changes if you have a loan or lease.
- Keep a clean driving record: This tip benefits all drivers, not just veterans. Your driving record is one of the most impactful rating factors that car insurance companies consider when rating your policy. Driving safely and avoiding incidents like tickets and at-fault accidents can help you avoid costly surcharges and might even earn you a safe driver discount.
Common car insurance discounts for veterans
Car insurance discounts are one of the easiest ways to save on your premium. Here are some common discounts that veterans may be able to take advantage of:
Frequently asked questions
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