Car Insurance Archives

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Whether you are active duty, Guard, Reserve, a dependent, or military spouse, the need for auto insurance is a basic fact of life. If you are new to military life or are exploring your car insurance options after a long time, you might not know about some of the perks, discounts, and coverages offered to you.

There are some important things to keep in mind when searching for the best military deals for auto insurance. Some insurance providers such as USAA (see below) aren’t technically open to the public.

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Military Insurance

Military auto insurance is basically a type of insurance plan designed specifically for military members and their families. Some insurance providers have programs for military members in addition to their other offerings available to the general public.

But some programs are only for those who qualify. USAA is a good example of this–here’s the USAA list of the people who are eligible to apply for a military-friendly auto insurance policy:

Active duty service members
Military retirees
All honorably discharged officers and enlisted
Officer candidates active in commissioning programs
Adult children (18+) of USAA members past and present (conditions apply)
Widows and widowers of USAA members (conditions apply)

USAA auto insurance plans include coverage for overseas driving, so military members with PCS orders to an overseas assignment should explore their options in this area before shipping household goods and starting the journey to the next assignment.

Some regular insurance companies offer special programs for military members. Allstate is one example. Via their Esurance.com platform service members can easily cancel and reinstate car insurance policies without rate changes that typically result from a gap in coverage.

Driving Overseas

The moment you get orders to PCS overseas, it is crucial to contact your insurance provider to learn if coverage is possible, and to what extent. Some policies may protect your vehicle while being shipped overseas, others may allow you to get coverage on a car or truck you buy in the host country.

But not all do–you will need to learn the extent of your current policies and ask your sponsor at the gaining base what to do if you can’t rely on your current provider once you relocate.

For non-military auto insurance providers who don’t offer overseas coverage for military drivers, it may be necessary to change providers or to suspend coverage as mentioned above and apply for an auto policy from a company based in the host nation being PCSed to.

Typical Car Insurance Coverage For Military Members, Dependents, And Spouses

If you operate a motor vehicle overseas or stateside, you will be required to carry certain protections as required by law. Some host countries have more expensive insurance requirements; Japanese Compulsory Insurance or JCI is one such insurance requirement U.S. troops PCSing to Japan will face.

It is very important to ask your sponsor, command support staff, or other people knowledgeable about Japanese insurance law about coverages. The minimums may be your technical legal protection but the actual amount of money required in case of an accident may be far greater than your insurance will cover.

One Japanese website for an agency called Chubb (which was partnered with USAA at one stage to provide auto coverage for U.S. troops in Japan) explains, “The amounts that can be paid under JCI, for example, is up to 30 million yen, and you may think it’s enough, but it isn’t in Japan. Recent court awards have reached 100,000,000 yen.” The actual dollar amounts may be quite different in today’s marketplace, but it is easy to see that a lack of knowledge can be costly in this area.

Typical Coverage Requirements

What kind of coverage could you and your family be required to carry stateside or overseas? Local laws vary, so this should be interpreted as a broad list. Your experience may vary:

Liability coverage is required in almost every state in the U.S.
Collision/Comprehensive protects against damage or bodily injury to you and your car, along with other drivers
Uninsured/underinsured motorist coverage
Medical payments and personal injury protection (PIP) is not required in all states, but covers medical expenses, loss of income and other costs regardless of fault in many cases
Overseas companies offering these protections may have terms and conditions you are not used to seeing in an insurance contract. Read your documents carefully and be sure to contact the base legal office if you aren’t sure what kind of legally binding agreement you are committing to.

Discounts And Price Breaks

There are military discounts, and there are regular price breaks for being a safe driver, being an older driver, not driving a flashy sports car, etc. The key to maximizing your discounts with your auto insurer is to know what they have typically offered veterans in the past, and asking for the latest version of those perks.

But if you are using a company like Allstate, which caters to veterans and other military people but not exclusively so, be sure to read up on what companies like USAA are offering to their military auto insurance beneficiaries.

If it’s a better deal, use those numbers to haggle your way into a more advantageous position with your insurance costs. It’s not wrong to play two car insurance providers against one another for perks, discounts, and price breaks. If the company is willing to match another company’s lowest offer, you win as the consumer.

Typically, military families can expect some or all of the following:

Auto insurance discounts based on your military status alone
Discounts for signing up for car insurance near a military base in your local community
Price breaks for PCS, TDY, deployment, or other situations where you may be required to put your vehicle in storage while on duty
Insurance price breaks for living on base or storing a vehicle on-post
Price breaks for being a member of a local Guard or Reserve unit
State-offered insurance discounts for military members

The trick to getting these discounts? Sometimes you have to ask for them. Some companies may have ongoing promotions where they inform you up front of a price break for being in uniform, but others may have discounts they don’t talk about at all and only offer when asked.

A Word On Bundling

Bundling is the practice of combining certain kinds of insurance such as home insurance and auto insurance. The same company provides both policies and often (but not always) offers a discount for doing so. The most important things to remember about bundling?

Shop around. You may find that some bundled insurance policies charge you more in some areas you may not need as much coverage in. Know your needs and the marketplace.
Some insurance bundling can be an advantage if you have a good driving record. But if your car insurance is more expensive because of tickets or accidents, you may not get such a great deal on certain types of insurance bundling.
When you compare quotes for bundled insurance, be sure to check the cost of each policy with and without being bundled. Is it more costly in your market to get car insurance and home insurance separately? Or is it a better choice to combine them? You won’t know until you shop around.

Non-Military Price Breaks On Auto Insurance

Some companies offer a price break for military families. But what about military spouses who are also federal employees, work for or belong to a military credit union, or who are employed on-post as a civilian contractor or other non-military worker? There may be special programs aimed at you, too.

The best place to start learning about such insurance discounts? Your fellow employees, Human Resources rep, etc. If you are a recent hire, be sure to ask your boss, and if you have been working for some time, ask both your current insurance provider and your H.R. department if there are new options or price breaks on certain kinds of coverage.

Other non-military price breaks include the usual discounts for being a safe driver, an older driver, operating a motor vehicle rated for its safety, or for adding or reporting existing safety and anti-theft equipment.

Deployments And Your Car Insurance

In cases where a military deployment requires changes or cancellation of auto insurance policies, companies like Esurance may waive certain cancellation fees. It pays to explain fully why you need to cancel or alter coverage.

Reinstating car insurance after you return from a TDY, PCS, deployment, or training may be more complicated than simply paying the first bill once you call or email to reinstate coverage.

You may be required to provide documentation such as “…a letter from your commanding officer that lists your dates of deployment” in the case of Esurance.com, which adds that in order to be given consideration for certain military-related fee waivers or other perks, you must often verify, “that you haven’t driven any civilian vehicles in the U.S.” during the period of time under consideration.

Some insurance policies have a provision for customers to pay less when their vehicle is in storage. But these same companies often also have a policy especially for military members who must store a vehicle prior to deployment. The price break or the advantage you may be offered in this situation is often better than simply reducing your coverages to the bare minimum. Ask specifically about deployment policies with your insurer; you will be glad you did.

Military-Friendly Insurance Companies

What follows is a list of companies which have military-friendly policies, or did have at the time of this writing. This list should not be considered an endorsement of any company, but rather an example of how many insurers may be willing to work with you on getting good military discounts and protection:

USAA is the only major company specifically serving military members, veterans, and family members.
AAA offers regional auto insurance discounts depending on location.
Direct General has offered as much as 25% in price cuts for active duty military.
Esurance offers discounts on a regional basis.
Geico has offered 15% discounts to military customers.
Nationwide offers special “affinity” programs for military customers.
Progressive offers discounts in selected states.
The General: military/veteran discount offered in certain states.

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Auto Insurance For Veterans And Military Retirees

USAA gets high marks for being a military and veteran-focused insurance provider. But other companies also get praise specifically for service to the veteran community. As a veteran driver, you may qualify for safety discounts, age-related price breaks, local promotions aimed at vets, and more.

Veterans sometimes don’t realize their memberships in veteran service organizations and related entities may also qualify them for insurance discounts. You could be eligible for a price break for being a member of the Air Force Sergeants Association (depending on current promotions at the insurance agency), the Association of the United States Army, Navy League of the United States, and many others.

Be sure to ask your insurer about discounts related to your affiliation with the USO, Disabled Veterans of America (DAV), Veterans of Foreign Wars (VFW) or any other veteran service organization.

Disabled Veterans

Your insurance agency may have special policies for disabled veterans, and especially those who drive or plan on driving specially adapted vehicles. Ask your provider about their policies on adaptive equipment such as the kinds you can apply for VA grants to have installed via the VA Automobile Allowance program. Those who have adapted vehicles may actually be required to enroll in a different type of insurance protection program so be sure to ask before deciding on a policy.

Related Articles
How To Insure Your Car Overseas	Military and Veteran Discounts
PCS, TDY, and Deployments	Military and Veteran Resources
How Veteran Service Organizations Work	United Service Organizations (USO)

Written by Veteran.com Team

The editorial team here at Veteran.com works to help the U.S. military community discover the many military benefits available to them. Our team is supported by our Veteran Review Board and its Standard of Care, which all content on Veteran.com is reviewed to meet.

Table of Contents

Contingency planning is one area all branches of the United States military excel. There is an old phrase coined by Carl von Clausewitz “(the) fog of war,” used to explain the uncertainty of war.

You don’t know every single contingency that can arise on the battlefield, so flexibility and preparation is the key to overcoming the unexpected.

That is also true of military family planning, especially where insurance is concerned. You may not be sure what kinds of coverage might be needed when dealing with a permanent change of station, move, or a combat deployment. There are some bases to cover and some things to avoid when choosing the types of insurance your military family might need.

Managing Your Needs

There are several basic types of insurance that are available for military families, but you can start selecting your coverage by setting your priorities first. Are you PCSing or deploying within three months? Your concerns should include:

Dependent care
Protection for vehicles
Protection for property left behind temporarily while on TDY or deployment
Protection for property left behind for a PCS move
Pet care
Coverage for travel/transport

Not all troops have the same insurance needs, but it’s good to consider all your options to avoid overlooking an important detail or aspect of coverage you need. Remember, not all deployments last the same amount of time for all troops. Working on time-sensitive needs can help you set priorities.

What You Need to Know About Insurance

There is no such thing as implied coverage. If an insurance policy does not specifically mention a type of coverage or a type of property damage that is considered compensable, you do not have coverage for that issue.

That is especially true of water-related damage. Your insurance policy must specifically reference flooding, rising water, water damage, or similar verbiage, otherwise, you do not have coverage.

It is best to ask your insurance agent whether water damage is covered. Additionally, how the damage can be covered if not by the standard plan?

Water damage is one of the leading causes of problems for those with insurance. Some consumers assume floods or other contingencies are covered even though their policies do not mention these issues. Avoid learning the hard way, and make sure your policy explicitly covers property damage and similar situations.

What’s more, consumers sometimes fail to ask under what conditions the coverages they do have are null and void. Do not fail to ask this question before you pay for any insurance coverage.

Five Kinds of Insurance Coverage for a Military Family

Car Insurance (Not What You Might Think!)

If a military family is sent overseas on PCS orders, they may or may not be permitted to bring a privately-owned vehicle depending on the assignment, the major command, the rules of the host nation, and other concerns.

If you must place a vehicle into storage, you can save money and protect your vehicle. Allstate.com reminds consumers of their company’s specific insurance programs and advises that canceling your car insurance is not ideal. Reducing your insurance from carrying liability and collision, in addition to comprehensive coverage or comprehensive alone, is the best solution for stored vehicles.

There is an important caveat for vehicles stored 30 days or longer: once you return from your assignment, you cannot drive the vehicle legally until you restore your other coverages.

You are not legally permitted to drive the car out of the storage facility until you have reinstated the minimum state-required coverages.

Carrying comprehensive-only coverage will lower your monthly bill for the vehicle. It could be an advantage over asking a friend to store the vehicle in a private garage, depending on circumstances.

Car Insurance For Transport Overseas

If you are permitted to ship a privately-owned vehicle (POV) to or from an overseas military base, you may need to carry insurance to protect your car and its contents while en route to your next duty station.

There are no standardized rules for this, as much will depend on the host nation’s laws and your gaining command’s policies.

The best thing to do when trying to decide coverage for a POV is to ask your gaining base sponsor. You should also call your current auto insurance provider to see what options you have.

Your insurance will cover a limited number of incidents and may expire the moment you drive the vehicle away from the port of entry.

Renters Insurance or Homeowners Insurance

Renters insurance and homeowner’s insurance policies are not all created equal; your coverage options may vary based on state law, company policies, and other variables. Renters or homeowner’s insurance is strongly recommended if you must leave your home for any period.

It’s not just fires and theft you have to worry about. Natural disasters, electrical storms, wildfires, and many other problems could affect your living space while you are gone. Insurance coverage won’t keep these things from happening to you, but they do offer peace of mind during your military duty.

When arranging coverage for a house or apartment, remember the rule above – if your policy does not explicitly mention fire, flood, theft, or other issues, your policy does not cover it.

You also need to consider obtaining a limited power of attorney if you need someone to manage the policy, make a claim, or take other actions on your behalf if required. A limited power of attorney must accurately describe what permissions you give, so be sure to talk this matter over with an insurance rep first.

Pet Insurance

Some many reasons and situations can justify pet insurance. While you may not be familiar with this type of coverage or know who the providers are, there are reputable companies such as USAA offering pet coverage, especially for troops.

Pet insurance could even be, as USAA advertises, available overseas. Depending on the type of coverage you need, you could find a policy that handles both emergency care, diagnostic and testing and help with chronic pet conditions.

Pet insurance has the disadvantage of not being as widely adopted as other kinds, which is why searching for a reputable company is crucial. It’s not enough to search the Better Business Bureau ratings or to read customer reviews—you may need to go the extra mile and ask your fellow military members if they have had good experiences with one insurer or another.

Why choose pet insurance? If you are assigned overseas, your pet will need to visit the vet several times for vaccinations and health screening. Pet insurance can help offset these costs.

Natural Disaster Insurance

You may not be in an area that is prone to disasters, but what if you receive orders to military bases that are known for their natural disasters like tornadoes, hurricanes, floods, and earthquakes?

When you PCS to a disaster-prone area, insurance coverage typically won’t offer the same kind of broad protections you might enjoy now without unique policy additions or modifications.

You may be required to carry disaster-specific coverage (similar to carrying separate flood insurance) in these regions, and it will be necessary to talk to a sponsor and an insurance rep from that area to learn what specific coverages may or may not apply.

Don’t get burned because you assumed a certain kind of situation would be handled by your insurance policy only to learn that that specific kind of insurance requires a modification to a “standard” plan.

Ask about deductibles, ask what renders your coverage null and void, what specific types of issues are NOT covered and why, etc. You will be happy you asked, because you may go years without needing to make a claim, only to have a sudden need later on.

Life Insurance

Military members have a life insurance plan known as SGLI, which stands for Servicemembers’ Group Life Insurance. SGLI automatically covers servicemembers for up to a maximum of $400,000 unless the service member opts for lower coverage.

Premiums vary with circumstances, but this is an important decision to make. The relative safety of certain military career fields makes some less inclined to consider taking out more coverage from a private provider.

Here are some questions to consider that might help you decide on a good life insurance policy: does the amount of your SGLI coverage adequately provide for your family if you die on duty? If you die as the result of military duty, en route, or returning from military duty? Is this enough life insurance for you and your family in case something should happen?

There is no one-size-fits-all advice about life insurance coverage. Whatever you choose, your life insurance policy provides you and your family with the reassurance needed that financial aid is there if anything should ever happen.

What You Need to Know About Signing Up for Insurance

Buying insurance is tricky, and there is often a fear of being denied coverage for any number of reasons. Some feel the need to be less than forthcoming on their insurance sign-up forms, but this is never a good thing to do. Why?

Lying, deliberate omission, or misrepresenting facts about your circumstances to sign up for insurance can lead to policy cancellation, loss of benefits payments, even criminal prosecution depending on circumstances.
Insurance fraud investigation is a multi-million dollar a year industry, and many people fail to take into account the level of refinement used to develop insurance fraud cases or an insurer’s motivation to keep insurance fraud to a minimum.
Honesty is the best policy when signing up for any insurance.
If your insurance policy does not specifically mention a specific type of coverage, you do not have it.

It is best to aggressively shop around for an insurer and research the money-saving options available to you. The terms, conditions, coverages, and payouts will all vary by insurer and circumstances of your situation.

Don’t take the first good-looking policy you find. Read the fine print very carefully and make the most informed insurance choices you can.

Written by Veteran.com Team

The editorial team here at Veteran.com works to help the U.S. military community discover the many military benefits available to them. Our team is supported by our Veteran Review Board and its Standard of Care, which all content on Veteran.com is reviewed to meet.

Military Car Insurance