Auto Insurance Savings Guide for Service Members and Veterans

Many American households are feeling the pinch from higher living costs, and military families are no exception. Permanent change of station (PCS) moves, deployments, and unique housing needs can strain budgets — and auto insurance premiums have climbed markedly since 2019 (the BLS motor vehicle insurance index is roughly 45–50% higher than pre‑pandemic levels), increasing financial stress for many drivers.

Some insurers offer dedicated military savings nationally — notably USAA (members only), GEICO, and Liberty Mutual — while others focus on non‑military levers like telematics, bundling, and storage/deployment coverage adjustments. Compare both military‑specific and general discounts to see which delivers the best rate where you’re stationed.

Car insurance is a must‑have, but it doesn’t have to add to your financial burden.  By combining military perks (on‑base and emergency‑deployment discounts, storage/deployment savings) with non‑military programs like usage‑based telematics, low‑mileage, multi‑policy, and pay‑in‑full discounts, you can meaningfully lower monthly premiums today.

In this guide, you’ll learn how to get the lowest rate for the coverage you need and learn about the best auto insurance companies for Service Members and Veterans — and see updated picks from NerdWallet and Forbes Advisor.

The Impact of COVID-19

Early in the pandemic, most auto insurers issued temporary premium credits as miles driven fell. Those broad relief programs ended as driving and claims rebounded. Since then, premiums have risen sharply, with year‑over‑year increases around 20% through much of 2024–early 2025 and an index level about 45–50% above 2019, per the BLS CPI for motor vehicle insurance data.

Vehicle miles traveled returned to roughly pre‑pandemic levels by 2023 and grew modestly in 2024 (FHWA). Traffic fatalities declined in 2023 and continued improving in 2024 but remain above 2019 baselines (NHTSA). For military households, elevated premiums plus PCS moves and deployments can compound costs — making storage options and military discounts more valuable than before.

Today’s savings are targeted rather than across‑the‑board: usage‑based insurance (UBI) and low‑mileage programs, multi‑policy bundles, and deployment/storage coverage adjustments are the primary levers. If you’re deploying and storing a vehicle, many carriers let you reduce to comprehensive‑only (subject to state and lender rules), which can substantially cut costs during deployment and beyond.

In 2020, insurer refunds and credits totaled about $10.5 billion industry‑wide. Those were time‑limited; today your best bet is to ask about UBI, low‑mileage, and deployment/storage options with your current carrier.

Military-specific Considerations for Obtaining Auto Insurance

Because you may not control where you’re stationed, shopping for auto insurance can be tricky. Rates vary by state and even ZIP code; in some areas, it costs significantly more (or less) to insure a vehicle. When you have a choice, compare cost of living and insurance rates before you move.

Confirm which carriers offer military‑specific discounts where you live. As of now, USAA (members only), GEICO, and Liberty Mutual advertise dedicated military savings, while many others focus on non‑military discounts and deployment/storage adjustments.

Industry advisors at dealerships such as Superior Honda note that eligibility and savings can differ by branch, status (active, Guard/Reserve, veteran), and deployment orders. Ask carriers designed for the military community (e.g., USAA) and mainstream insurers with military programs (e.g., GEICO, Liberty Mutual) to quote your exact situation.

Be discerning when you select a policy: some insurers are built around military families (USAA), while others offer a military discount alongside standard savings like telematics and bundling. Research your options and compare which carriers provide military discounts and which combine them with non‑military savings in your state.

Some states also mandate or allow additional military discounts on auto insurance. For example, Louisiana has provided an additional 25% discount to qualifying active‑duty residents under specific conditions; verify current eligibility with the Louisiana Department of Insurance before you rely on it. Historically, eligibility included the following requirements:

• You must be a Louisiana resident.
• You must currently live in Louisiana.
• You must be on full-time active duty.
• You must buy your insurance in Louisiana.
• If stationed outside of Louisiana, you must be single, or your family must live in Louisiana.

Other insurance providers only serve military service members who live in specific states. For example, Arbella’s military discount is only available to Massachusetts residents, and their 10% military discount only applies if you are deployed more than 100 miles from where your vehicle is garaged.

Best veteran/military-friendly auto insurance companies

Below are several veteran‑ and service member‑friendly options and the benefits they can offer. Independent 2025 roundups consistently place USAA and GEICO at the front for explicit military savings (NerdWallet) (Forbes Advisor).

Armed Forces Insurance

• Military‑focused agency/broker that shops policies with partner carriers rather than underwriting auto itself.
• Available to service members, veterans, DoD civilians and immediate families.
• Useful for unique situations and a concierge approach to comparing multiple insurers.

USAA

• Membership limited to the military community and eligible family members.
• Retired or honorably discharged military service members, students at U.S. service academies and the immediate families of military service members can apply.
• Additional coverage options for your car and passengers, including roadside assistance and rental reimbursement.
• Up to a 15% discount on comprehensive coverage when you garage your vehicle on base, plus significant storage/deployment savings when your car is placed in storage.

Geico

• Military service team composed of veterans.
• Dedicated military service hotline: 1-800-MILITARY (645-4827).
• Up to 15% military discount for active duty, retired, members of the National Guard or Reserves, and veterans.
• Emergency Deployment discount for qualifying orders/locations.
• Potential extra savings via eligible military associations.

Arbella Insurance

• “Military Away Discount” provides 10% off when deployed at least 100 miles from the principal garaging location.
• Arbella Insurance Foundation supports the New England Center and Home for Veterans (NECHV).

Auto insurance companies with military discounts

If you prefer, you can go with one of the country’s major commercial auto insurance providers. Only some offer a companywide military discount; others provide savings via non‑military programs (telematics, bundling) and deployment/storage accommodations.

Here are a few major insurance providers that advertise a military or affinity discount, or offer alternatives; availability varies by state.

*Discount not available in every state. †According to company representatives reached by phone.

Other Auto Insurance Discounts

Although you should take note of any military discounts an insurance provider offers, those aren’t the only discounts you should consider. Usage‑based telematics (UBI), low‑mileage, and bundling can sometimes outperform a military discount depending on your profile and state.

You can also reduce your monthly premium by adjusting the type of coverage you have on your policy. For example, if you’ve paid off the loan on your car and you own it, you won’t be required to carry collision coverage by your lender. You could save on your monthly premiums by eliminating this coverage, as long as you’re prepared to pay out of pocket if you need to repair your car after an accident.

If possible, you can increase your deductible or make other adjustments to your policy to save on monthly expenses. You can also only pay for a policy that meets the minimum amount of coverage required by your state.

Bundling insurance is also a great way to save. USAA offers both home and auto insurance and can offer you savings if you bundle the policies. Many insurance providers will also provide a discount if you insure multiple vehicles with them.

David Bakke, Insurance Professional at Dollar Sanity, recommends you “inquire about all discounts, military and non-military alike, and go for all of them if you qualify. Next, get quotes from at least three providers to ensure you’re getting the best deal.”

Standard auto insurance discounts

Here are the common standard discounts you can expect from most major auto insurance providers.

Affinity discounts

Affinity discounts are discounts provided to organizations, associations, or other organized groups, including military branches.  Many auto insurance providers partner with major employers to offer their employees discounts. In some cases, these discounts can go up to 25%.

If your insurance provider doesn’t offer a military discount, you may be able to obtain a discount if you’re part of various organizations, clubs, or groups, including:

• Professional organizations or associations: For example, Liberty Mutual offers savings of up to $782 and other benefits to members of the National Association of Realtors (NAR), and members of the American Bar Association (ABA) can get low rates on Travelers auto insurance.
• Schools, fraternities, sororities, and sports teams: Geico offers an affinity discount to alumni association members, faculty, and staff at certain colleges and universities, and Nationwide provides discounts on auto insurance to members of Phi Beta Sigma Fraternity, among others.
• Credit unions: Liberty Mutual offers car insurance discounts up to $509 to credit union members through TruStage, and Geico offers special insurance discounts to members of Navy Federal Credit Union.
• Auto clubs and other memberships: AAA sells auto insurance policies and provides multiple types of discounts to members, and The Hartford offers auto insurance discounts and benefits to AARP members.
• Certain jobs and employers: Geico offers discounts to government employees on the G-7 pay scale or above. Farmer’s Insurance provides discounts to policyholders who have certain occupations, including teachers and college professors.

What to Do If You’re Deployed

When you’re about to be deployed, the last thing you want to think about is auto insurance. But it’s important to know what you can do so you don’t waste money while you’re away.

If your car is going to be sitting in a garage, there’s no reason you need to be paying your full monthly premium to keep it insured. If a friend or family member will be using the car while you’re away, you may need to contact your insurance provider to let them know or add them as drivers on your policy. Many carriers allow comprehensive‑only or storage plans while a vehicle is parked and not driven, but always confirm state rules and lender requirements before adjusting coverage.

The following are some of the most frequently asked questions about this topic:

Should your vehicle be stored?

If your vehicle is being stored during your deployment, it may be advantageous to store it on-base. Some carriers, such as USAA, offer on‑base garaging discounts on the comprehensive portion of your premium and separate storage/deployment savings when a vehicle is placed in storage (details vary by state).

According to resources like FinancialSailor.com, you can often request a storage or comprehensive‑only option while deployed, then reinstate full coverage when you return without a lapse penalty. If a trusted friend may need to move the vehicle for maintenance, consider adding them as a listed driver.

If your vehicle isn’t being stored and someone else will be driving it, you should continue paying your auto insurance policy as normal. Ensure that whoever is driving your vehicle is listed on your policy, especially if it’s someone who isn’t in your immediate family.

Concerning your vehicle, who needs to know about your deployment?

Your insurer should be notified of your deployment beforehand so they can make any necessary changes (such as storage or deployment discounts) to your policy coverage.

It’s also recommended that you inform your lienholder, if applicable. This refers to your auto lender or the company that leased you the vehicle.

What changes can you make to your auto insurance?

Once you notify your auto insurance company about your deployment, you may be able to reduce coverage to comprehensive‑only while the vehicle is stored, or otherwise adjust your policy to lower monthly premiums. Companies that work with active‑duty customers can explain your options and any state or lender limitations. Some also offer emergency‑deployment discounts for qualifying orders.

You should also ensure your registration, insurance information, and inspection stickers are up to date, and you should ensure your vehicle has been serviced before you leave. A recent federal update also allows servicemembers and their spouses to keep their out‑of‑state driver’s licenses and vehicle registrations when they move due to military orders, reducing administrative hassle (DOJ guidance).

If you’re relocating or rebasing to a new state, you may need to register your car in that state if you’ll be considered a permanent resident. Under the 2023 change noted above, you and your spouse can often retain valid out‑of‑state credentials after a PCS move, but insurers generally rate based on where a vehicle is primarily garaged, so confirm requirements with your carrier and your state DMV.

Familiarize yourself with your state’s laws. Some states offer non‑use or storage options and other protections for active‑duty members. Check your state insurance department or NAIC consumer resources for specifics before you deploy.

Our Two Cents

Saving on auto insurance may not always be at the front of your mind, but it should be a major part of your larger plan to reduce expenses. In today’s market of elevated premiums, using deployment/storage options and enrolling in telematics or low‑mileage programs can prevent you from paying for coverage you aren’t using and help offset higher base rates.

Many of the discounts listed above are just a start. As a military service member, you have extensive financial planning resources at your disposal. You can speak to a military Financial Readiness Manager or Military and Family Life Counselor at your local installation for assistance with making a plan, or connect with the DoD’s Office of Financial Readiness for free, unbiased support.