The insurance needs of every individual can differ based on their lifestyle. A standard car insurance policy won’t necessarily be best for everyone. Take current members of the military. They sometimes have specific auto insurance needs if they’re stationed overseas. And active-duty service members and veterans can also qualify for special deals and discounts.
With that in mind, various car insurance companies provide unique plans for current and former military. Let’s take a look a look at this in more detail.
Important Coverages While Buying Car Insurance for Veterans
Before we get to the special considerations that might apply, let’s review the types of car insurance that almost everyone—including vets and current military members—will need.
Comprehensive insurance covers bodily injuries and damage to your vehicle that result from a variety of occurrences. These include but are not limited to:
- Weather damage (including rain, hail, and snow)
- Falling objects (shattered glass, concrete blocks, construction debris)
- Theft and vandalism
- Accidents that involve animals
Collision insurance covers damage when your vehicle is involved in an accident. Such situations include:
- Crashes with other vehicles
- Being the victim of a hit-and-run
- Driving into stationary objects such as stop signs or light poles due to error or unfavorable driving situations.
Uninsured motorist coverage takes care of the cost of property damage and bodily injury in an accident if another driver is at fault and doesn’t have insurance.
Underinsured motorist coverage pays for the expenses due to an accident in which the other driver is at fault and has car insurance, but their insurance limits are insufficient to cover the damage costs.
Bodily injury liability covers any injuries you inflict upon people in an accident.
Property damage liability covers damage to a third party’s property—typically their vehicle—due to your actions.
Of course, you can add additional coverage as per your requirements. You can consult with your insurer to gain a better understanding of your coverage needs.
Discounts and Special Policies In Car Insurance for Veterans
If you or any of your family members have served in the military, you could be eligible for discounts and special coverage.
One of the most common circumstances with military members is needing to store their vehicle while deployed. Without the right coverage from the right insurer, you might end up paying a higher monthly premium for not using your vehicle.
Many insurance companies offer discounts and lower rates for veterans as well as active-duty members. For example, some companies may offer a discount if you don’t use your car while on duty or deployed overseas. They also might provide coverage for driving any family member’s vehicle when they cannot drive themselves due to injury or other reasons.
Furthermore, some car insurance policies even provide additional benefits such as discounts towards homeowners insurance, as well as life and health insurance for veterans.
Being in the military also makes you eligible for a VA loan. It’s a type of mortgage you can get through the Department of Veterans Affairs. The program includes benefits that can relieve you from paying premiums during deployment and after discharge from active duty.
Cost Factors That Affect Car Insurance for Veterans
Car insurance rates for veterans are typically lower than nonveterans because they have fewer accidents and violations and a higher credit score, which adds up to an excellent driving record.
But that aside, just as with standard car insurance, the cost of veteran or military auto insurance depends on certain factors:
- Driving record
- Vehicle type
- Marital status
- Credit history
There can be additional factors depending on your insurer as well. Ask your insurance provider about any additional elements that could affect the cost of your coverage.
7 Tips to Save Money on Car Insurance For Veterans
Let’s look at a few ways you may be able to save a few bucks on your policy.
Consider Your Coverage Options
Don’t be impatient and simply buy the first car insurance policy you come across. Take the time to consider your specific needs and compare them with what insurers provide. Compare prices among companies that look promising. Often, you will end up finding cheap coverage even before you apply your military discount.
Pay Higher Deductibles On Car Insurance For Veterans
Consider agreeing to the largest deductible amount that you can afford. When you pay a higher deductible, it lowers your premium. This may help you save money in the long run.
Work On Your Credit Score
A good credit score does play a part in lowering the cost of your car insurance. You can improve your credit score by paying bills on time and paying off any overdue debts.
Recognize Military Rules
Service members are allowed to continue their insurance coverage from their home state, despite their stationed location. But if you’re going to move to the state you’re deployed in or plan on moving post-retirement as a veteran, you’ll need to register the vehicle in the new state. You’ll also need to insure the car in that state. Check with your insurer regarding state rules that apply to military personnel.
Have Your Insurer Check Your Deployment Options
You can incur penalties and fines when you don’t pay your premiums on time. But if you’re an active service member, your insurer might waive any penalties. All in all, you can take this benefit by opting to drop your coverage while on duty. Additionally, there’s also an option for taking on low coverage while your vehicle is stored. This way, your car will have coverage against any perils it might face while not being used.
NOTE: Once you have returned from your military duties, you can reinstate your coverage by talking to your insurer. However, make sure not to use your vehicle before you do that, since it’s illegal to drive a car in most states without sufficient insurance coverage.
Research Military Rates
Many insurers provide special rates for military personnel. Most of these policies can also extend towards family members. Ask your insurance company or agent to check the available rates.
Bundle Your Coverages
You can save hundreds of dollars on your insurance if you get multiple types of coverage from the same company. You can be eligible for discounts if, for instance, you were to get your car insurance and homeowners insurance from a single insurer. This is known as insurance bundling.
Where To Get the Best Car Insurance for Veterans?
According to Money Geek, the best car insurance for veterans is available through USAA and GEICO. Their prices are around $883 and $890 respectively after military discounts. Each of these providers does offer certain benefits to people with a military background. Let’s look at their policies in more detail.
USAA is well known for being the best insurance company for active and former military personnel in the Marines, Navy, National Guard, Air Force, National Guard, and Coast Guard. This insurance company has been offering business exclusively to people with military backgrounds or affiliations since 1922. Eligible clients include:
- Military veterans
- Active members
- Eligible family members
- Individuals enrolled in advanced ROTC
- Students with ROTC scholarships
USAA also provides deployed members with a 15% discount on comprehensive coverage if the insured’s vehicle is stored on a military base. This further reduces the rates by 60%. So, with the right selection of coverage and discounts, you could potentially pay a lot less than the annual average of $1,053.
GEICO has some of the cheapest rates and best discounts available for veterans and active-duty military personnel. Their coverage options are extensive and include important policies such as bodily injury, liability, collision, and comprehensive insurance.
Geico also employs a dedicated staff of former military veterans. As a result, this enables them to understand the customer needs of military folks.
One of the best things about GEICO is their discounts for military personnel. Whether you are an active-duty member or a retired veteran, they offer a 15% discount on car insurance rates. Federal employees or retired military who’ve held federal jobs also benefit from discounts on their monthly premiums.
GEICO also offers discounts if you’re deployed in an emergency. The discount will apply when you’re deployed to areas of danger such as floods, earthquakes, or other natural disasters.
Benefits of Working with an Independent Insurance Agent
Better customer service
This is the most important benefit of working with an independent insurance agent.
Working with a local independent agent usually means getting quick answers to your questions and requests.
Get assistance throughout the claim process
A reliable independent agent is committed in the culture of excellent customer service and provides assistance throughout the claims process. They guide you in the entire process and make sure you are satisfied.
Fast and efficient processing of insurance claims
A convenient independent insurance agent can often resolve claim issues within days. They are involved in the entire process and can translate the often-confusing insurance terminology for their clients.
Effective communication between insurance agents, adjusters and clients is a key component of good customer service. In addition, our insurance agents involved have knowledge and expertise of the policies you hold and their scope, so they will provide proper suggestion regarding policies and claim process,
Personalized coverage assessment
Independent insurance agents take the time to review coverage with their customers. They aim to provide insurance as per individual need that ensures quality service. If you are a military veteran and want an insurance, they you provide insurance for military veterans as per your needs.
Better Insurance Options
Independent insurance agents work with many top insurers. They offer more and better options to their customers while considering their specific insurance needs. A captive agent will only offer one option. Independent agents have access to more parts of the insurance industry.
Independent insurance agents also provide insurance quotes from multiple insurance companies. This is a big savings for your customers who are looking for good insurance in affordable rates. They look for the best price by finding the best combination of price and coverage.
They maintain a reliable choice as per your needs
The benefit of using an independent agent is that customers don’t have to switch agents as their insurance and service needs change. You are not required to switch agencies when you work with independent agents who offer different coverages.
You are the first priority
Independent insurance agents employ professionals who work for their clients rather than for a particular insurance company. They understand your insurance needs and work in your favor.
Just as with the American public in general, insurance companies respect the military and the sacrifices they make in defense of the country. Accordingly, they do their best to accommodate the specific insurance needs of active-duty personnel and veterans.
While we did mention two of your top choices for car insurance, you don’t necessarily have to go with them. You are, of course, free to choose any carrier that you like. But, make sure that you explore all your available options. Do your homework and find what benefits you the most for the best price.
If you are looking for car insurance agents near me than we are here to provide you with the best insurance agents. Insurance agents at Agency Height provide range of products and personal knowledge while selling auto insurance for veterans. They are customer-focused agent with experience and expertise will help you understand how a particular insurance product works and why it’s appropriate for you.
Did you find this insurance blog helpful? Let us know your thoughts in the comments below. For additional information regarding car insurance for veterans, please don’t hesitate to reach out to us.
Frequently Asked Questions
Do Service Members Have To Change Their Car Insurance After Change of Station or Status?
No. Congress’s Servicemembers Insurance Relief Act allows active-duty troops, National Guard and Reserve members to keep their current insurance policy after a change of status or duty assignment.
This requires the holder to define themselves and a member of their household (usually a spouse) along with a notification to the insurer in the event of a status change.
Does My Current Auto Insurance Cover Me If I Decide to Enlist in the Military Within the Week?
Yes. It will also cover you if you’re stationed in another state. But, if you change your permanent address to the state you’re enlisted in, then you will require a driver’s license and insurance from your new state.
Do Family Members of the Military Get Any Car Insurance Discounts?
Sometimes. This can vary depending on the states and the insurer. Check with your local insurance agent for what discounts and rates you are eligible for.
January 27th, 2023 · 9 mins read
- Important Coverages While Buying Car Insurance for Veterans
- Discounts and Special Policies In Car Insurance for Veterans
- Cost Factors That Affect Car Insurance for Veterans
- 7 Tips to Save Money on Car Insurance For Veterans
- Where To Get the Best Car Insurance for Veterans?
- Benefits of Working with an Independent Insurance Agent
- Frequently Asked Questions
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