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The Best Car Insurance for Veterans 2022

The best car insurance for veterans are offered by USAA, Armed Forces Insurance and Direct Auto. Military auto insurance works the same as civilian auto insurance; you pay a premium and get financial protection for your car. However, you may be able to maintain registration and insurance coverage for your vehicle from your home state regardless of where you are stationed. Customers can save up to 25% from military discounts and more from various other auto discounts. Other companies that offer military discounts include Farmers Insurance and Liberty Mutual. In order to get discounted coverage, you will need to present a government-issued ID along with official military documentation that proves your current or prior service.

If you’re active duty or a veteran, keep reading to see which companies will give you the best coverage and discounts for you and your family.

The Best Car Insurance for Veterans in 2022

The three best insurance companies for military members and veterans are USAA, Armed Forces Insurance and Direct Auto. Below is a breakdown of what each offers, their strengths and weaknesses and ratings. Consider switching insurance providers to one of these if you’re not already covered by one of them.

There are several discounts and perks available for USAA members.

USAA

USAA offers coverage exclusively to those who are either active duty or veterans and their families. They offer multiple discounts and are highly rated for their service.

Pros & Cons

Pro

Con

  • Provides not only insurance, but banking needs as well
  • Exclusively for active duty military, veterans and their immediate family
  • Available nationwide
 
  • Unique discount opportunities available to customers
 

Coverage

USAA offers insurance at affordable prices. Coverage may include:

  • Bodily injury and property damage liability coverage
  • Collision coverage
  • Comprehensive coverage
  • Roadside assistance
  • Underinsured motorist coverage
  • Uninsured motorist coverage

USAA also offers coverage for:

  • Motorcycle insurance
  • ATV insurance
  • RV insurance
  • Classic and collector car insurance
  • Personal watercraft insurance
  • Aviation insurance

Discounts

There are several discounts and perks available for USAA members. For instance, customers can receive a 15% discount when they store their vehicle on a military base. Customers can also receive a family discount of 10% if they have parents who are USAA members. Additional discounts include:

USAA also offers several perks to its customers such as discounts on home care, travel, car care, health and entertainment.

Satisfaction

USAA ranks consistently high across the board. In a 2022 JD Power study, USAA ranked way above average across all 11 regions. Consumer Affairs also gives USAA a 3.9 out of five stars. In a review done earlier this month (September 1st), Market Watch gave USAA a score of 9.2 out of 10. U.S.News has also given USAA an overall score of 4.3 out of five stars.

Availability

USAA offers coverage for its customers in all 50 states and the District of Columbia. Eligibility is limited to those associated with the military. People who can enroll include:

  • Active-duty military
  • National Guard and Reservists
  • Veterans who have honorably served
  • Contracted Cadets and Midshipmen
  • Officer and Warrant Officer Candidates
  • Military spouses and children

Armed Forces Insurance

Armed Forces Insurance (AFI) has a rich and long tradition of insuring the protectors of this country. Founded in 1887, AFI offers competitive rates for active duty military and veterans, as well as civilian contractors who work for the military.

Pros & Cons

Pro

Con

  • Has been around for 135 years, offering competitive coverage to its customers
  • AFI does not disclose its specific additional discounts on its website
  • Provides coverage for civilian contractors who work for the military
 
  • Coverage is available across all 50 states
 

Coverage

AFI provides coverage for your entire family. This includes your spouse, children and parents should they live with you. Coverage will also extend to drivers you allow to drive your insured vehicle. This is through permissive use and is meant only for infrequent borrowing. AFI’s list of auto coverage is robust:

  • Bodily injury and property damage liability coverage
  • Collision coverage
  • Comprehensive coverage
  • Emergency roadside assistance
  • Personal injury protection (PIP)
  • Medical payments (Med Pay)
  • Rental car reimbursement
  • Underinsured motorist coverage
  • Uninsured motorist coverage

Armed Forces Insurance (AFI) has a rich and long tradition of insuring the protectors of this country.

In addition to auto insurance coverage, AFI also offers:

  • Motorcycle insurance
  • Off-road vehicle insurance
  • Collector car insurance
  • Motorhome insurance
  • Travel trailer insurance
  • Personal watercraft insurance

Customers can also purchase umbrella coverage which will extend the limits of their auto insurance policy.

Discounts

The AFI website does not explicitly name the discounts that are available to customers.

Satisfaction

Consumer Advocate broke down the ratings for AFI with the following scores:

  • Coverage Options - 5/5
  • Claims Processing - 3.5/5
  • Customer Service - 4.5/5
  • Financial Strength - 4.5/5
  • Add-On Coverages - 0/5

Consumer Advocate also showed AFI having an A+ from the Better Business Bureau (BBB) and a B++ AM Best Financial Rating.

Availability

AFI offers auto insurance all across the United States through its affiliates. The following is a list of people who qualify to purchase insurance through AFI:

  • Active duty, retired or those with general discharge under honorable conditions of all branches of the U.S. military, including the National Guard, Reserves and Coast Guard
  • Active or retired U.S. Department of Defense (DOD) and U.S. Department of Veterans Affairs (VA) civilian employees
  • Service Academy including Merchant Marine or Reserve Officers' Training Corps (ROTC) cadet
  • Children and parents of a current or former Armed Forces Information & Education (AFIE) or Air Force Inspection Agency (AFIA) member
  • Spouse or surviving spouse of an active duty, retired, or honorably discharged military member, including National Guard, Reserves and Coast Guard
  • Active, retired or former commissioned officer of the National Oceanic and Atmospheric Administration (NOAA) or Public Health Service (PHS)
  • Members of the Civil Air Patrol, Coast Guard Auxiliary, Merchant Marine, Military Auxiliary Radio System and Marine Corps Auxiliary
  • Former spouse of a current or former AFIE or AFIA member
  • Former AFI member (once a member, always a member!)

Note: The information above is taken directly from Armed Forces Insurance.

Direct Auto

While specializing in high-risk drivers, Direct Auto also offers deals for military members and veterans. For those with a military service background, there is a very generous discount of up to 25% on auto insurance. Add that to the various other discounts, and current and former military members stand to save big on their auto policy.

Pros & Cons

Pro

Con

  • Flexible billing options for deployed service members
  • Has a customer review score of 1.11/5 stars from the Better Business Bureau
  • Competitive rates for people with a poor driving record
  • Not all discounts are offered nationwide
  • Offers SR-22 filing
  • Limited location availability

Coverage

Direct Auto offers a wide range of coverage for its customers, which includes:

  • Accidental death coverage
  • Bodily injury and property damage liability coverage
  • Collision coverage
  • Comprehensive coverage
  • Emergency roadside assistance
  • Personal injury protection (PIP)
  • Medical payments (Med Pay)
  • Rental car reimbursement
  • Towing
  • Uninsured motorist coverage

While specializing in high-risk drivers, Direct Auto also offers deals for military members and veterans.

Discounts

Direct Auto offers a variety of discounts that can help military members save:

  • Affinity Discount
  • Automatic Payment Discount
  • Driver Education Discount
  • DynamicDrive Discount (Telematics)
  • Homeowners Discount
  • Multi-Car Discount
  • Multi-Policy Discount
  • Multi-Product Discount (Bundling)
  • Paperless Discount
  • Pay-in-Full Discount
  • Prior Coverage Discount
  • Renewal Discount
  • Safe Driver Discount
  • Vehicle Equipment Discounts (Antitheft)
  • Welcome Back Discount

Direct Auto also offers customizable insurance payment options, allowing active military and veterans to choose their payment date, plan their payment schedule and decide their monthly payments.

Satisfaction

Direct Auto has an A+ on Better Business Bureau. However, the customer reviews are low, with a 1.11 out of 5 stars.

Availability

Direct Auto offers military coverage in the following states:

  • Alabama
  • Florida
  • Louisiana

Military coverage is offered to those who:

  • Are active service members
  • Provide a copy of their current orders or other official documentation proving that they are currently on active service
  • Are in a state where Direct Auto’s military discount is offered

Qualifying military branches include:

  • National Guard
  • US Air Force
  • US Army
  • US Navy
  • US Marine Corps
  • Reserves
  • Coast Guard

In order to get military discounts from your carrier, they will need to verify that you are or were an active military member.

How Does Car Insurance Work for the Military and Its Members?

Auto insurance for military members works essentially the same  way as standard auto insurance. There are exceptions, however, made for armed forces members and veterans, such as being allowed to maintain coverage and vehicle registration from their hometown regardless of where they may be stationed. Policies differ from one insurance company to another.

What Are Common Military Discounts?

Discounts for active duty military, veterans and their families vary from one insurance company to another but can be as high as 25%.

Other Companies Offering Car Insurance for Veterans and Military

Unfortunately, the number of insurance providers that offer discounts for military and veterans is very small. For those who are seeking alternate coverage away from the companies listed above, Farmers Insurance and Liberty Mutual offer discounts for military members and veterans.

Find the Best Car Insurance for Veterans

How To Get a Car Insurance Discount for Veterans

In order to get military discounts from your carrier, they will need to verify that you are or were an active military member. This verification process will differ from one insurer to another. However, your insurance company will most likely require you to present a driver’s license, state ID card or passport. You will likely need one of the following pieces of documentation:

  • Academy appointment letter/ROTC contract
  • Active duty military orders
  • Discharge papers
  • Leaving and earning statement
  • NGB22 (National Guard Report of Separation and Record of Service)

FAQs

Do all veterans get discounts on car insurance?

Most veterans can get discounts from several insurance carriers, including USAA, Armed Forces Insurance (AFI), Direct Auto, Farmers Insurance and Liberty Mutual, though being dishonorably discharged may affect eligibility. Customers who qualify for military discounts can save up to 25% on their premium depending on the carrier.

Can I get a discount on car insurance if I’m an active military member?

You can get a car insurance discount if you’re on active duty, a veteran or in the reserves. You will present a government-issued form of identification along with official military documentation to prove you’re in the service or were in the service.

Is USAA for the military only?

USAA provides coverage exclusively to active duty military, veterans and their immediate families, meaning not everyone can join. Make sure you can provide the right documentation to prove your eligibility.

Key Takeaways

  • USAA, Armed Forces Insurance (AFI) and Direct Auto provide some of the best coverage for those who are active duty military, veterans and their families. Coverage availability will differ by state.
  • Car insurance for military members and veterans acts the same as car insurance for civilians. However, you may be able to maintain registration and coverage from your home state regardless of where you’re stationed.
  • Military discounts can be as high as 25% depending on the carrier you get your auto insurance from.
  • There are very few other insurance companies that provide military discounts, such as Farmers Insurance and Liberty Mutual.
  • You will need to provide a legal document that verifies your identity along with official military documentation proving your either are in the military or you were in the military.

You need car insurance whether you’re active duty military or a veteran. Enter your zip code below or call 855.214.2291 to receive free auto insurance quotes from agents in your area offering the lowest rates.

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