Best Car Insurance for Veterans and Military Families

Best Car Insurance for Veterans and Military Families

If you or a loved one have served in the military, you qualify for some of the best car insurance deals in the U.S.

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USAA, Geico and State Farm are the best car insurance companies for military members and their families.

ValuePenguin analyzed top national companies based on discounts offered to veterans and military members, coverage features geared toward current and former servicemembers and rates for drivers currently in the military to find the best insurer for your needs.

Full methodology

What is the best military car insurance company?

The best cheap insurance for military members is offered by USAA at an average rate of $1,053 per year. Because of the insurer's combination of cheap rates and great service tailored to the military lifestyle, military members and their families should give USAA a good look.

If you are a veteran retired from the military, Geico may be comparable to USAA due to its low rates and available discounts.

Cost of auto insurance for military members

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Insurer
Annual Cost
USAA logo
USAA$1,053*
Geico logo
Geico$1,154
State Farm logo
State Farm$1,178
Progressive logo
Allstate$2,615

*USAA is only available to current and former military members and their families.

We collected car insurance quotes for drivers in five states: Georgia, Ohio, Pennsylvania, Texas and Virginia. Our sample driver is a 30-year-old male who is currently serving in the military.


USAA auto insurance: Discounts and low cost rates

Editor's rating

Annual rate $1,053 ?


Pros and cons

  • Low rates for military members and their eligible family members
  • Great customer service reviews
  • Discounts for keeping car on military base
  • Doesn't always offer the cheapest rates

Since USAA only offers insurance to people associated with the armed forces, it doesn't explicitly offer a military discount, but its rates are nevertheless among the best available to military families.

If you plan on storing your car while deployed, USAA is the clear winner. USAA offers discounts of up to 15% if you keep your vehicle on a military base, and reduces your rate by 60% if you are deployed and store your car in a safe location.

If you take advantage of these discounts, you may only have to pay as little as $250 per year, which is cheaper than the alternative of letting your car insurance lapse.

These discounts, in combination with low yearly rates, mean deployed and active service members will likely end up paying the least for car insurance with USAA. You can see this for yourself by examining our sample quotes below:

State
USAA
Geico
State Farm
Allstate
Georgia$1,148$1,257$1,259$2,039
Ohio$897$990$1,093$2,241
Pennsylvania$851$1,221$1,371$2,857
Texas$1,367$1,439$1,193$3,434
Virginia$1,002$862$973$2,502
Average$1,053$1,154$1,178$2,615

USAA is 30% cheaper than the average cost of insurance for the insurers we surveyed. It is important to note that while USAA has the cheapest average out of the five states we surveyed, there are states where Geico and State Farm offer the cheapest rates.

USAA car insurance also excels when it comes to customer satisfaction

In the most recent J.D. Power survey of car insurance companies, USAA scored a perfect 5/5 for shopping experience, claims processing and overall satisfaction. It's consistently among the best-rated insurance companies in America.

According to USAA insurance reviews, customers of USAA are particularly satisfied by how easy it is to file a claim with USAA, as well as the settlement amounts given to them by the company.

USAA members also find the website to be very easy to use, and are generally satisfied with the flexibility of policies offered by the company. Plus, as the company only sells insurance to people connected to the military, its services and perks are all geared toward veterans, military members and their families.

Geico: Good option for retired service members and those not deployed

Editor's rating

Annual rate $1,154 ?


Pros and cons

  • Discount up to 15% for current and former military members
  • Offers some of the cheapest rates for military members
  • Not as many discounts for military members who are deployed
  • Lower customer service ratings

Geico may ultimately be the cheapest option if you are not deployed or are retired from the military. Geico provides military auto auto insurance rates comparable to USAA's rates in the states we surveyed.

Overall, Geico is among the most affordable insurance companies in the U.S. Geico offers up to a 15% discount for those who served in the military, regardless of their active status.

When you factor in Geico's 15% savings for people in the Army, Navy, Air Force, Marines or Coast Guard, it may offer the best rates overall.

You're eligible for Geico's military discounts if you are a member of any of the following organizations:

  • Association of the U.S. Army (AUSA)
  • Fleet Reserve Association (FRA)
  • National Infantry Association (NIA)

Geico's biggest shortcoming compared to USAA is its discount for soldiers who are deployed. Both companies reduce your bill when you're overseas and your car is in storage, but Geico's discount is substantially smaller: only 25% off your premium.

Also, unlike with USAA, the discount is only available if you are deployed to an "imminent danger pay" area (as defined by the Department of Defense).

The imminent danger pay areas are only a subset of the countries you may be deployed to, so if you are stationed in Japan, which is not an imminent danger area, you won't be eligible for the discount from Geico.

It's important to note that the military insurance program at Geico is very accommodating to military members. The staff at Geico Military are ex-military members themselves, so they understand what their customers may be going through. The site also has several valuable resources for military members to read regarding the process of leaving for and returning from deployment.


USAA vs. Geico auto insurance for military members

Both USAA and Geico are great options for former or current members of the military and their dependents, but ultimately USAA has a slight advantage — especially if you are serving in active duty. Geico also scores significantly lower for customer satisfaction when compared to USAA.

In the J.D. Power ratings, Geico scored 4/5 and 3/5 for claims handling and customer satisfaction, respectively.

If you or a family member is an active or former military member, we recommend you get quotes from both USAA and Geico. While USAA tends to be cheaper, there are some states where Geico's discount makes it the cheapest option.


State Farm: Low rates and discount opportunities

Editor's rating

Annual rate $1,178 ?


Pros and cons

  • Discounts for safe driving record and online driving courses
  • Low premiums in some states
  • No discount exclusively for military members
Although State Farm does not have an exclusive discount for military members, it is still worth mentioning, as it offers some of the cheapest rates. Despite not having a military discount, State Farm still has lower rates than USAA and Geico in Texas. Additionally, there are plenty of other State Farm discounts that you might qualify for.

For example, State Farm offers a good driver discount for drivers that go three years without any moving violations or at-fault accidents. It also offers a program called Steer Clear for drivers under the age of 25. This is an online course aimed to improve your driving skills, and upon completion you can receive up to a 20% discount off your insurance premium.


Recap of the best car insurance for military members and their families

  • Best rates and customer service: USAA
  • Best for veterans and those not deployed: Geico
  • Competitive rates: State Farm

Frequently asked questions

What's the best insurance for veterans?

The best insurance company for veterans is USAA. The company consistently has some of the best prices for car insurance in the country, and it is exclusively available to people affiliated with the U.S. military. Geico also offers a military discount.

Is USAA for the military only?

There are two groups of people eligible for insurance from USAA. The first is people currently or formerly affiliated with the U.S. Armed Forces. The second is people who are either married to or the children of people who have had USAA insurance in the past. So if your dad was in the Army and had USAA insurance, you can have it too. But if he never had USAA, you aren't eligible.

How do I qualify for Geico's military discount?

As long as you are a current or honorably discharged member of the military, you can get a discount of up to 15% from Geico. You may also qualify for a bigger discount if you're being deployed to an active combat zone. Call Geico at 1-800-MILITARY to sign up.

Methodology

To compare car insurance for military members, we collected sample quotes from four insurers (USAA, Geico, State Farm and Allstate) using a 30-year-old male sample driver that is currently serving in the military. The quotes were for a full coverage policy and included the following states: Georgia, Ohio, Pennsylvania, Texas and Virginia.

This study used insurance quote data from Quadrant Information Services. The quotes used were publicly sourced from insurer filings and should only be used for comparison purposes. The actual cost of insurance for military members and their families may differ from the estimates provided.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.