Car insurance for military members and veterans

Military members, veterans and their families have two main advantages when buying car insurance: eligibility for USAA, an insurer that sells only to the military community, and military discounts at many other insurers, including up to 15% at GEICO. The bigger savings often come from handling military life well: reducing coverage on a stored car during deployment without letting it lapse, updating your policy for a PCS move and arranging coverage before an overseas tour.

USAA: who can join

USAA was founded in 1922 by Army officers who could not get affordable auto insurance, and it still sells only to the military community. It ranked fifth among U.S. auto insurers by 2025 premiums, according to NAIC data. Eligible groups, according to USAA:

• Active-duty military, National Guard and Reserve members
• Veterans who served honorably (discharge of Honorable or General Under Honorable Conditions)
• Contracted ROTC cadets and midshipmen, officer and warrant officer candidates, and service academy appointees
• Spouses and children of USAA members

USAA sells only online, in its app and by phone, with no local agents. It is rated A++ (Superior) by AM Best (affirmed June 2026) and posted the highest score in all 11 regions of the J.D. Power 2026 U.S. Auto Insurance Study, though it is not officially ranked because membership is restricted.

Military-specific features listed by USAA include a vehicle storage discount of up to 60%, up to 15% off comprehensive coverage for cars garaged on a military base, overseas insurance for members on permanent change of station orders abroad, and a legacy discount of up to 10% for members whose parents had USAA auto insurance.

Military discounts at other insurers

USAA is not the only option, and it is not always the cheapest for every driver. Insurers that publish military programs include:

Availability and amounts vary by state. Ask any insurer you quote whether it has a military or veteran discount; it is a common affinity discount that may not appear in online quote forms. See affinity, employer and occupation discounts.

Deployment: storing your car without a lapse

When you deploy, it is tempting to cancel your car insurance. That can cost you later:

• A lapse in coverage can raise your rates when you buy again, because many insurers price on continuous coverage.
• If the car is still registered, many states require liability coverage to stay in force, and some suspend registrations when coverage ends.
• An uninsured stored car is not protected from theft, fire, flood or storm damage.

Better options:

1. Ask for storage or reduced coverage. Many insurers let you keep comprehensive only (theft, fire, weather) on a car nobody drives, which costs far less than full coverage. USAA and GEICO both list storage options for military members. See insuring a car you are not driving.
2. Check your state's rules first. Some states require liability insurance on every registered vehicle; others let you file a non-use or storage declaration. Use the state car insurance requirements lookup.
3. Decide who will drive the car. If a spouse or family member will use it, keep full coverage and make sure they are listed on the policy.
4. Keep your financed car's required coverage. Lenders usually require collision and comprehensive; ask the lender before reducing coverage.
5. Restore full coverage before anyone drives the car again.

Leased cars and the SCRA

Under the Servicemembers Civil Relief Act, a servicemember can terminate a motor vehicle lease after receiving orders for a permanent change of station from the continental U.S. to a location outside it, or orders to deploy for at least 180 days (50 U.S.C. 3955). If you end a lease, cancel or adjust the car's insurance on the day you return the vehicle. See insuring a leased car.

PCS moves within the U.S.

Car insurance is regulated state by state, and your premium depends heavily on where the car is kept.

• Tell your insurer where the car will be garaged. Your garaging address drives your rate; keeping an old address after a move can lead to a denied claim.
• Check the new state's minimum coverage and whether it is a no-fault state. Minimums differ widely.
• Registration and license. Many states let servicemembers keep a home-state license and registration while stationed elsewhere; your insurer will still want to know where the car actually is.
• Get new quotes. A move can change which insurer is cheapest. See moving to a new state: how to switch your car insurance.

Overseas assignments

A U.S. auto policy generally does not cover driving in other countries, apart from limited coverage in Canada. If you take a car overseas, you will typically need coverage that meets the host country's rules. USAA operates overseas insurance through its European operations for members stationed in Europe and the U.K., and GEICO lists overseas insurance for military members. Your installation's vehicle registration office can tell you what local law requires.

If you leave your car in the U.S., treat it like a deployment: keep it insured in storage rather than cancelling.

Worked example: storage during a deployment

Say a service member pays $150 a month for full coverage on a car that will sit in storage for nine months (hypothetical figures). Switching to comprehensive-only coverage at $25 a month saves about $1,125 over the deployment, keeps the car protected from theft and storm damage, and avoids a lapse. Cancelling outright would save $225 more, but could mean higher premiums for years afterward and, in some states, a registration problem.

Key takeaways

• USAA sells only to the military community: active-duty, Guard and Reserve members, honorably discharged veterans, certain cadets and candidates, and members' spouses and children.
• Other insurers also offer military discounts, including GEICO (up to 15%) and Liberty Mutual; always ask.
• During deployment, switch a stored car to reduced or comprehensive-only coverage rather than cancelling, after checking your state's registration rules.
• Update your garaging address and coverage for every PCS move, and arrange host-country coverage before driving overseas.
• The SCRA lets servicemembers end a vehicle lease for qualifying PCS or deployment orders.