Best veterans and military car insurance

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually. 

These are sample rates and should only be used for comparative purposes.

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Military personnel may qualify for special car insurance discounts, but it depends on the insurance company. USAA has some of the best rates for active duty and veteran military service members, based on our research. You may also earn military discounts through Geico and Liberty Mutual, as well as a few carriers that offer military discounts in select states.

Most car insurance carriers will ask for documentation of some type in order to verify the discount. Depending on the company, you’ll typically need to show that you are active or retired military, or a qualified family member, like a spouse or a child, to qualify.

The verification process is different for every insurance company, but you will likely need to submit a photo ID (driver’s license, state ID card or passport), as well as one or more of the following military documents:

• DD-214
• Discharge certificate
• Leave and Earnings Statement (LES)
• Military orders if you are on active-duty
• NGB-22
• Academy appointment letter or ROTC contract

Although many car insurance companies will extend coverage to veterans, USAA and Armed Forces Insurance Exchange (AFI) are only available to eligible military members, including veterans. However, these two companies have significant differences, most notably their AM Best financial strength ratings. USAA has an AM Best rating of A++ (Superior) — the highest level possible. On the other hand, AFI recently requested AM Best to withdraw its ratings. Prior to the withdrawal, AM Best issued the company a negative outlook based on its balance sheets. For this reason, prospective policyholders may want to research AFI’s solvency before switching to ensure their claims will be paid.

USAA insurance is available to active and retired members of the military and qualifying family members. Spouses and children of active-duty military members or veterans are eligible to be covered by USAA insurance, as well.

The cheapest car insurance for military members will vary depending on a number of factors, including coverage needs. However, Bankrate found that, on average, Geico ($1,353 per year), Erie ($1,356 per year), Auto-Owners ($1,361 per year) and USAA ($1,361 per year) offer some of the lowest-cost full coverage car insurance in 2023.