Is USAA the Best Car Insurance for Military?
For most active-duty and veteran service members, yes — USAA is the best choice. USAA consistently ranks highest in customer satisfaction, offers competitive rates, and provides benefits specifically designed for military life.
Why USAA is ideal for military:
• Lower rates: USAA's average rates are 10–20% lower than other major insurers for military members.
• Deployment benefits: You can suspend collision and comprehensive coverage during deployment, reducing premiums by 40–60%.
• Overseas coverage: USAA covers vehicles in many overseas locations (Germany, Japan, South Korea, Italy, UK, and more).
• No coverage gaps for PCS moves: USAA seamlessly updates your policy when you move, with no gaps or complications.
• Military-focused customer service: USAA agents understand military life, deployments, and frequent moves.
Who is eligible for USAA? Active-duty, retired, and honorably separated officers and enlisted personnel of the U.S. military (all branches), as well as their spouses and children. If your parent was a USAA member, you're eligible. If your spouse is military, you're eligible.
Important: If you're eligible for USAA, get a quote. Even if you find a slightly lower rate elsewhere, USAA's military-specific benefits (deployment suspension, overseas coverage, seamless PCS moves) often make it the better value.
Best Alternatives to USAA for Military
If you're not eligible for USAA, or if you want to compare rates, these insurers offer strong military benefits and discounts:
Geico: Offers a 15% discount to active-duty military and a 5% discount to National Guard and Reserve members. Geico is often the second-cheapest option after USAA. Geico also offers emergency deployment discounts (suspend comprehensive and collision during deployment).
Armed Forces Insurance (AFI): Exclusively serves military members and their families. Offers competitive rates, deployment discounts, and overseas coverage. Comparable to USAA in many ways, though generally slightly more expensive.
Liberty Mutual: Offers a 5–10% military discount and has partnerships with military bases. Good customer service, though rates may be higher than USAA or Geico.
State Farm: Offers a 5–10% military discount. State Farm has a large network of agents on or near military bases, which can be convenient for in-person service.
Progressive: Offers a small military discount (around 5%). Progressive's rates for military members vary widely by state — sometimes competitive, sometimes not.
Shopping tip: Always compare at least 3 quotes: USAA (if eligible), Geico, and Armed Forces Insurance. These three consistently offer the best combination of rates and military-specific benefits.
Military Discounts: What to Expect
Most major insurers offer discounts to active-duty military members, but the size and eligibility vary:
Active-duty discount (5–15%): Available to currently serving active-duty members of all branches (Army, Navy, Air Force, Marines, Coast Guard, Space Force). Some insurers extend this to National Guard and Reserve members.
Veterans discount: Some insurers offer discounts to veterans, though these are typically smaller (2–5%) than active-duty discounts. USAA treats all members equally regardless of active/retired status.
Deployment discount: During deployments, you can often suspend collision and comprehensive coverage (or switch to storage coverage), reducing premiums by 40–60%. USAA, Geico, and Armed Forces Insurance all offer this.
Multiple-policy discount: Bundle car and home (or renters) insurance for an additional 10–25% discount. This stacks with military discounts.
- Active-duty discount: 5–15% off
- Veterans discount: 2–5% off (varies by insurer)
- Deployment discount: 40–60% off during deployment
- Bundle discount: 10–25% off for multi-policy
- Good driver discount: 5–30% off (if no accidents/violations)
Eligibility: You'll need to provide proof of service — typically your military ID, DD-214 (for veterans), or LES (Leave and Earnings Statement).
What to Do with Your Car Insurance During Deployment
If you're deployed and your car will be in storage (not driven), you can significantly reduce your insurance costs:
Option 1: Suspend collision and comprehensive coverage
If your car is in storage and won't be driven, you can drop collision and comprehensive coverage (keeping only liability). This reduces your premium by 40–60%. USAA, Geico, and Armed Forces Insurance all allow this.
Option 2: Switch to storage coverage
Some insurers offer "storage" or "comprehensive-only" coverage, which covers fire, theft, vandalism, and weather damage but not collision. This costs less than full coverage but more than liability-only.
Option 3: Cancel your policy entirely
If you own your car outright (no loan), you can cancel your policy during deployment. However, this creates a coverage gap, which can raise your rates when you return. It's generally better to keep at least liability coverage.
What if I have a car loan?
Your lender will require comprehensive and collision coverage even if the car is in storage. In this case, switch to storage coverage or suspend collision (keeping comprehensive). Check with your lender and insurer.
Important: Notify your insurer before you deploy and confirm your coverage adjustments in writing. Make sure someone stateside can manage your policy if issues arise.
Car Insurance for Military Stationed Overseas
If you're stationed overseas and purchase or bring a vehicle, you'll need insurance that covers you in that country.
USAA overseas coverage: USAA provides coverage in many countries where U.S. military members are stationed, including Germany, Japan, South Korea, Italy, UK, and others. Coverage levels and limits vary by country. You can purchase a vehicle overseas and insure it through USAA.
Host nation insurance: Some countries require you to purchase local insurance in addition to (or instead of) your U.S. policy. Check the Status of Forces Agreement (SOFA) requirements for your duty station.
Shipping a vehicle overseas: If you ship your personally owned vehicle (POV) to an overseas duty station, notify your insurer. USAA and Armed Forces Insurance can update your policy to cover the vehicle in the new location.
Registering vehicles: You may need to register your vehicle with the base (through the Vehicle Registration Office) and with the host nation. Ensure your insurance meets both U.S. and host nation requirements.
Pro tip: Contact USAA or your insurer's overseas team before you PCS. They can walk you through coverage options, registration requirements, and local regulations.
Updating Car Insurance When You PCS
When you receive PCS (Permanent Change of Station) orders, update your car insurance immediately:
Why it matters: Car insurance rates vary significantly by location (state, ZIP code, and even street address). Failing to update your address can result in incorrect rates and, more seriously, claim denials.
How to update: Contact your insurer as soon as you receive orders. Provide your new duty station address and effective date. Your insurer will update your policy and adjust your rate (up or down, depending on the new location).
What if I'm moving to a high-rate state? If your new duty station is in a state with higher insurance costs (Michigan, Louisiana, Florida, etc.), your rate will increase. Shop around when you arrive — some insurers are more competitive in certain states.
Temporary duty (TDY): If you're on temporary duty (TDY) for 30–90 days, you generally don't need to update your insurance unless you're bringing your vehicle and changing your primary garaging location.
USAA advantage: USAA makes PCS moves seamless. They update your policy instantly, and if your rate goes down, they apply the savings immediately (not just at renewal).
Car Insurance for National Guard and Reserve Members
National Guard and Reserve members are eligible for many of the same military discounts as active-duty service members, though the discounts are sometimes smaller (5–10% vs. 10–15%).
Deployment benefits: If you're activated and deployed, you can suspend coverage or switch to storage coverage just like active-duty members.
USAA eligibility: National Guard and Reserve members are eligible for USAA membership if they're currently serving or have served honorably.
Geico discount: Geico offers a 5% discount to National Guard and Reserve members (vs. 15% for active-duty).
Best insurers for Guard/Reserve: USAA, Geico, and Armed Forces Insurance all offer competitive rates and discounts for Guard and Reserve members.
Common Mistakes to Avoid
Not updating your address when you PCS: This is the most common mistake. Always notify your insurer immediately when you move.
Canceling coverage during deployment: A coverage gap can raise your rates significantly when you return. Keep at least liability coverage.
Not shopping around: Even if USAA is usually the best option, rates vary by state and duty station. Compare quotes when you PCS.
Forgetting to ask for military discounts: Not all insurers apply military discounts automatically. Always ask specifically and provide proof of service.
Not bundling policies: Bundle car and renters (or home) insurance for an additional 10–25% discount. This stacks with military discounts.
Frequently Asked Questions
Yes, for most active-duty and veteran service members. USAA consistently offers lower rates (10–20% below other major insurers), excellent customer service, and military-specific benefits like deployment suspension, overseas coverage, and seamless PCS updates.
Most major insurers offer 5–15% discounts to active-duty military members. USAA, Geico (15% for active-duty), and Armed Forces Insurance typically offer the best rates and largest discounts. Veterans may receive smaller discounts (2–5%).
Yes. USAA and many other insurers allow you to suspend collision and comprehensive coverage (or reduce to storage coverage) during deployments, saving 40–60% on premiums. You'll typically keep liability coverage or comprehensive-only coverage.
If you have a car loan, your lender will require comprehensive coverage. If you own the car outright, you can drop to liability-only or suspend coverage entirely (if allowed by your state). However, keeping at least liability coverage avoids coverage gaps and future rate increases.
Yes. USAA provides coverage in many overseas locations where U.S. military members are stationed, including Germany, Japan, South Korea, Italy, and the UK. Coverage and limits vary by country. Contact USAA's overseas team for specific requirements.
USAA membership is available to active-duty, retired, and honorably separated officers and enlisted personnel of the U.S. military (all branches), as well as their spouses and children. If your parent was a USAA member, you're eligible. If your spouse is military, you're eligible.