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Car Insurance Discounts For Active Military and Veterans

Current and former members of the US Armed Forces receive discounts and special perks from several different car insurance companies to say ‘thank you’ for their service to the country.  Companies that give discounts to current and former members of the military include USAA, Geico, AFI, Progressive, State Farm, Arbella, Farmers, and The General. However, some insurance companies such as Arbella, State Farm, and Farmers only offer discounts in certain states.

Companies that Offer Discounts For Active Military and Veterans


USAA is an auto insurance company for military service members, veterans, and their family members.   USAA has 12 million members and $29 billion in assets. This auto insurance company is known for offering some of the best rates.  The average rate for USAA auto insurance customers is $2,537. Furthermore, USAA consistently places as a leader in the area of claims satisfaction. 

Discounts: If you are an active service member, USAA will give you a 15% discount on your auto insurance premium if you store your car on base.  Furthermore, if you get deployed, USAA will give you up to a 60% discount in all states but California, Hawaii, North Carolina, and Virginia.  Moreover, USAA offers service members financial guides to help them decide what to do with their car insurance after deployment.


Geico is the second largest auto insurance company in the United States behind State Farm. Geico is also known for offering some of the most affordable rates.

Discounts: Geico offers a 15% discount off of auto insurance rates for both current service members and veterans. The military discount that Geico offers may actually make its rates lower than that of USAA for many current and former service members.  Geico reduces your premium up to 25% if you are a current service member.

Additional Perks: Geico has a Military Service Center located in Virginia Beach, Virginia, to help its military policyholders with their auto insurance. In addition, Geico offers financial guides to help service members decide what to do with their car insurance before deployment.  You can contact the Military Service Center by calling 1-800-MILITARY.

Armed Forces Insurance (AFI)

AFI only offers insurance to current and former members of the military and their spouses and dependents. Additionally members of service academies such as the ROTC can join along with current and former civilian employees of the Department of Defense.  You can contact the company by calling 1-800-637-5728.


Arbella is a smaller auto insurance company that only offers auto insurance in Massachusetts and Connecticut. For consumers considering Arbella, the company does have a low claims satisfaction rating. However, it also has drive-in claims centers throughout its service area for convenient claims handling.

Discounts: Its military discount is only available in Massachusetts.  The company offers a 10% discount to active members of the military who are deployed more than 100 miles from where their car is garaged.

State Farm

State Farm is the largest auto insurance company in the United States.  This company offers mid-priced auto insurance with a good claims satisfaction rating.

Discount: State Farm offers a military discount for active duty service members based in Louisiana, active duty service members deployed out of state or overseas who have a spouse or dependents living in Louisiana, a spouse of someone who meets one of the first two criteria, or a dependent of someone who qualifies who is living in the same household and under 18 or an unmarried full-time student under 24.


Farmers is one of the largest auto insurance companies in the United States.  Furthermore, the company tends to offer competitive mid-range rates and has an excellent claims satisfaction rating.

Discounts: Although the company does not state the exact discount percentage, it does state that this discount is open to all active military personnel permanently based in Louisiana, even if they are deployed out of state or overseas. Check out the company’s website to find out more.


Esurance Insurance Services is a direct seller of auto and property insurance available in 43 states across the country. The company became a subsidiary of AllState in 2011. Esurance does not have physical locations and sells its products online and over the phone.

Discounts: Esurance does not offer a military discount. However, the company does try to make it easier for current members of the military who are facing deployment to decide what to do about their auto insurance.

Perks: The company waives cancellation fees if you are canceling your policy due to deployment. Moreover, when you get back, the company will reinstate your previous insurance without rate increases or gaps in coverage if you provide a letter from your commanding officer that lists your dates of deployment and verifies that you have not driven any civilian vehicles inside the US during this period.

The General

The General is an auto insurance company that specializes in insuring high-risk drivers such as drivers who have been involved in multiple accidents or young drivers.

Discounts: The General offers a military discounts that applies to active military personnel based in Louisiana and are serving full time in the Army, Navy, Marine Corps, Air Force, a Reserve Corp/National Guard or Coast Guard. 

Other Ways For Military and Veterans To Save

A number of military organizations may also be able to find you discounts and good rates on car insurance if you are a current or former members of the military.  Some such organizations include Veterans for Foreign Wars and/or the Iraq and Afghanistan Veterans of America.

Moreover, you should check to see if you qualify for any other discounts.  For example, if you own a home, you probably qualify for a homeowner discount from your auto insurance company.  If you have more than one vehicle insured by the company or more than one policy with the company, you may qualify for a discount as well.  Furthermore, good driving habits and taking an approved defensive driver course can help save you money on auto insurance as well.

A Final Thought

Several auto insurance companies offer discounts to current and former service members.  These companies include USAA, Geico, AFI, Progressive, Arbella, State Farm, Farmers, and The General.  USAA and Geico will reduce premiums rates for military service members who get deployed as well. Esurance waives cancellation fees for service members who are about to be deployed.  Furthermore, Geico, USAA, and Esurance will provide soon to be deployed service members with financial guides so that they can make a wise decision about what to do about their auto insurance.

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