The Companies That Offer Military Discount Auto Insurance

If you are a member of the military or a retired veteran shopping for new car insurance, the good news is that you probably qualify for some great savings! Several insurance providers offer great discounts to service men and women as a way to reward their hard work and dedication.

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If you have been in the Armed Forces, you know the challenges that come with serving the country. As a result, not only do several companies offer discounts to military personnel, but such carriers also offer special policies to accommodate people who have this important career.

Discounts for Military Personnel

One reason several insurance providers offer service men and women discounts is to show appreciation for the immense sacrifices these heroes make for the country. After all, the service these individuals provide is extremely valuable and dangerous, and many veterans earn less money than people of other professions do.

In addition, insurance companies believe that military vets are more likely to be safe drivers and reliable customers.

Due to their extensive training and challenging work environment, people who have served in the Armed Forces may be particularly disciplined and law abiding. As a result, providers are confident they will pay their premiums on time and will do their best to avoid accidents. Insurance providers like to attract customers who will not cost them money.

While the savings may vary depending on the company or the driver’s circumstances, military personnel could receive as much as a 15% discount on their insurance. If you have been a good customer and have been with the same provider for a long time, your savings could be even more.

Coverage While Serving

Some insurance companies also provide military personnel with policies that are more flexible and address their unique work environment. For instance, many members of the military deploy overseas and may not drive their vehicles for extended periods. Certain companies will work with service men and women to ensure their cars stay insured during these periods, but at a reduced rate.

This saves military personnel the hassle of canceling their coverage, and protects them from financial hardship if something happens to their vehicle. When they return from abroad, they can simply contact their insurance provider and have their full coverage restored instead of having to shop for a new policy.

This prevents the insurance on their car from lapsing, which, otherwise, could lead to expensive fines and rate increases.

During these periods, some providers require that the vehicle is stored in an approved storage facility. Be sure to check with the provider to find out what their regulations are.

It is important to remember that vehicles can receive damage while in storage. Though this is unlikely to occur, you should weigh your options and plan for the risk. Talk with an insurance agent to assess how much coverage is a suitable amount, just in case something happens to your vehicle while you’re deployed.

Emergency Deployment Discounts

Some providers offer emergency deployment discounts to military personnel when these men and women must go to an imminent danger pay zone. Such regions have active conflicts and wartime conditions, declared so by the U.S. Department of Defense. Congress must also approve of the imminent danger pay-zone status.

Companies may offer this emergency deployment discount to service men and women who have deployed to an imminent danger pay zone and who have their vehicle stored in an approved facility.

While you are shopping for insurance, be sure to ask providers if they offer such a discount, and whether conditions apply.

You can find out more about imminent pay danger zones, and what is involved, through resources like My Army Benefits. The Army Times also provides more information about these zones and where they are located.

Eligibility Requirements

The eligibility requirements for military discounts may differ from company to company or from state to state. Typically, however, any active member of the Armed Forces is eligible, including the Marine Corps, Navy, Air Force, Army, or Coast Guard.

Companies may also provide discounts to members of the National Guard or Reserves. Any retired veteran from these branches could also be eligible.

Some providers may also extend discounts to spouses and children of service men and women, depending on the circumstances.

Even siblings of military personnel may be eligible for some sort of discount. However, typically, these savings are reserved for immediate family.

It is important to remember that some military personnel may not be eligible for a discount despite their service. If you have caused several accidents or have too many traffic violations, a provider may not offer you a discount.

Geico

One major insurance provider that offers various discounts and policies for military vets is Geico. In terms of the company’s financial resources, Geico is a subsidiary of Berkshire Hathaway Inc., and has more than $28 billion dollars in assets.

The independent analyst A.M. Best has assigned Geico at A++ rating for financial strength. The rating firm Standard and Poor’s, or S&P, has also given the company the same score.

You can learn more about how S&P determines its ratings by referring to the company’s official website.

Geico has a military center specifically designed for helping service men and women.

The carrier offers discounts of up to 15% on insurance policies for eligible, active members of the U.S. Military, National Guard or Reserves. Retired military personnel may also be eligible.

The provider also offers discounts to members of certain military organizations and professional associations. Some of these groups include The Navy Federal Credit Union, The Association of the United States Army and The National Infantry Association.

Geico also offers Emergency Deployment Discounts, overseas auto insurance policies, and a military storage protection plan with reduced rates, while a service member’s car is in storage.

Armed Forces Insurance

Armed Forces Insurance offers various types of insurance policies specifically tailored for military personnel, veterans and their families. In fact, AFI has a Subscribers’ Advisory Committee, which comprises both active and retired service men and women. Some of the committee’s members sit on the AFI board of directors, which oversees its business operations.

In addition to retired or active duty service men and women, AFI provides auto insurance to Department of Defense civilian employees or vets. Former or current spouses of AFI members, as well as their children, may also be eligible. According to the company, members may qualify for additional discounts, depending on their driving record and personal circumstances.

In terms of AFI’s financial standing, A.M Best has assigned the provider a B++ rating and lists the financial category of the company in the $50 million to $100 million dollar range.

The company, which has been operating since 1887, affiliates with organizations like The National Association of Mutual Insurance Companies and The Association of the United States Army.

United Services Automobile Association

Members of the military created the United Services Automobile Association to provide affordable insurance for their fellow veterans and families. Active or retired members of the U.S. military, their spouses and children are eligible for membership, according to the association. Veterans of other commissioning programs and military organizations may also qualify. Membership in the USAA can transfer from generation to generation.

USAA offers active military personnel a 15% discount on their comprehensive insurance, if they garage their vehicle on a military installation.

It also offers members a flexible payment plan, guaranteed renewal programs and roadside assistance packages. USAA also sells additional insurance products, like home or health insurance, for example, and offers discounts to customers who bundle their coverage.

According to USAA, the company has more than 9 million members and a net worth of approximately $20 billion dollars. A.M. Best has assigned the provider an A++ rating while S&P has given USAA a solid AA+ score.

USAA affiliates with numerous military organizations, some of which include The American Legion, Iraq and Afghanistan Veterans of America, and American Veterans.

Other Considerations

Many carriers also offer discounts to good students, loyal customers and people who have completed driving lessons. If you think that you may qualify for any of these discounts, be sure to ask. You may be eligible for additional savings on top of a military discount!

In addition, be sure to shop around and compare quotes from several different providers. Depending on your circumstances, you may find that one company is offering the coverage your car needs as well as a great discount.

Finally, before you buy any coverage, make sure to review your current policy and determine what kind of plan you need. For example, if you have recently relocated to a more populated region, you may decide you need to buy more coverage for your car than you did before.

On the other hand, if you are hardly driving your vehicle in comparison to before, you may not need as much insurance.

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