CarInsurance.com Insights
- USAA ranks as the best overall insurer for military drivers, with average annual premiums of $1,465 for military members and deep discounts for garaging or storing vehicles during deployment.
- GEICO offers some of the lowest premiums and most substantial military discounts, including savings for emergency deployment and membership in military organizations.
- Armed Forces Insurance (AFI) provides personalized service and matches military members with policies from top-rated carriers.
Military members and their families have unique needs when it comes to auto insurance. Fortunately, several reputable insurance companies offer exclusive discounts, flexible policies and added perks for active-duty personnel and veterans.
In this guide, we compared the best and cheapest car insurance companies for military members in 2025 to help you find coverage that fits your budget and lifestyle.
Why military members need specialized car insurance
Members of the armed forces often have different car insurance requirements than civilians. Between deployments, vehicle storage and frequent relocations, drivers need specialized coverage from insurers that understand military families’ specific needs.
“It’s common for members of the military to relocate every two or three years, which requires constant coverage changes to adhere to the new state’s minimum insurance requirements,” says Rami Sneineh, vice president of Insurance Navy. Those coverage adjustments alone can have a major impact on cost.
“For example, a policy that costs $90 per month in Texas could cost $130 in New York, simply because of the higher liability requirements. These changes can cause financial difficulties for military members that civilians don’t usually face,” Sneineh says.
However, you might be able to keep your premium low by choosing an insurer that offers military discounts.
Choosing a military-focused insurer, like USAA, can be beneficial when shopping for car insurance for military families. These insurers typically provide the coverages and discounts that military drivers seek. While general insurers can still provide excellent insurance for active duty military and veterans, they may not offer everything you want.
Ultimately, the right car insurance company for you will depend on your family’s coverage needs, your insurer preferences and your budget. It’s essential to shop around, compare several insurance companies and get quotes to find the best carrier for your situation.
Best car insurance companies for military members in 2025
The best insurance companies for military members in 2025 include Armed Forces Insurance (AFI), GEICO, Progressive, State Farm and USAA. These companies offer comprehensive discounts, low car insurance rates and personalized service.
See how the companies stack up in the table below.
| Insurance company | Best for | Average annual discounted premium | Discounts | Why we picked it |
|---|---|---|---|---|
| USAA | Overall | $1,465 | Discounts for garaging a vehicle on a military base and storing a vehicle during deployment | USAA offers low rates, excellent customer service and deployment benefits |
| GEICO | Affordability and discounts | $1,951 | Discounts for military personnel, emergency deployment and military organization membership | GEICO offers affordable premiums, plus a military discount and an emergency deployment discount |
| Armed Forces Insurance (AFI) | Personalized service | N/A | Dedicated agents match military drivers with policies from top-rated carriers, so they can find the best policy at the lowest price. | AFI has insured active duty members, veterans and DoD employees for 135 years and provides personalized customer service. |
| State Farm | Local agents and bundling | $2,575 | Discount for Louisiana military personnel and drivers in select states who complete a defensive driving course | State Farm insures military drivers in most states and its network of agents provides strong support for military families |
| Progressive | Tech and flexible policies | $2,382 | Discount for military members living in Louisiana | Progressive offers a usage-based safe driver program and other discounts for military families |
USAA: Best overall for military members
USAA is a military-specific insurance company that exclusively insures active-duty military members, veterans, recommissioned officers, employees of select federal agencies, and their spouses and children.
USAA stands out for its affordable car insurance rates. The average annual auto insurance premium for military personnel is $1,465 per year, much lower than the rate quotes for the other insurance companies we collected.
The company also offers a variety of car insurance discounts for additional savings. You can save up to 15% on comprehensive insurance when your vehicle is garaged on a military base. If you need to store your vehicle during a deployment, you can save up to 60% on your car insurance policy.
Another benefit of USAA is its excellent service. In J.D. Power’s 2025 U.S. Auto Insurance Study, USAA was rated above average for overall customer satisfaction in every region of the country and scored highly for overall auto claims satisfaction with J.D. Power.
GEICO: Best for affordability and discounts
GEICO is another excellent car insurance company to consider if you’re looking for the most affordable premium. When comparing USAA vs. GEICO on cost, GEICO has a slightly higher average premium of $1,951 for military personnel, but you can lower your premium significantly with discounts.
When they purchase car insurance from GEICO, military members can automatically save up to 15% on their total car insurance premiums. The company offers an emergency deployment discount but doesn’t advertise the specific cost savings on its website. Discounts are also available to members of certain military professional organizations, like the Association of the United States Army (AUSA) and the Navy League of the United States (NLUS).
In addition to these military-specific discounts, GEICO also offers savings for safe drivers, good students, new cars, vehicle safety features, taking a defensive driving course, homeowners, policy bundling, paying in full, insuring multiple vehicles and more.
Armed Forces Insurance (AFI): Best for personalized service
Armed Forces Insurance (AFI) has been insuring active duty personnel, veterans, Department of Defense (DoD) employees and their family members for 135 years. The company understands the unique needs of military families and provides personalized customer service.
AFI’s dedicated customer service agents help customers find the best auto insurance for their needs and budget through partnerships with trusted national car insurance providers. When you request a quote, you’ll get matched with multiple policy options that meet your family’s insurance needs and budget.
CarInsurance.com doesn’t have average rate data for AFI because the company sells policies from other insurance carriers. You can request a car insurance quote online, and your personal AFI agent will identify the top policies. Together, you’ll review your coverage options to find the best auto insurance policy at the right price.
State Farm: Best for local agents and bundling home with auto
State Farm is one of the best auto insurance companies for military members who want to work with a local agent. State Farm offers car insurance nationwide and has an extensive network of 19,000 car insurance agents located in nearly every state.
State Farm has a strong reputation for supporting military personnel and their families. The company offers employment opportunities for military members who are transitioning from active duty to the civilian workforce. Employees can take advantage of free resources and guidance on managing health and wellness, counseling and other personal and work-related matters.
State Farm’s average auto insurance premium is $2,575 after a military discount, one of the highest average premiums among the car insurance companies we collected rate data for.
State Farm offers a discount to drivers in Louisiana who are active duty personnel, reservists, National Guard members and veterans with a ≥50% disability rating.
In select states, State Farm offers a defensive driving course discount to military members who complete a course provided by the U.S. Armed Forces (USAF).
Additionally, State Farm offers excellent policy bundling opportunities. When you bundle your auto insurance with a home insurance policy, you could save up to $1,356. You can also bundle car insurance with renters insurance, condo insurance and life insurance.
Progressive: Best for tech and flexible policies
If you’re looking for a car insurance company with great technology and tools, Progressive might be a good insurer to consider. With Progressive’s Name Your Price tool, you can set a budget and see coverages that fit your desired price range. You can also compare Progressive’s rates against its competitors’ prices online, saving you time.
One of Progressive’s best features is its safe driver rewards program, Snapshot. When you drive, a mobile app tracks your driving habits, such as speed and braking force. If you consistently demonstrate safe driving behaviors, you can earn a discount. Customers who participate in Snapshot save an average of $322 per year.
Progressive offers a variety of other car insurance discounts, including a military discount for customers in Louisiana. You can also get savings for having continuous insurance, bundling your policies, owning a home, insuring multiple vehicles and many others.
Cheapest car insurance for military members
The cost of car insurance for military families depends on various factors, including the insurance company. USAA and GEICO typically offer the cheapest rates for active-duty military personnel at $1,465 and $1,951 per year, respectively, for a full coverage policy.
Travelers, at $1,818, and Auto-Owners, at $1,908 per year for full coverage, also offer military members affordable rates.
However, you should still compare rates from other insurers to see which company can offer you the best deal. In the table below, you can see which companies have the cheapest insurance for military members.
| Company | Average annual rate for the military | Average annual rate for civilians | Difference |
|---|---|---|---|
| GEICO | $1,951 | $2,148 | $198 |
| State Farm | $2,575 | $2,874 | $299 |
| Allstate | $2,698 | $3,205 | $507 |
| Progressive | $2,382 | $2,675 | $293 |
| Farmers | $2,676 | $3,085 | $409 |
| Travelers | $1,818 | $2,103 | $285 |
| Nationwide | $2,210 | $2,463 | $252 |
| Auto-Owners | $1,908 | $2,051 | $143 |
| USAA | $1,465 | $1,572 | $107 |
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Military car insurance discounts and perks
Many reputable car insurance companies offer discounts for military families. The exact discounts and cost savings will vary by insurer. Below are some of the most common discounts you can find for military members:
- Active duty discounts: If you’re currently on active duty in a qualifying military branch, many insurance companies, including GEICO, Direct Auto, Nationwide and Progressive, will give you an automatic car insurance discount.
- Deployment discounts: Some insurance companies, like GEICO, USAA and Arbella, offer discounts to active-duty servicemembers who are deployed.
- Garaging/vehicle storage discounts: Storing or garaging your vehicle reduces the risk of a comprehensive claim, such as weather damage, vandalism or theft. USAA offers a generous discount for customers who store their vehicle on base during deployment.
- Affinity member discounts: Members of select military organizations may be eligible for discounted car insurance. Liberty Mutual, Farmers and GEICO offer savings for members of qualifying groups.
- Loyalty discounts: Military members who have been continuously insured by the same company for several years can often get customer loyalty discounts.
- Family and spouse discounts: If you’re the spouse, child or an eligible military member, some insurance companies offer a discount when you’re insured on the same insurance policy.
Military members may also qualify for special perks, like flexible payment plans, if deployed overseas. Plus, you can usually stack military discounts with other discounts, like bunding, multi-vehicle or good/safe driver discounts, which can maximize your savings.
How to choose the best car insurance for military members
The best car insurance for military members depends on factors like your location, coverage needs and budget. Follow these steps to choose the right insurance company and policy for your individual situation:
- Compare quotes from military-focused and general insurers: While military-focused insurers may offer cheaper coverage than general insurers, this is not always the case for everyone. Compare personalized rate quotes from several companies to find the most affordable auto insurance for your driver profile and coverage needs.
- Check deployment and relocation policies: Before you purchase a car insurance policy, learn more about the company’s deployment and relocation policies. Find out whether you can get a discount during deployment, or reduce your coverage, and what happens if you have to move states. If you anticipate a relocation, consider choosing an insurer that sells policies in all 50 states. Otherwise, you might have to find a new insurer each time you move.
- Evaluate customer service (especially overseas): Customer service is an important consideration when selecting a car insurance company. You can read reviews online to see what current and past customers think about the service and overall experience. You can also check third-party ratings from J.D. Power and the National Association of Insurance Commissioners (NAIC). You should also investigate overseas customer service if you’re on active duty. Find out how you can contact an agent abroad or if there’s a dedicated phone number for deployed military customers.
- Locate in-person agents in your area: Some insurance companies, like USAA, sell policies nationwide but don’t have local agents. Others, like State Farm, have an extensive network of agents that can provide in-person customer service. If you prefer to work with an in-person agent for your insurance needs, look for car insurance companies with offices in your area.
- Consider bundling with homeowners or renters insurance: Most insurance companies offer savings to customers who bundle their car insurance with another policy, like homeowners or renters insurance. Combining your insurance coverages under the same company could help you earn a significant discount – plus it’s often easier to manage your policies.
- Use CarInsurance.com’s tools to compare quotes: To simplify the process of comparing insurance quotes, you can use CarInsurance.com’s tools to see quotes from top-rated carriers.
Frequently Asked Questions: Best military car insurance
Who qualifies for military car insurance?
Active duty personnel, veterans, reservists and their immediate family members typically qualify for military car insurance. Some military-specific insurers, like USAA and AFI, also sell coverage to employees of select government agencies, like the DoD.
Is USAA the cheapest car insurance for military members?
Yes, USAA is typically the cheapest car insurance company for military members. USAA has low average premiums and offers military discounts for additional savings.
Can military spouses get the same discounts?
Many insurance companies extend a military discount to spouses who are insured on the same policy as the military member. However, the discount usually only applies to general military discounts, rather than active-duty or deployment discounts.
Do deployed military members need to keep full coverage?
Deployed military members don’t need to keep full coverage unless they have a loan on the vehicle. However, it’s a good idea to maintain comprehensive insurance, which covers non-collision damage, such as fires, floods, theft, vandalism and hail.
Which insurers besides USAA offer military discounts?
Many insurance companies besides USAA offer military discounts. Other companies that offer savings for military families include GEICO, Direct Auto, Progressive, State Farm, Nationwide and Arbella.
Which insurance company has the best military discount?
USAA has some of the best military discounts. Customers can save up to 15% on comprehensive insurance when they garage their vehicle on a military base and up to 60% when storing a vehicle during deployment.
Can veterans still get USAA car insurance?
Veterans, spouses and their children can qualify for USAA car insurance.
Does car insurance get cheaper after leaving the military?
No, car insurance doesn’t usually get cheaper after leaving the military. For some drivers, car insurance could get more expensive. If you lose military discounts, your car insurance premium will likely increase.
What happens to my car insurance if I’m deployed overseas?
If you get deployed overseas, you can either maintain minimum liability coverage to keep your policy in force, cancel your car insurance or suspend your policy. However, suspending/canceling your insurance policy isn’t a great idea – you’ll pay higher rates for having a lapse in coverage once you return from deployment.
Which states have the cheapest car insurance for military families?
Location is only one factor that affects insurance premiums, although Vermont, New Hampshire and Maine are the cheapest states for car insurance. The cost of car insurance for military families also depends on the number of drivers and their ages, the types of vehicles insured and the policy limits and deductibles.
Key takeaways: Car insurance for military members
Military members can access some of the industry’s best car insurance rates and specialized benefits.
Whether you want the best coverage (USAA and State Farm) or the cheapest insurance (USAA and GEICO), comparing your options allows you to find the right policy for your service, budget and coverage needs.
Compare quotes today to see how much you can save on car insurance for military members.
Sources
- StateFarm. “Save up to $1,356 when bundling auto & home insurance.” Accessed October 2025
- J.D. Power. “Auto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, J.D. Power Finds.”Accessed October 2025
- J.D. Power. “It’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds.” Accessed October 2025
- StateFarm. “A new way to serve.”Accessed October 2025
- Armed Forces Insurance. “How insuring with AFI works.”Accessed October 2025
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