Active-Duty Military Auto Insurance Discounts Explained

Last Updated on August 25, 2020

As an active-duty member of the military, you may qualify for certain discounts. Many companies reward drivers for their service by providing a discount on auto insurance.

By taking advantage of discounts, active-duty military personnel can save hundreds per year on car insurance. Some companies, including USAA, even specialize in providing car insurance to active-duty military personnel. Other companies offer on-base parking discounts, active deployment discounts, and other perks that can lower car insurance costs for military personnel.

How do active-duty military discounts work? Which companies offer the best car insurance discounts for military personnel? How much money can I save on active-duty military discounts? Today, we’re explaining everything you need to know about active-duty military discounts and how they work.

Most Common Car Insurance Discounts for Active-Duty Military

active-duty military discountsSome of the most common car insurance discounts available to active-duty military personnel include:

Active-Duty Military Discount: Just for being an active member of the military, some car insurance companies will reduce premiums by 10 to 15%. Some car insurance companies provide similar discounts to nurses, firefighters, police officers, and other professions, while other insurers only provide this discount to military personnel.

Bonus Coverage Discounts: Many insurers offer bonus coverage options to active-duty military personnel. Instead of getting a discount on car insurance, you receive bonus coverage options for free. Some insurers provide free roadside assistance, for example, or rental car reimbursement insurance, among other perks.

Park-on-Base Discounts: If you park your car on base regularly, then you might qualify for a car insurance discount. Some insurers provide significant discounts to drivers who regularly park their cars on a military base. You may only qualify for this discount if your car is parked on-base while on deployment, although some insurers are more flexible.

Overseas Deployment Discounts: If you are being deployed overseas, you could qualify for a car insurance discount. Many insurers let active-duty military personnel maintain continuous coverage throughout their deployment while paying significantly lower rates for car insurance.

Mileage Discounts: Military personnel have unique mileage compared to civilians. You might put zero miles on your vehicle during a four-month overseas deployment, for example, then drive a normal mileage when you return. Some car insurance companies allow military personnel to access mileage-based car insurance discounts or usage-based insurance.

Best Car Insurance Companies for Active-Duty Military Personnel

Most car insurance companies in the United States offer a discount to active-duty military personnel. However, some companies are particularly popular among military personnel. Some companies – like USAA or Armed Forces Insurance – even restrict membership to military personnel and their families.

The three best car insurance companies for active-duty military personnel in the United States include:

  • USAA
  • Armed Forces Insurance


USAA is one of America’s best-rated car insurance companies for pricing and claims satisfaction. The company frequently ranks near the top of the list in JD Power rankings for customer satisfaction.

USAA car insurance is exclusively available to current and former service members and their families. As an active-duty or retired member of the military, USAA may offer the best car insurance for your needs. The company also offers banking services and other insurance products. By bundling multiple banking and insurance products together, military personnel can save even more.


GEICO was originally named the ‘Government Employees Insurance Company’. Today, GEICO continues to offer discounts to government employees and military personnel. GEICO is one of America’s largest and best-known insurance companies, and the company offers competitively priced car insurance in every state in America.

Although GEICO has fewer discounts for the active-duty military than other insurers on this list, they’re one of the best options overall for active-duty military and their families. GEICO offers an extensive selection of insurance products and services. They have few discounts specific for military personnel and their families, although they’re often cheaper than other insurers even without discounts.

Armed Forces Insurance

Armed Forces Insurance, like USAA, caters specifically to members of the military. It’s particularly popular among veterans and retired military personnel. And, with 130 years of experience providing insurance (AFI was founded in 1887), the company has a longstanding reputation for providing effective insurance coverage.

Today, Armed Forces Insurance offers a full spectrum of insurance coverage, with plans extending to other members of your household as well.

Many Insurance Companies Offer No Specific Military Discount

Don’t be surprised to realize that few major car insurance companies offer military discounts.

Some of America’s largest insurance companies, for example, no longer offer discounts to military personnel or their families – regardless of whether you are active-duty or retired military.

GEICO, State Farm, Esurance, Allstate, and Nationwide, for example, do not offer specific military discounts.

There’s a good reason why these companies no longer offer military discounts: companies like USAA and Armed Forces Insurance now dominate the car insurance space for military personnel, making it difficult for other companies to break into the sector.

Overall, customers with GEICO, Nationwide, and Allstate are already paying some of the cheapest rates for car insurance – so they’re unable to provide additional discounts to active-duty military personnel.

How Much Can I Save with Active-Duty Military Discounts?

The average car insurance premium in the United States is approximately $1,350 per year.

By taking advantage of active-duty military discounts above, drivers could save 10% to 20% per year, which could mean savings of $135 to $270 per year on car insurance.

With certain discounts, you could save even more. Some insurers cut premiums in half while your car is parked at a military base, for example. Others let you pause premiums entirely while you’re away on deployment.

Who Qualifies for Active-Duty Military Discounts?

Generally, any active-duty military member along with that person’s family will qualify for any auto insurance discounts – assuming you live at the same address and are all listed under one policy.

In some cases, active-duty military discounts extend to those at other addresses. You can buy USAA car insurance, for example, as long as a direct relative is a USAA member – regardless of whether or not you live at the same address.

Armed Forces Insurance, for example, extends coverage to any active-duty, retired, or honorably discharged military from any branch, including National Guard and Reserves. It also provides car insurance to active or retired Department of Defense civilian employees, Service Academy members (including Merchant marines and ROTC cadets), and children, spouses, ex-spouses, or surviving spouses of any of the above. Any active, retired, or former commissioned officers of the NOAA or PHA qualify for Armed Forces Insurance, as do former AFI members who canceled coverage and later returned.

USAA, meanwhile, provides car insurance to those currently enlisted in the Air Force, Army Coast Guard, Marines, Navy, and National Guard. It also extends coverage to retired or honorably discharged members of the military, those in US service academies, and family of any of the above (including current wives, widows, widowers, un-remarried former spouses, and children of a USAA member).

Generally, you qualify for military car insurance discounts if you:

  • Are an active, retired, or honorably discharged member of the Air Force, Army, Navy, Coast Guard, or National Guard
  • Are direct family (a spouse or child) of an active, retired, or honorably discharged member of the Air Force, Army, Navy, Coast Guard, or National Guard
  • Live at the same address or share an auto insurance policy with any of the above

Military car insurance discounts vary between companies, and some companies have different qualification requirements.

Other Car Insurance Discounts for Active-Duty Military

As an active-duty member of the military, you qualify for all ordinary car insurance discounts available through other providers, including:

Whether you’re a member of the military or not, you can save hundreds per year on car insurance by taking advantage of these discounts.

Final Word on Active-Duty Military Car Insurance Discounts

Active-duty military personnel can access special discounts on auto insurance. By working with the right companies and taking advantage of military discounts, you could save 10 to 20% per year on car insurance.

Some companies also offer unique advantages to military personnel and their families, including discounts for parking a vehicle on-base, discounts when deployed overseas, and discounts for spouses and family.

To learn more about the best car insurance for active-duty military personnel, compare quotes online today.

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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