Insurance Options Specifically Designed for Veterans

Many veterans leaving active duty military service face financial uncertainty and other related challenges. Thankfully, there are many opportunities for veterans that can help them take charge of their finances. One option that we highly recommend is to take advantage of great options on home, car, and life insurance that many companies provide for those who are or were in the military.

Car Insurance for Veterans

Those who currently serve or previously served in the military can benefit from lower priced insurance programs made especially for them. It is important to keep in mind that the car insurance coverage received, as well as its price, will vary widely depending on the individual’s history, the chosen insurance company, and the desired type of coverage.

When looking for car insurance, make a list of how much the desired insurance should cover. Some companies provide special offerings only to individuals who served in the military, while others serve the entire family of military personnel. We have found that some of the preferred car insurance companies that serve veterans include:

Geico

GEICO is short for the Government Employees Insurance Company, which means that it provides preferred insurance coverage to government employees, including military personnel and their families[2]. Indeed GEICO is known for being especially friendly to veterans. This is because the company frequently employs ex-military staff, who empathize with clients who are veterans or active duty military.

Active and discharged members of the Fleet Reserve Association, National Infantry Association, or the Association of the U.S. Army can qualify for this insurance, and may encounter up to 15% off on car insurance through this company.

GEICO also provides up to 25% off to members of the Navy League of the United States, Armed Forces Benefits Association, American Society of Military Controllers, and the National Federal Credit Union who are deployed to danger zones or in response to emergencies.

Several other alternatives that GEICO includes in its policies can also help its clients not spend unnecessary money. Some examples of insurance premiums that members can take advantage of are reduced fees for having safety features in their vehicles, being a good driver, bundling policies, taking defensive driving courses, and insuring multiple cars.

Insurance rates at GEICO average annually at $1063 for medium-tier policies, but can depend on a number of factors, such as credit score, accident history, gender, and age. For example, 25 year old single females may pay up to $1160, while drivers with one accident can pay a premium of $1690.

USAA

Another great insurance company that specializes in services and products that are exclusive to active duty and retired military personnel is the USAA. [1] The price is also excellent, and much better than what other companies can give veterans and active military. USAA is also famous for getting consistently high ratings in customer service.

Beneficiaries who are actively deployed may receive up to 60 percent off car insurance. USAA may also give up to 15% off on comprehensive coverage for cars and trucks garaged on military bases as well as collision coverage.

Additional savings exist for safe driving, multiple vehicle coverage, and longterm membership with the company. Accident forgiveness coverage also extends to drivers who do not get involved in any accident or other fault in five years.

The rates for USAA car insurance vary depending on multiple factors, but the average annual rate is around $895 for a medium-tier car insurance policy. Again, these rates vary depending on a multitude of factors, such as location, age, gender, credit score, and more. For instance, a driver who has been in one accident may pay $1200 as compared to a single 25 year old woman, who might pay up to $1039. Individuals with poor credit are likely to have even more expensive car insurance, as high as $1826.

The Armed Forces Insurance

The Armed Forces Insurance (AFI) is another car insurance company that exclusively serves active military personnel and veterans[3]. Catering to active duty service members, veterans, cadets, and OTS candidates, as well as active and retired department of defense employees and current and former commissioned officers and the family members of military personnel including former spouses, AFI is very much similar to USAA in terms of its exclusivity to active service members. However, while USAA has an A++ credit rating, AFI has a B++ credit rating.

Life Insurance Special Plans

Several of these companies also provide life insurance plans for veterans and disabled veterans. Most companies provide a type of insurance which is called term life insurance, meaning that account holders are covered for a specific period. If they happen to die within the period, their beneficiaries will receive due death benefits. Term insurance policies for veterans are considerably more affordable than whole life insurance for young veterans. However, they become expensive as people get older.

Home Insurance Special Plans

Veteran homeowners looking to purchase their homes can benefit greatly from home insurance for veterans. The amazing part is that various homeowners’ insurance companies provide diverse policy benefits and great plans for military service members. Those still on active duty should understand that homeowners’ insurance policies exclude some portions once deployed. However, they should choose the right insurer or include an endorsement to their policy to maintain their cover while deployed.

The Bottom Line

Insurance companies understand the special circumstances that military personnel and veterans face, such as overseas deployment. As such, active members of the military and veterans should compare various insurance solutions and take advantage of the special plans offered by these companies. Finding the right insurance for veterans significantly depends on where people live and their driving record[4]. Be on the lookout for the right deals by getting quotes from various companies and comparing rates before deciding on an insurance policy that suits the appropriate needs.

[1] Keuren, Mary Van. “USAA Insurance: Car, Home & Renters.” Bankrate. Bankrate.com, May 29, 2020. https://www.bankrate.com/insurance/companies/usaa/.

[2] Marzullo, Dan. “Geico Insurance Company.” Bankrate. Bankrate.com, May 27, 2020. https://www.bankrate.com/insurace/companies/geico/.

[3] Hunt, Janet. “AFI: Insurance Coverage for Members of the Armed Forces.” The Balance. Accessed July 9, 2020. https://www.thebalance.com/review-of-the-armed-forces-insurance-company-4160917.

[4] “Top 5 Tips for Looking for Car Insurance for Veterans.” Veterans Auto Insurance, March 23, 2012. https://www.veteransautoinsurance.com/top-5-tips-for-looking-for-car-insurance-for-veterans/.