Car Insurance and Discounts for Veterans

Several auto insurance companies offer discounts for members of the military community, including veterans. However, eligibility can be a bit confusing. Some providers, such as Direct Auto, only provide a discount to active duty military. Others, like GEICO, offer a discount to active-duty and retired military members. Note that not all veterans are considered retired — to reach retired status, typically you must serve at least 20 years, or be unfit for duty due to a service-related disability. Be sure to check eligibility requirements before applying.

It’s also worth noting upfront that USAA is one of the best auto insurance options for veterans as it specifically serves the military community. As such, it doesn’t offer military-specific discounts, but it has very competitive rates even without discounts as well as other resources and support for veterans and military personnel. For example, the average cost of full coverage insurance from USAA is $1,407 annually, compared to the national average of $2,399 annually.

Apart from USAA, the following auto insurance providers offer discounts that veterans can take advantage of:

While no state mandates auto insurance discounts for veterans specifically, two states, Louisiana and Montana, have regulations around military insurance discounts.

Louisiana

Louisiana law requires auto insurance companies to provide a discount of 25 percent on liability policies to active-duty military members. As of January 1, 2025, the law was updated to include tax incentives for auto insurers that offer the discount to veterans with at least a 50 percent disability rating.¹

Because it’s a tax incentive, the veterans discount is technically optional, and some insurers may choose not to offer it. It’s worth calling your insurer to ask if you’re eligible for the discount. You may need your Louisiana Department of Veterans Affairs (LDVA) benefits letter as proof of your veteran status.

Montana

Members of the Montana National Guard who are insuring a nonmilitary vehicle and have completed an approved defensive driving course are entitled to an auto insurance discount. The law does not specify veteran eligibility, so it’s best to confirm with your preferred insurer.

If you suspended your auto insurance coverage or used a long-term storage or deployment discount while you were serving, be sure to contact your insurer to reactivate your policy when you return, and don’t drive until you do so. Driving without auto insurance is illegal in almost every state (New Hampshire being the exception, though you must still adhere to financial responsibility requirements) and you could be fined if caught.

If you canceled your auto insurance while deployed, which is not recommended, you may have a harder time finding affordable coverage as you’ll have a lapse. If you are finding your quoted rates to be high, even with applicable discounts, it’s worth checking out high-risk auto insurers. USAA covers high-risk military drivers and may still be a good choice.

In general, veteran benefits, including discounts and USAA membership, may be available to service members who are retired or have separated from the military under an honorable or general discharge. Veterans who received a dishonorable discharge are generally not eligible for benefits.

To get a veteran discount added to your insurance policy or inquire about eligibility, contact an agent to learn more about the process, as each company is different. You will be required to provide proof of your veteran status, which may include:

• VA Benefit Summary Letter
• DD Form 214
• Valid state-issued ID showing a veteran designation.

While not many insurers offer military discounts, veterans can also take advantage of standard auto discounts — all providers offer at least a few. Here are some of the best and most common:

• Bundling: Most providers offer a significant discount for purchasing more than one type of policy with them, like homeowners or renters insurance.
• Multi-vehicle: You can usually lower your auto insurance premium when you insure two or more vehicles in the household on the same policy.
• Usage-based telematics programs: Many insurers offer telematics programs, which use a device in your car and/or an app to track your driving habits and provide a discount if you drive safely. Some programs may also lower your rates if you drive less than average, which can be a great option if you’re retired.
• Good driver: You may be eligible for a discount if your record is accident- and violation-free for a certain number of years.
• Safety/anti-theft equipment: Get a discount if your car has certain features installed, like daytime running lights, airbags, or a passive anti-theft system.

While discounts are an easy way to save money on auto insurance premiums, there are several other ways for veterans to keep their rates as low as possible:

• Shop around: Always get a quote from at least three different providers to compare rates. No company is the cheapest across the board, so you may get the best rates from a provider you didn’t necessarily expect. Also be sure to get quotes for the same coverage types and limits to ensure you’re comparing apples to apples.
• Maintain a clean driving record: Your driving record is one of the most important factors insurers use to determine your premiums, and a clean record will keep your rates as low as possible. Drive safely — don’t speed, don’t drink and drive, etc. and you’ll avoid steep rate increases.
• Lower your coverage: If you have an older car with low value, it may not be worth paying for full coverage, especially comprehensive and collision coverage. If you currently have these on your policy, evaluate whether you may be able to drop them. It’s generally recommended to drop full coverage if your vehicle is worth less than 10 times the annual cost of your coverage.
• Maintain good credit: Having a strong credit record can be important in the military, particularly when it comes to getting security clearances, and it’s also crucial for keeping auto insurance rates low. In most states — excluding California, Hawaii, Massachusetts, and Michigan — insurers can use your credit history to determine your rates. Having poor credit can lead to significantly higher rates.

Veterans need auto insurance like everyone else, and fortunately, there are several military discounts and programs available to support those who have left military service and help keep costs as low as possible. USAA is generally regarded as the best insurance provider for the military community, including veterans, and usually offers the best rates.

However, always get several quotes, as a different insurer may be cheaper for you depending on your area and driver profile. It’s also important to keep in mind that USAA offers additional military-specific resources beyond what a normal insurer would, so membership could be worth it for you even if it costs a little more. In addition, only veterans with an honorable or general discharge are typically eligible for military and veteran benefits, and some benefits are only available to retired service members.