Does the military pay for car insurance? This question is about Best Military Car Insurance

Does the military pay for car insurance?

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This question is about Best Military Car Insurance

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@WalletHub • 12/21/20 This answer was first published on 12/21/20. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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No, the military does not pay for car insurance. Military personnel are required to purchase their own car insurance coverage, though most major auto insurance companies offer discounts and special services for military service members, making it easy to find affordable and flexible coverage.

Members of the military are still required to purchase enough car insurance coverage to fulfill their state’s car insurance requirements. If you will be storing your car during deployment, you can temporarily cancel your coverage as long as you turn in your license plates or file an affidavit of non-use. However, you will be financially responsible for anything that happens to the car while you’re gone, and insurance companies might question the lapse in coverage in the future. Instead, many insurers allow you to purchase comprehensive-only coverage when your car is in storage during deployment.

For more details, check out WalletHub’s guide to military car insurance.

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Why is USAA so cheap?

USAA is so cheap because the company is the largest insurer of the military community, and that volume allows USAA to offer more competitive rates. USAA has more than 6% of the total private-passenger insurance market, despite only offering coverage to service members. A minimum coverage policy from USAA costs an average of $53 per month, and USAA premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and annual mileage discount. Plus, USAA rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.... read full answer

Average Monthly Rates for USAA vs. Top Competitors

Company	Minimum Coverage	Full Coverage
USAA	$53	$167
State Farm	$77	$218
Progressive	$54	$168

Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.

USAA is especially cheap for young drivers in particular. That’s because USAA has special savings opportunities for drivers in this category, such as discounts for students who maintain at least a B average.

Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though USAA is among the cheapest car insurance companies, the only way to confirm you’ve found the lowest price is to compare quotes from multiple companies.

To learn more, check out WalletHub’s review of USAA and see USAA’s full profile.

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Who is eligible for USAA?

Individuals eligible for USAA membership include active, retired, and honorably separated members of the U.S. military; cadets and midshipmen at U.S. service academies; and their eligible family members. Children (including step-children), spouses, widows/widowers, and former spouses who have not remarried are all considered eligible. For children to be eligible, the parent must join USAA while living.... read full answer

Once someone becomes a USAA member, eligibility then extends to their family members (even if those family members aren’t in the military). For instance, if the child of someone who was a USAA member also joins USAA, that person’s spouse and kids are then eligible for membership as well. It can continue passing down that way. Eligibility does not extend to siblings or parents.

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