The Best Auto Insurance for Veterans 2025

USAA is the only insurer that specifically serves military members, veterans, and their families. Given its customer base, it doesn’t offer a veteran discount, but its baseline low rates tend to beat out competitors regardless. It also offers auto insurance discounts tailored specifically to the military community’s needs. If you are driving less in retirement, you can sign up for USAA’s pay-per-mile coverage. The less you drive, the more you’ll save.

USAA covers not only veterans, but also their spouses, children, and stepchildren. This means that you can pass your USAA membership on even if your children don’t follow in your footsteps and serve. They can also save up to 10 percent with a legacy discount. As long as they’re under 25 and have no major driving violations within the past few years, they are eligible. Your children can even pass membership on to your grandchildren.

In addition, USAA provides access to a wide variety of services beyond insurance, including bank accounts, credit cards, investment accounts, and retirement accounts. Additionally, you’ll have access to personalized financial advice, financial readiness tools, and other resources that can help veterans and their families manage their money.

Though Farmers’ rates are on the higher side compared to the other companies on our list, the company has a special military affinity discount that’s available to veterans, as well as numerous other savings opportunities. These include a bundling discount, a mature defensive driver discount, a homeowner discount, and its Signal telematics program.

Many veterans become entrepreneurs when they return to civilian life. Veterans own over 1.6 million businesses, employing over 3 million workers, and representing 5.5 percent of business owners in the U.S.²

Farmers offers the following commercial coverage and incentives for business owners:

• Auto and small business insurance bundling discount
• Specialized auto insurance for contractors
• Auto insurance for food truck drivers
• Several commercial auto insurance policy types
• Non-owner insurance if you need your employees to drive your vehicle

If you’re on a budget and are looking to get additional support as a retired or active military member, GEICO is a great option. It offers affordable rates, a special 15 percent discount for active and retired service members, and it’s available nationwide.

GEICO also offers a discount for members of over 500 professional associations and organizations, including the Association of the United States Army (AUSA), Armed Forces Benefit Association (AFBA), and the Navy League of the United States (NLUS)

In addition to car insurance discounts, you might be eligible for some of GEICO’s military perks and resources. GEICO’s Military Center is staffed with U.S. veterans and has been providing military auto insurance for over 85 years. Its program has a dedicated support team that caters to military members and veterans to help answer questions, develop discount programs, and more.

On top of that, you can get info on deployment, overseas insurance, and military pay charts through GEICO’s brochures and online military resources.

Liberty Mutual’s rates may be higher than average, but if you’re a retired military veteran, you can save up to 10 to 12 percent on your premium with Liberty Mutual through the company’s Military Connect program. The company’s military discount applies to active, retired, and reserve members of the U.S. Armed Forces.

In addition, Liberty Mutual offers discounts to members of numerous affinity organizations, including the Military Benefit Association (MBA), American Legion Auxiliary, and the Navy Federal Credit Union.

Liberty Mutual offers coverage options you won’t find everywhere, such as:

• Deductible fund: You can opt in to pay an extra premium on your collision insurance to reduce your deductible by $100 per year.
• Lifetime repair guarantee: Liberty Mutual makes repair arrangements on your behalf, and guarantees the repairs for as long as you own the vehicle.
• New-car replacement: If your car is totaled in the first year (and within the first 15,000 miles), Liberty Mutual will pay for the cost of a replacement vehicle.
• Better-car replacement: If your car is totaled, Liberty Mutual will pay to replace it with a vehicle that is one model year newer with 15,000 fewer miles.
• Teacher car insurance: This perk provides extra coverage for vandalism, collisions, stolen supplies, and more.

While Erie doesn’t offer a veteran discount, its baseline low rates make it the cheapest provider on our list after USAA. It’s only available in 12 states and Washington, D.C., but it has consistently high customer satisfaction ratings, making it a great option for those in states where it’s available. It’s worth looking into Erie if you don’t qualify for or don’t wish to pursue USAA membership or veteran-specific discounts from other providers.

Erie offers a unique option called Rate Lock, which allows policyholders to lock in their auto insurance rates and avoid unpredictable renewal increases. There are some caveats, including that Rate Lock is limited to three years in Virginia and is not available in all states.

In addition, Erie ranked first for customer satisfaction in the North Central region and second in the Mid-Atlantic region in J.D. Power’s 2025 Auto Insurance Study³ among many major insurers, indicating that customers are pleased with the level of service and claims management they receive from the company. Erie also ranked sixth in the CRASH Network’s 2025 Report Card, which surveys repair shops on how well a provider’s practices ensure quality repairs for customers.⁴