The Best Auto Insurance for Veterans 2025

In 1922, 25 Army officers came together to insure one another’s vehicles, thus creating USAA. In the century since then, the organization has grown into one of the top auto insurance providers and the only one that serves military members, veterans, and their families specifically.

USAA has a lot to offer its customers, including the lowest rates on the market and a wide range of financial services to choose from. In addition to auto insurance, USAA offers home, health, life, and small business insurance. It’s our top auto insurance pick for veterans.

Cheap Insurance for Veterans and Military

USAA has the lowest annual average insurance rate by several hundred dollars. It’s less expensive than our next-cheapest top pick, Erie, by nearly $250. Not only that, but the company offers a variety of auto insurance discounts for having a clean driving record, maintaining good grades, garaging your car on a military installation, and more. According to USAA’s website, the average member saves $725 on their annual premium when switching to USAA for auto insurance based on data collected from new customers who saved by switching to USAA between July 2021 and June 2023.²

Because USAA caters specifically to military members, veterans, and their families, it doesn’t actually offer a veteran discount. However, its baseline low rates tend to beat out competitors regardless. It also offers other discounts tailored specifically to the military community’s needs, for example:

• If you or someone on your policy is out of state on military duty, they can keep their car in storage and earn up to 60 percent off their car insurance policy.
• USAA offers a 15 percent discount when you or someone on your policy garages their vehicle on a military installation. (Discount applies to comprehensive coverage only.)
• 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.

Coverage for Children and Grandchildren

If your children have become adults and are starting to pay for their own auto insurance policies, then they can benefit from your USAA policy, even if they don’t follow in your footsteps and serve. USAA covers not only veterans, but also their spouses, children, and stepchildren. You can pass your USAA membership on, and your children or stepchildren can 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.

Many Financial Services and Perks

USAA is a great option for those who want all of their financial services in one place. When you become a USAA member, you have access to a wide variety of services, including insurance, 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.

To take advantage of these financial services, including USAA’s car insurance coverage, you’ll need to become a member. The good news is that becoming a member is easy and free. As long as you’re a military member, veteran, pre-commissioned officer, or a family member, you can sign up for membership online.

Not only do you and your family get access to all USAA’s financial services, but you can also take advantage of USAA’s military benefits. Here are some of the more notable USAA membership perks:

• 24/7 membership support for insurance, deployment questions, and transition to life abroad or back to the U.S.
• Multiple vehicle bundling
• Banking advice to help with your auto insurance, loans, and other financial needs
• Expert advice for managing debt, investing, saving, and planning for events like retirement or buying a new home
• ADT home security discount
• Discounts for shopping, hotels, cruises, vacation tours, and travel insurance

Though Farmers rates are on the higher side compared to the other companies on our list, the company has a special discount for veterans, as well as a nice bundling discount for purchasing another type of insurance policy along with auto, like home or life. If you’re a veteran who owns their home, Farmers is a good option for homeowners insurance in particular, earning an above average score from J.D. Power for property claims satisfaction.³

Long List of Discounts

Farmers has a nice bundling discount, as well as numerous other savings opportunities for veterans, including its military affinity discount and mature driver discount.

Whether you’re a homeowner, parent or grandparent of a teen, or safe driver, Farmers will likely have a saving opportunity for you. Here are a few notable Farmers discounts:

• Affinity military discount: This discount is available to active duty members, retired military, active reserves, and honorably discharged military veterans.
• ePolicy: You can earn a discount for opting for paperless billing.
• Bundling: Bundle auto with other Farmers policies, like home or life insurance, and you can earn a discount.
• Mature defensive driver discount: If you’re over age 55 and complete a state-approved safe driver program within three years, you could earn a discount.
• Homeowner discount: You can earn this discount just by being a homeowner, regardless of which provider insures your home.
• Signal discount: Farmers’ usage-based insurance program, Signal, will track your driving and calculate your premium by how well you drive.
• Good student discount: Students who have a 3.0 GPA, who are on the dean’s list or honor roll, who have test scores in the 80th percentile, or who have grades in the top 20 percent of their class may be eligible for this discount.

Speak to your Farmers agent about other discounts you might qualify for.

Offerings for Business Owners

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.⁴

Farmers offers the following 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-owners insurance if you need your employees to drive your vehicle

There are a lot of good reasons to choose GEICO if you’re a veteran. It offers affordable rates and resources you won’t find from most other providers, and it’s available nationwide. 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.

Military Resources and Perks

In addition to discounts, you might be eligible for some of GEICO’s military perks and resources. GEICO’s Military Center is staffed with U.S. veterans from all services 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, custom military insurance and ID cards, a fast and convenient military pay plan, 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.

Designed With Veterans in Mind

GEICO’s rates are some of the lowest in the country. It’s the cheapest provider on our list after USAA and Erie, whose availability is limited by membership and geography, respectively.

One of the reasons GEICO’s rates are low is its long list of discounts. Here are some of its most appealing discounts for retired and active military members:

• 15 percent off for active duty or retired members of the Military, or members of the National Guard or Reserves
• Up to 12 percent off for all active or retired federal employees (Eagle Discount)
• Up to 25 percent off for military members who are part of an emergency deployment
• Additional discounts 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)

Availability in Europe

If someone in your household follows in your footsteps, GEICO offers coverage benefits for active-duty military members as well. They have the option to extend coverage if they are deployed or stationed overseas.

With GEICO, rest assured that you and those on your policy have the option to keep your insurance even if you’re being sent on emergency deployment. Military members have access to GEICO GmbH, a GEICO affiliate that can assist you with finding a car, motorcycle, and personal property when you’re deployed or stationed in Europe.

Liberty Mutual’s rates may be higher than average, but retired military members can save with a special discount. The company offers customizable coverage through a variety of add-on options and also provides perks for teachers.

Savings and Resources for Veterans

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 reserved 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.

Many Coverage Options

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.

Rate Lock Option

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. It also doesn’t protect against rate changes if you update your policy, such as adding a driver, adjusting coverage, or moving. However, your rate will be updated to reflect only the changes you’ve made and will not increase beyond that.

Excellent Customer Service

Erie ranked first for customer satisfaction in the Mid-Atlantic and North Central regions in J.D. Power’s 2024 Auto Insurance Study⁵ among many major insurers, indicating that customers are pleased with the level of service and claims management they receive from the company. It’s worth noting that while USAA is not officially ranked in the study because it doesn’t meet eligibility criteria, likely due to its membership restrictions, it received higher scores than Erie.

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.⁶ In this case, Erie significantly outperformed USAA, which ranked 85th.

Vehicle Storage Discount

Erie offers a reduced usage discount to drivers who store their vehicles for 90 days or more. This may be especially useful for households with deployed military drivers who will need to store their car(s) for long periods of time. This discount is available in all states except Kentucky.