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 $1,533 annually, compared to the national average of $2,356 annually.

Which Insurers Offer the Best Veteran Discounts?

Liberty Mutual offers one of the highest potential discounts for veterans among providers, at up to 35 percent — followed by GEICO and Clearcover, which give discounts of up to 15 percent to veterans. Keep in mind that discounts can vary by state and car insurance rates also depend on other factors, like driving history and zip code, so the company with the highest discount may not offer the most affordable premiums.

The following auto insurance providers offer competitive pricing and discounts that veterans can take advantage of:

Veteran discount eligibility varies by insurer, but generally, you can expect to qualify for a military or veteran discount if any of the following apply to you:

• You’re an active duty or reservist service member: Members of the U.S. Army, Air Force, Marine Corps, Coast Guard, Space Force, and National Guard are eligible for a military auto insurance discount in most cases.
• You’re an honorably discharged veteran or retired military member: If you’re a veteran or retired military member who was honorably discharged, you’re eligible for a military discount.
• You’re a family member of an eligible service member: Some insurance companies offer military and veterans discounts to immediate family members, including spouses, parents, and children.

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 quoted rates seem 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.

The application process for a military or veteran auto insurance discount can vary slightly by provider, but generally it involves verifying your eligibility, providing your proof of service, and contacting your insurer to confirm next steps. We’ve outlined these steps in more detail below. 

1. Verify Eligibility

First, determine if you’re eligible for a military and veterans auto insurance discount. We’ve broken this down in more detail in the section above, but typically those who are active military members, veterans, or those who were honorably discharged are eligible for military auto insurance discounts, along with their immediate families. 

Eligibility can vary by case and provider, so it’s worth contacting your provider directly if you’re feeling unsure. 

2. Provide Proof of Service

As part of your discount application process, you’ll 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.

3. Contact Your Insurer

Once you’ve assembled your proof of service documents, you’ll need to contact your provider directly to inquire about eligibility. This can be done over the phone or by talking directly with an agent. In many cases, you’ll also be able to apply for your military and veterans discount with your policy quote. 

Here’s how you can get in touch with the major insurers offering military and veteran discounts to inquire about discount eligibility.

Depending on your provider and documentation, your discount may be approved and applied in as little as one business day. This time frame can vary by provider.

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.