Military Auto Insurance Discounts

Military auto insurance discounts for men and women serving in the Armed Forces are available with virtually every company. The key to finding the best offer is asking the right questions, careful research and planning.

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Military personnel have very specific needs when it comes to automobile insurance and it is extremely important that they select the right company. Those who are in active duty deal with enormous challenges that the average car insurance shopper could never imagine. In fact, joining into military service in itself comes with a lot of challenges and background checks.

For example, the lifestyle is sometimes unstable, because of deployment possibilities. Anyone who faces the potential of leaving their residence and traveling overseas for months or years really needs a stable company to work with.

Even if the deployment is on a national level, as with a natural disaster or state emergency, the amount of time they have to prepare is minimal.

According to the United States Department of Transportation, most local incidents that require the assistance of military personnel occur quickly and without warning.

This means they must coordinate with their leaders for specific orders where to go and what to do once they arrive. They must also notify their family members. That does not leave much time to contact anyone else, especially a car insurance provider.

They may not be able to make sure they pay their premium on time or secure their vehicle in a safe place. These types of issues can affect a car insurance policy in a negative way.

For these reasons, it is essential that they use a carrier that has a clear understanding of the process. They should include a deployment waiver in your policy. A traditional car insurance company that simply offers military discounts may not have this kind of foresight.

Confirm Your Eligibility for Active Duty Status

As an active person in the armed forces, you should first confirm your eligibility to receive a premium discount for your auto insurance. Since each state regulates their car insurance rates differently, you may qualify for larger or smaller reductions than others do.

While many states may not implement mandatory deductions, some states, like Louisiana have explicit laws that apply to military employees. For example in 2005, they passed Regulation 81, which states that any active military staff member must receive a discount on the liability portion of their car insurance policy.

The mandate specifically lists the discounted amount as 25%. If you qualify, you will need to keep this amount in mind to ensure that the company you choose complies with this law.

As an added advantage, the discount applies to anyone you list on your policy too. This means your spouse and children of driving age will also receive the benefit.

To start the process, you must complete a legal military discount form that accompanies the standard automobile insurance application. The military discount form represents your proof of eligibility.

The car insurance provider you choose retains a copy and they forward the original to your branch of military service. If you are in the Army it goes there, the Navy, Marines or other levels receive the same documents.

All eligibility is contingent upon your branch of service confirming your active status. Once the car insurance company receives verification, they apply the discount to your premium rate.

You should check with your state to discover if they also have similar laws, like in Louisiana. If they do, you will not have the concerns about getting the best discount.

If your state does not have laws pertaining to military discounts, you will need to shop around and compare price points.

Some auto insurance companies brag about a 10% or 15% discount for military personnel. Considering the amount that Louisiana residents receive, this seems very low. However, it is important that you focus on the rate you receive before the discount.

You may find that these companies actually offer lower rates. When you apply the 10% or 15% discount, the prices may even out. Just remember to have the proper identification handy so they can confirm your status quickly.

Retired Military Veteran Rate Reductions or Discounts

Unfortunately, many car insurance companies place their focus on those in active duty status and it may be challenging for veterans or retirees to receive the same benefits. However, certain auto insurance providers like Geico and USAA definitely recognize past efforts and reward accordingly.

In fact, if you review Geico’s website, you will see the discount they offer to veterans and retirees included with their other discounts. USAA does not list specifics, but when you contact an agent, they can provide you with all of the details.

If you need more information regarding your qualifications as a veteran or retiree from the armed forces, try a resource called the Veterans of Foreign Wars. This website allows members to review all types of options to take advantage of, including automobile insurance.

Non-Active or Veteran Military Discounts

Even if you never served in the military, you may still qualify for a discount if you are associated with a number of organizations. For instance, people who belong to the Pentagon Federal Credit Union can certainly apply for reductions in their car insurance rates.

Do not let the name of this organization confuse you. This financial institution provides services to a number of employees who do not serve in the armed forces. If you work in the Department of Homeland Security as an administrative assistant, you could qualify. The same is true if you work directly for any federal employer, like the Postal Service.

You just need to ask your Human Resources staff if your company has an affiliation with this financial institution and they can give you all the information you need. You could easily save money every year, simply by making an inquiry.

Choose an Agent or a Direct Provider

Once you know where you stand as far as eligibility, the next logical choice is to decide whether you want to work closely with an agent or with a direct provider to write your policy. Since you already know the type of discount you can receive, your concerns should shift towards convenience.

Depending on your branch of service, you may need to move quite often. Not because of deployment possibilities, but because many service people receive transfers to different parts of the nation. This is especially true if you reside in a large military base.

Working with an agent is a great way to build a relationship with your car insurance provider. They get to learn about your wants and needs and can even suggest specific levels of coverage suited just for you. On the other hand, when you pack up and move away, you will need to end your relationship and start all over again with someone new.

This can be damaging if your paperwork does not transfer as smoothly through your agent. Remember, working with an agent means commission for them and once you leave, they no longer capitalize on your payments. Although your established relationship was beneficial while your policy was active, once you leave, things may change quickly. You may even suffer a lapse in coverage and this is never good.

Working with a direct car insurance provider eliminates the go-between of dealing with an agent.

The coverage you receive remains with you, since most are national. When you receive transfer orders, you can simply make one phone call and provide your car insurance company with the new address. There is no lapse in coverage since it is just an address change.

If you are not a traditional service-type employee, your concerns may not revolve around moving. You may just want to make sure your company is trustworthy and reliable.

Investigate their Background

Regardless of your employment status, the bottom line is you need a car insurance company that handles their business responsibly. You never want to worry about their standards changing. This means you need a solid company with exceptional services. Do not place all of your focus on your discount savings; make sure they have a simple claims process and a well-trained customer service team.

Review their statistics on consumer advocate sites, like Consumer Watchdog and see if they have any newsworthy complaints. Go to a few ratings sites including J.D. Power and Associates to see how they rank among their competition.

Finally, ask your co-worker’s about their experience with the car insurance company they have. If they use the same provider, this will give you great insight. If they do not, find out whom they use and ask in depth questions. This should not sway your decision, but you should leave the conversation with their perception of quality service.

Consider Their Financial History

When an accident occurs, whether you are deployed or at home, you need to make sure the auto insurance company you select can pay the claim. One of the top financial assessment companies you can use to determine their status is Moody’s.

They have been in business a long time and have inside knowledge of the car insurance industry. They can provide you with gains and losses on a quarterly or annual basis. Look for trends within the past few years. This will help you see where they struggle in meeting their obligations. If you notice a pattern of consecutive financial failures, you might think twice about this company.

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