When you’re serving in the military, life can take you to unexpected places. One of those places might be overseas, away from your car. You might wonder what to do with your car insurance during this time. It’s a common question for service members. Some people think you have to keep paying for full coverage, but that’s not always the case.
Understanding your options can save you money. It also helps you avoid trouble with state laws. This guide will walk you through how to manage your car insurance when you’re deployed.
What is Military Deployment Insurance?
Military deployment insurance isn’t a separate policy. It’s about how you adjust your existing car insurance while you’re away on duty. When you’re deployed, especially overseas, your car likely won’t be driven. You might be able to pause or change your coverage to fit this situation. This can lead to significant savings.
If I were deployed, my first move would be to contact my insurance provider to discuss storage options. This ensures I’m not paying for coverage I don’t need while protecting my vehicle.
Why Adjusting Coverage Matters for Service Members
When you’re deployed, your car is likely sitting idle. Paying for full coverage, which includes comprehensive and collision, might not be necessary. Collision coverage protects you if you hit another car or object. Comprehensive coverage protects against theft, vandalism, and natural disasters. If your car is safely stored, the risk of these events happening is much lower.
Many insurers recognize this. They offer discounts or allow you to reduce your coverage. For instance, USAA and GEICO provide storage discounts. These can significantly lower your premium. One study showed USAA’s average full coverage rate was around $1,533 to $1,584 per year. This is much lower than the national average of $2,124 to $2,697.
If I were in this situation, I’d want to keep comprehensive coverage. This protects against theft or damage while the car is stored. Suspending liability and collision coverage can cut costs dramatically.
Common Misunderstandings About Deployment Insurance
Assuming You Must Cancel All Coverage
A frequent mistake is thinking you have to cancel your insurance entirely. This is rarely the best option. Most states require registered vehicles to have at least some insurance. This could be liability coverage. If your state’s motor vehicle department finds out your insurance is cancelled, they might suspend your registration or issue fines.
Not Checking for Storage Discounts
Many service members overlook potential savings. Insurers like GEICO offer current and former military members up to 15% off. Both USAA and GEICO also offer storage discounts. These are specifically for deployed members. Not asking about these discounts means leaving money on the table.
Ignoring Lender Requirements
If your car is financed or leased, your loan agreement likely mandates insurance. Cancelling all coverage can violate this agreement. Your lender could then buy force-placed insurance. This is usually much more expensive than standard policies and offers limited protection. It’s crucial to understand your loan terms before making any changes.
In that case, I’d want to review my loan documents first. This would clarify the minimum insurance requirements before I contacted my insurer.
Believing Stored Cars Are Risk-Free
While the risk of a collision is low when a car is stored, other risks remain. Theft, vandalism, fire, or damage from falling objects are still possibilities. Comprehensive coverage helps protect against these issues. So, while you can often reduce coverage, completely eliminating it might leave you exposed to significant financial loss.
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Managing Your Car Insurance During Deployment
Contact Your Insurance Provider
Your first step should always be to call your insurance company. Explain your situation and ask about options for deployed service members. They can guide you through the specific policies and discounts available.
Choose Appropriate Coverage Levels
Based on your insurer’s advice and your car’s status, decide on the right coverage. For a car being stored, many find that keeping comprehensive coverage is wise. This protects against theft, vandalism, or damage from weather. Suspending liability and collision coverage can significantly reduce your premium. Active-duty customers can often suspend or reduce coverage during military duties, as noted by CNBC.
Consider a Dash Cam for Added Security
While your car is stored, you might still want some level of monitoring. A dash cam can provide peace of mind. Devices like the Garmin Dash Cam X310 offer 4K recording and parking guard features. This means it can record if it detects motion or impact while parked. This could be useful even if the car is in a secure location.
Review Your Policy Before Returning
Before you return from deployment, make sure to reinstate your full coverage. Contact your insurance provider well in advance. This ensures you have the necessary protection as soon as you resume driving. You don’t want to be caught without adequate insurance when you need it most.
Frequently Asked Questions
Can I cancel my car insurance while deployed? ▾
What is the best coverage for a stored car? ▾
What happens if I don’t insure a financed car during deployment? ▾
Do military members get car insurance discounts? ▾
Sources and Further Reading
Best cheap car insurance for veterans and military members — CNBC provides insights into military discounts and average rates.
How to Suspend Car Insurance During Deployment — The Military Wallet offers practical advice on managing insurance while deployed.
Best cheap car insurance for veterans and military members. CNBC, 2024.
How to Suspend Car Insurance During Deployment. The Military Wallet, 2024.
If this was useful, you might also want to read Car Insurance Price Hikes: Why Did My Premium Go Up? Understanding The Factors.
