Car Insurance for Military Personnel

Think you have problems with your insurance?

Military personnel have unique considerations when buying car insurance. It’s possible that a military person could live in Arizona and have their vehicle titled and registered in Arizona. Yet, they are assigned to live and serve in a faraway location, such as Virginia.

Should this person insure their vehicle in Virginia or Arizona? What about those in the military that are shipped overseas? Usually, a person will keep their vehicle insured, titled and registered in their primary home state. Military personnel are given special considerations when they are transferred.

If a military person is shipped overseas they may be required to continue full coverage if a loan on the vehicle exists. That means they will be paying for insurance on something they will not have access to. It is estimated that over 10% of the military serve overseas with the bulk of our servicemen and servicewomen stationed in Germany and Japan.

It is not entirely out of the question for a military person to have their vehicle shipped overseas. If you knew you were headed somewhere for years it is an option to consider.

But for many, storing the vehicle in a garage or storage facility becomes a real possibility. Be sure to ask if your carrier offers any sort of storage discount.

If your vehicle is older and does not have a loan against it, consider dropping coverage to the bare minimum, except for comprehensive coverage, which covers against theft and vandalism.

Why not just put the vehicle in storage and simply buy new insurance when you return? If the vehicle has no loan against it that is a consideration. But when you return your premiums will be higher because you cannot prove current prior insurance. You need to balance the costs out to make that decision.

One advantage for military personnel – if you are ticketed on base it is believed that those are not reported to a motor vehicle department and would not count against your driving record.

Electronic Proof of Insurance

Currently there are only a handful of states that allow you to show your proof of insurance electronically. This includes Arizona, Alabama, California, Idaho, Louisiana and Minnesota. 20 other states are considering similar legislation.

One word of caution: If you loan your vehicle to another driver be sure they have electronic copy of your insurance or a hard copy in the glove box. You may have electronic proof of insurance but no guarantee that your friends do.

Electronic Proof of Insurance may vary from state to state. Do not assume all states have the same requirement or rules if you travel.

While we understand this generation loves their data phones it still is a good idea to continue storing your paper version in your vehicle somewhere for ready access if needed.