Let’s take a closer look at military PCS car insurance matters, including how PCS moves impact your rates, when you should notify your carrier, PCS car registration insurance rules, how to avoid coverage gaps, and special considerations for OCONUS PCS moves.

How PCS Moves Affect Your Car Insurance Rates

Moving from one state to another means you might encounter a completely different set of laws, accident rates, traffic conditions, population densities, and weather patterns. These changes can affect what you pay for insurance. In fact, a PCS move can have a big impact on your insurance bill based on many different factors, including:

Garaging Location

Insurance companies will set rates depending on the particular ZIP code where your vehicle is parked overnight. Moving from a quiet, safer small town to a bustling metropolitan area or big military installation can spike premiums due to higher risks of accidents or theft. 

“When you move to a new state, your insurer re-rates your policy based on your new garaging location,” Andrew Lokenauth, a personal finance expert, told The Military Wallet (TMW) in an interview. “Consider that urban bases in areas like San Diego or Northern Virginia will carry higher rates because of population density and accident frequency, while rural bases in locations like Western Oklahoma or central Kansas tend to bring lower premiums.”

State Coverage Requirements

Every state has its own legal minimums for liability and personal injury protection coverage. Your rates will rise if the state of your new duty station has stricter minimum requirements than your last one.

• Discounts on-base: Because parking your auto in a secured military installation reduces the risk of theft and vandalism, some insurers provide particular “on-base” garaging discounts.
• Registration versus location: The Servicemembers Civil Relief Act (SCRA) may permit you to keep the vehicle registration from your home state. But many carriers still require you to pay the premium based on the physical location where your vehicle is driven.
• Usage changes: A PCS can alter your daily work commute. If your new residence is much further from or closer to your unit, your new rate will reflect the change in your estimated annual mileage.

Prepare yourself: You may end up paying more for car insurance after a PCS move.

“I’ve seen service members face rate increases of 20% to 40% from a single PCS move – with zero change in their driving record,” Lokenauth said.

When You Should Notify Your Insurance Company

The experts recommend notifying your carrier as soon as possible, but at least 30 days before your move date.

“Don’t wait until you are to have boots on the ground. Contact your insurer the minute you have your orders. This will give you plenty of time to change your address and ensure you are covered in the new state without gaps,” Bruce Shields, Air Force veteran and founder of ABS Tag & Title, told TMW.

Michael Kruse, an attorney who often represents drivers on car insurance issues related to registration and compliance, says he has seen military members complete an entire PCS without ever alerting their insurer because they assumed that the move alone would not affect their rate – a big mistake.

“You want to contact your insurer well before the move. This gives you a good chance of knowing what the new address will cost you before it comes as a surprise,” Kruse said in an interview.

When reaching out to your carrier, be sure to do the following:

• Update your garaging address, 
• Confirm your new state’s minimum coverage requirements, and
• Inquire whether your current policy will transfer smoothly or if it needs to be rewritten.

“Get coverage dates confirmed in writing so that there’s no dispute about lapse periods or denied claims,” said Lokenauth. “The worst scenario is a gap between when your old state policy ends and your new one starts, and that window can open fast if you’re not ahead of it.”

Vehicle Registration and Insurance Rules for Military Members

Fortunately, the SCRA provides military members with the right to keep their home state vehicle registration.

“This matters because your home state may carry much lower rates,” adds Lokenauth.

However, Taylor Szostak cautions that the SCRA doesn’t prevent an insurer from adjusting its price. While SCRA may help with domicile and registration issues, insurers generally still rate based on where the vehicle is primarily kept and state-specific rules still matter.

“The insurer will change its price according to the risk model,” Szostak, a certified Military Relocation Specialist, founder of SanDiegoMilitaryRE.com, and spouse of an active-duty military member, told The Military Wallet (TMW) in an interview.

Rami Sneineh, owner and licensed insurance producer at Insurance Navy Brokers, echoes those thoughts.

Szostak warns that the biggest mistake you can make here is having a coverage gap.

“Interrupting coverage, even for a short time, can cause you to be classified as a higher risk later,” said Szostak.

Remember, too, that rules can differ from state to state, and some states require carriers to use the garaging location for rating – regardless of your legal domicile. That’s why it’s smart to contact your installation’s legal assistance office before assuming SCRA protections apply to your case when it comes to insurance rates.

Avoiding Coverage Gaps During a PCS

To prevent gaps in auto insurance coverage during or after a PCS move, follow these recommended tips:

1. Confirm your current policy’s end date and your new policy’s start date.
2. Update your address with your carrier before the move, not after, to make sure your rates and coverage are accurate for your new location. (Don’t forget to shop around)
3. Confirm your new state’s minimum liability requirements so that your new policy aligns with these requirements on day one. “If your car will not be used at all, check that you have at least a bare minimum insurance coverage in place,” said Shields.
4. If you have a car loan, confirm with your lender that your new state’s policy still meets their specific coverage requirements.
5. Ask about “in-transit” coverage to learn if you need a temporary endorsement, in the event your car is being shipped by a third-party carrier.
6. Verify registration vs. garaging rules to guarantee that your coverage remains valid even if you maintain your vehicle registration in your home state.
7. Ask your carrier whether there are any waiting periods or if changing your address would trigger a reevaluation of your current rate.
8. Get everything confirmed in writing before you move so you have a paper trail.
9. Keep copies of your orders in all transactions as proof of your relocation for your insurance provider.

Special Considerations for OCONUS PCS Moves

Preparing to move outside of the Continental United States (OCONUS)? It’s important to be aware of related rights, laws, and restrictions. Your three biggest car insurance concerns are storage coverage, liability decisions, and vehicle shipping. That is why you must research OCONUS car insurance options.

“If you are leaving a vehicle behind in the United States, consider switching to a comprehensive-only storage policy instead of canceling coverage outright. That keeps your coverage history intact and protects against theft, fire, and weather damage,” said Lokenauth.

Be aware, however, of storage policy issues that can leave your vehicle unprotected.

“For example, your insurance policy may exclude damage caused by rodents or corrosion that builds upon long-term storage stateside,” said Kruse.

If you are shipping a vehicle overseas, verify that your personal auto policy covers transit. Many policies do not, which means you could need separate marine cargo insurance for the shipping portion.

“Shipping a car requires temporary maritime insurance, since such insurance is not frequently a part of standard domestic policies regarding ocean ships,” said Sneineh. “I have actually seen drivers lose the value of their entire vehicle because they assumed their American plan followed them to Europe. You should always ask your shipping company specific questions about what their liabilities are before your vehicle leaves the port.”

Kruse says it’s also important to carefully time any cancellation of coverage on your vehicle prior to your ship date.

“Canceling your liability coverage too early will put a lapse flag on your record that could still be visible when you try to reinstate your auto insurance coverage on the other side of your move,” Kruse said.

Additionally, once you are overseas, keep in mind that some “bases require having host-nation insurance coverage,” continues Lokenauth. But your US policy won’t always satisfy that requirement. So be sure to budget for it ahead of time.

PCS Insurance Checklist

To make your PCS move and its effect on insurance easier, we’ve created a handy checklist you can follow, below:

The Bottom Line

Don’t treat car insurance as an afterthought when you’re preparing for a PCS. There are a lot of details you’ll need to handle before such a move, but give priority to proper coverage. To avoid a costly lapse in car insurance when moving states, military members are encouraged to notify their current carrier as soon as they receive official orders. Take the time to ask questions, research carriers and coverages as needed, and prevent costly gaps you’ll regret.

The post Military PCS and Car Insurance: What to Do Before You Move appeared first on The Military Wallet.

There’s no single plan that suits everyone. However, it aims to highlight the danger zones to help you get safely to the other side.

Keeping your child on your auto insurance when they transition from high school to the military comes with benefits. But it requires sacrifice on your part.

Removing your child’s name from your policy may significantly reduce your premiums. According to the Insurance Information Institute, adding a teenager to an insurance policy can result in a 50-100% increase in the parents’ insurance premium. 

Presumably, removing an adult child from the family policy can have a similarly dramatic effect.

However, your short-term gain will likely be your adult child’s long-term loss. 

That’s because, absent their own auto policy, they may face significantly higher premiums due to a lapse in coverage. When they eventually do apply for their own auto insurance, be sure they have their own coverage set up. Forget it, and they’ll be treated as a new driver and charged exorbitant premiums.

Can Military Members Stay on Their Parents’ Auto Insurance?

Parents with challenging household budgets may be relieved to learn that some insurance companies insist their adult child has their own policy.

For example, if the young person owns the car or truck themselves, they must typically insure it themselves. In other words, the parents are generally unable to add it to their auto or umbrella policy. Parents can insure vehicles they own or co-own.

Residency Exceptions

Additionally, as a rule, an adult child must live with their parents to be on mom and dad’s auto policy. However, there are exceptions for students studying away from home. 

And those exceptions usually include service members undergoing training. So, if your child is attending a service academy or taking a course at a Reserve Officers’ Training Corps (ROTC) facility, they may be able to remain on your auto policy, depending on your insurer.

However, once their training ends, they should receive Permanent Change of Station (PCS) orders to their first duty station. Their actual residence then becomes that military installation, though they may be able to keep their parents’ home as their legal residence.

The Servicemembers Civil Relief Act allows recruits to keep the address they regard as home for many purposes, including state taxes and voting. It is assumed that a married service member needs their own insurance. Parents looking into insurance policies for their adult child should also research the Military Spouse Residency Relief Act to see how residency laws impact future military spouses.

The same applies if they receive a Basic Allowance for Housing (BAH) for off-base accommodation. In both cases, they may need their own auto insurance if they opt to amend their garaging address.

Different insurance companies have different rules governing residency and vehicle ownership. So, it’s essential to talk through your circumstances with your insurer to be certain that you’re neither losing money by assuming the company is stricter than it is, nor leaving your kid uninsured by hoping it’s less strict.

When It Makes Sense to Keep Them on Your Policy

For your child’s sake, it may be good to keep them on your auto policy for as long as you can. But you won’t be doing them any favors if you adjust their coverage without discussing it with them and your insurance company. Be sure to talk to your insurer or broker about the following scenarios:

• The young service member will be coming home on leave regularly (say, monthly) and will need to drive a car owned by the parents.
• On visits home, their driving will be limited to relatively few miles.
• The Servicemembers Civil Relief Act (SCRA) permits active-duty service members to use the place they call home as their legal residence. However, that can change if the adult child marries or buys a home elsewhere. Make sure your insurer is aware of this and that you disclose any material changes.

Be aware that, if you give your child one of your cars or trucks, or sell it to them, they will have title and will need to insure it themselves. That will reduce the number of vehicles on your policy, so you may lose some or all of the multi-vehicle discount most insurers offer. And that could somewhat reduce the savings you should get for taking a teen driver off your policy.

You might prefer to keep your current arrangement, whereby your adult child continues to drive your vehicle(s) while you retain ownership of the car(s). Then nothing changes.

When They Should Get Their Own Auto Insurance

There are circumstances in which even the most sympathetic insurer is unlikely to be able to let your young enlisted service member remain on your auto policy. Those are:

• If they receive PCS orders to a different state and choose to change their garaging address.
• When they register a vehicle in their own name.
• When they are no longer legally resident at your address.
• If they get married.
• When they reach their 25th birthday. There aren’t typically age limits on adult children remaining on their parents’ policy if the kids live at home. But an insurer that’s stretched residency rules for a service member may raise questions when the adult child hits the upper age range. 

By all means, discuss these scenarios with your insurer or broker to be sure. But the chances of you getting a positive response are slim.

Military Complications that Affect Coverage

Having a son or daughter who’s a service member should be a source of enormous pride. But, unless you’re from a military family, it also brings an alien and bewildering transfer of power from the parent to the military.

A PCS move can result in your adult child being suddenly posted far away, perhaps overseas. And these changes can have an impact on their auto insurance coverage. Some insurers offer military discounts when a vehicle is normally kept on a base, and even bigger discounts when a car is in storage because the service member has been deployed.

Meanwhile, a PCS to a different state may trigger residency issues that force a service member to insure their vehicle themselves. However, the Servicemembers Civil Relief Act typically allows active-duty personnel to keep their parents’ home as their legal residence, at least until they put down roots somewhere else. 

That should mean that your adult child can remain on your auto policy, even if they’re posted far away, because their legal residence remains your home. However, you should check with your insurer to be sure their policies approve of that arrangement.

Tips for Military Families Managing Auto Insurance

While there are some situations that would allow you to keep your adult child on your car insurance for years, they will likely need to get their own coverage eventually. Here are some tips that will help you understand how to get your young military driver set up with reliable car insurance:

1. Consult your insurer or broker to be absolutely sure your adult child is retaining full coverage. Let them know of every material change in circumstance that may impact your rate.
2. If you must (or wish to) remove the child from your auto policy, get quotes from multiple insurers to ensure you’re getting the best deal as you remove them and they establish their own policy.
3. Check what military discounts might be available to you while your son or daughter is on your policy.
4. When your adult child gets their own policy, suggest they do a wide search for a new insurer. There are military-only discounts available to them based on their unique circumstances.
5. Make sure the liability coverage is adequate, whether it’s you or your child insuring a vehicle.

Military Auto Insurance for New Service Members: The Bottom Line

It’s always traumatic when an adult child leaves home. So, don’t stress out over their car insurance. By identifying the circumstances that dictate your insurance choices, you are well on your way to minimizing stress.

Just remember, it’s important to make sure their coverage remains intact. So, call your insurer or broker and explain in full the change that’s happening. There’s a good chance the child can remain on your auto policy while still in training. But that might (or might not) change when they receive PCS orders, especially if they’re posted out of the state or country. 

Sooner or later, your adult child will need their own auto policy. When that happens, you could save serious money if you and your adult child get multiple quotes from different insurers.

The post Do You Need to Insure Your Adult Child Joining the Military? appeared first on The Military Wallet.

Hacks include: shopping around, claiming military?specific discounts, bundling policies, adjusting coverage, and utilizing telematics or low?mileage insurance programs will help you lower your auto insurance costs. Read on as we walk you through the most helpful ways to cut auto insurance costs and keep your rates aligned with your lifestyle.

Shop Around Regularly

Just because you are insured by military-friendly car insurance companies like USAA or GEICO, you can’t presume that they will always have the cheapest rates. I know it may be uncomfortable to leave a brand that we have been with for a long time, but that loyalty mindset may be costing you money. Get quotes from multiple companies, like State Farm or Progressive, that may be able to offer bundled policies that are cheaper than what you are currently paying. 

Shopping around is also a good idea because insurers will change their pricing regularly, and rates for the same coverage can fluctuate widely. If you don’t want to make a bunch of lengthy phone calls or go online to fill out a series of online forms to get a quote, consider working with a local independent insurance agent. They can help you shop and compare quotes from all types of insurers, including major carriers. Their compensation is often built into the policy, but may not be any more expensive than going directly to the company for a quote.

Take Advantage of Military Discounts

Unless you are working with a military-affiliated insurance company like USAA, which caters just to the military and veteran communities, your insurance company may not know you have ties to the military unless you tell them. Missed military discounts are one of the reasons that military members pay more than they need to for auto insurance. Surprisingly, not all leading insurers offer an insurance rate break for military members and veterans. Here are some that do provide discounts for active duty, veteran, and Guard/Reserve members:

Discounts on Insurance Premiums

Other Discounts:

• USAA: Up to a 60% discount for vehicles stored while deployed, and 15% off comprehensive coverage if you park your car on a military base. 
• GEICO: Up to 25% for those deployed to imminent danger pay areas.
• Affinity and Group Discounts: You can get additional savings as a member of military-related groups, such as the Association of the United States Army (AUSA) and the Navy Federal Credit Union
• Defensive Driving Course Discounts: Most insurance companies offer a 5-15% discount if you complete a defensive driving course.

Pro Tip: Most leading insurers offer comprehensive only coverage during deployments. This lowers your premium while you are deployed and avoids a coverage lapse.

Bundle Insurance Policies

Multi-policy or insurance bundle policies are a great way to save on auto insurance. It’s very basic. Purchase two or more insurance products from the same company, and you will save money and simplify the management of your insurance policies. 

Source: insure.com’s 2026 “Home and auto insurance bundle: Best companies and rates”. Rates and discounts are based on averages and could be different for each consumer and are subject to change.

As you can see, State Farm offers a whopping 25% bundling discount that can save you more than $1,000 on your premiums. Of course, this is just one factor when looking at the big picture. A 10% discount on a cheaper policy might be a better deal. 

Single Loss Deductibles: An additional factor that may help sway you is a single-loss deductible. Progressive offers combined deductible options that let you pay only one deductible for bundled assets damaged in a single event. For example, if a tree falls onto your garage and damages the structure and your car, Progressive will waive the auto deductible once you pay the home deductible.

Adjust Coverage and Deductibles

Everyone wants to save money on their auto insurance, but the basic tradeoff is cost versus protection. Switching to a lower-cost coverage might seem like an easy way to save on your premiums, but it could cost you more in the long run. In many cases, cheaper payments come with a higher deductible. Lower premiums almost always mean reduced coverage and increased out-of-pocket expenses for you.

Liability-Only Policy (Low-cost/Low Protection): Liability coverage is mandatory in almost all states and only pays for damages or injuries you cause. If you are at fault, your car is not covered, and you are not covered for theft, natural disaster, or vandalism.

Full coverage (High cost/High protection). This coverage includes liability, collision (accidents with other vehicles or stationary objects), and comprehensive (theft, vandalism, weather, fire), and pays for damage to your car regardless of fault. Full coverage is significantly higher than liability-only coverage.

Deductibles: This is what you pay out-of-pocket before your insurance starts to cover costs. Choosing a high deductible ($1,000 – $2,000) lowers your premium because your insurance company is risking less. If you choose a lower deductible ($100 – $250), your premiums are higher, but you have to come up with less cash when you file a claim. 

Ultimately, you will need to decide the right level of coverage for you and your family. It is best to get multiple quotes with a range of coverage options and decide whether your goal is to prioritize money (liability only, high deductible), security (full coverage, low deductible), or a balance of the two (high liability, mid-deductible).

Usage-Based Insurance Programs Hack

Usage-Based Insurance (UBI) programs are where insurance companies use telematics to track your driving habits and calculate your premium based on that behavior. UBI, combined with standard military discounts, is another way you can hack military auto insurance rates. 

There are also low-mileage plans that make sense if you live on base or have a short commute to work. Let’s look at each one of those programs:

Telematics

Telematics use a smartphone app or a separate plug-in device to track your driving behaviors (speed, miles driven, fast acceleration, driving hours, phone usage, and hard braking). Based on how safe of a driver you are, and how many miles you drive during the six-month premium period determines how much (if any) of a discount you receive at policy renewal. 

Here are the leading telematics programs available to you:

Low Mileage Plans

These plans give low-mileage drivers a way to save on premiums without having to enroll in the complete telematics program:

USAA Safe Pilot Miles

• Save up to 20% on premiums, and an additional 20% at renewal for safe driving if you decide to include SafePilot
• Best if you drive less than 8,000 per year

Nationwide SmartMiles

• Save up to 10% at first renewal
• Premium changes each month based on actual miles driven

Review Your Insurance after PCS Moves

You should always do an insurance review after each PCS, because it changes your garaging location, a major factor in determining your auto insurance premiums. Moving to a new state or zip code changes risk factors like state minimum coverage, accident rates, population, and theft/vandalism. 

If you move from a rural installation to a base near a large city, it could lead to higher premiums. The same applies if your commute distance increases at your new location. Finally, if you move from on-base to off-base or vice versa, this could impact your risk profile and insurance rates.

Other factors that determine your rate include the claims history in your new area, the cost of healthcare, and the weather (floods, earthquakes, etc.). 

How to Manage Your Policy During a PCS

Here are some tips (using hacks from this article) to help you manage your auto insurance policy during and after a PCS move:

• Work with your insurance agent in advance to see what coverage you will need, and that it starts right when the old one expires. This prevents any coverage lapses and future premium hikes.
• Update your address right away to make sure you have the right legal coverage for your new state. If you are moving overseas, there are different OCONUS car insurance requirements.
• If you haven’t done so, ask for discounts from military-friendly companies like USAA or GEICO, or military discounts from other auto insurers.
• Shop around. Don’t assume your current provider is the best choice in your new location. Every company has a different way to calculate in each region; your current company, even USAA, may not always be the cheapest 
• If your rates skyrocket at your new location, you can hack your auto insurance by adjusting your coverage and deductibles.

Bottom Line

You can see that as a military member or veteran, you can hack auto insurance rates by stacking every available advantage or strategy—shopping around, going after military discounts, bundling policies, adjusting your coverage, and signing up for telematics or low-mileage programs. So, after each PCS move or long-term deployment, make sure to review your auto insurance policy so your rates match your new location and driving habits. With a few smart moves, you can avoid overpaying and lower your auto insurance rates.

The post How to Hack Military Auto Insurance Rates appeared first on The Military Wallet.

However, HSAs have many benefits beyond cost savings.

Here’s what you need to know about HSAs, HSA contribution limits and why it’s a good idea to max out your annual HSA contributions.

2026 HSA Contribution Limits

How much money can you set aside for future healthcare spending with an HSA?

According to the IRS, the maximum annual contribution depends on whether you are on an individual or family plan. In 2026, individuals can contribute $4,400 and families can contribute $8,750. If you’re 55 or older, you can make $1,000 in catch-up contributions.

For 2025-2026 contributions can be made over a 15½-month time span (from January 1, 2025 – April 15, 2026), as long as they don’t exceed annual limits.

Here is a list of contribution limits from recent years, including the HSA contribution limits from 2010 – 2026:

What Is a Health Savings Account?

Health Savings Accounts are tax-advantaged savings accounts explicitly for health care spending. Yearly HSA contributions are tax-deductible and grow tax-free. Withdrawals are also tax-free when you use the money for qualified medical expenses.

In essence, a Health Savings Account is very similar to a combination of a Traditional IRA (tax-deductible when you contribute) and a Roth IRA (no taxes on qualified withdrawals for medical expenses).

Health Savings Account Eligibility

You must be enrolled in a qualifying High-Deductible Health Plan (HDHP) to be eligible for an HSA.

In 2026, a plan qualifies as an HDHP if its deductibles are at least:

• $1,700 per year for individuals
• $3,400 for families

These deductibles are higher than average, hence the name, High-Deductible Health Plan.

IRS rules for HDHP also limit out-of-pocket expenses. In 2026, HDHP out-of-pocket expenses cannot exceed:

• $8,500 for individuals
• $17,000 for families.

HDHP Advantages

Employers may offer high-deductible plans for enrollees who prefer to pay a lower monthly premium.

Higher deductibles can save policyholders money if they don’t go to the doctor often. The HSA option incentivizes policyholders to become smarter with their healthcare spending by planning ahead for it with a pre-tax HSA.

However, you must save enough to pay the entire deductible, if necessary. Only choose an HDHP if you have some money set aside in an emergency fund or cash savings.

Tax Advantages of Health Savings Accounts

You can set aside pre-tax income in an HSA for use specifically on health spending, just like with a Flexible Spending Account (FSA).

However, HSAs have a key advantage over FSAs.

With an FSA, if you do not spend the funds in your account by the end of the year, you forfeit the remaining balance to the plan administrator.

With an HSA, you never lose the funds. You can set aside money this year in an HSA and use it 40 years from now. You can even pay for health care costs out of pocket now and use your HSA to save for medical costs in retirement.

You won’t pay any tax on withdrawals as long as they are used for healthcare spending.

What Happens If I Contribute Too Much to an HSA?

If you are automatically contributing funds to your HSA through payroll deductions, it won’t be possible to contribute too much to a Health Savings Account. However, it is possible to over-contribute by making deposits outside of the payroll system.

If you discover you have contributed too much to your HSA, you must take action to avoid paying penalties to the IRS.

Remove any excess funds you contributed, plus any interest earned on that amount. You must pay tax on this withdrawal before April 15 of the following year.

If you fail to remove the excess contribution by the April 15 deadline, you must pay a 6% excise tax when you withdraw the funds later. Additionally, if you leave the funds in your account indefinitely, you must pay the 6% tax each year.

Alternatively, you can leave the contribution in, but avoid the 6% excise tax by lowering the next year’s contribution by the amount of the over-contribution.

For example, if you had an HSA contribution limit of $4,400 in 2026, but paid $4,500, you would have over-contributed by $100.

You could avoid paying the 6% excise tax by reducing your next year’s contribution by that $100. For example, if the following year’s contribution limit remained the same, you would contribute $4,300 instead of $4,400.

If you instead contributed the full amount again the following year, you would owe the 6% excise tax on the original $100 over-contribution.

Can You Contribute If You Aren’t Eligible for the Entire Year?

Rarely do you start a new job on Jan. 1 or end it on Dec. 31. The date you gain and lose access to a high-deductible health plan impacts your eligibility to contribute to an HSA.

Here is what the government says about gray area HDHP enrollees:

• The last-month rule allows eligible individuals to make a full contribution for the year, even if they were not a qualified individual for the entire year. Individuals can make the total contribution for the year if:
  • They are eligible individuals on the first day of the last month of their taxable year. For calendar taxpayers, this is Dec. 1).
  • They remain qualified individuals during the testing period. (Dec. 1 of the current year to Dec. 31 of the following year).
  • If the taxpayer does not qualify to contribute the full amount for the year, the contribution is determined by using the sum of the monthly contribution limits rule.

OR

• The sum of the monthly contribution limits rule (use Limitation Chart and Worksheet in Form 8889 Instructions). This rule uses the sum of your monthly contributions, which is the amount determined separately for each month based on eligibility and HDHP coverage on the first day of each month, plus catch-up contributions. For this purpose, the monthly limit is 1/12 of the annual contribution limit, as calculated on the limitation chart and worksheet.

In other words, you can contribute the full amount if you are eligible as of Dec. 1 of the calendar year. However, you may owe back taxes if you do not remain eligible from Jan. 1 to Dec. 31 of the following year.

Pro-Rated Contribution Rules Explained

You can avoid tax problems with your HSA by pro-rating your contributions.

1. First, divide your contribution limit by 12 to get your monthly contribution limit. For individuals, it is $366.67 and for families $729.17 (both numbers represent the 2026 tax year; use the current tax year’s contribution limit when calculating for your situation). Remember, each month that you had at least one day active in an HDHP counts as a full month for your contribution limit.
2. Next, multiply the number of months you were active in the health plan by your monthly contribution limit. For example, if you started a new job and gained access to an HDHP on March 12 and maintained HDHP coverage through Dec. 31, you would have 10 months of pro-rated contribution availability. In this situation, you could contribute $366.67 x 10 = $3,666.67 for 2026. If you contributed the full amount of $4,400, you would need to remove and pay taxes on the excess or reduce your 2026 contribution to avoid an HSA over-contribution penalty.

IRS Publication 969 has more info about HSA qualifications, contribution limits, distribution rules, and more.

Benefits of Maxing Out Your HSA Account Each Year

There are numerous advantages to having an HSA. You receive an immediate tax benefit when you start making contributions. And, your savings never expire. You can save the funds in your HSA or a linked investment account, and let your savings and investments grow over time.

Using Your HSA as a Super Retirement Account

Health Savings Accounts combine the best of the Traditional IRA and Roth IRA. Contributions are tax-deductible in the year you make them (like a Traditional IRA). The earnings and withdrawals are tax-free (like a Roth IRA) as long as you use them for qualifying medical expenses.

HSAs don’t have an age limit. You can let your money ride until you need it, even if that’s after you retire.

Benefits of Long-Term HSA Ownership

I maximized my HSA contributions each year I was eligible to contribute to an HSA. To take advantage of the investment opportunities through the HSA, we elected to pay our medical costs out of pocket and continue investing the HSA funds.

My health insurance plan has since changed, and I am no longer eligible to contribute to an HSA plan. However, I am not required to remove those funds until I decide to use them for medical expenses or decide to withdraw the funds for other purposes.

Since the funds are invested, I’d like to let them compound as long as possible. If we have a major medical expense, I can elect to pay for it with our HSA savings if necessary. If we’re lucky and don’t have any expenses we can’t pay out of our cash flow or savings, then I will have a large investment account I can tap into when I reach retirement age.

Where to Open an HSA Investment Account

You first need to qualify for an HSA with a compatible High Deductible Health Care Plan. Check with your employer if you have an employer-sponsored health care plan.

If not, then you may be able to purchase a qualifying HDHP on the ACA exchange. You could also find one through a health insurance company such as eHealthInsurance (this is where I always found our health care plans after I became self-employed).

Once you have a qualifying healthcare plan, shop around for different banks or investment accounts that offer HSAs. I wrote an article about the process of opening an HSA account, which bank I chose, and why.

I decided to open my HSA account with HSA Bank, in part because they offer easy access, low fees, and the ability to invest funds through a brokerage. The bank will waive its fees if you maintain a certain minimum in your account.

HSA Bank offers three investment options through HSA Invest, their investment program: Choice, Select, and Managed.

Conclusion

Health Savings Accounts are one of the most flexible financial accounts you can open. If you are eligible to open an HSA, I recommend maxing out your contributions each year.

If you can swing it, try to pay your medical expenses out of pocket to let your HSA contributions grow tax-free indefinitely, increasing your net worth.

The post 2026 Maximum HSA Contribution Limits: How Much Can You Save for Medical Expenses? appeared first on The Military Wallet.

As a military member, you navigate a world of constant change—new duty stations, unfamiliar roads, growing families, shifting responsibilities, and lengthy deployments. With so much at risk, choosing the right amount of auto insurance isn’t just a box to check; it’s a decision that impacts your family’s financial stability. Understanding your coverage and choosing limits that match your risks lets you move forward with confidence, knowing your family’s financial security is protected.

What Are Reasonable Auto Insurance Coverage Amounts for Military Members?

Because military members face unique financial, geographical, and other challenges, minimum state insurance requirements may not protect you because they are designed for standard civilian risk. This could leave you personally liable for major expenses, because minimum limits may be inadequate for serious accidents, and overseas assignments can require separate local insurance arrangements.

This article will explain the different types of auto insurance coverage, what state legal minimum liability limits mean, how to choose appropriate coverage limits for you and your family, and why you should regularly review and adjust your auto insurance policy to keep you protected from financial loss. 

Understanding the Main Types of Auto Insurance Coverage

Auto insurance includes several types of coverage, each designed to protect you and your family from different financial risks on the road.

Liability insurance

This is mandatory in all states except New Hampshire. It won’t cover damage to your vehicle or your own injuries. It just pays for any damage you cause to others. Liability insurance is comprised of two parts: 

• Bodily Injury (BI): This covers medical treatment and other expenses for people injured in an accident where you were found at fault. This covers:
  • Medical expenses
  • Pain and suffering
  • Lost wages
  • Legal costs for lawsuits filed against you
• Property Damage (PD): This covers costs to fix property damaged by an accident where you were found to be at fault. This may include:
  • Damage to other cars, and property (a home, guardrail, mailbox, etc.)
  • Legal costs for lawsuits filed against you

Collision coverage

Collision coverage is optional and helps to pay to repair or replace your car if it is damaged in an accident. It could involve another car, or hitting a fixed object like a telephone pole, or guardrail. It is important to understand that collision coverage applies no matter who caused the accident. This coverage helps ensure that you don’t have to pay all the repair costs yourself. You would still need to pay your deductible before your insurance kicks in. Here is what collision coverage may pay for:

• Accidents with another vehicle
• Crashes with stationary objects
• Rollover accidents
• Hit-and-run damage

Remember: Collision coverage only covers your car. If you are at fault, your liability insurance will pay for damage to another person’s car or property.

Comprehensive (other than collision) Coverage

This optional coverage will help cover the cost of damages to your car if you are involved in an event not caused by a collision with another vehicle or fixed object. Here are some situations where your comprehensive coverage will kick in:

• Theft
• Vandalism
• Glass breakage (not from a collision)
• Fire
• Weather damage (floods, wind damage, hail)
• Hitting an animal

Pro Tip: If you own an older car that has a low resale/trade-in value, you may want to weigh the cost of keeping comprehensive coverage against what you would get in a payout. This could save you money in the long run. 

Uninsured/Underinsured Motorist (UM/UIM) Coverage

This coverage will protect you against drivers who don’t have insurance or don’t have enough insurance to pay for the damage they cause you. While required in only 20 states and the District of Columbia, it is strongly recommended to protect against uninsured drivers. In some states, you have to actually opt out in writing. Like liability insurance, UM/UIM fall into two categories:

• Uninsured motorist bodily injury (UMBI): This coverage helps pay medical costs and pain and suffering up to your policy limit for you and your passengers if you are hit by an UM/UIM or a hit-and-run driver.
• Uninsured motorist property damage (UMPD): This coverage helps cover these costs (up to your policy limit):
  • Costs to repair your car
  • Expenses if the other driver doesn’t have enough liability PD coverage
  • Damage to your home or property

Want to add UM/UIM Coverage? Here are the steps for buying coverage:

• See if your state mandates UM/UIM coverage
• If not, decide if you want to add them as optional coverage (if allowed)
• If required or want it as an add-on coverage, match limits to your liability BI limits

Personal Injury Protection (PIP)

This protection covers medical expenses and lost wages for you and your passengers if injured in an accident, regardless of who was at fault. No-fault states require PIP, while it’s optional or not offered in other states. PIP may cover:

• Medical bills
• Lost wages
• Household service (childcare, yard work, maid services)
• Disability/rehab costs
• Death benefits (if fatal)

What Is a Fault vs No-fault Accident?

In most states, one party is considered at-fault and must cover the cost for injuries to the other driver and their passengers (via the at-fault’s liability insurance). In no-fault states, medical bills are covered by each driver’s PIP, instead of the at-fault driver’s insurance. See which states are fault or no-fault. 

How Much Do These Types of Insurance Cost?

Here are sample national average costs for these types of insurance:

*MarketWatch Guides: Liability Car Insurance 2026 Guide

**MarketWatch Guides “Comprehensive vs. Collision Auto Insurance”

***The Zebra 2025 “Uninsured and Underinsured Motorist Coverage Guide”

****The Zebra 2026 “Understanding Personal Injury Protection Insurance (PIP)”

Recommended Liability Coverage Limits

Now that we know what liability insurance is, and the two parts, bodily injury (BI) and property damage (PD), let’s take a closer look at recommended limits and some situations where military members may want to exceed the minimum limits. 

Auto liability limits are broken down into three numbers that show how much coverage you have per person and per accident. Each state will have its own required minimum auto insurance liability limits. 

For example, if you lived in Maryland, your policy might look like this – 30/60/15

Here is what the numbers mean:

• Bodily injury (BI) liability per person: $30,000 is the maximum amount your insurance company would pay out per person for injuries.
• Bodily injury (BI) liability per accident: $60,000 is the maximum amount your insurer would pay out per accident for injuries.
• Property damage (PD) liability per accident: $15,000 is the maximum amount your insurer would pay out per accident for damage to someone else’s vehicle or property.

What would happen if you were involved in an accident in Maryland?

Case One: You hit another driver’s vehicle, causing them $25,000 in injuries and $10,000 in property damage. Your insurance would pay both amounts because all BI and PD are below your coverage limits per person and per accident.

Case Two: You’re in an accident that was your fault, and you injured the driver and two passengers. Suppose each has $25,000 in injuries. You may think you’re covered because you have $30,000 in BI per person. However, $60,000 is the maximum your insurance policy will cover per accident. Since expenses for injuries totaled $75,000, you would be responsible for the remaining $15,000 out of pocket.

The question you need to ask yourself is: 

“Are state minimum limits reasonable for my situation?” 

The answer is – it depends on your comfort level and the risk you are exposed to. You will have to weigh what is reasonable with what is prudent. 

Let’s look at when state minimum levels may not be enough.

When You Need More Liability Insurance than the State Minimum

Again, each state mandates liability limits, but depending on several factors, such as your income, military circumstances, and net worth, you may want liability insurance higher than the state minimum.

Again, for Maryland, your policy would reflect these coverage totals: 30/60/15

A good rule of thumb is to have the total bodily injury limit (the second number) and the property damage liability limit (the third number) higher than your net worth. 

Not sure how much your net worth is? Simply put, your net worth is your assets (savings, investment portfolio, home equity, cars, valuable collectibles) minus your liabilities (mortgage, car loans, student loans, credit card balances, personal debt).

So, if your net worth is more than $60,000, you will want to increase them to numbers closer to your net worth. If your net worth is substantial, say between $750K and $1M, or if you want to include multiple policies (home, auto, renters, boat), consider taking out umbrella insurance coverage (we cover that policy below). 

Also, there are certain lifestyle risk factors that could warrant higher liability minimums. For example, if you have a swimming pool, trampoline, rental properties, or teenage drivers, you may want to increase your liability limits to between $250K and $500K.

Pro Tip: Both the Insurance Information Institute and Consumer Reports recommend carrying 100/300/100 coverage. If you have significant financial assets, it is recommended you bump that up to 250/500/250. This would prevent an insurance company from draining your savings. According to Compare.com, the difference in premiums between a 30/60/15 policy and a 250/500/250 policy is typically between $10 and $20 per month more than your current premium. The more coverage you get, the better the deal.

Why Military Families May Need Higher Coverage

As a military service member, you face risks that civilians don’t, so your insurance needs may warrant higher or specialized coverage to protect you and your family against risks like frequent and stressful moves, vehicle storage during deployments, underinsurance (not enough liability coverage), and international protection. 

Here are some unique risk factors military families face:

• Frequent PCS moves: This can make keeping continuous, state legal minimum coverage a challenge, and have you frequently driving in unfamiliar and higher-cost states.
• Deployment storage & coverage: If you are deployed or PCS to an overseas assignment, you may need to store your vehicles.
• Protection against underinsurance: Relying on state minimum coverage could leave your family at risk, especially if you have limited financial resources and are hit with high out-of-pocket expenses in an at-fault accident. Consider increasing your liability coverage or getting an umbrella policy.
• Overseas Moves: Insuring your car overseas requires some research and planning. You will need to either get international auto insurance or liability insurance from the host nation.

Pro Tip: Read “How Military Members Can Hack Auto Insurance Rates” to get some tips on mitigating these risk factors.

When Military Families Should Consider Umbrella Insurance

As a military family, you should consider umbrella insurance if your assets exceed your standard auto insurance liability limits, or when there are factors that make you a high-risk (teen drivers, frequent party host, swimming pools, large dogs). This gives you extra protection against big lawsuits. 

You may ask, “What is the difference between high liability auto insurance coverage and umbrella coverage?” A high limit on your auto policy just increases the maximum payout for that specific policy. Umbrella insurance is a separate policy that acts as a blanket over your primary policies (auto, home, renters), providing much higher limits and gap coverage from your auto liability coverage. 

Umbrella policies range from $1-5 million, but typical coverage is $1 million. Coverage can be very affordable with a $1 million policy costing you between $150 and $300 per year, and an extra $50 for each additional $1 million. This cost is in addition to your liability coverage premium. Umbrella coverage is an extra layer of protection that provides you and your family peace of mind, which is priceless.

Review and Adjust Your Coverage

Reviewing your auto insurance policy on a regular basis is critical for military members to ensure you are not paying more than necessary, while still being protected. The best time to review your auto policy is annually, before a PCS move/address change or long-term deployment, or when buying a new car or adding new drivers.

Here are some actions you should take as part of your review:

• Evaluate your assets and ensure that your liability coverage is more than your net worth. If so, consider an umbrella policy. 
• Review state minimum liability requirements and deductibles, especially as part of a PCS move. Assess deductibles to see if you can raise them and lower your premium, especially if you have emergency savings to cover the higher deductible.
• Shop around by comparing top military insurers like USAA and GEICO, and ask about military discounts from other insurers. 
• Leverage policy bundling to save on total premiums and ease policy management.
• If moving overseas, check on international coverage requirements, and arrange for shipping your vehicle (if authorized) and additional insurance if needed.
• Consider signing up for a telematics program to save big on premiums.

Bottom Line

As a military member, your family’s life is constantly in motion and comes with added responsibilities and risks that civilian families don’t have to face. Your auto insurance should reflect that lifestyle. Knowing what the terms in your auto policy mean, assessing and choosing reasonable liability limits, and reviewing your coverage regularly and before every major life change will protect what you’ve built and avoid financial setbacks that result from being underinsured. With the right coverage in place, you and your family will have the freedom to focus on your military mission to serve and protect our country, no matter where the road leads next.

The post What Are Reasonable Auto Insurance Coverage Amounts for Military Members? appeared first on The Military Wallet.

Before we look at what the pay charts would look like in 2027, it’s important to note: this is a proposal, not a done deal.  The President’s budget is a starting point. Congress still has to take it up, debate it, and pass it through the National Defense Authorization Act (NDAA) before any pay raise becomes law. 

2027 Military Pay Charts

The following charts will show what the 5% to 7% increases would look like for all servicemembers in all branches.

Officers and Warrant Officers with up to 11 Years of Service

Officers and Warrant Officers with 12 to 25 Years of Service

Officers and Warrant Officers with 26 to 40 Years of Service

Officers serving in combat zones receive special pay privileges. Those ranking 0-1 and above can eliminate portions of their pay from taxes due to the dangerous nature of their role. You can calculate your full paycheck by adding your “hostile fire or imminent danger” pay to your basic pay rate. 

Prior Enlisted Officer Pay Qualifications

Notably, officers who are prior enlisted may receive an increased pay rate based on their time spent in service, among other specifications. Consult the Department of Defense’s Financial Management Regulations for more in-depth information regarding pay rates. 

Enlisted Members with up to 11 Years of Service

Enlisted Members with 12 to 25 Years of Service

Enlisted Members with 26 to 40 Years of Service

How This Pay Raise Impacts Your Paycheck

Let’s put some real numbers on this. Using current 2026 military pay rates, here’s what a raise at each proposed tier could mean for monthly basic pay:

7% Raise: E-5 and Below

6% Raise: E-6 through O-3

5% Raise: O-4 and Above

*These are estimates based on the current 2026 basic pay rates. Actual 2027 rates will depend on what Congress approves through the NDAA.

Why a Tiered Pay Raise Is Different and What It Might Signal

For as long as most servicemembers can remember, military pay raises have applied the same percentage to every rank. Everyone from a brand-new E-1 to a senior O-10 got the same increase. That’s been the standard approach for decades.

This proposal zags away from that approach, and instead aligns more like what happened in 2025, where you saw a 14.5% increase if you were a junior enlisted servicemember. That is compared to the 4.5% raise for everyone else. 

The goal then, I suspect, is the goal now: Get more people interested in joining the military. If you want more people to sign up and stay in, making the early years of service more financially rewarding is a logical lever to pull.

Whether or not that’s the primary intent, the effect would be the same: servicemembers at the E-5 level and below would see a noticeably larger pay boost than their senior counterparts.

Military Pay Dates

Fortunately, the military follows a consistent pay schedule from year to year, with paychecks typically issued on the 1st and 15th of each month, except when these dates fall on weekends or holidays.

Want a peek at exactly when you can expect your paycheck throughout the year? Here are the Military Pay Dates for Active-Duty Paychecks.          

Previous Military Pay Raises

What Happens Next

Here’s the short version of where things stand:

One thing to keep an eye out for: Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS) rate increase proposals or projections. We could get a clearer picture of these rate increases later in the year as housing market data plays a role in BAH. It wouldn’t be right to predict those allowance increases just yet, given the factors that go into determining them.  

Final Points

The NDAA is one of the most reliably bipartisan bills Congress passes each year. Defense spending and military pay tend to have broad support on both sides of the aisle. Interestingly enough, in the 2024 proposal that went into effect in 2025, the White House called for a flat-rate, and it was Congress that passed a tiered pay increase. I say that to say: you never know what the Congressional version of this pay increase looks like or what the final totals will be. 

We’ll keep tracking this as the NDAA process moves forward. Bookmark this page or check back in the fall for updates.

The post 2027 Military Pay Charts (5-7% Increase) appeared first on The Military Wallet.

Why Is USAA Popular with Military Members?

Founded in 1922 by a group of Army officers who decided to self-insure each other, USAA has grown to become a leading provider of insurance and banking solutions for more than 14 million members. Membership is open to all who serve and have honorably served in the U.S. military and their eligible family members. 

USAA is very popular with military members, not only because of its reputation as a top-tier insurance company, outstanding customer service, and a demonstrated understanding of the military lifestyle, but also because it offers some of the lowest rates in the industry. 

My family and I have been USAA members for 40 years, for those very reasons. But insurance is not one-size-fits-all, making it essential to shop around. So, let’s put that question to the test and find out if USAA really is the cheapest auto insurance for military families.

How USAA Pricing Compares to Other Insurers

USAA consistently offers some of the lowest car insurance premiums on the market, often besting major competitors across a wide variety of driver profiles, and including those in high-risk categories like teen drivers and people with less-than-desirable credit ratings and accident histories. However, other companies offer military and traditional discounts that give USAA a run for its money. Rates vary depending on:

• Where you live
• Your driving/claims record and credit history
• The car you drive, annual mileage, and how you use your car (commute, business, pleasure)
• Your gender, marital status, age, and how long you have been driving
• Any add-on coverages and deductibles

Let’s put USAA head-to-head against its major competitors and see how they compare.

Note: This cost comparison is based on full coverage and a clean driving record. You may pay more or less based on your coverage selections and the factors I just listed above.   

How USAA Compares to GEICO

USAA and GEICO are two of the most trusted names in auto insurance and offer some of the most military-friendly rates and perks. In the end, USAA and GEICO are evenly matched, and the overall best price would depend on what coverage you need. 

Here’s how they stack up:

How USAA Compares to Progressive

Progressive and USAA have comparable coverage options and add-ons, but USAA beats Progressive in every category.

Here’s how they stack up:

How USAA Compares to State Farm

USAA has a lower average premium than State Farm in every category, except for drivers insured in Florida. Also, State Farm’s telemetric program discount lowers the cost for young drivers by up to 25%, making them cheaper than USAA. It was close, but I give the win here to USAA.

Here’s how they stack up:

How USAA Compares to Nationwide

Overall, Nationwide came out on top, despite USAA having cheaper rates overall. Additionally, Nationwide’s 20% bundling discount beat USAA’s 10%.

Here’s how they stack up:

When USAA May Be Cheaper

When compared to competitors, USAA often offers the most affordable auto insurance rates in nearly all major coverage options. Here are some more areas where USAA auto insurance was cheaper than its major competitors:

Safe and Low-Mileage Drivers: According to a 2026 U.S. News and World Report review, USAA is the cheapest for military members with a clean driving record and offers rates approximately 46% less than the national average for low-mileage drivers.

Driving Record: USAA still offers great rates even if you don’t have a clean driving record. Its rates were lower than most major competitors, except Progressive, for a first-time claim. 

Motorcycle Riders: USAA beats its competitors by offering a 5% discount (when compared to Progressive rates).

Driving Record Rate Comparison

Data tables were based on U.S. News & World Report’s “Cheapest Car Insurance Companies of 2026”.

When Other Insurers May Cost Less

While USAA has the lowest overall average rates in the industry, they are not the cheapest option in all situations or for all driver profiles. While USAA offers specialized military-centric savings, Geico and State Farm provide high percentage discounts in broader categories like bundling and student performance. 

Here are some examples of when other insurers are cheaper than USAA:

Teen Drivers: While USAA offers some of the most affordable rates for teen drivers, GEICO offers the lowest overall annual premium. Also, State Farm’s good student discount of up to 25% puts them in the running for the best rates for teen drivers.  

Insured in Certain States: Insurance rates are highly localized, and USAA is less competitive in high-risk states like Florida, New York, and California. This will have an impact as these are also areas with large active duty and veteran populations.

High-Risk Drivers: Although USAA is generally cheaper for first-time accident claims, other companies are more affordable for drivers classified as high risk. High-risk categories include those with violations such as DUIs, reckless driving, and multiple accidents. State Farm is recognized as a top-rated option for those with serious violations, while Progressive beats USAA rates for one DUI. 

Other Factors Beyond Price

While price may be the prime motivator for some, selecting the auto insurance company that is right for you may require you to look at key non-price factors like financial stability, claims handling, customer service reputation, and digital tool/online experience. Personally, I have stayed with USAA these past 40 years for both price and reputation. Let’s take a closer look at some factors that may help you decide which company to go with beyond the price tag.

Let’s see how each company stacks up against USAA based on other factors beyond price:

• Financial Stability: The financial health of your insurance company is essential. If they are unstable, they may not be able to pay your claim, especially after a major disaster. We used AM Best, a leading insurance-focused credit-rating agency, to rate each insurance company.

• Claims Process: How quickly and fairly an insurance company processes your claim is a key factor in the decision to stick with the company or to look elsewhere. JD Power’s Auto Claims Satisfaction Study is a great indicator of how well the company settles claims.

• Customer Service: How your insurance company handles its relationship with you shapes your long-term loyalty and is a main reason that customers stay or jump ship. If you want to deal with a local agent, USAA is the only company that does not offer in-person support. However, both USAA and GEICO do provide their customers with dedicated military support lines staffed by a specialized team of veterans from all service branches.

• Digital Tools: All the companies we featured in this article have their own app in Apple’s App Store, and a strong online presence via their website, allowing you to manage your policy, file claims, or get digital insurance ID cards. The deciding factor may be your preference for a personalized agent-supported feel or an automated, self-service platform. 
  

Bottom Line

After conducting a comprehensive USAA auto insurance review, I have the answer to the question “Is USAA always the cheapest car insurance for military families?” 

The answer is, it depends. Car insurance policies, like drivers, are very different, and what you need may be different than what your neighbor needs.

I have been a loyal customer for 40 years because of the facts and benefits listed in this article. Hopefully, this research has given you food for thought on what other factors to consider when choosing an auto insurance company. Shop around by getting a quote from USAA and another featured insurance company to discover if USAA is the cheapest car insurance for you and your family. 

The post Is USAA the Cheapest Car Insurance for Military Families? appeared first on The Military Wallet.

Between banks, credit unions and full-service lenders, VA loan borrowers have no shortage of mortgage choices. But, some VA lenders are better than others.

While many mortgage lenders offer VA loans, they don’t all specialize in this unique loan type.

You probably don’t have time to sift through all your options to find the best lender. So, we’ve compiled this list of the best VA loan companies and lenders in the marketplace.

We’ve selected each of these lenders for VA loan specialization and other available financial services. We have also considered factors like digital experience, transparency and borrower flexibility, which have become increasingly important in today’s market.

What Is the VA Loan?

VA loans provide unique benefits to military and veteran homebuyers. VA loans make homeownership more attainable because they don’t require a down payment. The Department of Veterans Affairs backs VA loans, but lenders ultimately fund them.

This means that the VA insures VA loans to protect lenders from borrower defaults. It also means that private mortgage insurance, or PMI, is unnecessary.

10 Best VA Loan Lenders in 2026

We didn’t rank these lenders in any particular order. However, we have allocated the top three slots to lenders who specialize in VA loans and other financial services for military members, veterans and their families.

Lender	Best For	How to Connect
Veterans United	Best Veteran-Focused	Check Eligibility
Navy Federal Credit Union	Best Credit Union	Check Eligibility
USAA	Best Total Package	Check Eligibility
Fairway Independent Mortgage	Best for Face-to-Face	Check Eligibility
Rocket Mortgage	Best for Refinancing	Check Eligibility
DHI Mortgage	Best for New Homes	Check Eligibility
loanDepot	Best for Jumbo Loans	Check Eligibility
Pennymac	Best for In-House Servicing	Check Eligibility
United Wholesale Mortgage	Best for Loan Variety	Check Eligibility
Freedom Mortgage	Best for Rate Reduction Refinance	Check Eligibility

Veterans United Home Loans

Veterans United’s chief advantage is that the mortgage lender began in 2002 with a singular mission to provide VA loans to veterans with a high standard of customer care.

Veterans United is headquartered in Columbia, Missouri, but employs more than 5,200 employees in over 60 offices across the country.

The lender works with former senior enlisted members from each branch of the armed forces to help provide the best possible experience to veteran borrowers.

These military advisors have made it their mission to educate veterans about homeownership and the benefits of VA loans, including:

• Purchase and refinance
• 15-year and 30-year fixed, ARMs and other loan term options
• 0% down, no PMI
• 24/7 customer service

Veterans United offers in-house processing, underwriting and closing teams for both homebuyers and current homeowners who are looking to refinance to a VA loan. This means borrowers work with one team who guides them throughout the process.

The lender offers fixed-rate mortgages, as well as adjustable-rate VA mortgages. It also provides 24/7 customer service, which is unusual in the mortgage industry.

Veterans United’s website is comprehensive, featuring many resources to help guide homebuyers through the entire VA mortgage process. The lender also offers related services, such as Veterans United Insurance and Veterans United Realty, which represent its networks of veteran-friendly insurers and real estate agents.

Additionally, Veterans United offers a free credit consulting program to help homebuyers improve their credit before beginning the homebuying process.

Navy Federal Credit Union

Navy Federal Credit Union, founded in 1933, specifically worked with members of the Navy. Since then, it has expanded to cover all service members in all branches, including National Guard and reserve service members, delayed entry program (DEP) participants, officer candidates, ROTC cadets, veterans, retirees and annuitants.

Navy Federal is the largest credit union in the country by asset size and membership. It has over 15.3 million members and more than $197.1 billion in assets, according to its 2025 fact sheet.

Navy Federal’s VA loans come in 15 and 30-year fixed-rate terms, but it does not offer adjustable-rate loans. For current homeowners, Navy Federal offers VA Streamline Refinances, which enable you to do an interest rate reduction refinance loan (IRRRL) on an existing VA mortgage to lower your rate. (VA streamline refinancing doesn’t require a home appraisal or inspection).

Navy Federal also offers complete banking services, IRAs, credit cards, car loans, personal loans and student loans. The credit union has 382 branches across the country and nearly 30,000 ATMs. They also maintain 24/7 customer service through their call centers.

USAA

USAA is another financial services company created with the military in mind. Twenty-five Army officers founded USAA in 1922 to provide mutual self-insurance for automobile coverage. Now, USAA offers many other financial services, including conventional mortgages and VA fixed-rate mortgages with 10-to-30-year terms.

By the end of 2024, USAA had over 14 million members, according to its annual report.

New homebuyers and refinancing homeowners can take advantage of USAA’s loan programs.

• Purchase and refinance
• 10, 15, 20, and 30-year VA fixed
• 0% down, no PMI
• VA and conventional mortgages

One of the major advantages to getting a VA loan through USAA is the wide variety of other financial services they provide. You can start out with a mortgage and then add services like banking, home or auto insurance when you need them.

Fairway Independent Mortgage

Fairway Independent Mortgage offers veterans a wide variety of mortgages, including VA loans.

Its loan application process is quick and easy, thanks to its comprehensive mobile app.

Fairway has an extensive network of over 500 nationwide branches located in all 50 states, staffed by over 10,000 employees. This network gives Fairway expertise in its local markets and allows it to work with state housing finance agencies to offer down payment and closing cost assistance for its mortgages. Fairway also offers an adjustable-rate mortgage VA loan, a loan type not offered by many top competitors.

In 2021, Fairway closed 12,360 VA purchase loans, roughly 5% of all VA purchase loans closed nationwide, making them the fourth-largest VA purchase lender.

However, Fairway doesn’t post its mortgage rates online, so it’s difficult to shop for comparisons. Additionally, Fairway’s origination fees can be on the high side and are not offset by low rates, according to Home Mortgage Disclosure Act data.

But, the lender’s local knowledge, extensive footprint, and overall ease of use may make it great VA loan option.

Rocket Mortgage

Based in Detroit, Michigan, Rocket Companies, Inc., along with its Rocket Mortgage arm, is the largest retail mortgage lender in the country. In 2025, Rocket Companies acquired the real estate brokerage website, Redfin, increasing its visibility in the housing industry.

Formerly Quicken Loans, Rocket Mortgage generated more than $130.4 billion in closed mortgage loan originations in 2025.

The lender operates in all 50 states and has more than 14,200 employees across the United States and Canada as of 2024. However, Rocket Mortgage operates entirely online, which has some advantages.

You can apply for a loan online and receive a decision minutes after submitting your loan application.

Rocket offers VA mortgages and will work directly with the Veterans Administration to get your certificate of eligibility and other paperwork necessary to qualify for your loan.

Rocket Mortgage services nearly all of its loans in-house. That means it’s unlikely the lender will sell your loan to another servicing company, which is a common lending practice.

Rocket Mortgage offers fixed-rate 15-to-30-year loans, 5/1 adjustable-rate VA loans and jumbo VA loans for as much as $2 million with a 10% down payment or equity amount and a 680 median credit score. Rocket requires a minimum credit score of 580 for other loan amounts.

The company also offers conventional and FHA mortgages, in case you want to save your VA loan eligibility for another property.

LoanDepot

LoanDepot is one of the largest mortgage lenders in the country, employing over 4,700 employees in over 200 loan offices across the country as of 2025.

In 2025, LoanDepot generated $1.19 billion in revenue, but it operated at a net loss of $108 million, according to its annual report. Like other mortgage companies, LoanDepot has faced financial losses in the current high-rate environment.

As a full-service mortgage lender, LoanDepot offers a range of mortgage products, including conventional and FHA mortgages and home equity lines of credit (HELOC).

For veterans, military members and their families, LoanDepot offers VA home purchase loans, cash-out refinance loans and interest rate reduction refinance loans.

One of LoanDepot’s disadvantages is its limited customer service availability. They’re available only Monday through Friday, from 5 a.m. to 7 p.m., and Saturdays, 8 a.m. to 3 p.m., all times Pacific. They are not available on Sundays.

PennyMac

PennyMac offers a range of online tools and features, including electronic signatures for loan documents and easy online loan process tracking.

The lender offers fixed-rate mortgages with terms ranging from 10 to 30 years, adjustable-rate mortgages, FHA, investment property and VA loans.

However, if you’re looking for an in-person lender, PennyMac may not be the best for you as they process loans online or over the phone.

Applying for a VA loan with PennyMac is straightforward. You can get started with their mortgage rate quote tool.

United Wholesale Mortgage

Over its 30+ years in business, UWM has grown into one of the largest wholesale lenders in the United States. UWM doesn’t provide mortgages directly to borrowers, instead, it funds them for banks, brokers and other financial institutions.

The lender has seen significant growth in recent years, becoming the number one wholesale lender in origination volume.

UWM offers VA loans up to $4 million for military service members and veterans. They require a 580+ FICO credit score, but likely higher for larger loan amounts.

They also offer a “VA Elite” loan option for veterans and service members with higher FICO scores. These loans offer more competitive rates and pricing.

Freedom Mortgage

Founded in 1990, Freedom Mortgage has grown to become one of the top VA lenders in the country, previously placing an emphasis on VA interest rate reduction refinance loans (IRRRLs).

In 2025, Freedom originated $93 billion in loans, down from $122 billion in 2024, but up from $28 billion in 2023.

In addition to VA loans, Freedom Mortgage also offers conventional, FHA, USDA and jumbo loans at competitive interest rates – although they do not display their rates online, making it difficult to comparison shop.

For borrowers who prefer a face-to-face experience, Freedom Mortgage is one of a few major lenders with brick-and-mortar branches, as well as virtual appointment options.

Find and Compare Top VA Lenders

Take the guesswork out of finding a VA Loan provider. We help you find the right VA lender so you can buy your dream home.

USAA Disclosure: Use of the term “member” or “membership” refers to membership in USAA Membership Services and does not convey any legal or ownership rights in USAA. Restrictions apply and are subject to change. To join USAA, separated military personnel must have received a discharge type of “Honorable.” Eligible former dependents of USAA members may join USAA. Bank products provided by USAA Federal Savings Bank, Member FDIC and Equal Housing Lender NMLS ID 401058.

Equal Housing Opportunity. The Department of Veterans Affairs affirmatively administers the VA Home Loan Program by assuring that all Veterans are given an equal opportunity to buy homes with VA assistance. Federal law requires all VA Home Loan Program participants – builders, brokers and lenders offering housing for sale with VA financing – must comply with Fair Housing Laws and may not discriminate based on the race, color, religion, sex, handicap, familial status, or national origin of the Veteran.

The post The Best VA Loan Lenders for 2026 appeared first on The Military Wallet.

Not sure what to do? No worries! Been there — done that.  

In this article I will clear up any confusion about how military car insurance overseas works, and provide tips on host-nation insurance requirements, shipping your Privately Owned Vehicle (POV) overseas, what to do with your car if you need to store in stateside, and how insurance works if you have to rent or drive a car in the U.S. while on leave, or temporary duty.

This information will help you navigate Outside the Continental U.S. (OCONUS) auto insurance so you can enjoy all that an overseas duty assignment has to offer.

Do I Need U.S. Auto Insurance Overseas?

Once you leave the country, your U.S. auto insurance policy may not be valid. Vacationers are advised to get travel insurance with auto coverage. But as someone who is going to spend significant time abroad, you will need a separate policy. Fortunately, if you PCS to a country with a large U.S. military presence, you can often obtain international auto insurance through military-friendly insurers. For cases where an international policy is not recognized, you may need to get host-nation-specific auto insurance. 

Overseas Auto Insurance

Overseas military car insurance coverage options vary by country, but your policy must meet local legal requirements. Companies like USAA, GEICO (through local affiliates), and Clements Worldwide (now Gallagher) offer car insurance solutions designed for military members stationed in the United Kingdom, Spain, Germany, Japan, and South Korea, to name a few. They will be able to tell you the available insurance options for your PCS destination. You will want to check with your current car insurance company and even shop around to see if they offer international insurance, and what international coverage they offer, if any. 

Host-Nation Auto Insurance

If you can’t get international insurance, or the Third-party Liability (TPL) coverage does not meet legal requirements for that country, you will have to get host-nation auto insurance. This is not an issue because most overseas installations allow local insurance agents to have an office on-base or have an office right outside of the gate. Haven’t arrived yet and want to plan ahead? Military OneSource provides insurance requirements for many OCONUS duty stations. 

I have experience in navigating both cases. On my tour in the UK, I purchased a car from a departing military member (Lemon Lot) and dealt with a host-nation insurance dealer who had an office on base. On a tour in Japan, I opted for an international insurance policy through USAA, which was seamless and convenient.

Understanding Status of Forces Agreements (SOFA) and Insurance Requirements

Status of Forces Agreements (SOFA) are international treaties that outline the legal status of U.S. military members, civilian employees, contractors, and sponsored family members while living or working in a foreign country. These agreements have several parts, such as legal jurisdiction, taxation, and insurance requirements. Here are some key aspects of SOFAs that pertain to OCONUS vehicle insurance requirements:

Mandatory Liability: Even though you or your family may be covered by a SOFA, you are still required to have liability insurance that meets host nation and U.S. military installation laws. These limits often exceed what is required in the U.S. or covered in an international insurance policy.

Minimum Coverage: Specific amounts will vary by country, but countries often require minimum car insurance coverage for both liability and property damage when driving both on and off base.

Here are some examples of standard overseas military car insurance requirements for major military host nations, as of March 2026:

What If I Have to Return to the U.S. on Leave or Temporary Duty?

Many military members stationed overseas come back to the states for training, conferences, or just to take leave. That’s not a problem. Insurance companies like USAA have “U.S. Touring Policies” that cover you if you borrow or rent a car in the states. This is helpful because it prevents a gap in your car insurance coverage history. This policy is usually liability-only and usually does not include comprehensive or collision coverage. Often, it is only available to you if you cancel your U.S. car insurance policy and have no vehicles in the U.S. Fortunately, touring coverage can be very reasonable. 

Another option is to take out a non-owner car insurance policy that is a liability-only policy that covers bodily injury and property damage and serves as secondary coverage when renting or borrowing a car. This type of policy is also reasonable, but more expensive than USAA’s Touring Policy.

Pro Tip: If you are on official orders back in the states, you can take advantage of the U.S. Government Rental Car Program, which includes free liability insurance.   

Shipping Your Vehicle Overseas

Shipping your POV overseas is a multi-step process, but if you just follow some simple rules, you will get through it with no problems. First, you must be entitled to ship your POV overseas at government expense. Unsure if you are eligible? Check your PCS travel orders. When I was assigned to the U.S. Embassy in Ethiopia, I was allowed to ship my car because we were not allowed to purchase a car locally. 

Even if you are authorized to ship your POV, it may be a better option to buy a used car at your duty station, and either sell your car before you depart or put it in long-term storage. For example, if you are moving to England or Japan, remember, they drive on the left. I was foolish enough to buy a Fiat (steering wheel on the left) from a friend during my tour in England, and regretted it every time I had to pass a car.  

Once you have made the decision and are authorized to ship your car, you will have to ensure you follow all military, Department of Agriculture (USDA), and host-nation guidelines to get your car from the U.S. to your overseas duty station.

How Do I Ship My Car Overseas?

The process to ship your POV overseas has become simpler and more streamlined over the years. Here is a step-by-step guide to shipping your POV overseas.

Eligibility

• Make sure the entitlement to ship your car is on your PCS orders
• Confirm your vehicle meets the size specifications (less than 20 metric tons)
• Go to PCSmyPOV to find the nearest Vehicle Processing Center (VPC) and schedule a drop-off appointment

Gather documentation for your VPC appointment

• PCS Orders
• Proof of Ownership or lienholder authorization if it is financed or leased
• Military ID and passport
• Recall printout to show there are no open safety recalls

Prepare your POV for shipment to prevent being rejected at the VPC

• Make sure the fuel level is ¼ of a tank or less
• Ensure:
  • It is “USDA Clean” to prevent the spread of invasive species
  • There are no personal items, toll tags, or parking passes in the vehicle 
  • Alarm systems are disabled
  • It is mechanically sound and safe, with no leaks

Arrival and pick up

• Depending on the destination, it may take 30 to 60 days to ship your POV. You can track the status of your vehicle on PCSmyPOV. 
• The destination VPC will let you know when your POV is ready for pickup
• Make sure you conduct a thorough inspection upon pick-up and compare it to your pre-inspection report (DD Form 788). Report any new damage immediately to file a claim.

How Do I Insure My POV During Shipment?

There are several layers of protection for your POV during transit:

Carrier Liability: The designated government-contract carrier is legally responsible for your vehicle during the trip (capped at $20K). You can settle minor damage immediately with the carrier, or you have 180 days to report significant damage through the formal claim process.

Your Auto Insurance: Don’t cancel your U.S. car insurance when you drop off your car at the VPC! It’s recommended to keep comprehensive and collision coverage until you take delivery overseas. You may be able to get an in-transit rate from your insurance company, which could lower your premiums. 

Supplemental Marine Insurance: If you have a high-value car, you can buy Ocean Marine (transit) insurance to cover the full value of your car. 

What Happens to My U.S. Insurance Policy While Overseas?

You have several options available to manage your U.S. car insurance policy while you are living overseas:

• Cancel your U.S. policy: You can cancel your auto policy completely. This will create a lapse in coverage, which may lead to higher premiums when you return and restart your auto insurance. Be sure to check with the state that issued your license, as some mandate continuous coverage. Not having coverage could result in a fine or the suspension of your license. 

• Switch to a non-owner policy or touring policy: This will provide you with liability coverage so you can drive a rented or borrowed car if you come back to the U.S. temporarily while still stationed overseas.

• Reduce your coverage: Keeping just comprehensive coverage means lower monthly rates while you are overseas.
• Suspend your policy: If you are going on a deployment of less than six months, you may be able to temporarily suspend your car insurance policy and file an affidavit of non-use with the DMV. This will ensure you do not have a coverage lapse. 

Storing a Vehicle in the United States

If you aren’t taking your car overseas and don’t want to sell it, then storing your car is a great option. That requires you to find a secure facility and ensure you have vehicle insurance while you are out of the country. Most leading companies offer storage-only comprehensive coverage to protect against damage to your car while it is in storage. 

You may have to notify your state’s DMV to avoid registration suspension since you won’t have liability insurance. Also, if your car is still financed, your lender may require you to keep full coverage. 

Pro Tip: According to U.S. Transportation Command, you can get reimbursed for storing a POV in a commercial storage facility if transportation is not permitted due to the country, area, U.S. laws, regulations, or you are on a TDY for more than 30 days supporting contingency operation, humanitarian assistance, or other declared emergency operations.

Storage Facility Options

Here are the leading choices when choosing a long-term storage facility for your car:

Commercial Self-Storage: Indoor units that give you the best overall protection from weather and theft. If you get a unit that is climate-controlled, you can prevent mold, rust, and damage to your car’s electronics systems. Some of these companies also offer maintenance services, such as tire pressure checks and regular vehicle starting. You will pay a premium price for this option. The average price for an indoor climate-controlled unit is between $150 to over $400 per month.

Military Base Storage: Some bases offer long-term parking lots and offer very reasonable monthly rental rates. Depending on the installation, your options vary from indoor, outdoor, or covered storage. The average price depends entirely on location. According to SpaceWise, you can pay anywhere from $150 to over $300 per month. 

Covered and Uncovered Vehicle Storage Units: Renting a parking space at a self-storage facility is a more affordable option. You will just need to decide if you want to have your POV protected from the elements. These options may not be the best options for long-term storage needs. For a covered parking spot, look to pay between $150 and $250 per month, and for an uncovered spot, prices run from $50 to $150.

Home Garages/driveways/carports (family or friends): This is the most economical option, but has several drawbacks, such as theft, damage, pest infestation, and/or deterioration. This all depends on how diligent your family or friend is in watching out for your car. 

No matter what option you choose, make sure that you take preventive measures to protect your car while you are away. One idea is to have a professional prepare your car for long-term storage.

Note: Source for the commercial storage rates came from RecNation. Prices were valid as of the time of publication (March 2026) and vary by market.

Car Storage Insurance Requirements

Nearly all facilities require you to keep your POV insured. Insurance companies do offer coverage specifically for stored vehicles, with some offering significant discounts for military members. For example, USAA offers up to a 60% discount on premiums in long-term storage if it is stored in a secure facility, or in covered storage on a military installation. 

Bottom Line

Your existing U.S. auto policy will not be valid for driving your POV overseas, so you will need to get a new overseas military car insurance policy. And navigating auto insurance OCONUS will require you to become familiar with your new duty station’s laws and policies. Getting insured overseas is certainly a new process, but luckily, it’s not a difficult one.

The post Overseas Car Insurance: What Military Members Need to Know appeared first on The Military Wallet.

In fact, according to a 2026 report by Zebra, teens pay, on average, $5,040 per year for auto insurance. And parents of teenage males fork over $50 more monthly than parents of teenage females.

Lack of experience behind the wheel is one explanation for why premiums spike for this demographic. But there are several other key reasons, too.

If you have a new young driver or soon-to-be motorist in your household, it’s important to know what to expect when it comes to coverage, costs, and challenges ahead.

Common Challenges for Military Teen Drivers

“Military families with teen drivers face several unique challenges beyond those of civilian households,” Janet Ruiz, director of Strategic Communication for the Insurance Information Institute, told The Military Wallet. Ruiz helped provide some additional insight into what military families can expect:

“Frequent relocations mean teens must quickly adapt to new driving laws, insurance requirements, and road environments – often just as they are gaining driving experience. Because auto insurance is regulated at the state level, so minimum liability limits, required coverages, and rating rules can vary widely from one duty station to the next. Additionally, adolescents may go from driving in rural or suburban areas to dense urban environments, or vice versa, which changes risk exposure. And teens who split time between parents during deployments or training may drive inconsistently, slowing the accumulation of experience that insurers reward over time.”

Let’s take a closer look at how adolescent drivers affect premiums, strategies to reduce costs, and whether teens should carry their own policy.

Why Teen Drivers Cost More to Insure

There’s no getting around it: Younger drivers cost more to add to a policy. But it’s not just due to inexperience; they have higher crash rates.

“They don’t have enough driving experience for insurers to base rates on the teen’s history, so data is all that carriers have to use in basing rates,” car insurance expert Melanie Musson shared in an interview.

According to national data, 16- to 19-year-olds are involved in crashes at much higher rates per mile driven than older drivers. And teenage drivers have fatal crash rates nearly three to four times higher than drivers aged 20 and older.

“From an insurance perspective, this translates directly into higher claims frequency and severity,” Ruiz said. “The Centers for Disease Control and Prevention and the National Highway Traffic Safety Administration also report that teen drivers make up a small share of licensed drivers but a disproportionately large share of fatal crashes, reinforcing insurers’ risk-based pricing models.”

How Adding a Teen Driver Changes Your Policy

Adding your high school-aged son or daughter to your auto policy will almost certainly result in a premium increase because your carrier now has to cover a higher-risk operator with little to no driving experience. Ruiz says one national analysis shows that adding a 16-year-old can raise premiums by over 150%, on average – although that increase will depend on location, vehicle type, and household structure.

However, if your 16-year-old earns two years of good driving experience, your rates may drop when they turn 18.

Military families should carefully consider their current liability coverage limits if a teen driver is added to the mix. 

Legally required state minimums frequently fall around 25/50/25. This equates to $25,000 in coverage for individual injuries, $50,000 per accident, and $25,000 for property damage. But these meager limits typically fail to meet the high costs of modern medical care and vehicle repairs. That’s why many pros suggest instead carrying 100/300/100 coverage to ensure full financial protection against personal liability.

“Teen drivers create more exposure, which is why insurance agents might suggest increasing liability limits or even adding an umbrella policy for extra protection against assets and income,” said Lauren McKenzie, an insurance agent with A Plus Insurance, in an interview with The Military Wallet.

She also notes that adding a teen driver to your policy creates a multi-driver household.

Ways Military Families Can Reduce Teen Driver Insurance Costs

Adding your teen to the policy may result in sticker shock. But you can soften this blow by pursuing discounts and following best practices. Here are some ideas for military families:

• Good student discounts: Many insurers offer discounts (often 5% to 25%) for students who maintain a B average or higher or rank in the top 20% of their class. “Insurers view strong academic performance as a proxy for responsibility and lower risk,” Ruiz said.
• Safe driver discount: Avoiding tickets and accidents over time leads to lower premiums. “Just be aware that most teens won’t qualify for a safe driver discount because you have to have three years of good driving experience first,” Musson said.
• Multi-policy discount: Bundling auto insurance with homeowners or renters coverage often provides additional savings – especially with military-focused insurers.
• “Away at school” discount: “Drivers attending college may qualify for a discount if they go to a school that’s more than 100 miles away from their primary residence and they leave their car at home,” Musson said. This discount can yield savings of 15% or more.
• Driver education programs: Completing an approved driver education or defensive driving course can reduce premiums by demonstrating structured training and lower risk, particularly for newly licensed teens.
• Telematics program: Telematics programs use apps or devices to track driving habits such as speed, braking, mileage, and time of day. “Safe driving can earn discounts typically ranging from 5% to 30%, while also encouraging better habits behind the wheel,” Ruiz said.

Additional Military Family Cost Savings:

• Family loyalty/legacy discounts: Some carriers that specialize in coverage for military families (like USAA) reward multi-generational households with discounts of up to 10% when a child is added to a policy or gets their own policy.
• On-base garaging credits: If your family resides on a military base, you may qualify for a military installation/garaging discount. Because base housing is gated and patrolled, some carriers offer up to a 15% reduction on the comprehensive portion of your premium due to the increased security of the environment.
• Inquire about a deployment-related discount. If you or your spouse is deployed, some insurance companies provide a deployment discount or allow for a temporary reduction in coverage for cars that are less used. This reflects the lower overall risk for the household while a primary driver is away on orders.

How PCS Moves Affect Teen Driver Insurance Rates

Permanent Change of Station (PCS) moves can impact teen driver insurance rates significantly. State laws and local risk factors are a driving factor in rate differences.

“For example, a military family moving from a rural state to a large metropolitan area may see higher premiums due to increased traffic density, higher accident rates, and greater theft risk,” Ruiz cautions.

Case in point: Relocating from a rural post like Fort Huachuca, Arizona, to a new base in San Diego could, hypothetically, create a double-hit on your budget, according to McKenzie. Adding an adolescent in Arizona might bump up your premium by 70%, bringing the total to $3,060. But if this same family lived in San Diego, their rates could jump to $4,800 after the teen driver is added. That equates to a staggering $1,740 increase caused solely by the PCS.

Mentioned rates are for example purposes only and may not be available.

“Each state has its own required coverages with varying liability limits and additional state coverages, which will all impact your premium,” McKenzie says. “Arizona, for example, requires lower liability limits than California.”

When Teens Should Get Their Own Insurance Policy

Wouldn’t it just be easier and cheaper for your teenager to get his or her own car insurance policy? Probably not, the experts agree, particularly if the teen’s primary address is their parents’ address (which remains true even if they live on campus attending college).

“Teens usually remain on a parent’s policy as long as they live at home and drive family vehicles. Standalone teen policies may be more expensive because they lack multi-driver, loyalty, and multi-policy discounts,” Ruiz said. “A separate policy can make sense, however, if the teen owns a vehicle in their own name, lives independently, or enlists in the military.”

Musson notes that if a teen enlists, “they will likely have their own address after graduating from basic training and getting assigned to their first duty station, which means they will need their own policy at that point.”

She points out that, so long as you, the military parents, have insurance coverage with USAA, your non-military children can still qualify for USAA coverage on their own as adults.

“I recommend that teen drivers stay on their parents’ policy as long as they can, and maybe even help with the premium since it is going to be a large increase,” McKenzie cautioned. “The more experience younger drivers get as the years go by, along with maintaining continuous insurance and a clean driving history, the lower the insurance premiums will become over time.”

Bottom Line

The fact is, once your teen starts driving, you can expect your insurance premiums to go up. But the good news is that your military family may qualify for more discounts and cost savings than non-military families.

“Planning ahead is crucial. Talk with your insurance agent and get a referral for your new town if you are being relocated. Notify your carrier promptly before a PCS, review your coverage limits annually, and ask specifically about military-friendly discounts and programs,” recommends Ruiz. “Also, encourage your teen to maintain consistent, supervised driving and a clean record in the first few years. This can lead to meaningful long-term savings, as insurers typically reduce rates as teens gain experience without accidents or violations.”

The post Teen Drivers in Military Families: What You Need to Know appeared first on The Military Wallet.