The cost of electricity has risen sharply in recent years, increasing nearly 50 percent from roughly 13 cents per kilowatt-hour in 2019 across the United States to about 19 cents in 2026, according to federal data. Overall household utility costs now average more than $4,000 annually, driven by rising energy demand, infrastructure upgrades and higher operating costs.

That pressure of rising costs is hitting military households in a unique way. While BAH is intended to offset housing expenses for service members living off base, it is primarily tied to housing rental markets and not to rapidly changing utility costs. As energy prices outpace adjustments to these military pay and allowances, some households may be absorbing the difference.

Data Centers

One emerging factor behind rising energy demand is the rapid expansion of data centers, such as those powering artificial intelligence systems.

The U.S. Energy Information Administration in March 2026 identified 196 companies operating data centers across Texas, Washington state, and the Northern Virginia-DC region as they work to evaluate energy consumption in data centers through pilot field studies. 

These modern data centers require an enormous amount of electricity to run servers and keep them cool, and utilities are investing heavily to meet that demand. The growth of these centers, especially in regions like Virginia and Texas, is placing increasing strain on power grids in those areas.

Energy economist at UC Berkeley Dr. Severin Borenstein directed The Military Wallet to a blog he’d written on the topic where he stated that, “there is much more to the relationship between demand growth from AI data centers and your electricity rates than has gotten coverage.”

“Just as gentrifying neighborhoods raise rents for long-time residents, this new power demand boosts prices for all buyers in the energy market,” Borenstein stated in the post. “If a retail electric supplier has locked down long-term contracts, then its customers are less exposed to the scarcity, but most utilities and competitive retailers still buy much of their juice at short-term prices. And as they go into the market to sign new contracts, they are competing with all buyers, including large data centers.”

He added that while there is valid reason for concern about a short-term price spike, extensive evidence also points that supply will respond and eventually drive prices down again. 

Until they are driven down, however, those costs could trickle down and be spread across a broader customer base through rate increases and infrastructure investments. That means residential users, like military families living outside of military bases, could already be feeling the impact on their monthly bills.

Military Allowance Gap

For servicemembers relying on BAH, the issue isn’t just rising costs; it’s timing.

BAH rates are updated annually and based largely on local housing rental data, with the Department of War historically aiming to cover about 95 percent of housing costs. But utilities, like electricity, can fluctuate far more frequently, and they are not directly factored into those calculations.

The result is a potential gap: as energy costs rise faster than the adjustment on housing allowances, families living off base may find themselves paying more out of pocket to maintain their same standard of living.

For U.S. Air Force Senior Master Sgt. Jana Blanchard, living north of Virginia Beach, the sting has been noticeable.

“It’s outright ridiculous, because I was paying in the hundreds, like $120-130, somewhere around there, that’s what my bill has been since I’ve gotten here,” she told The Military Wallet. “And then, the last one was $240.”

Stationed at Langley Air Force Base, Virginia, Blanchard rents a two-bedroom townhouse for herself and her dog, Chazz. She said she is gone at work most of the day, and while she’s home, her main energy consumption includes plugging in candle warmers and doing a load or two of laundry on the weekends. 

“I’m girly-pop; I burn candles and then none of my lights are on when I’m home,” she said. “The only thing I’m using, really, would be the internet, and then, obviously the heat and AC.” 

Jana Blanchard is stationed at Langley Air Force Base, Virginia and has experienced rising energy bills while living on BAH.

Headquartered in Richmond, Virginia, Dominion Energy provides regulated electricity service to 3.6 million homes and businesses in Virginia – including Jana’s – North Carolina, and South Carolina.

Spokesperson for the company Craig Carper told The Military Wallet that electricity demand in Dominion Energy’s service territory is growing at the fastest rate since the post World War II construction boom. 

“It took our company over 100 years to reach our current average daily load of 20GW,” he said. “We will double that load in 15 years.”

Carper confirmed that data centers are driving the majority of this new demand but there are other factors at work including: 

• Population growth
• Non-data center industrial growth
• Electrification
• Increasingly cold winters and hotter summers

He noted that heating and air conditioning are the largest drivers of home energy consumption.

Blanchard came to Virginia from Tampa, Florida, where she was stationed at MacDill Air Force Base. Compared to Florida, Blanchard said that this winter was “extremely cold,” but that she only bumped the heat up to 66 degrees. 

“Due to the historically sustained cold winter we experienced in 2026, most of our customers’ bill totals doubled or tripled between November and January,” Carper said. “This affected customers across the board. Heating and cooling make up the single greatest percentage of customer’s bills by far and sustained extreme temperatures unavoidably increase bills.”

Questioning where the tacked-on cost could have come from, she scoured her energy bill but only noted a few minor spikes in usage throughout the month.

“Once I saw 240 I’m like, ‘Absolutely not,’” she said. 

Carper said that the largest cost drivers for customers have been inflation-related including the increasing cost of grid equipment and fuel. The Virginia-based company recently adopted several key changes recommended by the state including: creating a new, higher rate class for data centers and requiring new data centers pay for 85% of their estimated usage for 14 years up front. 

“The cost of capital projects are borne by all customers but the important changes mentioned have been made recently to ensure that data centers continue to pay their fair share,” Carper said. “New data centers are a leading growth factor statewide but more in Northern Virginia than other regions. However, we have to look at our grid holistically and ensure that we have enough energy for all 2.8 million customers. Customers are charged the same rates across our entire service territory, though data centers are now charged a higher rate.”          

Air Force Master Sgt. Kristopher Abney is also stationed at Langley AFB and has been living there since 2018. He lives in a dual-income household with his wife and their three children. 

The family noticed a spike in their energy bill over the winter months, but attributed it to their multiple holiday light displays. They said their electric bill never topped $200 this past winter. 

“Unfortunately, inflation is a fact of life,” Carper said. “The cost of all goods and services in the economy go up over time. Specifically, inflation for supplies and fuel is expected to continue but the rate and extent of that inflation is hard to predict.”

Abney did mention that this family’s gas bill had exceeded $300 in one month and they weren’t as confident on the reason for the spike. They also saw their mortgage increase $250 due to real estate taxes and insurance and their water bill more than doubled over a short time period. He said those increases can really strain military households which live on a fixed income.

“If we get that blow where it’s like you’re not expecting to pay that extra $200, $300, that could really set you back,” Abney told The Military Wallet. 

‘People are struggling’ 

Erin Pierson, community advocate and who recently ran for Senate in Green County, Pennsylvania, is doing everything she can to protest a new AI-data center coming to their area. 

Land development for Project Hummingbird, which involves building a power island with the goal of attracting a hyperscale data center, was approved in December 2025. Plans for the project call for 309 acres to be disturbed in what will eventually be a 1,400-acre complex that sits along the Monongahela River. 

Borenstein proposes that there are a lot of electricity network fixed and public policy costs that can be spread over more kilowatt-hours, thereby lowering the markup a utility has to charge to cover those network costs. He offered, however, that that outcome is not guaranteed. 

“We’re already struggling with electric; people are struggling, blue collar America, the people who actually work for these companies, are struggling to even pay their light bills, or their water bills, and they have come to me, and I’ve helped get resources for them,” Pierson told The Military Wallet. 

Resources to help

Eligibility for BAH is determined based on a service member’s rank, dependency status and duty station zip code. Any service member not residing in furnished government housing is eligible for BAH as long as they are assigned to permanent duty within the 50 United States. Service members below the rank of E-5 typically reside in barracks unless they have dependents or have been approved to live off base through unit commander endorsement and garrison commander approval of an Exception to Policy. 

The BAH rates are designed to reflect demographic, economic, and housing construction changes to capture an accurate picture of true market conditions, according to the Defense Travel Management Office. While BAH rates may fluctuate up or down from one year to the next, the Department of War administers a BAH rate protection policy ensuring members do not receive a lower rate from one year to the next so long as they remain eligible for the allowance. 

To calculate BAH for a specific zip code, anyone can use the BAH calculator on the Defense Travel Management Office. They depend on cost of living factors in each region. Rates in 2026 increased by an average of 4.2%. 
There are specific military organizations aimed at helping service members and veterans facing financial crises. 

• Operation Homefront offers emergency financial assistance, including utilities, for military families through partnership with donors such as Black Rifle Coffee Company, the Home Depot Fund and others. 
• USA Cares helps veterans with essential bills like utilities during financial hardship.

For Dominion Energy customers, Carper said there are programs and savings tips at dominionenergy.com/savemore.

Additionally, some utilities offer direct veteran assistance grants often ranging between $500 and $1,000, or payment relief programs. Military families in need can also call the free, 24-hour national hotline 211 to connect with local aid, including utility-specific payment plans and state-run assistance programs.

The post Rising Electricity Bills Are Squeezing Military Families and AI Data Centers Won’t Help appeared first on The Military Wallet.

When you’re looking at your monthly expenses before a deployment, it’s natural to zero in on things that aren’t being used. You’re not at home to watch TV, so you suspend your streaming services. You’re not driving your car, so car insurance might seem like another easy bill to pause.  

But auto insurance isn’t just about covering accidents. You may have legal requirements to the lender or the state. And there are future financial implications of going without insurance. Canceling it entirely can come with hidden consequences that last long after deployment ends. For most service members and their families, canceling car insurance during deployment is a decision that can create more problems than it solves.  

Let’s unpack why keeping at least some level of insurance is nearly always the smarter move, and explore the options you actually do have to reduce costs without giving up protection.

Lenders Often Require Insurance 

If you’re still making payments on your vehicle or you have a leased vehicle, your lender almost definitely requires continuous coverage as part of the loan contract. They have a financial interest in the vehicle until the loan is paid off. They want to ensure it’s protected if it’s damaged or destroyed.

If you cancel your insurance while still financing or leasing the car, the lender will almost certainly step in. They can purchase what’s called force-placed insurance on your behalf, a policy that only protects the lender’s financial interest, not yours. And they’ll tack that premium right onto your loan payment. Force-placed insurance is notoriously expensive and offers no liability or personal protection for you.  

So even if the car is sitting in the driveway or storage, and you’re not driving, you don’t want to trigger that clause. Keeping some coverage in place avoids the paperwork, the cost, and the potential hassle of reinstating your own policy later.

States Have Insurance Requirements

Even if you own your car outright, your state may have insurance requirements. Most states require registered vehicles to carry a minimum level of insurance, regardless of whether they’re being driven. If your state’s motor vehicle department receives notification that your insurance was canceled, they can automatically suspend your registration or even fine you. When you get home and want to drive again, reactivating registration or removing a suspension can cost time and money.

If your car is staying stateside and still registered, the simplest (and safest) course is to keep at least minimal coverage.

Maintaining Your Insurance History

Insurance companies use your history of continuous coverage to determine your risk profile. (Another big factor is your credit.) Policies with large gaps in coverage are deemed riskier. That means when you return from deployment and go to reinstate your policy, the insurer might classify you as a lapsed customer. That can lead to:

• Significantly higher premiums for at least six months to a year, or even longer 
• Fewer options for coverage

For example, let’s say you cancel your car insurance while you’re doing a regular Navy deployment. When you return and try to start a new policy, you could find your rates are significantly higher than before you left. 

That means even if you’re financially responsible, a deployment-related gap could lead to higher premiums for years afterward simply because the system doesn’t distinguish deployments from other, more negative reasons why someone would have a gap in their insurance history.

Saving Money on Your Auto Insurance

Thankfully, you can still impact the cost of your auto insurance by making strategic changes to your policy.

First, think about how much your vehicle might be driven while you’re gone. Will the car be in your driveway or locked away in a storage unit? Will your spouse drive it occasionally, or could a friend borrow it? If you have a pickup truck, it seems like someone always needs to borrow it, right?

If you plan on leaving your vehicle with a spouse, child, roommate, or friend during deployment, canceling insurance is completely off the table. Even if they rarely drive it, the car needs at least liability coverage, both legally and financially. In these scenarios, you can do one of two things. 

Add Drivers to Your Current Policy

The safest bet is to keep your current policy active and list the other driver as an authorized user. Another option, if the vehicle is jointly titled, is to have the other person get their own auto policy on the vehicle. The important thing is that anyone who might drive the car remains insured to avoid major legal or financial fallout if something happens while you’re away.

If your car absolutely, positively isn’t going to be driven, you may have more options.

Storage Your Car & Adjust Insurance Coverage

Many insurance companies offer what’s called storage coverage, comprehensive-only coverage, or similar policies for situations like deployment, long-term travel, or seasonal vehicle storage. This type of policy removes collision and liability coverage but keeps comprehensive coverage intact. That means your car is still protected against theft or attempted theft, vandalism, fire, water damage, rodent damage, and falling debris such as tree limbs. 

Without comprehensive coverage, you’re left to pay for any repairs or losses out of pocket—including total loss if the car is stolen. Since comprehensive-only coverage is much cheaper than full coverage, this can cut your monthly premium while preserving your continuous coverage status.

Alternatively, you can reduce or remove coverage that you don’t need while the car is stored. This might include add-on coverage like rental reimbursement, lower deductibles, and higher mileage options. 

Call Your Current Auto Insurance Provider

Before you deploy, call your insurance company or your agent and explain the situation. Most major insurers have military-specific programs or special deployment options. Some insurers even have a military deployment status that pauses some of your coverage without counting as a lapse. You might need to show deployment orders, but it can save a ton of hassle.

This is one of those times when having a human agent—or at least calling customer service instead of just clicking “cancel” online—is absolutely worth it.

Downgrade Your Auto Coverage

A downgrade, such as switching to comprehensive-only, is even simpler. It keeps your policy active and can be reversed the moment you’re back. Keeping some level of coverage retains your loyalty discounts, longevity credit, and no-claims history, which are all typically erased if you cancel.

Pre-Deployment Car Insurance Checklist

If you’re preparing for deployment and your car will be staying behind, here’s what to do instead of canceling your policy:

1. Contact your insurer to explain your upcoming deployment and discuss your options.  

2. Ask if they offer a storage or deployment discount or if you can switch to comprehensive-only coverage.  

3. Ensure your lender approves the change if the car isn’t paid off.  

4. Store the car properly.

5. Keep the registration up to date if you plan to keep it insured.  

6. Add or confirm drivers if someone else might drive the car occasionally.

A simple phone call can save headaches later—and often saves serious money, too.

Even then, plan to restart a policy quickly after your return so the gap doesn’t stretch too long. Keep documentation of your deployment orders and plate turn-in, just in case you need to prove why coverage lapsed.

It’s tempting to cut costs before deployment, and insurance premiums can feel like an easy target. But canceling coverage entirely can lead to higher premiums, legal headaches, lender issues, and a lot of unnecessary stress later on.

In most cases, the smartest path is to reduce, not remove, your auto insurance coverage. Most insurers have options specifically designed for deployed service members to keep your protection, credit, and compliance intact, while still helping you save money. Keeping your car insured while you’re deployed isn’t just about protecting metal and rubber. It’s about safeguarding your finances, your record, and your peace of mind while you focus on the mission ahead.

The post Why You Shouldn’t Cancel Your Car Insurance During Deployment appeared first on The Military Wallet.

When most people think about buying a car, they usually look at the sticker price and the monthly payment on a loan or lease. But insurance is also a monthly bill that you will pay as long as you own and drive the car. And, it can add several hundred dollars a month to your transportation expenses. 

Some Cars Cost More to Insure

Even similar cars may have vastly different costs to insure. One may cost two or three times more to insure than another. If you only find this out after you buy the car, you may be stuck paying more than you can really afford. Or you may find yourself needing to sell the car (usually at a loss!) because you can’t afford the insurance.

You might think that getting an electric vehicle will save you money, but the reality is, they often cost more to insure. For example, in my specific situation, a 2024 Honda CRV would cost me $117 per month to insure. A 2024 Tesla Model 3 would cost me $175 per month to insure. But I’ve got a long, clean driving history. I don’t drive much. And, I don’t live in a state with particularly high auto insurance rates. For a younger driver in a more expensive state, or someone with a claim on their history, the difference can be much larger. In addition to being electric vehicles, Teslas often have insurance costs similar to luxury vehicles. For me, I would have to weigh the cost of the car and the increased insurance to see if the money I save on gas would offset the other costs.

The cost of insurance depends on many factors, including the driver, the insurance coverage, and the vehicle’s characteristics. Of these three things, the car you choose is the one variable you can easily and safely change. Therefore, checking the insurance cost for each car you are thinking about is a smart way to control your total cost of car ownership.

Some People Cost More to Insure

Insurance companies look at your driving record, including accidents and tickets, and whether you have kept insurance in force in the past. They also consider your age and years of driving, your address, and sometimes your credit history, because these things are linked with claim risk in their data. This information has a big impact on the price. Unfortunately, these are not variables that you can typically control in the short term. 

What You Can Control about Your Car Insurance

Your Insurance Coverage

You have a little more control over the coverages that you choose. You’ll have to purchase at least as much coverage as the state minimum requirements, and you probably want more than minimum coverage. You’ll usually be required to carry both collision and comprehensive coverage if you have a loan. Comprehensive coverage pays for damage to your vehicle, either repairs or replacement. Beyond these requirements (and smart choices!), you can choose coverage levels, extra coverages like rental car reimbursement, and deductible levels. These will all impact your overall insurance cost.

What Car You Choose to Buy

What you do have more control over is the car you choose to drive. Insurance companies have different costs based on what they know about a vehicle. They study how often different models are in crashes, how badly they are damaged, how much they cost to repair or replace, and how often they are stolen. Cars that are expensive to fix or replace, are involved in more claims, or are popular with thieves usually cost more to insure. On the other hand, cars with strong safety ratings and good crash test results may qualify for lower rates or discounts. These cars are favored by insurers because they help protect the people inside and may reduce injuries.

If you compare insurance costs before you buy, you can build a more accurate budget. You will know not just what you will pay for the car, but also what you will pay to insure it every month and every year. That can help you decide whether a car really fits your income and other bills. It also may keep you from becoming “car poor” with a vehicle you love but cannot really afford. It can also help you compare two or three cars that you like. If one car costs a little more to buy but much less to insure, it may end up cheaper overall.

Checking early also gives you time to shop around among insurance companies. Different insurers use different formulas, so the same driver with the same car can see very different prices from one company to another. 

If you start before you are sitting in a dealership office, you can collect quotes from several companies and choose a combination of coverage and price that works best for you. You might also discover military car insurance discounts for things you already have or plan to do, like good grades for students, safe driver programs, or owning a car with specific safety features.

Steps to Picking a Car You Can Afford to Insure

Choosing the car that’s best for you involves many factors. But the following steps may help you get a rough framework of what you should consider:

Make a List of Potential Choices

The first step is to make a short list of cars you are thinking about. For each car, you will need basic details like the year, make, and model. If you are looking at a car already for sale, a listing will often include this information, and sometimes even the vehicle identification number, or VIN. 

The more specific you can be, the more accurate your insurance quote will be. Small changes in engines or trim levels can change repair costs and, therefore, the price of insurance. 

Gather Your Personal Documents

This is not an unfamiliar requirement for service members, families, and veterans. We are used to paperwork. Insurance companies will ask for your name, address, date of birth, and contact information. They will also need information about your driving record and any other drivers in your household. They may ask how many miles you expect to drive each year, whether you use the car for commuting, school, or business, and where the car will usually be parked. 

If you already have auto insurance, have your current policy on hand so you can match coverages and limits when you compare quotes, or share your existing declarations page with the agent.

Get Car Insurance Quotes

Once you have the needed information handy, reach out to at least a few insurance companies or comparison sites for quotes. You can go directly to insurers online, by phone, or through an agent, or use a comparison website. 

When you ask for quotes, try to keep your coverage choices the same each time. Use the same liability limits, deductibles, and extra coverage for each quote so you can truly compare the prices. Be sure to ask or click through any sections for discounts and answer those questions honestly, since they can lower your price.

If you already have insurance on another car, the easiest thing you can do is to contact your current company before you decide on a new car. Many insurers let you log in on a website or app. You can pretend to “replace” your current car with a different one by entering the relevant details. It will then show you what your new premium would be. You can try this with more than one possible car and write down the results. This will quickly show you which options raise your bill a lot and which ones keep it about the same or even lower it.

Review Your Pro-Con List

Once you have quotes, compare them carefully before you buy your car. Look not only at the total price, but also at what you are getting for that price, such as liability limits, comprehensive and collision coverage, and any extras included. 

If one car turns out to be much more expensive to insure than the others, think about whether that extra cost is worth it for you over the years you plan to own the car.

Make Your Purchase & Get It Insured

After you choose a car and an insurance company, you may need to set up the policy before you drive the car home. If you already have a car, your existing policy may cover you for a short period (often 7–30 days) until you get a new policy in place. You will likely also need to show proof of insurance when you register the car.

When you are ready to buy, call or go online to your chosen insurer, confirm the final details for the exact car you selected, and arrange for coverage to start on the day you pick it up. Doing the work ahead of time means this last step will be quick and smooth, and you can feel confident that your new car fits your budget, including the cost to insure it.

The post Can You Afford to Insure Your New Car? appeared first on The Military Wallet.

With pay-per-mile car insurance, your premiums are based on how many miles you drive. Don’t drive much? Cheaper insurance. On the other hand, if your mileage goes up, so do your rates. That could cost you if you suddenly need to make a cross-country move or shift to off-installation living.

Before you sign up for low-mileage car insurance, you need to know when it makes sense and when it’s not the right choice. 

How Pay-Per-Mile Car Insurance Works

Pay-per-mile is a type of usage-based car insurance (UBI), where your rate fluctuates depending on your usage of the car. The pricing structure is different from standard car insurance.

With pay-per-mile car insurance, you won’t have a flat, fixed premium that you pay every six months or a year. Instead, you’ll typically have a consistent monthly base rate plus a per-mile surcharge. 

Pay-per-mile car insurance payments are calculated like this: 

Base rate + (miles x per-mile rate) = monthly rate.

Suppose your base rate is $30, your per-mile rate is 5 cents, and you drove ten miles per day last month (300 miles). Your rate would be $30 plus $15 for the miles you drove (300 x 0.05), or $45 for the month.

To find out your monthly mileage, the car insurance company tracks you while you drive, either with a telematics app on your phone or a device you plug into your car. They collect data on your location, miles driven, and even your driving habits, like hard braking. Interestingly, 80% of drivers who use telematics apps like these reported changing their driving habits, with 45% making significant changes, according to reports from the Insurance Research Council.

Pricing (and tracking) aside, pay-per-mile car insurance offers the same protection as standard car insurance. You can choose your liability limits and coverage amounts and deductibles for comprehensive, collision, and uninsured/underinsured motorist coverage. You can also add medical payments, personal injury protection, or other add-ons where available. You’ll just pay less by driving less.

When Pay-Per-Mile Insurance Saves Money

Pay-per-mile car insurance makes the most sense for people who don’t drive much. The average driver puts 13,476 miles on their car in a year, according to the U.S. Department of Transportation Federal Highway Administration. If you’re a low-mileage driver who drives 10,000 miles or less per year, pay-per-mile car insurance is worth looking into. Pay-per-mile insurance will likely save money for those who put fewer than 8,000 or 9,000 miles on their car.  

If the following situations are familiar, you may be a low-mileage driver:

• Remote work: By eliminating a daily commute to work, your annual mileage could be much lower than the average, potentially by thousands of miles.
• Short commute: The average commute to work is 27 minutes, according to 2024 data from the Census Bureau. If your drive to work is less than that (and you don’t make it up in other ways, like weekend road trips), you might be a low-mileage driver.
• Two or more vehicles: When you have a second car, it’s often used less than the daily driver. If your second car is something “fun,” that you only bring out of the garage when the weather’s nice, check your annual mileage — it could be much lower than average.

Military Situations Where It Can Be Especially Helpful

There are several scenarios where a military member could benefit from low-mileage car insurance. 

Deployment

When you’re deployed, your vehicle might sit in the garage unused for months. Pay-per-mile car insurance can reduce your premiums while you’re away, since you won’t be adding miles. Some insurers, like USAA and GEICO, do offer low-priced storage insurance for vehicles during deployment, but there are often restrictions on how the car can be used and where it must be stored. 

If you’ll be back before the policy term expires, or if a family member might drive your car occasionally while you’re away, pay-per-mile insurance offers more flexibility while maintaining active coverage. 

Guard and Reserve Members

If you’re only driving to the installation once a month plus two weeks a year for annual training, your mileage could be lower than that of a full-time, active-duty member who drives to and from work daily. Plus, if you’ve been activated or mobilized, you won’t be driving your personal vehicle much (if at all), further reducing your miles driven. 

Pay-per-mile car insurance can help you lower your premiums in scenarios like these when your mileage is low. However, make sure you factor in your civilian commute and any other driving, since those miles add up on a pay-per-mile policy.

Leaving Your Vehicle with Family

When you’ve received PCS orders, especially to a duty station overseas, it can make a lot of sense to leave your car behind instead of shipping it to your new home or paying for storage. Your family member can drive it occasionally and keep up with periodic maintenance. If the car isn’t used for daily transportation, the mileage will stay low.

In this case, pay-per-mile car insurance maintains coverage on the car while helping keep costs down. Just keep in mind two important points: the family member who drives the car may need to be named on your policy, since they’ll be a regular driver, and they’ll need to be careful to keep the mileage down, or your costs could jump with additional miles. 

Your Car Is Only Used on the Installation

Living in military housing often means a low-mileage lifestyle. You have a short commute to work, and you’re typically also close to the other places you’d visit, like the commissary or Exchange, which are often close enough to walk. 

If you’re only using your car on the installation and driving short distances, you’re not adding a lot of miles to your car. Since pay-per-mile car insurance is designed for low-mileage drivers like you, it could be a great way to keep your car insurance costs down. 

When It Might Not Be a Good Fit

Low-mileage car insurance won’t always be the best fit. In some scenarios, it can even drive your costs higher than what you’d pay with regular car insurance, since every mile adds up.

Consider whether any of the following situations apply to you before you sign up for a policy.

You Have a Long Commute

A long drive to and from the installation (or your civilian job, if you’re a member of the Guard or Reserves) could mean you won’t see much savings. If your commute is more than a couple of miles, your annual mileage might not be low enough to justify pay-per-mile insurance. You may find cheaper military car insurance options elsewhere. 

PCS Moves with Cross-Country Driving

Sometimes receiving PCS orders means you’ll be driving across the country to your next duty station. When you’re charged a fee for every mile, that can add up fast. 

Even if you receive monetary allowance in lieu of transportation (MALT), the standard reimbursement rate of $0.21 per mile might not be enough to offset your insurance costs. In this case, you may be better off with a standard car insurance policy.

Road Trips Between Duty Stations

Even outside of a formal PCS move, travel between duty stations or extended road trips while on leave can add hundreds of miles very quickly. Pay-per-mile car insurance isn’t the right fit if you’re planning lots of driving, whether for work or play. 

The Unknown

Military life is unpredictable. If you are working on a tight budget and can’t guarantee you can keep your miles low, the unpredictability may not be the wisest financial decision.

Companies Offering Pay-Per-Mile Insurance

You’ll find low-mileage, usage-based car insurance at plenty of insurance companies. Your insurance agent can help you decide if switching up your policy makes sense.

However, military members and their families are smart to do some comparison shopping first. Comparing quotes is the best way to find a good rate on military car insurance. Check out some of the insurance companies that offer pay-per-mile insurance and request a quote, as rates vary by insurer.

Some companies that offer this type of policy nationwide include:

• Nationwide’s SmartMiles program
• Allstate’s Milewise
• USAA’s SafePilot Miles

Depending on the state you live in, you can also find pay-per-mile car insurance with regional carriers, like MileAuto, which is available in eight states. Some companies offer usage-based insurance, which is strictly pay-per-mile, but does take the miles you drive into account when setting rates. GEICO’s program is called DriveEasy, while State Farm’s is called Drive Safe & Save.

Don’t forget to check on military discounts, too. USAA and GEICO are well known for military-friendly car insurance and other benefits, but you’ll also find military discounts at other carriers.

Bottom Line

Pay-per-mile car insurance could be a way to lower your car insurance, but only if your mileage is consistently low each month. When you’re in the military, there are plenty of scenarios where you won’t be driving much, but new orders could change your situation.

If you think pay-per-mile could be a good option for you, ask yourself a few key questions:

• How many miles do you drive each month?
• Is your mileage consistent, or do you swing from nearly nothing to big trips?
• Will your situation change soon?
• Who else will be driving your car?
• Are you good with the insurance company tracking your driving?

Check your odometer and car service records to get an idea of your average monthly mileage. When requesting quotes, use the insurer’s quote tool to get an estimate of how much a pay-per-mile policy could cost. Always compare multiple quotes to make sure you’re getting a good price. Start with our roundup of the best car insurance companies for military members to find a good fit for your current situation.

The post Is Pay-Per-Mile Auto Insurance Worth It for Military Members? appeared first on The Military Wallet.

The 20,000-mile welcome bonus alone is typically worth about $200 in travel, delivering strong first-year value without an annual fee. Pair that with ongoing rewards and no foreign transaction fees, and it becomes a practical everyday card for military households that travel frequently.

Within Capital One’s Venture lineup, this card sits at the entry level of the Venture travel rewards family. It doesn’t include premium perks like lounge access, but it keeps things simple and cost-free.

For military families who want travel rewards without worrying about annual fees, that simplicity is part of the appeal.

Miles can be redeemed toward travel purchases, used to book trips through Capital One Travel, or transferred to eligible airline and hotel partners.

Why It Works for Military Families

The Capital One VentureOne card works well for military households because it offers travel rewards without a recurring fee. Many travel cards charge annual fees between $95 and $550, which can make them harder to justify unless you travel frequently.

With this card, the math is simple: the welcome bonus alone can offset several flights or hotel stays, and you never have to worry about an annual fee reducing your value.

Travel-Friendly Benefits

Frequent travel is a reality of military life, whether it’s PCS moves, leave travel, or visiting family across the country.

The Capital One VentureOne card helps reduce travel costs in a few key ways:

• No foreign transaction fees when using the card overseas
• Miles can be redeemed to cover any eligible travel purchase, including flights, hotels, and rental cars
• 5X miles on select travel booked through Capital One Travel
  

For servicemembers stationed abroad, avoiding foreign transaction fees can save around 1%–3% on international purchases.

Simple, Flexible Rewards

The VentureOne rewards structure is intentionally simple:

• Earn 1.25 miles per dollar on all purchases
• Earn bonus rewards on travel bookings through Capital One Travel

You don’t need to track bonus categories or rotating spending categories. Every day purchases automatically earn miles.

Strong Digital Tools and Security

Capital One is known for its user-friendly mobile app and digital account tools.

Cardholders benefit from:

• Instant purchase alerts
• Virtual card numbers for online shopping
• Ability to lock the card instantly if it’s lost
• $0 fraud liability on unauthorized charges

Those features can be especially helpful for deployed servicemembers who rely on mobile access to manage their finances.

What Really Stands Out

What really makes this card unique is its combination of travel rewards and a zero annual fee.

Most travel cards with transferable points charge annual fees, but the Capital One VentureOne card removes that barrier while still offering flexible travel rewards.

Military Protections & SCRA Benefits

Credit card protections for servicemembers primarily come from two laws: the Military Lending Act (MLA) and the Servicemembers Civil Relief Act (SCRA).

Military Lending Act (MLA)

The MLA applies to accounts opened while on active duty. It caps certain interest rates and requires additional disclosures.

Capital One automatically checks military status using Department of Defense databases when evaluating accounts. If MLA protections apply, they will be applied automatically.

Servicemembers Civil Relief Act (SCRA)

SCRA benefits apply to debts opened before entering active duty. Under SCRA, interest rates on qualifying accounts are capped at 6% while on active duty, and certain fees may be reduced or waived.

Servicemembers must request SCRA benefits directly from Capital One.

Once approved, the benefits apply retroactively to the start of active duty.

Applying & Approval Process

Applying for the Capital One VentureOne card is straightforward.

Eligibility

Applicants typically need:

• Good to excellent credit
• A stable income
• A reasonable debt-to-income ratio

Application Steps

Approval Process

Many applicants receive instant approval decisions. If additional verification is needed, Capital One may request documentation such as income verification.

Approved applicants typically receive their card within 7–10 business days.

How It Compares

The VentureOne card competes with other everyday rewards cards popular among military households. Here’s how it compares to the USAA Rewards Visa Signature® Credit Card and Chase Freedom Unlimited® Credit Card.

When VentureOne wins: You want a no-annual-fee travel rewards card that earns miles and works well for international spending, including options to transfer miles to partners.

When USAA Rewards Visa wins: You prefer banking with a military-focused financial institution and want integrated USAA services.

When Chase Freedom Unlimited wins: You want strong cash-back rewards on everyday purchases, rather than travel miles.

Who Should Consider This Card vs Alternatives

The Capital One VentureOne card is best for you if:

It’s not ideal if:

Maximizing Benefits

Here are a few simple strategies to get the most value from the Capital One VentureOne card:

• Earn the welcome bonus quickly: Spend $500 within three months to unlock 20,000 bonus miles (about $200 in travel value).
• Book travel through Capital One Travel: Earn 5X miles on hotels, vacation rentals, and rental cars booked through the portal.
• Use the card abroad: With no foreign transaction fees, international purchases avoid the typical 3% surcharge many cards charge.

• Redeem miles for travel purchases: Use miles to offset flights, hotels, and rental cars for flexible travel savings.

These strategies help ensure the card delivers consistent value year after year.

Bottom Line

The Capital One VentureOne card is one of the simplest ways to earn travel rewards without paying an annual fee.

For military families who travel frequently but don’t want to commit to a premium travel card, that combination makes it a strong everyday option.

The post Capital One VentureOne Rewards Credit Card: Military Benefits and How to Maximize Value appeared first on The Military Wallet.

Because available military auto insurance discounts and cost-saving opportunities can vary widely from insurer to insurer, we must ask ourselves a few questions. What are the cheapest military auto insurance companies when it comes to premiums, after discounts are taken into consideration? And how can you find the best insurance rates overall? Read on for helpful answers to these questions.

Do Military Members Really Get Car Insurance Discounts?

Fact is, whether you have yet to complete your service or are a veteran, you and your immediate family may qualify for auto insurance savings, often in the form of discounts. Some of these are provided exclusively to military members, and many of these premium markdowns can be combined to yield larger collective savings that reduce the rate you’ll pay. These can include:

• Active-duty discounts that equate to 5% to 15% off base premiums
• Deployment or storage discounts for vehicles stored while overseas. Reducing coverage to comprehensive-only can lower premiums by 50% or more.
• Garage-on-base discounts for vehicles stored on a military installation
• Affinity discounts available for those who have membership in military associations

But it’s smart to temper your expectations a bit, Taylor 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.

“Military auto insurance discounts exist, but they are not as big as they may seem. Yes, many equate to around 5% to 15% savings or more, but a policy without a military discount can sometimes actually be cheaper,” Szostak said.

Lauren McKenzie, an insurance agent with A Plus Insurance, seconds those sentiments.

“Some companies will promote the traditional ‘you can get up to a certain discount,’ but the real savings that military members may actually receive is much less when it’s all said and done,” McKenzie told TMW. “There’s a savings there, but not as grand as you might think.”

Air Force veteran and founder of ABS Tag & Title, Bruce Shields, says he’s discovered that military discounts are really just one factor among many that influence your total insurance bill.

“People often focus only on the discount percentage, rather than the overall premium amount. Insurance companies do a great job marketing these discounts – but in reality, the percentage discount is just one tiny part within the pricing model for insurers,” he notes. “Factors such as where you live, your driving record, and the type of vehicle you drive all hold the biggest weight in determining your premium.”

Insurance Companies That Offer Military Discounts

Many carriers currently offer discounts to military members and veterans, including USAA, GEICO, Liberty Mutual, and others. Here’s a breakdown of popular insurers offering special discounts you may qualify for:

Personal finance expert Andrew Lokenauth points out that USAA is often the most popular insurance option for veterans and active-duty military personnel, and for good reason.

“The company is built around military members and their families, and it operates more like a rate model designed for the military community than a traditional discount structure. Overall premiums tend to run 20% to 30% below market averages,” Lokenauth told TMW. “That’s why it’s often smart to get a USAA quote first as your baseline, and then compare quotes from other companies.”

GEICO, meanwhile, has offered a military discount program for many years, which also includes certain emergency deployment discounts and affiliation savings.

“The other carriers also offer varying discounts, but they are not always as substantial as others may be,” Shields said. “I’ve learned from experience, however, that a company that states they offer a military discount doesn’t necessarily mean they will offer you the lowest price for your premium.”

Taylor Kovar, a Certified Financial Professional, recommends approaching marketing offers from insurers with caution.

“If you see what’s advertised as a military discount actually show up in your premium quote, and it’s tied to something real–like deployment or storage–that’s legit,” Kovar told TMW. “But if it’s kind of vague and doesn’t really move the number, it tends to feel more like branding.”

Military Discounts vs. Standard Affinity Discounts

Additionally, it’s helpful to distinguish true military discounts from other types of discounts that are also available to non-military policyholders.

For example, two of the most common general discounts anyone can be eligible for are: bundling discounts and safe driver discounts. These performance and loyalty-based incentives can be stacked with your military savings. Often referred to as a multi-policy discount (such as when you carry homeowners insurance and auto insurance with the same carrier), bundling can generate a 5% to 25% premium reduction. Meanwhile, a safe driver discount rewards those who have a clean driving record for three to five years, and/or drivers who participate in a telematics (usage-based) program such as State Farm’s Drive Safe & Save or USAA’s SafePilot.

Affinity discounts, on the other hand, required membership in a professional organization, employer group, or academic institution. A separate military discount is typically a flat percentage savings for being a veteran or active duty, but an affinity discount necessitates joining a credit union or a partner group like the Association of the United States Army (AUSA).

Truth is, even if you can’t get a military-related discount with a given carrier, you may still be able to rack up significant savings by qualifying for these other discounts.

Common Myths About Military Car Insurance

In order to understand what is a real discount and what is business PR, it’s also important to separate fact from fiction when it comes to auto insurance. Here are some of the most common misconceptions about military discounts:

• Myth: Officers receive better rates than enlisted personnel.
  • Reality: Insurance companies don’t consider rank. All discounts apply equally to both officers and enlisted personnel. “Your rate is based on your driving record, vehicle driven, garage and location, and credit score in most states. I’ve never seen a policy that prices a colonel differently from a corporal, for example,” said Lokenauth.
• Myth: All companies offer military discounts.
  • Reality: Many do not. It pays to shop around and learn who does and doesn’t. Although some insurers, like USAA, GEICO, and Liberty Mutual, may provide nationwide military savings, many major carriers do not. Progressive, State Farm, Allstate, and Travelers typically don’t, but they do in Louisiana, where these carriers are legally required to offer a 25% discount to active-duty personnel.
• Myth: USAA is always the cheapest.
  • Reality: “This is not always the case,” said Shields. “USAA is one of the best providers in the industry, but I’ve seen certain situations where one of the other carriers was actually cheaper than USAA, depending on factors like vehicle type, garage location, and driving record.”
• Myth: A military discount means you are guaranteed to get the best overall rate.
  • Reality: “A company offering 15% off a $2,000 annual base premium will save you $300. But a company with no military discount that provides a $1,400 per year base rate still wins. The discount alone is not the whole story,” said Lokenauth.
• Myth: You’ll automatically receive the best rates if you stick with the same insurance company.
  • Reality: “Your rates can go up substantially over the years, even though you’ve been with the same carrier for a significant amount of time,” said Shields. “You might be better off shopping around and seeing what other companies have to offer.”

How to Avoid the Marketing & Get The Best Insurance Rates

Eager to score the lowest possible premium? It pays to follow best practices and proven strategies. Here’s what the experts recommend:

Shop Around

Get quotes from several different carriers every year before it’s time to renew your current policy. “Shop regularly, especially before or after a PCS move, after a deployment ends, or when you experience any major life changes,” said McKenzie. Remember that moving to a new state can change your rate more than any discount ever could.

Ask about All Available Discounts

Don’t just assume that the carrier knows you are a veteran or active-duty military member. Inform them when shopping around, and ask about all eligible discounts.

Take Advantage of “Storage Status”

Planning to head out soon on orders and leave your vehicle behind? Transition to a “comprehensive-only” policy or “seasonal” status. Doing so eliminates costly liability and collision coverages that aren’t necessary while the car is parked, potentially slashing your bill significantly.  

Capitalize on the Security of Installation Living

Mention if you live in military housing to potentially trigger a “garaging” credit, which rewards the extra safety provided by military police and secure checkpoints.

Request a Deployment-based Rate Adjustment

If a primary driver is called away on orders, many insurers will lower premiums to reflect the reduced vehicle usage and overall household risk during that period.

Unlock Family Loyalty Rewards

Don’t overlook “legacy” programs that offer up to a 10% discount for young drivers transitioning from a parent’s military-affiliated policy to their own.

Modify your Deductible

By moving from, say, a $500 to a $1,000 deductible, you could potentially cut 15% to 30% off your collision and comprehensive costs. For military families, the best practice is to offset this higher risk by keeping the equivalent deductible amount in a high-yield emergency account, ensuring you are never caught off guard by an unexpected repair bill.

The Bottom Line

Remember: The best-advertised discount may not be the cheapest policy. And the cheapest policy isn’t always the best one. Military members like you often face unique situations, overseas deployments, and frequent relocations that require a policy flexible enough to handle those changes.

“I’d rather pay a bit more for a policy with deployment flexibility than save $20 a month with a rigid insurer that creates headaches when I’m stationed overseas,” said Lokenauth. “Also, read the fine print carefully on deployment and storage clauses. That’s where the real differences between insurers often show up.”

“The main number you should be paying attention to is what the final bill actually comes out to,” said Shields. A real discount is one that actually reduces your insurance bill and doesn’t inflate another part of the policy to make up for the discount. Don’t let PR fool you. Advertised military discounts are just a factor in deciding what auto insurance is best for you and your family.

The post Military Discounts on Auto Insurance: What’s Real and What’s Marketing? appeared first on The Military Wallet.

If you have a lapse in coverage for auto insurance, you could be paying higher premiums for a year or more as you rebuild your insurance record. 

About 15% of drivers let their coverage lapse, according to a 2023 TransUnion report. If you’ve had a lapse in your car insurance coverage, it is possible to get covered again. We’ll help you identify ways to avoid a coverage lapse, even if you’re preparing for deployment or a permanent change of station (PCS) move. You’ll also learn how to reinstate your coverage after a lapse and ways to keep your premiums manageable.

What Counts as a Coverage Lapse?

Any gap in continuous coverage could count as an insurance lapse, but there are several common situations you should watch out for:

Missed Payments

If you forget to send your premium payment, or send it in late (past your insurer’s grace period), your insurer could cancel your policy. Policy cancellation means you no longer have valid insurance coverage. 

Some insurers offer a short grace period for late payments, but the length varies by company and state. Typically, a payment that arrives a day or two late doesn’t result in a cancellation. However, a grace period is just that–grace extended by your insurance carrier. They can still cancel your policy for nonpayment if you don’t pay your premium on time.

Letting Your Insurance Expire

If you don’t renew the policy and pay the premiums to extend your term, your coverage will lapse, and you’ll be left without insurance. Even a one-day gap between policy terms can count as an insurance lapse.

Insurer Nonrenewal

Sometimes, your insurer will decide they no longer want you as a customer, even if you’ve been making your payments on time. They can decide not to renew your coverage at the end of the insurance term. This could be because they’re writing fewer policies in your area. Or, it could be because of something you’ve done, such as being cited for a DUI.

If you don’t take steps to find coverage elsewhere before the policy ends, you’ll face a lapse in coverage.

Canceling Insurance

Canceling insurance before a deployment is a common mistake military members make that causes a lapse in coverage. They assume that since they’ll be deployed and not using their vehicle, they might as well cancel coverage and save the money. Some insurers offer storage or reduced-coverage options during deployment that can help you avoid a lapse in coverage.

Fully canceling your policy can create a lapse. This is especially true if you still own a registered vehicle, as carrying valid auto insurance is a registration requirement in most states. Even if you sell the car, you should still make sure to surrender your plates to ensure it’s no longer registered in your name. Any vehicle still registered to you when you don’t have insurance could trigger a flag for coverage lapse on your insurance record.

Common Military Reasons for Insurance Coverage Lapses

As a military member, you face constant transitions that most civilian drivers don’t, which can make it easier to accidentally let your insurance lapse. Some of the more common military-related reasons for a gap in coverage include:

Deployment Confusion

As mentioned earlier, when you’re preparing for deployment, you might be unsure of what you need to do about day-to-day matters like car insurance. How will you pay your premiums? What are you paying for if you won’t be home to drive your vehicle? Will your family members continue to drive the vehicle?

Although it seems to make sense to cancel your coverage or let it expire to eliminate the hassle, that just creates new problems. Not only could you face a tougher time finding affordable insurance when you return, but going without insurance means you’d be on the hook financially if anything happened to your car while you were away.

Overseas PCS

An overseas Permanent Change of Station (PCS) move to an area Outside the Continental United States (OCONUS), brings even more complexity. Will you be able to bring your vehicle? Regulations allow for only one privately owned vehicle per family to be shipped for an overseas duty assignment, if authorized by your PCS orders. Otherwise, you may need to sell or store it. Will you need overseas car insurance? You may be tempted to go without the car and cancel your insurance, but that could still cause a gap in your coverage record. 

Storing Vehicles

If you’re storing your vehicle on base, at a commercial storage facility, or at a Vehicle Processing Center (VPC), you’ll still need to maintain insurance. This is especially true if you have an auto loan, as most lenders require you to maintain collision and comprehensive on a financed car. As with other situations, you may be tempted to forgo insurance, but it’s not a good idea.

Changing States and Missing Registration Requirements

If you’re moving every year or two, it’s easy to lose track of the registration requirements for your current state of residence. You might not realize you forgot to update your registration, or perhaps you thought you had 60 days to complete it, when you only had 30 days. In cases like these, it can be all too easy to accidentally let your insurance lapse.

Why Insurance Is More Expensive After a Lapse

Auto insurers are in the business of evaluating risk. They use historical data and sophisticated risk modeling techniques to assess their expected losses and price their products accordingly in order to stay profitable.

Armed with all of that data, they examine your driving history and insurance record to decide your risk profile, including the likelihood you’ll file a claim and how costly that claim might be.

Since their risk assessment shows that uninsured drivers are more willing to take serious risks, like driving without insurance, they charge higher premiums when your insurance record shows a coverage lapse.  

Insurers use this risk-based pricing approach to offer the same coverage at different price points depending on your risk profile. When your risk profile shows you are less likely to be involved in an accident or file a claim, then your premiums are usually lower. However, it can take months to rebuild a history of continuous coverage. So, your rates will likely stay high even after you reinstate coverage.

Not only will insurance be more expensive, but you may lose your insurance discounts. Depending on your state, a lapse can also trigger penalties such as fines, registration suspension, or reinstatement fees.

How to Get Auto Insurance Again

Regardless of why you lost auto insurance coverage, it’s important to get covered again. Here’s how.

Compare Insurers

Compare rates from at least three insurance companies to find good coverage at a good price. Most people (77%) only shop one or two insurers before choosing coverage, which means they could be overpaying. Check rates for similar coverage limits and deductibles for the most accurate comparison.

Consider Non-standard Insurers

Going without insurance in the past could mean your selection of insurers is limited. If standard carriers won’t cover you, even at higher rates, or if you need an SR-22 (certificate of insurance or a financial responsibility filing) filed with your state, you might need to turn to a non-standard insurer to get covered. These insurers specialize in policies for high-risk drivers. Although premiums may be higher, it can be worth it to begin rebuilding your coverage history.

To find a company that offers nonstandard insurance, the Insurance Information Institute recommends contacting your insurance professional or your state’s department of insurance. You can also search for “Automobile Nonstandard Liability” or “Automobile Nonstandard Physical Damage” on the Roughnotes website, an industry publication that lists nonstandard insurers by state. Some insurance companies offer nonstandard insurance in addition to standard policies, while others, like Dairyland, specialize in covering higher-risk drivers.

Maintain Continuous Coverage Moving Forward

Take steps to ensure your policy doesn’t lapse again. This could mean setting up autopay, so you don’t miss a payment, or making sure to keep coverage during your next deployment. Remember, with some insurers, you can choose to suspend coverage during deployment instead of canceling it. That can reduce your costs while keeping you insured.

Improve Your Driving Record

Since insurers are so attuned to your risk profile when setting premiums or even when deciding whether to cover you, it’s worth it to be extra careful. Accidents and violations can stay on your record for several years, depending on your state, driving up your premiums and making insurance more expensive. Avoid situations that can lead to accidents, obey all traffic laws, and drive the posted speed limit. It could help to take a defensive driving class as a refresher — and then you might be eligible for a safe driving discount, too. 

How Military Members Can Reduce Higher Premiums

Even with a lapse in coverage in your insurance history, you can take steps to reduce your premiums. Here are a few ways you can save on military car insurance.

Safe Driver Programs

Many of the best auto insurers offer discounts for safe driving, rewarding you for maintaining a streak of accident-free driving. But there are even bigger discounts available when you sign up for a safe driver program, known in the insurance industry as telematics. These programs track your driving habits with an app on your phone (or a device in your car). They know if you’re speeding, texting while driving, or braking suddenly. If you can keep up with safe driving habits, you can save money on your insurance when it’s time to renew.

Military Discounts

Many insurers offer discounts to active military members, veterans, and their families. Some, like USAA, specialize in tailoring auto insurance to military members. You can find specialized military discounts for things like storing your vehicle during deployment or garaging it on base. Always ask what discounts you’re eligible for so you don’t miss out.

Bundling Policies

Often, combining your homeowner’s or renter’s insurance with auto insurance from the same provider can save you money. Ask your insurer whether they offer bundle discounts, and run the numbers to make sure bundling is more affordable than buying each policy separately.

Increasing Deductibles

Raising your deductible typically lowers your premium, because you’re taking on more of the cost after filing a claim. If you can afford it, see what raising your comprehensive and collision deductibles will do to your rates. It could be a good way to bring your costs down until your coverage lapse is no longer an issue.

Bottom Line

Coverage lapses happen, especially during major life transitions like military service. If you’ve had a gap in coverage, it’s possible to recover quickly. Take steps to get covered as soon as possible, and put some strategies in place to prevent it from happening again, such as autopay or suspension during deployment. 

As you maintain continuous coverage (and safe driving habits), you’ll rebuild your insurance history. And, eventually, your premiums will become more affordable again.

The post How to Get Auto Insurance After a Lapse in Coverage appeared first on The Military Wallet.

Most states and lenders expect you to keep at least some level of insurance on a registered or financed vehicle. While you might not need coverage for driving (like liability or collision), you probably still need protection from theft, weather, or vandalism—especially if the car is going to sit for months.

Before canceling or reducing your policy, make sure you understand:

• State insurance requirements
• Lender or lease obligations
• Your financial risk if something happens to the vehicle

Your Deployment Insurance Checklist

Check Your Loan/Lease Requirements

First, if you don’t own your car outright, you want to check your loan or lease requirements. Most lenders require you to keep both collision and comprehensive coverage for the life of your loan or lease. Dropping coverage without checking might violate your contract. 

It’s possible this will cause the lender to add costly “force-placed” coverage to your contract. This insurance is purchased by the lender and is typically much more expensive than insurance you would get yourself. Plus, it typically protects only the lender’s interest in the vehicle, not your interests.

Check Insurance Laws

Then, you need to check with the insurance laws where the vehicle is registered, and possibly also where it is insured. Every state has its own insurance laws. Some require liability coverage as long as the vehicle is registered, even if it isn’t being used. Others may allow you to suspend liability coverage. It’s possible you might need to prove that the car is in storage.

Don’t forget that your current auto insurance likely covers you for vehicles you use elsewhere in the U.S. This might include borrowing a friend’s car if you’re TDY near their home, driving a rental car while on R&R during deployment, or using a family member’s vehicle if you have to come home on emergency leave. You’ll want to maintain this protection if there’s any possible chance you’ll drive a non-government vehicle during your deployment.

Lastly, consider that an insurance lapse can raise your future rates and cause registration or renewal problems. Additionally, if the wrong coverage is selected, you could pay more than you need to, or not be covered if something happens to the vehicle during your deployment.

Reducing Costs While The Car Is Stored

By now, you’ve probably realized that you need to keep some level of coverage on your vehicle, even when it’s in storage. Thankfully, there are several things you can do to decrease the cost of coverage while your vehicle is in storage.

To do this, you’ll need to understand what type of coverage protects you against what type of risk:

• Comprehensive Coverage: Protects your vehicle from theft, vandalism, fire, flood, hail, and falling objects. These risks still exist even if your car is parked in a garage or base storage lot.
• Liability Coverage: Protects you for damage to people and objects from the car being driven. If your car truly isn’t driven at all, you may not have much liability risk unless someone drives it without your knowledge or it rolls into something. But if you are having a friend store it, driving it now and then, you may need this coverage.
• Collision Coverage: Helps pay to repair or replace your car if it is damaged in a crash, regardless of who is at fault.
• Extra Coverage: Helps protect you for things like rental cars and roadside assistance.

Contact Your Insurer

You can start by checking with your insurance company to see if they offer any discounts for stored vehicles.  

“If you’re deploying and putting your vehicle in storage, notify your insurer before you leave,” Brookie Lutz, USAA Advice Director, told The Military Wallet (TMW) in an interview. “Many insurers, including USAA, offer reduced premiums for stored vehicles while still protecting against risks like theft, vandalism or weather damage. Maintaining comprehensive coverage can help protect your vehicle while it’s not being driven.”

Reduce Coverage Levels

Then, you can reduce or drop the coverage that you don’t need. In most cases, you can drop extra coverage for rental cars and roadside assistance without taking on any additional risk. You may want to do this anyway, as many credit cards offer rental car insurance as a perk (collision, but not liability). 

If your car is stored, you can decrease your average mileage listed on the policy. Most companies have minimum mileage limits, but they may be able to waive those minimums if the car is stored. 

You may be comfortable reducing or removing collision coverage for the time the vehicle is stored. And, depending on the rest of your financial situation, you may consider raising the deductible on your policy while the car is stored, with the logic that there’s little chance that you’ll be making a claim. But don’t do this if a larger deductible is impossible for you to cover.

Some insurance companies offer military-specific storage discounts. Be sure to check those out.

A Few Other Tips

Choose a secure location to store your vehicle. A locked garage or commercial storage facility can protect your vehicle, and some companies will start the car regularly to help keep the entire system running smoothly. Outdoor lots are usually less expensive, but your car is exposed to the weather and other risks. 

“Where you store your vehicle can also matter,” Lutz said. “Storing on base, in a garage or at a secure storage facility may reduce risk and potentially lower costs.”

Be sure to review your storage agreement if you’re storing your car during deployment in an on-base facility or with a commercial company. Check included insurance coverages. If it is included, it’s usually not much, but it may allow you to decrease some of your other coverages.

If your spouse or another driver might ever use the car, even occasionally, you will certainly want to keep insurance coverage in place. Storage, deployment, or other reduced-coverage policies may assume the car stays parked – you’ll want to check before switching to this option if your car isn’t going to be unavailable for use.

Returning from Deployment

When you return home, call your insurance company to resume your regular coverage before anyone drives the vehicle again. You’ll want to review your policy to make sure that your coverage and levels make sense, especially if you return home to a new location or have had any other life changes.

Storing your car can make sense for a deployment, but think carefully about your auto insurance options. Each situation is different depending on your state, lender, storage situation, and specific deployment details. 

Before you make changes, talk with your insurance company and, if needed, your base legal office to confirm the proper steps. The right plan can protect your vehicle, meet legal requirements, and possibly save you money throughout your deployment.

The post Storing Your Car During Deployment: What Military Members Need to Know about Insurance appeared first on The Military Wallet.

However, low premiums often come from cutting coverage, raising your out-of-pocket costs, or relying on an insurer that is less reliable. A policy that looks affordable month-to-month can expose you to large financial losses after an accident. Those losses can far exceed whatever you saved on the premium. 

Coverage Levels

Car insurance is not a single product but a bundle of different coverage types and limits. The cheapest options usually keep those limits as low as possible and strip out protections that aren’t legally required.

When you buy a very low-cost policy, it often includes only the minimum liability coverage required by law. Liability coverage pays if you injure someone or damage their property.

If you cause a crash, the other driver’s damage may be covered, but only up to the limits of your coverage. In a serious accident with multiple injured people, medical bills, lost wages, and legal costs can quickly exceed those low limits. Every dollar over your coverage becomes your personal responsibility.

Why State Minimums May Not Be Enough

Every state sets its own minimum auto liability limits. But those numbers are compromises designed to keep insurance technically affordable, not guarantees of adequate protection. For example, Maryland requires at least $30,000 of bodily injury liability per person, $60,000 per accident, and $15,000 for property damage. This may be enough for minor fender benders but not for severe injuries or expensive vehicles. 

Those state minimum levels don’t consider what coverage level is right for you.

Medical treatment is costly, and a single serious injury from a car crash can easily reach hundreds of thousands of dollars in hospital and rehabilitation expenses. This is far above typical minimum limits. If you total a late-model luxury SUV or cause a multi-vehicle pileup, property damage alone can exceed $15,000 by a wide margin, leaving you exposed for the balance.

State minimums also do not account for the risk of lawsuits when injured parties believe they were not fully compensated. Once your insurer pays up to your limit, any additional judgment can be collected from your savings, income, or other assets. In extreme cases, this can lead to wage garnishment or bankruptcy. 

For active-duty service members, risky finances can result in revoking security clearances, putting their jobs at risk.

In many states, minimum requirements have not kept pace with inflation in medical costs and vehicle prices. This means that the real-world protection offered by those numbers has eroded over time. 

Choosing coverage only because it meets the legal minimum and offers the lowest premium can ignore your actual financial risk. This is especially true if you own a home, have savings, or earn a higher income that makes you a more attractive target in litigation. 

Coverage for your own Vehicle

An easy way to make an auto policy less expensive is to decrease or remove the coverage that protects your vehicle if there is a crash. This might make sense if you drive a car without much value. But you’ll then get no payout if your car requires repair or replacement. This can cause a significant hardship if you don’t have thousands of dollars in savings to handle a crash.

Removing this coverage is effective for lowering costs, but can be more expensive in the long run.

Deductibles and out-of-pocket costs  

Another way companies make premiums look cheap is by using higher deductibles. A deductible is the amount you pay out of pocket before insurance pays for a covered claim. A high deductible reduces the insurer’s expected payout on smaller claims. This allows them to charge less per month, but it also means you need to come up with more cash immediately after an accident.

If your deductible is set at a level you cannot realistically afford, you may effectively be unable to use your coverage when you need it. For instance, if your deductible is $2,000 and you do not have that in savings, you might delay repairs or drive an unsafe vehicle because you cannot pay your share. Even though you technically have insurance, you still may not be able to afford to repair or replace your vehicle in the event of a crash or other loss.

Some low-cost policies may encourage or default to very high deductibles without clearly explaining the trade-off. The monthly bill looks attractive, while the claim experience becomes unpleasant and stressful. 

Carriers are also raising deductibles at renewal, according to Seibert Keck Insurance Partners. This action increases policyholders’ out-of-pocket obligation in a way they did not fully understand when they focused solely on the premium.

A more balanced approach is to pick a deductible that provides some premium savings but still fits within an emergency fund or realistic cash reserve. This may be safer than stretching to the highest deductible just to achieve the lowest advertised rate. 

A higher deductible may save you a significant amount of money, or it may be a small change. In any situation, a more affordable premium tied to an unmanageable deductible can be more expensive in practice than a slightly higher premium with a deductible you can comfortably pay.

Insurance Company Quality & Claims Handling  

Price differences between insurers are not only about coverage and deductibles. They can also reflect differences in service, financial strength, and claims handling practices. Some very low-cost carriers may reduce expenses by offering limited customer support, fewer local agents, less convenient claims processes, or strict claim investigation policies that can delay or reduce payouts.

Part of the risk with the cheapest providers is that they may not have strong ratings or long track records. If an insurer struggles financially, policyholders could face slower claim payments or disputes about coverage, even when losses should be clearly covered. Financial strength ratings from agencies like Standard and Poor’s and Moody’s help measure an insurer’s ability to pay claims over the long term.

Claims handling quality also matters in everyday situations such as arranging rentals, coordinating repairs, and dealing with other drivers and their insurers after a crash. 

A company that prioritizes low operating costs over customer experience might require more paperwork, offer fewer preferred repair shops, or be more likely to contest liability. This can make an already stressful event more difficult for you. 

Discount Programs that Can Backfire  

Modern auto insurance marketing emphasizes discounts, including safe driver programs and telematics-based pricing. These may make policies appear cheaper, but some of these features can create problems if you do not understand how they work. Telematics programs use devices or smartphone apps to monitor driving behavior such as speed, acceleration, braking, time of day, and miles driven. Insurers then use this data to adjust premiums or apply discounts. 

While some companies advertise guaranteed discounts just for enrolling, others reserve the right to increase your rate if they decide your driving habits are risky. If this happens, signing up to save money can ultimately make your insurance more expensive. Drivers with long commutes, frequent night driving, or regular exposure to heavy traffic may be flagged as higher risk by these systems, even if they have no accidents or tickets, because the algorithms focus on patterns correlated with claims.

There are also privacy concerns. As telematics programs generate detailed data about where and when you drive, how fast you travel, and how often you use your car. Some drivers worry that this information could be retained for long periods, shared with third parties, or used against them in disputes, although specific practices vary by insurer and program.

Other safe driver discount programs depend on maintaining a clean record with no claims or lapses in coverage, and a single incident can cause both the loss of the discount and a surcharge. This can lead to a sharp increase in premiums after you have become used to a lower price. 

Choosing a policy primarily because of an attractive safe driver or usage-based discount can backfire if your circumstances change, you move, your commute lengthens, or you have one unavoidable claim. 

Think about Value, Not Just Price  

Looking beyond price means evaluating how well a policy’s coverage, deductibles, and company quality match your financial situation and risk tolerance. A slightly more expensive premium may buy you: higher liability limits that protect your assets, collision and comprehensive coverage that repair or replace your car, and a deductible you can actually afford. It will also provide support from an insurer known for fair and efficient claims.

It can help to imagine a realistic worst-case accident. Figure out how the costs would be divided between your insurer and your own resources under different policies. You often find that the apparent bargain disappears once you factor in potential out-of-pocket losses and the stress of dealing with a bare bones insurer.

If you want to lower costs responsibly, options include improving your credit, maintaining a clean driving record, bundling policies, or choosing a moderate deductible. Periodically shopping among reputable insurers for similar coverage levels can also uncover savings while keeping your protection intact.

When you think about your own situation, the most important factor is usually how much risk you can absorb if something goes wrong. To make this concrete for you, what size unexpected car-related bill would feel unmanageable for your household right now?

Car insurance may be one of your largest monthly expenses, and it makes sense to shop around and find the best price. But it’s important to ensure that the best price is for the right coverage for you, your situation, and your vehicle.

The post Why the Cheapest Car Insurance Isn’t Always the Best appeared first on The Military Wallet.

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.