Auto insurance is important for anyone who owns a vehicle, but it is particularly important for military personnel. Military personnel, particularly those who are deployed, have unique insurance needs that require special consideration. In this article, we will explore the different types of auto insurance available to military personnel, as well as the benefits and drawbacks of each type.
Types of Auto Insurance for Military
There are several types of auto insurance available to military personnel. These include:
Type of Auto Insurance |
Description |
|---|---|
Basic Liability Insurance |
Provides coverage for damages or injuries you cause to others in an accident. |
Collision Insurance |
Provides coverage for damages to your vehicle in an accident. |
Comprehensive Insurance |
Provides coverage for damages to your vehicle that are not caused by an accident, such as theft or weather events. |
Underinsured and Uninsured Motorist Insurance |
Provides coverage for damages or injuries you sustain in an accident caused by a driver who does not have sufficient insurance coverage. |
Gap Insurance |
Provides coverage for the difference between your car’s value and the amount you owe on your car loan if your car is totaled. |
Pet Insurance |
Provides coverage for veterinary bills if your pet is injured in an accident while riding in your car. |
Basic Liability Insurance
Basic liability insurance is the minimum amount of coverage required by law in most states. It provides coverage for damages or injuries you cause to others in an accident. If you are at fault in an accident, your liability insurance will cover the cost of any damages or injuries sustained by the other party.
Basic liability insurance does not provide coverage for damages to your own vehicle, or for injuries sustained by you or your passengers. If you want coverage for damages to your own vehicle, you will need to purchase collision insurance. If you want coverage for injuries sustained by you or your passengers, you will need to purchase personal injury protection (PIP) insurance.
Collision Insurance
Collision insurance provides coverage for damages to your vehicle in an accident. It covers the cost of repairing or replacing your vehicle if it is damaged or destroyed in a collision with another vehicle or object. Collision insurance does not cover damages to another person’s vehicle or property, or injuries sustained by you or your passengers.
If you have a car loan or a lease, you will likely be required to carry collision insurance. This is because the lender or lessor has a financial interest in the vehicle and wants to ensure that it is protected in the event of an accident.
Comprehensive Insurance
Comprehensive insurance provides coverage for damages to your vehicle that are not caused by an accident. It covers the cost of repairing or replacing your vehicle if it is damaged or destroyed by theft, fire, vandalism, or weather events such as hail, wind, or flooding.
Comprehensive insurance does not cover damages to another person’s vehicle or property, or injuries sustained by you or your passengers. If you want coverage for injuries sustained by you or your passengers, you will need to purchase personal injury protection (PIP) insurance.
Underinsured and Uninsured Motorist Insurance
Underinsured and uninsured motorist insurance provides coverage for damages or injuries you sustain in an accident caused by a driver who does not have sufficient insurance coverage. If you are involved in an accident with an uninsured or underinsured motorist, your underinsured or uninsured motorist insurance will cover the cost of any damages or injuries that the other driver is unable to pay for.
Underinsured and uninsured motorist insurance is particularly important for military personnel, as they may be involved in accidents with drivers who do not have adequate insurance coverage.
Gap Insurance
Gap insurance provides coverage for the difference between your car’s value and the amount you owe on your car loan if your car is totaled. If you owe more on your car loan than your car is worth, gap insurance will cover the difference.
Gap insurance is particularly important for military personnel, as they may be required to purchase a new vehicle if their vehicle is destroyed or damaged beyond repair while they are deployed.
Benefits and Drawbacks of Auto Insurance for Military
There are several benefits and drawbacks of auto insurance for military personnel. These include:
Benefits of Auto Insurance for Military
- Discounted rates: Many insurance companies offer discounted rates to military personnel.
- Flexible payment options: Insurance companies may offer flexible payment options to military personnel to accommodate their unique financial situations.
- Specialized coverage: Some insurance companies offer specialized coverage for military personnel, such as coverage for overseas deployment or travel.
Drawbacks of Auto Insurance for Military
- Difficulty obtaining coverage: Military personnel may have difficulty obtaining auto insurance if they have a poor driving record or if they are stationed overseas.
- Higher rates for deployed personnel: Military personnel who are deployed may face higher insurance rates, as they are considered higher risk drivers.
- Difficulty obtaining coverage for high-value vehicles: Military personnel who own high-value vehicles may have difficulty obtaining auto insurance, as many insurance companies are hesitant to insure high-value vehicles.
FAQs
What types of auto insurance are available to military personnel?
There are several types of auto insurance available to military personnel, including basic liability insurance, collision insurance, comprehensive insurance, underinsured and uninsured motorist insurance, gap insurance, and pet insurance.
What are the benefits of auto insurance for military personnel?
The benefits of auto insurance for military personnel include discounted rates, flexible payment options, and specialized coverage for overseas deployment or travel.
What are the drawbacks of auto insurance for military personnel?
The drawbacks of auto insurance for military personnel include difficulty obtaining coverage, higher rates for deployed personnel, and difficulty obtaining coverage for high-value vehicles.
What should military personnel consider when purchasing auto insurance?
Military personnel should consider their unique insurance needs, such as coverage for overseas deployment or travel, as well as potential discounts and flexible payment options offered by insurance companies.
What should military personnel do if they are having difficulty obtaining auto insurance?
Military personnel who are having difficulty obtaining auto insurance should contact their insurance agent, as well as their military base legal office or personal financial management office, for assistance.
In conclusion, auto insurance is important for military personnel, and there are several types of insurance available to meet their unique needs. Military personnel should carefully consider their insurance options and choose the coverage that is right for them.