Money, Insurance - Marine Corps Times

Troops get auto rate breaks

Serving in the military is a little like being left-handed. It seems that many products and services are created first for the civilian world, then tweaked for the military as an afterthought.

Take auto insurance, for example. Most insurers require you to have continuous coverage to retain your current rates. This can create a significant problem if you're deployed for six months or a year.

Many service members opt to put their cars in storage and cancel their insurance while overseas. But when they return and try to reinstate or purchase a new policy, they often are quoted higher rates or may be denied coverage altogether.

Fortunately, the National Association of Professional Insurance Agents has come to the defense of the armed forces, issuing a bulletin calling for the underwriting requirement to be waived in the case of returning U.S. troops. More than 25 states had passed legislation or issued bulletins as of February 2006 prohibiting insurance companies from penalizing military personnel called to active duty.

If your state still allows insurers to raise rates or deny coverage in this fashion, there is one thing you can do if you store your automobile and no one else will be using it during your deployment. Cancel your liability coverage but maintain comprehensive insurance to protect your auto against theft or vandalism. You may not save money on your entire premium while you're deployed, but at least there will be no lapse in coverage. You must reinstate your liability insurance when you take the vehicle out of storage, a change that typically can be made by a phone call.

Military discounts

Civilians don't always get the advantage. Service members often receive service and discounts not offered to the public.

For example, at USAA policyholders potentially can save up to $400 a year on auto insurance premiums. You are eligible to purchase a policy from USAA if you are a member of the active-duty force, National Guard, reserve, an officer candidate in a commissioning program, retired military, or a spouse, former spouse or adult child of a USAA member.

You may, for instance, also be eligible for a military discount of up to 15 percent on your total insurance premium from GEICO. The company created a Military Assistance Team of retired and former military service members, to help customers understand GEICO's products, services, discounts and programs designed specifically for the military, said Richard Kidd, a company vice president.

One program offers service members a significant discount when they deploy into areas where they are eligible to receive imminent danger pay. You are eligible for this discount if you have orders to one of the specified areas and if your vehicle is stored under one of the company's approved storage protection plans.

Cutting insurance costs

One way to keep your auto insurance premiums down is to buy a car nobody wants. No auto thieves, anyway.

Insurance companies track the statistics of stolen cars and adjust auto rates accordingly for the most popular makes and models. If you've got your heart set on a particular car, this may not be a deterrent. But if you're torn between two choices and one isn't on the list, taking this extra precaution could help swing your vote.

A car's make, model, year, weight, horsepower and body type also affect insurance premiums.

Even cost-conscientious car buyers are sometimes more concerned with the economics of buying a car rather than what it costs to use it, said Robin Harbage of Progressive Auto Insurance.

"[I]nsurance has a big influence on how much [car buyers] pay to operate their cars over the long haul," Harbage said, "and the type of vehicle they buy makes a difference when it comes to the cost of insurance."

Here are a few additional cost-saving tips to consider:

• The longer your commute to work, the higher your premium will be.

• Your credit score can affect your rate.

• You may get a discount when you insure multiple cars and/or your home with the same company.

• Some companies offer discounts to hybrid-car owners.

• Shop around for rates. Progressive Auto Insurance reports premiums for the same driver and car can differ by as much as $500 among insurers.

• Even church goers can get a break. Iowa-based GuideOne Mutual Insurance offers a policy that waives the deductible for accidents that occur on the way to a religious service.