What happens with auto insurance while deployed

When servicemen and women are deployed on short notice, they often forget about canceling or renewing their auto insurance. Auto insurance coverage goes unused when someone spends an extended period of time overseas.

Auto insurance tips before military deployment

Before you purchase any insurance policy, it is a good idea to ask the agent or broker specific questions about how the company will handle issues related to the deployment of their policyholders who are in the military. Each company’s guidelines can vary.

By shopping around, you may be able to find an insurer who takes the specialized needs of service members into account. It might be difficult to handle routine business like paying premiums timely or renewing policies when you’re deployed.

Suspend your auto insurance while on deployment?

Some insurance companies might also allow you to suspend certain coverage while you’re deployed. Most insurance companies use payment history and continuity of coverage as factors to determine their rates and eligibility standards. If your insurance lapses or expires while you’re away, you could come home to find companies unwilling to insure you or only willing to do so at a higher rate.

For instance, some deployed service members put their cars in storage and cancel their auto insurance. This is a bad move for a number of reasons. If something happens to the car in storage, they have no coverage.

A lapse in insurance coverage will cause some insurance companies to deny them insurance when they return. Insurers that work with the military all the time will give you information on how to save money on your insurance when you're deployed, while making sure you're covered if something goes wrong when the car is in storage.

To summarize:

  If you are being deployed, don't cancel your insurance.

  Find out before you leave when a policy is up for renewal

  You may be able to renew a policy early or have your premiums paid by automated bank draft.