Military Car Insurance - Operating Vehicles In Danger Zones

There is no such thing as military car insurance although individuals who are in the military have access to the same auto insurance as civilians. The coverage that a person in the military has precludes damages that occur to a personal vehicle when used for business purposes or in a war zone. It is no different than the exclusions that are found in civilian policies.

There are companies that offer plans that are tailored to meet the needs of military personnel and others serving in or with our armed forces. These plans provide liability, collision or comprehensive coverage on a vehicle owned by service men and women that is used overseas for personal reasons. Such plans recognize the needs of members of the military to have peace of mind from knowing that their vehicles are protected, whether stored in the U.S. or used overseas.

Overview of Risk Management
It is important to establish a basic understanding of how insurance companies assess risk in order to know why a service member’s vehicle would not be covered, when used for business or military purposes. An insurance company bases its coverage on the predictability, randomness and amount of financial loss a risk can produce.

An insurance company would not be able to provide coverage in a situation where a member of the armed forces drove their vehicle, while in a war zone or other dangerous situation, because the probability of damage to the vehicle would be too high. From a practical and business sense, the cost associated with insuring personal vehicles used in a danger zone would result in much higher auto insurance rates for everyone in order to cover the risk.

Types of Benefits Provided to the Military
If you conducted a web search for the word military insurance, you will find a listing for several companies that offer this type of insurance. What they are really providing is protection for military personnel that is available to civilians with a few differences. The companies offer discounts on the premiums when a car is stored domestically.

The insurance sold to members of the military can also be used to provide auto insurance coverage when their vehicle is transported overseas and used personally. Overseas insurance protection provides similar benefits, as if the car were being driven in the United States for general liability, collision or comprehensive coverage. This type of policy is less expensive than auto insurance that is purchased in a foreign country and is discounted in recognition of the service these men and women are providing to the country.

Understanding the basic concept of risk management will help you ask the right questions if you need to seek auto insurance for your car while serving in the military overseas. Make sure that you ask an insurance company’s agent what they mean by military car insurance and what a policy does and does not cover.
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