Louisiana’s 25% Military Auto Insurance Discount: What Service Members Should Know
Louisiana provides an important auto insurance benefit for eligible military members: a mandatory 25% discount on the premium for certain auto insurance coverages.
The discount has been available to qualifying service members for years, but a 2026 change by the Louisiana Department of Insurance simplified the process. Eligible military members generally no longer have to reapply for the discount every year.
For Louisiana military families, understanding who qualifies, which coverages receive the discount and how it is applied can help ensure they are receiving the savings available to them.
Who Qualifies for Louisiana’s Military Auto Insurance Discount?
The mandatory 25% discount is available to qualifying military personnel, including:
• Active-duty military personnel based in Louisiana
• Military reservists based in Louisiana
• Members of the Louisiana Army National Guard
• Members of the Louisiana Air National Guard
Even better, eligible service members now generally apply just ONCE instead of every year. Some insurers may also offer discounts to retired military members and veterans with a 50%+ VA disability rating. There are also provisions that may allow certain deployed service members to maintain eligibility.
Is It 25% Off the Entire Auto Insurance Premium?
This is an important distinction.
The Louisiana military discount is not necessarily 25% off the entire auto insurance bill. The mandatory discount applies to the premium associated with specific qualifying coverages.
These include:
Bodily Injury Liability
Coverage that helps pay for injuries to others when the insured driver is legally responsible for an accident.
Property Damage Liability
Coverage that helps pay for damage an insured driver causes to another person’s vehicle or property.Uninsured Motorist Bodily Injury – Coverage that can provide protection for covered injuries caused by an uninsured or underinsured driver.
Medical Payments Coverage
Coverage that can help pay eligible medical expenses resulting from a covered automobile accident.
Other portions of an auto policy may not be subject to the mandatory 25% military discount.
What Could the 25% Discount Mean in Actual Dollars?
The amount saved depends on the premium charged for the qualifying coverages.
For example, consider a 25-year-old single male living in Orleans Parish who drives a 2018 Nissan Sentra and
has a clean driving record. His policy includes 15/30/25 liability coverage, 15/30 uninsured motorist coverage
and $2,000 in Medical Payments coverage.
If the premium subject to the military discount is $300 for six months, the calculation would be:
Qualifying premium: $300
25% military discount: $75
Premium after discount: $225
In this example, the military discount produces $75 in savings over the six-month policy period.
This example is for educational purposes only. Actual premiums and savings vary based on the driver, vehicle,
location, insurance company, coverage selections and other rating factors.
Louisiana Simplified the Application Process in 2026
Previously, eligible military members were required to provide documentation for the discount annually.
In August 2026, the Louisiana Department of Insurance announced a simplified process. Under the updated
rules, eligible service members generally need to submit the required application only once, rather than
completing a new application every year.
Policyholders are responsible for notifying their insurance company if there is a change that affects their
eligibility.
Documentation requirements depend on military status. Active-duty personnel and reservists may be asked to
provide current military orders showing assignment to a Louisiana duty station. Louisiana Army and Air
National Guard members may provide documentation from their commanding officer verifying membership.
Is the Military Discount Automatically Added to an Auto Policy?
Military members should not assume the discount is automatically being applied simply because their insurer
knows they are in the military.
Eligibility must be established and the required documentation submitted. Anyone who believes they qualify
should review their policy or contact their insurance agent to confirm that the discount is being applied to the
appropriate coverages.
It is also worth checking after changing insurance companies. When moving to a different carrier, ask what
documentation is required to make sure the military discount is properly reflected on the new policy.
Military Members Should Still Compare Their Overall Auto Insurance Costs
A 25% discount on qualifying coverages is valuable, but it is only one part of the total cost of auto insurance.
Premiums can vary significantly among insurance companies based on factors such as driving history, location,
vehicle, coverage levels and each insurer’s rating methodology.
For that reason, military members should consider both questions:
Am I receiving every discount for which I qualify?
and
Is my overall policy competitively priced for the coverage I need?
An independent insurance agency can help answer both by reviewing the current policy, confirming applicable
discounts and comparing available options from multiple insurance companies.
Have Questions About Louisiana’s Military Auto Insurance Discount?
Dan Burghardt Insurance can help Louisiana military members understand the 25% discount, determine
whether it is being applied to their current policy and review other available auto insurance options.
For military members who already have the discount, a policy review can also help determine whether changes
in the Louisiana insurance market have created other opportunities for savings.
Dan Burghardt Insurance
504-443-SAVE (7283)
dbiagency.com
Insurance eligibility, discounts, premiums and coverage are subject to Louisiana law, individual insurer
requirements and policy terms. The premium example above is illustrative and is not a quote or guarantee of
