Navy Federal Auto Insurance: Cost and Coverage (2024 Review) (2024)

Navy Federal Credit Union (NFCU) provides banking and financial services to active members of the military, veterans, Department of Defense (DOD) employees and their families. It also offers discounted car insurance rates for its customers through partnerships with Liberty Mutual.

In this article, we at the MarketWatch Guides team review Navy Federal auto insurance options and how military community members can save on premium costs. The team also recommends other providers based on research into the best car insurance companies.

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Navy Federal Credit Union Review

Navy Federal Credit Union isn’t an insurance provider, but it does help members save on auto insurance through Liberty Mutual, so we’ll share our ratings for Navy Federal before delving into Liberty Mutual’s coverage and customer reputation.

Navy Federal Credit Union Rating

Our team awarded Navy Federal Credit Union a rating of 9 out of 10 overall. Note that our overall rating is based on how Navy Federal performs as a credit union (not a car insurance provider) across several categories that you can look at in the table below.

Navy Federal Credit Union Overview

Founded: 1933
Headquarters: Vienna, Va.

NFCU started in 1933 to help members of the military reach their financial goals and after 90 years of service, it’s built up a great reputation for itself among customers, industry experts and our team. As a credit union, Navy Federal is owned by more than 10 million members. Uniquely, it offers a special way for drivers to get discount auto insurance rates through Liberty Mutual.

The company specializes in:

• Checking accounts
• Savings accounts
• Credit cards
• Personal loans
• Auto loans
• Auto refinancing

Who Can Become a Member at Navy Federal Credit Union?

Membership in Navy Federal is limited to:

• Active or retired members of the Army, Air Force, Marines, Navy, Coast Guard and Air National Guard
• DOD reservists, civilian employees, retirees, officer candidates and annuitants (those who receive pension benefits)
• Members of the delayed entry program (DEP), which allows for a gap between enlistment and training
• Immediate family members (spouses and children) and household members related to military members

Navy Federal Credit Union Reviews

Like most financial institutions, NFCU showcases varying levels of customer satisfaction depending on which site you visit. On Trustpilot, for example, it has an average rating of 4.5 out of 5 stars based on more than 30,000 reviews. More than 18,000 Google reviewers also give NFCU 4.6 out of 5 stars on average.

However, on the Better Business Bureau (BBB) site, NFCU has only 1.2 out of 5 stars from over 300 customer reviews. It also isn’t accredited or rated by the site itself.

However, it’s more normal for a popular company to have negative customer ratings on the BBB site, since customers are more likely to leave reviews after bad experiences than good ones. Additionally, 300-something reviews make up a miniscule percentage of a company that has over 10 million members.

Our team reached out to Navy Federal Credit Union about its ratings and lack of accreditation on the BBB site, but we didn’t receive a response.

Is Navy Federal Credit Union Good?

NFCU is a smart option for members of the military community because of its lower interest rates and excellent customer service. The credit union also performed well in the J.D. Power 2023 U.S. Consumer Financing Satisfaction Study℠. The study didn’t rank Navy Federal because of eligibility restrictions, but NFCU received 917 out of 1,000 points — the highest score in the study’s mass-market category.

Pros and Cons of Navy Federal Credit Union

Below are the pros and cons of Navy Federal Credit Union:

Liberty Mutual Auto Insurance

Navy Federal members can get discounted auto coverage from Liberty Mutual through the TruStage™ Auto & Home Insurance program. Liberty Mutual performed very highly in our review of the top car insurance companies in the nation, scoring 9.1 out of 10 stars overall.

Our experts recognized Liberty Mutual for its Good Programs for Young Drivers, largely because the company is notorious for its several discounts aimed at teen drivers. This is good news if you’re the parent of a teen, as teens end up getting the highest car insurance rates across the nation. Liberty Mutual’s page on the BBB site is currently being updated, but the company most recently held an A- rating, showcasing its commitment to customer service and business practices.

Liberty Mutual Car Insurance Coverage

Liberty Mutual offers the standard types of auto coverage, which include:

• Liability car insurance
• Collision insurance
• Comprehensive insurance
• Medical payments (MedPay)
• Personal injury protection (PIP)
• Underinsured/uninsured motorist coverage

Liberty Mutual Discounts

Liberty Mutual offers a healthy selection of car insurance discounts. Here are a few of them:

• Multi-policy: Bundling homeowners, renters or other insurance products with your auto coverage unlocks further discounts.
• Multi-vehicle: Adding vehicles to your policy can lower premiums.
• Good driver: The criteria for this discount vary but include staying accident-free for at least three years.
• Good student: Maintaining at least a B average as a full-time student opens the door to additional savings.
• Anti-theft device: Comprehensive coverage is a bit cheaper if you have an approved anti-theft system in your vehicle.
• Advanced safety features: Airbags and anti-lock brakes are among the vehicle features that count toward this discount.

Liberty Mutual also has discounts for paying your premium upfront, setting up automatic payments, going paperless, driving a new car and taking defensive driving courses. Ask your agent about all the discounts you could earn.

Navy Federal Car Insurance: The Bottom Line

Navy Federal doesn’t sell car insurance but does have discounted rates to the military community through Liberty Mutual. If you’re eligible, Navy Federal can connect you with the top-rated companies.

Other Recommended Car Insurance Providers

Navy Federal Credit Union members have other auto coverage options besides Liberty Mutual. It’s always a good idea to compare car insurance quotes from multiple providers to get the best rates and we suggest State Farm and USAA as good places to start.

State Farm: Best Customer Experience

We consider State Farm best for most drivers because it has competitive rates and an excellent industry reputation as the largest auto insurer in the country. State Farm features the telematics program that saves good drivers up to 30% when they renew their policies. State Farm also performed well in all categories in our car insurance satisfaction survey.

Read more: State Farm Insurance Review

USAA: Best for Military Members

USAA is a competitor to Navy Federal and has a full range of financial services to active military, veterans and their families. What sets USAA apart is that it is a direct provider of auto insurance. The company also routinely has the lowest insurance rates of any of our top-rated providers. If you’re a member of the military community, check out USAA’s financial services and car insurance policies.

Read more: USAA Insurance ReviewCompare: USAA vs. State Farm

Navy Federal Credit Union Car Insurance: FAQ

Below are frequently asked questions about Navy Federal Credit Union car insurance:

Our Methodology: Car Insurance Companies

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

• Industry standing (20% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
• Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
• Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
• Cost and discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
• Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

Our credentials:

• 800 hours researched
• 45 companies reviewed
• 8,500+ consumers surveyed

Our Methodology: Auto Loan Companies

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

• Industry standing (30% of total score): Our research team considered ratings from industry experts and each lender’s years in business when giving this score.
• Availability (20% of total score): Companies that cover a variety of circ*mstances are more likely to meet consumer needs.
• Loan details (15% of total score): We look at auto lenders’ financing amount limitations, available loan terms and the types of auto loans they offer.
• Rates and discounts (25% of total score): Auto loan providers with low APRs, good discount opportunities and high loan amounts scored highest in this category.
• Customer service (10% of total score): This score is based on customer satisfaction ratings and transparency. We also considered the responsiveness, friendliness and helpfulness of each loan company’s customer service team based on our shopper analysis.

Our credentials:

• 300+ hours researched
• 25 companies reviewed
• 2,000+ consumers surveyed

*Data accurate at time of publication.