The bill was prompted by a 2013 report by the Federal Insurance Office that said the office would work with stakeholders to develop personal auto-insurance policies for U.S. military personnel that would be enforceable across state lines.

It would enable all members of the U.S. military, including the National Guard and Reserves, to keep their current auto-insurance policy when they receive Permanent Change of Station or Temporary Duty Assignment orders.

The bill immediately picked up support from USAA.

Robert Hartwig, president and CEO of the Insurance Information Institute, said he expects state insurance regulators as well as insurers would support it. "Insurers already have a lot of experience in this area because truck insurance reflects the fact that the insured vehicles travel interstate," Hartwig said.

The same applies for cars where the vehicle that is insured is operated outside the state where the insurance is issued, he added. "I think no one wants roadblocks to exist in the path of servicemembers who are frequently transferred from one state to another," he said.

The bill would require insurers who are notified of a military customer's orders to move to inform the customer that they can continue with the same policy for their current state of residence or seek a new one. Insurers would be allowed to make rating adjustments to the existing policy to address changed risk factors based on the new location, such as a greater risk of a car being stolen or damaged by hail.

"The men and women in our nation's military regularly sacrifice in service of our country," added Brian Conklin, vice president of federal government relations for USAA. "The hassle and confusion of changing auto insurance every time they move to a new state is one burden they don't need. This bill would let servicemembers choose a single policy that could follow them throughout their military career. By giving servicemembers this choice, this bill can give them some peace of mind."