USAA Car Insurance Review

USAA stands for United Services Automobile Association and offers car insurance only to military members and their families. Although the company started by offering only car insurance, it has since expanded into several branches of business. 

USAA offers banking, investment services, and several lines of insurance types. It also runs a reciprocal inter-insurance exchange where insurance policies are pooled to mitigate risk. 

In this review, you will learn about USAA and its origins, what its membership offers, its available car insurance plans, the company’s financial strength, and a look into USAA car insurance customer reviews. 

About USAA 

The company was founded in San Antonio, TX in 1922. A group of 25 Army officers formed USAA as a mutual self-insurance company as they were unable to secure car insurance due to being considered a high-risk group. 

The company is ranked #100 on the Fortune 500 list. They have more than 13 million members and employ over 32,000 people worldwide. 

USAA is still headquartered in San Antonio and operates on a 286-acre horse farm. 

USAA’s primary focus is to serve members of the military and their families. The company has several affiliations with military groups, including American Veterans, Military Order of the Purple Heart, and The American Legion. 

Wayne Peacock is the current CEO of USAA. He has been with the company for 30 years and was promoted to CEO in 2020. He was formerly president of USAA’s Property & Casualty Insurance Group. 

USAA Membership Information

You may be wondering who qualifies for USAA insurance. USAA products and services are available to current and former military members, their spouses, and children. 

When a person joins USAA, they have access to all of its services, which include:

• Insurance. Coverage for your home, vehicle, and small business. It also offers health and life insurance policies. 
• Banking. Everyday banking products, including checking accounts, credit cards, and loans. 
• Investing. Access to mutual funds, IRAs, brokerage, and trading services. 
• Advice. Help and support with preparation for major life events such as retirement, deployment, and final arrangements. 

Also included in the membership are several USAA exclusive perks such as discounts on car rentals, travel deals, home security programs, and shopping rewards. 

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USAA Car Insurance Plans

USAA offers basic car insurance plans that meet the needs of most drivers. Insurance coverage types provided by USAA are:

• Liability. Covers the other driver’s damages, injuries, and death in at-fault accidents. 
• Comprehensive. Covers damages caused to your vehicle from non-accident incidences like hail, flooding, and fire. 
• Collision. Pays for damages done to your vehicle from a driving-related accident. 
• Uninsured and underinsured motorist. Covers damage and injuries caused by a driver with little to no insurance. 

USAA covers passenger vehicles only and does not offer commercial vehicle insurance at this time. It does offer policies for motorcycles, ATVs, collector cars, motorhomes, RVs, boats, watercraft, and aircraft. 

USAA Car Insurance Discounts

USAA has a unique discount for deployed soldiers. Military members can receive up to 60% off their premiums when a vehicle is properly garaged while serving abroad. This is a much better option than canceling a car insurance policy, as doing so can damage your insurance score. 

You can receive a 15% discount on your comprehensive coverage policy if you store your vehicle in a garage on a military base.

You can also get a discount for driving your vehicle less often, based on the number of miles you accrue per year. 

Other discounts offered by USAA are:

• Good driver discount
• Multi-policy discount
• Insurance bundling discount
• Newer vehicle discount
• Anti-theft devices discount
• Loyal member discount

Members that have switched to USAA have saved an average of $725 on their annual premium which makes the company a good option for low-income car insurance.  

USAA SafePilot Program

You can save up to 30% on your rates for being a safe driver when you enroll in the SafePilot Program. Just by enrolling in the program, you can get up to a 10% discount.

USAA offers a SafePilot app to easily track your driving habits and send you tips on how to be a safer driver. The app also gives you driving insight and trends including how you use your phone while driving. 

Although this sounds like a good program, do take note that the app will be running in the background at all times and tracks your movements. Some people might not be comfortable with this. 

USAA Financial Strength

When shopping around for an insurance company, an important metric to consider is its financial strength. This metric can help determine if an insurance company can pay out customer claims. 

USAA has been given an “A++” rating from A.M. Best Rating Services, which is considered superior. This is the highest rating that A.M. Best issues to insurance businesses. 

The company’s outlook is considered to be stable due to its sustained improvements in recent years and its ability to mitigate losses during high catastrophic years in the auto industry. Its risk-adjusted capitalization is assessed to be at the strongest level and is supported by a conservative investment portfolio. 

All of USAA’s subsidiaries, including its mutual, capital, casualty, property, and life insurance businesses have received an “A++” rating. 

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USAA Car Insurance Customer Reviews

There are thousands of reviews left for USAA spanning its banking sector, homeowners, life, and auto insurance lines of business. Each individual USAA location has several local reviews as well. 

Overall, USAA receives an average of 3.2 stars across all its sectors of business. This rating is about average for the standard insurance company. 

In regards to its car insurance line of business, customers have left mixed reviews. 

Many customers have noted that USAA’s customer service has gone downhill. A reviewer that has been a USAA customer for 52 years said that customer service, pricing, and credibility have deteriorated drastically. They state that the primary focus of the company has shifted from its customers to corporate profits. 

Other customers have reported a slow and complicated claims process. One customer mentioned that their claim had to be handled through an online portal, and every message was responded to by a different agent. This caused miscommunication and led to several months of waiting before they could get their claim completed. 

Although several customers have reported issues with the company, there are more good reviews than bad for USAA. 

Many customers mention how cheap USAA insurance policies are. Several customers state that USAA has the lowest rates available in America. Lots of customers have experienced excellent customer service from representatives that are well-trained, supportive, and professional. 

Overall, customers have a positive experience with USAA although some have had issues. 

USAA Car Insurance Review Conclusion

USAA was formed by military officers that couldn’t find car insurance as they were considered a high-risk clientele. This began the military legacy of the car insurance company that expanded into banking, investment, and several other insurance lines of business. 

The company used to only offer insurance to military officers but expanded to cover all current and former military members and their immediate families. 

When you join USAA, you gain access to all of its products and services including its banking and investment products, all its insurance lines, and access to an advice hotline for dealing with major life events. The company also has several perks, including discounts on travel and shopping rewards. 

The company offers basic car insurance coverage plans, along with several discounts. Its car insurance is known to be one of the cheapest in the country. 

USAA’s financial strength has received the rating of “A++” from A.M. Best, which is its highest rating. USAA’s strategy through difficult times has given the company a stable outlook in the foreseeable future. 

Customer reviews left for USAA’s car insurance sector are a mixed bag, but the majority of reviewers are happy with its car insurance policies. 

Overall, USAA seems to be a very good choice for active military members, veterans, and their families.

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