USAA Auto Insurance – Coverage for Military Families
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Fast Facts
Availability:
Only for current military members and veterans
Products:
Wide range of insurance, banking and investment products
Membership fee:
Free
Discounts:
Multiple discounts available
Add-ons and riders:
Several add-ons to choose from
Preferred method of contact:
Mobile app or website
USAA has focused solely on financial and insurance products for current military members and veterans for almost a hundred years. With options tailored to those who are serving or have formerly served, USAA has become one of the largest — and most trusted — auto insurance providers. There are multiple benefits to a USAA auto insurance policy; if you’re eligible, you owe it to yourself to look closer at what USAA provides.
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What is USAA?
USAA, which stands for United Services Automobile Association, was founded by a group of 25 Army officers who wanted to self-insure. These officers pooled their resources to provide adequate automobile coverage for one another. As the company grew, coverage and services were extended to all military branches.
Fast-forward 100 years, and USAA now provides a vast array of insurance and financial products to over 13 million members. Products range from car insurance, homeowners', and renters' insurance to banking options, retirement, and investment products. USAA also offers mortgages and dental and vision insurance.
According to USAA, the mission of this provider is “To facilitate the financial security of its members, associates and their families through the provision of a full range of highly competitive financial products and services; in so doing. USAA seeks to be the provider of choice for the military community.”
Now headquartered in San Antonio, Texas, with 36,000 employees and seven offices throughout the country, USAA has become one of the largest insurance providers focused exclusively on the needs of service members.
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How does USAA work?
USAA offers coverage to active duty and former military and their spouses, widows, and widowers. You can even join if you are an un-remarried former spouse of a USAA member (as long as the member joined during your marriage). USAA considers former military members for membership as long as there is an honorable discharge. As a bonus, children of USAA members can also join.
- USAA is available for service members of all military branches, including the U.S. Air Force, Army, Coast Guard, Marines, Navy, National Guard, and Reserves.
- USAA offers memberships and considers anyone affiliated with its company a “member.”
- USAA membership is free as long as you meet the eligibility criteria.
- USAA members and non-members can obtain insurance quotes online or call the customer service number. Once eligibility is confirmed, the quote process is straightforward.
USAA car insurance offers the standard insurance policy options you’d expect, including:
- Collision coverage
- Comprehensive coverage
- Bodily injury and property damage liability coverage
- Medical payments
- Personal injury protection (PIP)
- Uninsured and underinsured motorists
However, USAA offers additional coverage options and benefits, including accident forgiveness, car rental reimbursement, and roadside assistance.
How much does USAA cost?
Like other carriers, the cost of insurance premiums with USAA is based on a variety of personal factors, including:
- Age
- Gender
- Marital status
- Location
- Driving record
- Credit score
- Vehicle type
- Amount of deductible
- Insurance coverage and add-on options
The best way to determine the cost of your insurance premiums is to get a quote directly from USAA, either online or over the phone.
One quote obtained for drivers in their thirties showed an annual premium average of $963 with USAA. According to the USAA website, switching to a USAA policy can save members an average of $725 on yearly auto premiums.
Examples of premium pricing
For a real quote example, I got a quote based on a single, college-educated male renting a home in Chicago and driving an average of 11,000 to 13,000 miles a year. I received the below-mentioned coverage options.
Minimum coverage includes:
- Bodily Injury: $25k/$50k
- Property Damage: $20k
- Uninsured Motorist Bodily Injury: $25k/$50k
Full coverage includes:
- Bodily Injury: $100k/$300k
- Property Damage: $50k
- Uninsured Motorist Bodily Injury: $100k/$300k
- Collision Deductible: $1k
- Comprehensive Deductible: $1k
Type | 25-year-old | 35-year-old |
Full coverage | $1,292 | $1,054 |
Ways to lower your premiums
If you’ve exhausted all the discounts available with USAA but find your insurance premiums are still too much, take advantage of the following:
- Raise your deductible. Your deductible is paid out of pocket before your insurance kicks in. Your rates are higher if you have a low deductible, such as $250 or $500. Consider raising your deductible to $1,000, which can save you an additional 15% to 30%, according to the Insurance Information Institute.
- Improve your credit score. Although not a short-term solution, the higher your credit score, the lower your rates. As you improve your credit, ensure this is factored into your insurance premiums.
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Features of the USAA auto insurance policy
Where USAA begins to separate itself from other carriers is the number of features an auto policy offers, plus the outstanding ratings and reviews. Let’s look at the features first.
Specialty features
In addition to the standard coverage options, policyholders have access to several benefits, including:
- Roadside Assistance. If stranded, this option gets you back on the road or provides vehicle towing. Also includes services to unlock your car, deliver gas, or change a tire.
- Car rental reimbursement. Pays for a rental car (up to the class you choose) while your vehicle is being repaired if it’s in the shop for a covered insurance claim.
- Accident forgiveness. This optional coverage is free after five years if you or your household hasn't had an at-fault accident.
- Car replacement assistance. If your vehicle is declared a total loss, then this benefit would include an additional 20% of the actual cash value of the vehicle from the settlement of your claim.
- Guaranteed renewal. Once a member of USAA, you’ll remain a member for life as long as you pay your premiums.
- Rideshare coverage. USAA provides this additional coverage for your existing USAA policy if you drive for a company such as Uber or Lyft.
Range of discounts available
In addition to competitive rates, USAA offers multiple discounts to reduce insurance rates further. Discounts include:
- Bundling
- Driver training
- Defensive driving course
- Good student
- New vehicle
- Annual Mileage
- Multi-vehicle
- Vehicle storage
- Family
- Loyalty
- Military installation
- Plus car rental and travel discounts for members
Access to digital assets
USAA offers a highly rated mobile app for full access to your auto policy. From there, you can submit claims, update your policy, access your documents, and access all USAA products. The app has a 4.1 out of 5-star rating and over a million reviews.
Online help is a click away, with access to customer service, policies, quotes, and the claims center.
Outstanding customer service support
One of USAA's hallmarks is its comprehensive customer service and support. This isn’t only based on personal stories but also on ratings. For instance, the JD Power 2023 U.S. Auto Claims Satisfaction Survey shows that USAA earns the highest points, with an overall satisfaction rating of 900 points.
The NAIC Consumer Complaint Index shows that USAA comes in with a .69 rating, well below the industry average of 1.0. This index measures the number of official complaints filed against a carrier.
Who is USAA for?
USAA offers many benefits and perks geared toward service members and veterans. Anyone eligible should add USAA to their shortlist for quotes. If strong customer service and competitive rates are important, you would likely be impressed with what USAA offers.
Who shouldn’t use USAA?
If you prefer working one-on-one with a local insurance agent, USAA may disappoint. The preferred method for managing your policy or filing a claim is through the mobile app or website, or you can call the customer service number.
And if you or your immediate family are not affiliated with the military, then you won’t have access to the benefits of a USAA policy.
Pros and cons
Pros
- Financial strength. All the benefits and options listed for USAA members wouldn’t be possible without strong financial backing. Fortunately, USAA has the strength and stability to serve its members well. USAA receives a Superior A++ financial rating from the AM Best company. In addition to the Exceptional Aaa from Moody's Investors Service and Very Strong AA+ from Standard & Poor's rating.
- Understands the unique needs of current and former service members. Since USAA was founded by service members, the company understands the individual needs of each military family. For instance, there are reduced rates if you or a family member is deployed and your car will be parked for several months. USAA also offers financial assistance and transitioning services as your military career takes you down new paths.
- Digital assets. USAA offers multiple options for convenience, from the 24/7 customer service line, to the full-service website and mobile app. All three options allow you to make changes to your policy, file a claim, and general policy management.
Cons
- Requirements. Unless you meet the criteria mentioned above, you won’t be eligible for an auto policy with USAA.
- No live agent or local agent network or local branches. If you need to discuss any policy-related issues or quotes, you have to work online, through the app, or call the general customer service number.
USAA vs. competitors
Carrier | JD Power 2023 Auto Claims Satisfaction Score | AM Best Financial Rating | Discounts offered | Average annual premiums |
USAA | 900 | A++ | Yes | $1,335 |
902 | A | Yes | $1,532 | |
871 | A++ | Yes | $1,778 | |
891 | A++ | Yes | $1,657 | |
875 | A | Yes | $1,621 | |
909 | A+ | Yes | $2,283 | |
870 | A+ | Yes | $1,848 | |
882 | A+ | Yes | $3,374 | |
866 | A | Yes | $2,598 | |
878 | B++ | Yes | $3,253 |
Full reviews on competing insurance companies can be found in the links.
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FAQs
Can I get coverage if I'm deployed overseas?
Yes, USAA provides coverage options for members who are deployed overseas, ensuring that their vehicles are protected while they are away.
How do I file a claim with USAA?
You can file a claim online through the USAA website or mobile app, or by calling their claims department. USAA provides a simple and streamlined process for filing claims.
Does USAA offer any special coverage options or benefits?
Yes, USAA offers special benefits such as accident forgiveness, rideshare insurance for drivers of services like Uber or Lyft, and a SafePilot program that rewards safe driving.
The bottom line
It’s hard to argue with the strength of a company like USAA. As you’re shopping around for your auto insurance coverage options, if you’re eligible, include USAA in your list of companies to review.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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