USAA Auto Insurance Review: Why USAA Car Insurance Stands Out
USAA Auto Insurance Review: There was a need for the U.S. military to own an insurance company to provide coverage and financial services to their members. That dream gave birth to United Services Automobile Association (USAA) insurance.
Back in 1922, a group of 25 U.S. Army officers got together in San Antonio, Texas, and started USAA. They did it because they couldn’t get auto insurance easily due to the idea that being military officers made them high-risk.
USAA provides car insurance at competitive prices and is known all over the United States for its outstanding customer service.
USAA Auto Insurance Review: Our Take
Disclaimer: The review you’re about to read reflects someone’s personal journey with the insurance company. It’s all based on their unique situation. Please don’t take it as professional advice. You can consult with the insurance company for further inquiries.
After our team at frugalinsure did a USAA auto insurance review, we discovered that they offer competitive rates and comprehensive coverage options. Therefore, if you are in the U.S. military, a veteran, or have a family member who served in the U.S. military, it’s worth checking out USAA auto insurance coverage.
Comparing USAA Auto Insurance Premium
| Coverage types | USAA | Progressive | GEICO | Allstate | State Farm |
|---|---|---|---|---|---|
| Full Coverage | $883 | $1,381 | $1,047 | $1,351 | $1,235 |
| Minimum Coverage | $409 | $724 | $513 | $735 | $660 |
| Speeding Ticket | $1,015 | $1,964 | $1,407 | $1,652 | $1,503 |
| 18-year old driver | $2,382 | $5,990 | $3,488 | $3,916 | $3,280 |
Let’s compare USAA to a few other top car insurance providers in the United States to see which company has the cheapest car insurance coverage:
We collected these numbers from recent MoneyGeek reviews and are meant for comparison purposes only. Remember, the actual car insurance premium might differ from the figures presented here.
How much is USAA auto insurance?
We will discuss the cost of USAA car insurance based on full coverage, minimum coverage, speeding tickets, and young drivers.
Cost of full coverage
A full coverage USAA car insurance costs $883 per year. It’s worth noting that among the top insurance providers that were reviewed, USAA offers the most affordable vehicle insurance coverage.
A full-coverage car insurance policy usually comes with state-required property damage liability and bodily injury, along with optional coverage like collision and comprehensive.
One thing that makes full coverage auto insurance stand out is that it covers you from a car accident, even if you’re at fault and it causes bodily injuries, car damage, or damage to other valuable properties.
Cost of minimum insurance coverage
For minimum car insurance coverage, the cost of USAA auto insurance is $409 a year, significantly more affordable than competitors. Note that a minimum policy is the lowest limit of insurance coverage that is required by different states in the United States.
Cost of insurance if you have received speeding ticket
A speeding ticket leads to higher premium rates. Insurance companies will see you as a high-risk driver. In case you don’t know, a speeding ticket is a citation issued by law enforcement for exceeding the legal speed limit while driving.
Since receiving a speeding ticket makes you a high-risk driver, the cost of the premium is $1,015 per year, which is more than the national average for good drivers.
Among the insurance companies that we reviewed, the $1,015 premium for a driver with a speeding ticket from USAA stands out as the cheapest.
Cost for USAA auto insurance for a young driver
Car insurance for an 18-year-old young driver costs about $2,382 per year on USAA. This price is twice the amount young drivers will pay if they want to buy car insurance from Progressive Insurance: $5,990.
You might be wondering why the insurance premium for a young driver is more expensive than the normal average.
Well, insurance companies see young drivers as high-risk because they don’t have road experience and might want to speed due to the feeling that they are young.
What Factors Determine USAA Car Insurance Rates?
USAA car insurance premiums are not fixed. They differ based on certain factors. The factors that determine USAA car insurance rates include the following:
- Your driving record: Your history of accidents and traffic violations can impact your rates.
- The age of buyer: Younger drivers often face higher premiums, while older drivers may benefit from lower rates.
- Your location: Where you live and drive affects rates, considering factors like traffic density and crime rates.
- Coverage options: The type and extent of coverage you choose will influence the cost of your insurance.
- Vehicle type: The make, model, and year of your car can impact rates, including safety features and repair costs.
- Credit history: In some states, your credit score may be a factor in determining your insurance rates.
- Annual mileage: The number of miles you drive annually can affect your risk profile and, consequently, your premiums.
USAA Auto Insurance Review: Pros and Cons
USAA car insurance is awesome and has the best auto insurance deals. However, there are still some drawbacks to buying insurance from them. So let’s learn about the pros and cons of USAA auto insurance:
Pros of USAA Auto Insurance
- Military Focus: USAA is known for its focus on serving military members and their families, providing specialized services, and understanding their unique needs.
- Customer Service: USAA is often praised for its excellent customer service, with high satisfaction ratings and personalized support.
- Discounts: Members may benefit from various discounts, such as safe driver discounts, military installation discounts, and multi-policy discounts.
- Financial Strength: USAA has a strong financial reputation, which can provide confidence in its ability to handle claims and provide reliable coverage.
- Mobile App: The USAA mobile app is user-friendly and offers convenient features like mobile claims, bill payment, and account management.
Cons of USAA Auto Insurance
- Limited Eligibility: USAA membership is limited to military members, veterans, and their families, excluding the general public.
- Coverage Restrictions: Some coverage options may be limited compared to other insurance providers, potentially leading to fewer customization options.
- Regional Availability: USAA may not be available to everyone nationwide, as eligibility and coverage can vary by location.
- Premium Costs: While USAA is often competitive, it’s essential to compare premium costs, as rates can still vary based on factors like location and driving history.
- Fewer Physical Locations: USAA primarily operates online and through phone support, so if you prefer in-person interactions, the limited number of physical locations could be a drawback.
Discounts to enjoy when you buy USAA car insurance
USAA offers discounts on your auto insurance premium. Examine them carefully and see which ones you are eligible for. They include the following:
- Safe Driver Discount: USAA offers discounts for safe driving records, rewarding policyholders who maintain a history of responsible driving.
- Military Installation Discount: Being a military-focused insurer, USAA provides discounts for those who live on military installations.
- Multi-Vehicle Discount: If you insure more than one vehicle with USAA, you may qualify for a multi-vehicle discount, helping you save on overall premiums.
- Good Student Discount: Students that are performing excellently in school with sound academic records may qualify for discounts on their car insurance premiums.
- Defensive Driving Course Discount: You can qualify for a discount on your car insurance premium if you enroll in a defensive driving course. It’s not enough to enroll; you must complete it to get your discount.
- Annual Mileage Discount: If you drive fewer miles than average, USAA may offer a discount based on your lower annual mileage.
- Bundling: USAA provides discounts of 10% for family members who have multiple insurance policies with them, such as bundling auto and homeowners insurance.
- New Vehicle Discount: Buying insurance for a new vehicle with USAA might get you a discount, especially since newer cars often boast advanced safety features.
- Vehicle Storage Discount: When storing your vehicle for deployment or extended periods, USAA may provide a discount of approximately 60% during that time.
- Pay-in-Full Discount: You can qualify for a discount on your USAA auto insurance when you pay your yearly premium completely, rather than in installments.
Who can get USAA car insurance?
USAA car insurance is available for:
- Active Duty Service Members: Including Army, Navy, Air Force, Marines, and Coast Guard.
- Reserve and National Guard Members: Both current and former members.
- Veterans: Honorably discharged veterans.
- Cadets and Midshipmen: At U.S. service academies.
- Family Members: Spouses, children, and widows or widowers of USAA members.
- Officer candidates: They include those officers who would be commissioned with 2 years (or 24 months).
How to buy USAA auto insurance
USAA car insurance is not for everyone. You must become a member of USAA before you are eligible to buy their auto insurance. However, membership in USAA is restricted to U.S. military personnel and their close family members.
If you are in any of the above categories, then you are qualified to buy their policy. Your first step is to get USAA car insurance quotes. You can obtain an auto insurance quote through the USAA website or by giving them a call at 1-800-531-8722.
An important note is that you can’t buy USAA auto insurance through an agent. The only way to get it is by buying from the company directly. So, don’t fall victim to any agent who tells you that they can buy USAA insurance for you.
Brand Reputation and Customer Satisfaction Rate for USAA
USAA really nails it when it comes to keeping their customers happy with their car insurance. I mean, their customer satisfaction ratings are through the roof! And it’s not just about insurance; their service and loyalty are top-notch across the board.
And you know what really sealed the deal? The 2023 JD Power U.S. Auto Insurance Study just highlighted how USAA continues to shine in making customers happy. They’re on a roll!
USAA is on another level; they proudly hold the top spot in the insurance industry for the highest Net Promoter Score (NPS). NPS is all about measuring customer loyalty and how likely people are to recommend a brand.
What a customer said about USAA auto insurance
Here is a testimonial from David Phillips, a student at the University of Texas at Austin. He talked about how he got a discount on his USAA auto insurance because he has good grades in school:
“As a student and USAA member, I couldn’t be happier with the personalized service and benefits I received. Thanks to my good grades in school, I qualified for a fantastic discount on my auto insurance. USAA recognized and rewarded my academic achievements, making my insurance more affordable. It’s great to be part of a company that goes beyond just covering my car; they appreciate and support my commitment to education. USAA’s student discount is helpful to those of us that are focused on our studies while still enjoying quality coverage at a reasonable cost.”
Which services does USAA offer besides car insurance in the USA?
Most people think that USAA is all about auto insurance alone. But they are wrong. USAA offers a range of financial services in addition to car insurance, including:
- Banking services
- Home insurance
- Life insurance
- Health insurance
- Investment services
- Credit cards
- Auto loans
- Personal loans
- Real estate services
- Financial planning
Conclusion: USAA Auto Insurance Review
USAA offers the cheapest car insurance in the United States. It’s not just about the cheap premium rates; they also have top-notch customer support where users can report issues and get a response in minutes.
Aside from car insurance, USAA also offers services such as banking services, home insurance, life insurance, health insurance, investment services, credit cards, auto loans, and many more.
However, their services are not for everyone; they are only available to the U.S. military and their family members. If you are eligible to buy USAA auto insurance, do it now. Don’t waste time trying to get quotes from other insurers because their rates are higher.
USAA Auto Insurance Review: FAQs and Answers
There might be some questions about USAA auto insurance that you have been seeking answers to; here are a few. If your question is not here, please use the comment section, and we will answer you appropriately.
What is USAA’s phone number?
USAA’s phone number is 1-800-531-USAA (8722). You can contact them if you need assistance or want to buy a car insurance policy.
How can I cancel a USAA car insurance policy?
Irrespective of your reasons for wanting to cancel your policy, the only way to cancel USAA auto insurance coverage is by calling 1-800-531-USAA (8722). The customer support will direct you on the way forward.
How do I report a car insurance claim to USAA?
To report USAA auto insurance claims, you can do so online by logging into your account on their official website or using the USAA mobile app. Alternatively, you can report the claim by calling the USAA claims hotline at 1-800-531-USAA (8722).
