Pros Explained
Cons Explained
IntroductionUnited States Automobile Association (USAA) is a popular name in the insurance industry and for a good reason. For several years running, USAA has topped customer satisfaction and financial ratings for auto insurance with some of the cheapest rates available. It is also active within the military community, helping active-duty and veteran military families with the unique challenges they face. Show
Today, it offers several types of insurance for your family in addition to auto insurance, such as homeowners insurance, renters insurance, life insurance, and health insurance. There are also several financial products available, including bank and investment products. With easy online quotes and special resources specific to military life, USAA is an ideal car insurance company for your auto insurance. Company OverviewEstablished in 1922 to serve the military community, the United States Automobile Association (USAA) was founded by 25 Army officers to provide each other with car insurance. It continues in that vein today, offering several financial products to several different members of the military community. USAA is headquartered in San Antonio, Texas, where it offers 48.8 million products to over 13 million members.
USAA auto insurance may be underwritten by a different provider, including USAA Casualty Insurance Company, USAA General Indemnity Company, and Garrison Property and Casualty Insurance Company. Types of Coverage USAA offers
auto insurance for a variety of vehicles beyond the traditional standard vehicle, such as insurance for motorcycles, RVs, boats, classic cars, and umbrella insurance. USAA auto products are only available to the military community and those related to them. ComprehensiveComprehensive car insurance is a major component of your auto insurance company, providing insurance coverage if you have an incident while driving. This can include several types of damages, including fire, hail, and flooding. CollisionAlso standard is collision coverage, which provides protection if you are in an accident with another vehicle or with stationary subjects. If you finance or lease your vehicle, you are likely required to carry this coverage. LiabilityWhen you are found legally responsible for an accident, liability insurance provides protection if there is injury or death to another party. Uninsured and UnderinsuredNot all drivers on the road may have auto insurance. Uninsured and underinsured insurance protects you and your passengers should you sustain injuries from an accident with a driver who does not have any or enough car insurance coverage. Optional CoverageRoadside AssistanceUSAA also offers roadside assistance for troubles you encounter along your travels, such as a flat tire or a tow. Rental ReimbursementIf your car needs repair, USAA offers rental reimbursement, which will pay for the cost of a rental car while your vehicle is in the shop. Rideshare InsuranceIn response to the rise of Uber and Lyft, USAA also offers rideshare insurance with guaranteed repairs at more than 2,900 locations across the country. Rideshare gap coverage is also available for your existing policy. Discounts USAA offers 12 car insurance discounts for its members. According to USAA, the average member saves an average of $725 per year when switching to their auto insurance. Driving Discounts
Vehicle Discounts
Membership Discounts
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Additionally, USAA offers accident forgiveness for extra savings. When you are accident-free for five years at USAA, the auto policy surcharge will be waived for your first at-fault accident. However, this option is not available for policyholders in California, Connecticut, Delaware, New York, and North Carolina. Payment OptionsPolicyholders can choose from either a six-month or year-long policy with the option of upfront or monthly payment options. Payments can be made via check, credit card, checking, savings, or money market account.
Loss RatioA company’s loss ratio can show how fairly a company prices its insurance policies. When a company has a low loss ratio, it typically means lower premiums in response. A high loss ratio is considered over 100%, but USAA falls well below that at 73.6% as of 2021. Other FeaturesUSAA specializes in serving the military community with several exclusive programs and savings not found with the average insurance provider. USAA member perks and shopping discounts have saved members about $370 million in areas like travel, fitness, and car care. From 25% off on Goodyear Tires to 15% off a new SimpliSafe DIY security system, several excellent perks are designed to save military families money. Customer ServiceHeadquartered in San Antonio, USAA has several corporate locations across the country, including Phoenix, Tampa, and New York, plus three locations in Texas. There are also international locations available in England, Germany, and Luxembourg. There are several ways to contact USAA.
Customer SatisfactionUSAA consistently rates at the top of customer satisfaction ratings with industry-leading customer service. USAA offers an in-app assistant that can help with customer support or transfer you to a representative. Satisfaction RatingsUSAA received top rankings in J.D. Power’s 2021 U.S. Auto Insurance Study. While it is technically rank-ineligible due to its restricted availability, USAA still remains the top-rated company in every single region of the U.S. It is also top-rated among large insurers in J.D. Power’s 2021 U.S. Insurance Shopping Study. USAA also receives an industry-leading score of A++ (Excellent) from AM Best, a ratings provider that analyzes a company’s financial strength. Complaint IndexThe National Association of Insurance Commissioners (NAIC) tracks the number of customer complaints an insurance company receives. The average industry score is 1.00, but USAA scores much higher with a rating of 1.95 in 2021. It follows a pattern of steady increases from 2020’s 1.85 score and 1.78 in 2019. Account ManagementUSAA policyholders can enjoy free use of the USAA mobile app available on both the App Store and Google Play. With the app, it is easy to access your insurance card, deposit checks, pay bills, and send money. You can also receive support for claims and roadside assistance. Logging in is both easy and secure via fingerprint, face, and voice recognition. How USAA Compares to Other Auto Insurance CompaniesThe biggest difference when comparing USAA to other companies is its exclusivity. You must be a current or retired member of the military or a family member. If you qualify, USAA provides versatile protection with all standard coverages, plus additional extras like ridesharing and rental car insurance. It also excels in customer satisfaction and financial strength, rating significantly higher than its competitors in J.D. Power and AM Best scoring, but it still has some room for improvement with lackluster NAIC ratings. Still, USAA maintains an impressive loss ratio, showing that USAA is financially secure and offers appropriate rates for its customers. Verdict You must be a member of an active-duty or veteran military household to purchase USAA auto insurance because USAA restricts its membership to just the military community. However, if you qualify, you can receive competitive car insurance rates with multi-faceted coverage that can include extras like roadside assistance and rideshare coverage. To help you save, there are 12 different car insurance discounts like vehicle and payment discounts, plus military-only savings when you are on deployment or store your car on-base. While its NAIC rating remains high, USAA excels in several areas, making it a fantastic choice for military drivers. MethodologyInvestopedia is committed to providing readers with unbiased, comprehensive reviews of auto insurance companies. All of our reviews are based on extensive research and analysis of each company’s coverage, customer service, pricing, years in business, accreditation, and more. To rate providers, we developed an auto insurance review methodology that compares the auto insurance coverage types, additional features, discounts, account management, and other features. Is Garrison Property and Casualty the same as USAA?Garrison Property and Casualty Insurance Company is one of many subsidiaries of USAA, one of the leading insurance providers in the United States.
What insurance company is USAA?USAA means United Services Automobile Association and its affiliates. Life insurance and annuities provided by USAA Life Insurance Co., San Antonio, TX, and in NY by USAA Life Insurance Co.
Who owns USAA insurance?USAA is owned by the company's policyholders. USAA is a type of insurance company called a reciprocal insurance exchange, which means that policyholders assume each other's risk, though daily operations are managed by the company's executive council.
Is USAA and AAA the same company?USAA and AAA are two very popular options for insurance, but each company has its own unique features. Eligibility and availability set these companies apart from most other major insurance providers, meaning that some customers may not even be able to find a policy through USAA or AAA.
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