USAA Auto Insurance ReviewThursday, 25 July 2013 22:08
The United Services Automobile Association (USAA) is an insurance, financial services, banking, financial counseling, and investment company based out of San Antonio, Texas that offers auto insurance and other services exclusively to members of the U.S. military and their families in all 50 states. The company is regularly rated among the best in the insurance industry for claims satisfaction, excellent customer support, and satisfaction with prices. J.D. Power ranks USAA as a leading company for insurance customer support and it has received numerous awards from other review agencies for its commitment to customer support and professionalism. USAA is without a doubt one of the best auto insurance companies for military employees and their families to consider when shopping for auto insurance with its consistently high third party and consumer reviews, financial stability, and exclusive military discounts.
Company Background Information
USAA was founded in 1922 by a small group of military officers who needed insurance. During this period of time the military was considered to be a high risk group and other insurance companies were less willing to provide them with insurance. USAA has grown tremendously since its founding and is currently the sixth largest provider of auto insurance in the United States. The company is currently headquartered in San Antonio, Texas and employs over 20,000 people.
To be eligible for membership with USAA, a person must be a current, past or honorably discharged member of the armed forces. Other eligible members include officers in training and children of parents with USAA membership. USAA presently offers its auto insurance in every state and D.C. as well as some international locations. The company had 9.4 million members at the end of 2012.
USAA is known for being one of the highest rated insurance services for customer service satisfaction. A 2011 survey found that 95% of USAA members plan on staying with the company for the rest of their lives, which is one of the highest retention rates in the insurance industry. AM Best rates USAA with an A++ rating for its consistent financial stability over time and J.D. Power gave USAA an impressive perfect 5 out of 5 power circles for all aspects of claims processing for its 2013 study. J.D. Power noted in its study that USAA is excluded from its rankings because the company only offers its insurance to the military.
Pros of USAA Car Insurance
- Military members can have all of their financial and insurance needs met in one place
- Consistently excellent ratings from independent review organizations for customer support and claims processing
- Affordable rates that are competitive with most other insurers
- Financially stable company with very high ratings from A.M. Best and other financial review organizations
Cons of USAA Car Insurance
- Membership is exclusive to the military
- Some negative BBB complaints
USAA offers many exclusive discounts to its members that can reduce premium costs including the following:
- Safe driver discounts for keeping a good driving record for over 5 years
- Good student discounts for young adults and teenagers
- Driving training discounts for attending driving classes
- Defensive driving discounts for taking a defensive driving course
- Member loyalty discounts for staying with USAA for a period of time
- New vehicles that are less than three years old are eligible for reduced premiums
- Annual mileage discounts are available for those who drive less often
- Stored vehicles are eligible for discounts
- Discounts are also available to family members
Each of the discounts mentioned above and other discounts are subject to certain exclusions for some states.
Types of Insurance Offered
USAA offers the minimum liability insurance for each U.S. state including: liability protection to cover at fault drivers involved in an accident, bodily injury and property liability coverage, personal injury, medical payments, uninsured motorist, and more. Supplementary insurance products include: rental reimbursement, accident forgiveness, and roadside assistance. USAA’s accident forgiveness program is available to its members for only a few extra dollars per month.
USAA provides many other financial and insurance products outside of auto insurance including: homeowners, renters, life, home, umbrella, small business, and health insurance. USAA also offers financial products like credit report monitoring, checking and savings, credit cards, mortgages, and other services through USAA. For military members, USAA can serve most if not all of their financial services and insurance needs.
USAA also offers some exclusive benefits to its auto insurance members:
- USAA Roadside Assistance – this is available through the company’s towing coverage for most states and covers the cost of towing, lockout service, gas delivery and tire replacement
- Guaranteed Repairs – when a USAA member takes their vehicle to a USAA approved repair shop after an accident, the repairs are guaranteed by USAA
- Guaranteed Renewal – USAA members are eligible for continuous auto coverage as long as they are able to drive and meet their basic requirements.
Reviews of USAA online are mostly positive including the reviews posted on USAA’s websites. USAA members benefit from the fast claims processing and commitment to customer support that the company offers to its members, so most customers are happy with the result of their claims. A few members who have posted on USAA’s BBB page reported some billing issues and lower than expected settlement offers, and various other issues.
USAA is one of the best auto insurance and financial services options available for members of the military. Those who serve in the military are definitely not required to purchase their insurance from USAA, but it would make sense for them to check USAA for a quote and see how they compare to other insurance providers. USAA claims that members who switch to them save an average of $426 per year and can benefit from additional savings from adding on more policies like homeowners or others.
With USAA’s highly rated customer support, claims processing, flexible payments, unique military discounts, and many other benefits, military members are fortunate to be eligible to use their auto insurance products and other services. If you happen to be looking for insurance now you can retrieve quotes from USAA and many other insurance providers by entering your zip code in the form on this page.
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|Market Share||Ranked 6th|
|AM Best Score||A++|
|JD Power Rating||5 out of 5|
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