USAA Insurance Review
USAA is one of the most affordable car insurers around. It offers its 13 million members additional financial services as well, such as life insurance and banking. USAA is often ranked as one of the top companies in America for customer service, regardless of industry.
Products Reviewed
Best if
- You or a family member are current military or a veteran.
- You're looking for cheap rates coupled with the best customer service.
- You meet USAA’s qualifications and happen to be a young or inexperienced driver.
Worst if
- No one in your family is affiliated with the military (in which case, you don’t qualify for a USAA quote).
- You prefer to interact with an agent in person rather than online.
Introduction
USAA is one of the most affordable car insurers around. It offers its 13 million members additional financial services as well, such as life insurance and banking. USAA is often ranked as one of the top companies in America for customer service, regardless of industry.
However, USAA is only available to former or current military members and their immediate family. If you meet this criteria, you'll be able to receive discounts and services specifically catered to your needs as military personnel. For example, USAA offers up to 60% off insurance for those who have been deployed on active duty and need to store their vehicles.
Available in all 50 states and the District of Columbia, USAA is a great option for qualified drivers across the country.
Auto Insurance
Auto insurance at a glance
Provides coverages and discounts specifically for military members.
USAA's inexpensive rates make it a great option for any qualified driver.
In-person offices are limited, but USAA ranks among the best insurers for customer service.
USAA offers highly affordable car insurance rates for military members and veterans
USAA has among the most affordable car insurance rates out of the largest insurers, making it one of the best companies for drivers seeking cheap coverage.
To be eligible for USAA coverage, you must be one of the following:
- A current or former military member.
- The spouse or child of a current or former military member.
- The widow or widower of a current or former military member.
| Company | Minimum coverage | Full coverage | ||
|---|---|---|---|---|
| Allstate | $113 | $162 | ||
| GEICO | $102 | $162 | ||
| State Farm | $63 | $120 | ||
| USAA | $49 | $107 | ||
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
| Company | Clean record | After DUI | After accident | |
|---|---|---|---|---|
| Allstate | $162 | $419 | $318 | |
| GEICO | $162 | $504 | $354 | |
| State Farm | $120 | $156 | $144 | |
| USAA | $107 | $204 | $147 | |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
| Company | 16 years old | 18 years old | 20 years old | |
|---|---|---|---|---|
| Allstate | $794 | $587 | $322 | |
| GEICO | $682 | $546 | $306 | |
| State Farm | $479 | $371 | $215 | |
| USAA | $358 | $258 | $158 | |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Notably, if you’re a young driver and you or a family member has a military background, you may be eligible for highly competitive rates from USAA. The average cost of car insurance for USAA is several hundreds of dollars cheaper than many other major insurers.
You can find standard coverage options through USAA
Drivers insured under USAA can purchase the following coverages, in addition to comprehensive and collision protection, from the company:
| Add-on coverages | Sample cost or discount |
|---|---|
| Rideshare insurance | Check with USAA |
| Classic car insurance | Save up to 5% on your overall policy |
| Rental car reimbursement | Check with USAA |
| 24/7 emergency roadside assistance | $1 to $1.25 added to your regular policy |
| Accident forgiveness | Complimentary in some states after five years accident free |
| Uninsured motorist | Check with USAA |
While these coverages are available to all qualified drivers, you may not need many of them. Before you begin tacking on protections, it's important to evaluate your current driving needs to ensure you are not spending more than you should.
Discounts on USAA car insurance
Young driver
- Good student: teen drivers can qualify for savings if they achieve high marks in school. This discount is not available to drivers in Hawaii or North Carolina.
Safe driving
- Safe driving: drivers who remain accident free for five years can qualify for savings in select areas.
- Defensive driving: complete a defensive driving course in your state. If you are younger than 21 years old, you can also take a basic driver training course to qualify for a discount.
- SafePilot: USAA's safe driver program uses telematics to grant you up to 30% savings based on how well you drive and how frequently you practice safe driving habits.
Vehicle storage
- Military installation: if you don’t plan to use your vehicle for more than 30 days and you are open to storing it on a military installation, you can qualify for up to 15% off comprehensive coverage, except in California, where you can receive a discount on collision coverage.
- Storage: drivers who are deployed or don’t intend to use their car for an extended period of time can receive up to 60% off car insurance.
Additional discounts
- New car: your vehicle must be less than three years old to qualify.
- Anti-theft device: for drivers who have installed anti-theft devices in their vehicle.
- Low mileage: driving under a certain number of miles per year. Not available in Hawaii or North Carolina.
- Family: drivers with parents insured under USAA can qualify for a loyalty discount up to 10%.
USAA has average customer service ratings
Several independent organizations evaluate each major insurer's ability to satisfy and meet the needs of their customers. The National Association of Insurance Commissioners (NAIC) analyzes complaint data filed to state regulators, with a median Complaint Index of 1.0. USAA receives an average amount of complaints for insurers of its size.
However, J.D. Power, which surveys customers and measures insurers on a scale of 1,000, found that USAA is rated among the best insurers by drivers. Similarly, S&P found that USAA achieved the highest rank in terms of the company's ability to meet the financial needs of its customers.
| 2020 NAIC Complaint Index | >0.98 |
|---|---|
| J.D. Power 2021 U.S. Auto Claims Satisfaction Study | 890 |
| S&P Financial Strength Rating | A++ |
Home Insurance
USAA typically has some of the highest, if not the highest, customer satisfaction ratings of the major home insurance providers. Its complaint rate regarding claims resolution and payouts is below the national average as well.
Breakdown of USAA’s homeowner insurance coverage
USAA’s home insurance policy includes standard offerings such as dwelling, personal property and liability insurance.
| Coverage | Details |
|---|---|
| Dwelling | Protects the structure and built-in systems of your home. |
| Other structure | If external structures on your property such as a detached garage, fence or driveway are damaged by a covered peril, this coverage will help with the repairs. |
| Personal property | Covers belongings such as furniture and clothing for repair or replacement if they’re damaged by covered perils. |
| Liability | If someone is injured on your property, or if you cause damage to someone else’s property, this coverage helps with expenses such as medical bills and legal fees. |
| Loss of use | If you’re required to relocate while damage to your home is being repaired, LOU helps maintain your current standard of living, as well as additional expenses resulting from the relocation. |
| Identity theft | If your identity is stolen, this coverage assists with the expenses associated with fixing your credit score and identity theft recovery. |
| Windstorm | This coverage can protect you against damage from tornadoes and hail. |
Additional home insurance coverage options
| Coverage | Details |
|---|---|
| Personal umbrella policy | If someone is injured on your property and the costs go beyond your liability coverage limits, this coverage can help pick up the slack. |
| Flood | If you live in an area prone to flooding, flood insurance will cover your home and personal property since a standard homeowners insurance policy won’t. |
| Earthquake | Earthquake damage is another peril that standard home insurance doesn’t cover. This coverage is excellent if you live on or near a fault line. |
| Homesharing | If you rent out a room or entire house, this coverage can help with income replacement if the home can’t be rented during repairs. It also provides additional liability coverage. |
| Valuable personal property | Expensive items such as jewelry or art that are covered to a limited dollar amount can be covered for full replacement cost. |
Military-specific home insurance coverage options
USAA offers some benefits tailored specifically to Armed Forces members that are often not included in a standard homeowners insurance policy, such as:
- War zone coverage: If you are stationed in a war zone outside of the U.S., a USAA home insurance policy can cover your lost or damaged belongings. This coverage includes personal property you have to abandon.
- Uniform coverage: The uniforms of active or deployed Armed Forces members are covered for replacement, even if they’re in storage.
Where does USAA offer home insurance coverage?
USAA provides homeowners insurance in all 50 states and the District of Columbia, as well as some international locations. They have no local offices or agents, and only work through corporate offices and financial centers.
How much does USAA homeowners insurance cost?
The average rate for a USAA home insurance policy is $1,728 a year, or $144 a month. This comes in just below the U.S. average home insurance rate of $1,735. This makes USAA the second-cheapest home insurance company in the country.
| Company | Annual rate | Monthly rate | ||
|---|---|---|---|---|
| Allstate | $1,714 | $143 | ||
| USAA | $1,728 | $144 | ||
| U.S. average | $1,735 | $145 | ||
| Nationwide | $1,759 | $147 | ||
| State Farm | $1,854 | $154 | ||
| American Family | $1,866 | $155 | ||
| Chubb | $1,914 | $159 | ||
| Farmers | $2,402 | $200 | ||
| Travelers | $2,532 | $211 | ||
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
Which home insurance discounts does USAA offer?
While USAA doesn’t offer as many discounts as other home insurance companies, it still provides some good ways to lower your annual premium:
- Bundling: You can save up to 10% off your premium by bundling your home and auto insurance together.
- Claims-free discount: If you don’t file a claim for at least five years, you can get another 10% off your home insurance premium.
- Home age discount: Newer homes are less likely to need a claim filed. USAA understands this and offers a discount on your home insurance premium based on how old your home is.
USAA’s consumer and financial ratings
USAA has strong customer satisfaction and financial standing across the board. These ratings are important to look at when choosing a home insurance provider. Knowing how an insurer comes through for its policyholders is just as important as how cheap its rates are.
| Firm | Rating |
|---|---|
| J.D. Power | 905 |
| NAIC | 0.8 |
| A.M. Best | A++ |
J.D. Power is a market research firm that specializes in ranking and reviewing consumer data from various industries, including insurance. Every year, J.D. Power compiles a customer satisfaction study that reflects an insurance provider’s quality in regards to various factors such as settlement and claim service. In its 2021 U.S. Property Claims Satisfaction Study, J.D. Power gave USAA a rating of 905 out of 1,000. This is the highest rating given in the study in 2021, and well above the national average rating of 883.
The National Association of Insurance Commissioners (NAIC) collates and analyzes insurance data. The NAIC Complaint Index compares complaint resolution capability between companies, mostly involving claims resolution and payouts. USAA’s current Complaint Index is 0.8, which is less than the 1.0 National Complaint Index.
Unlike the first two firms, A.M. Best focuses on the creditworthiness of insurance companies. Currently, A.M. Best gives USAA an A++ “Superior” score for financial strength. This reflects a provider’s ability to pay out on claims.
Renters Insurance
USAA renters insurance is a good value whether you live on-base or in an apartment. In 2015, the Department of Defense removed renters insurance from enlisted members’ basic allowance for housing. This makes finding a renters insurance policy your responsibility.
USAA renters insurance coverages
USAA’s renters insurance has all the components of a standard home insurance policy, plus unique coverages of interest to Armed Forces members:
- Your personal property is covered even if you’re deployed.
- Flood and earthquake damage are covered under USAA’s basic renters policy.
- Replacement cost coverage wherever you’re stationed in the world.
USAA renters insurance discounts
USAA renters insurance policyholders get the same bundling and claims-free discounts offered under USAA’s home insurance. Furthermore, you can save 28% on your renters insurance premium if you live on-base or in a barrack or military dorm.
Methodology
The auto insurance quotes analyzed came from a 30-year-old single man driving a 2012 Honda Accord LX. He has a clean driving record and racks up 13,500 miles annually. When comparing coverages across companies, we compiled rates for the 20 most populated ZIP codes in all 50 states and the District of Columbia. Minimum-coverage policy limits vary by state, but when we assessed full-coverage policies, we used the following limits:
- $100,000 bodily injury liability per person and $300,000 bodily injury liability per accident
- $100,000 property damage liability
- $500 collision and comprehensive deductible
For home insurance, we collected quotes for a standard HO-3 homeowners insurance policy. We used the following coverages:
- $275,000 dwelling coverage
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible