Last Updated: August 2019
Disclaimer: We are not USAA Insurance Company. This USAA Car Insurance Review is designed to do nothing but bring you unbiased and honest thoughts on coverages and options when purchasing USAA auto insurance.
This USAA Insurance review is roughly a 6-minute read.
For those of you wanting nothing more than a brief synopsis of USAA, we wanted to ensure we provided that as well.
Here it is:
USAA Insurance Company is an excellent option for car insurance for individuals who are military personnel or who are related to individuals who are military personnel.
Currently, USAA does not offer car insurance coverage to individuals who don’t meet these requirements and likely never will.
Additionally, USAA is one of the cheapest options you can choose for car insurance, making it into the top 5 cheapest car insurance companies on the market.
On the flip side, USAA is not the most ideal for individuals with a poor credit history or poor driving records.
If, however, you are a rideshare driver for Uber or Lyft, USAA can certainly help to offer one of the broadest coverage areas for rideshare car insurance available.
USAA is one of the financially strongest insurance companies in the industry and known for fantastic service, loyal policyholders and is backed by a strong, longstanding name in the industry.
That gave you a 1-minute, few quick paragraphs look at USAA car insurance.
For those of you with a coffee in hand and that want the full details on USAA car insurance options, we recommend reading our full review below.
Additionally, be sure to use our links directly below to skip to any specific section of this article:
USAA is a car insurance company that has a lot to live up to.
USAA currently ranks among the best in the industry for customer satisfaction and overall satisfaction from consumers.
USAA also offers other services, such as banking and investment services.
This makes USAA a clear choice for consumers to prefer to keep most of their finances and insurance products under the same umbrella.
However, for those of you who are currently looking for behind the scenes information before deciding is USAA is the best choice for you, be sure to read our full review of the company below.
Here are the details.
Our USAA Car Insurance Review
USAA Insurance Company is known as the United Services Automobile Association.
USAA offers plenty of additional financial services products including property and casualty insurance, life insurance, and even banking and investment planning.
USAA is currently a top ten car insurance provider in the United States and originally began by offering individuals various lines of insurance who has served in the United States Armed Forces.
Currently, USAA has more than 12.4 million members and continues to grow and assert dominance in the insurance industry.’
USAA, through its humble beginnings nearly 100 years ago, has risen from the bottom to one of the best car insurance companies you can choose to do with business.
USAA Insurance Company History and Background
USAA has been in the industry for nearly a century beginning back in 1922.
USAA was founded in San Antonio Texas and was initially founded by a group of 25 U.S. Army Officers to provide mutual self-insurance for individuals who were not able to obtain coverage due to being Military officers.
Back in 1922, Military Officers were considered high-risk insurance, which made purchasing affordable auto insurance difficult if you fell into this specific demographic.
Since the initial start of USAA Insurance Company, they have continued to grow and expand and have recently cracked the top 100 on the Fortune 500 List ranked #100.
USAA is also a great model of a company executing and running a direct marketing model with perfection.
Currently completes most of its business online and over the telephone as opposed to meeting with consumers using agents and a face to face business model.
Although USAA runs a great and noble business model, it’s still essential to crunch the numbers and look at the financial strength ratings for the company.
Here’s an inside look.
USAA Insurance Company Financial Strength
As of USAA’s last report on their website, you have nothing to worry about in the means of financial strength and the peace of mind knowing a powerhouse car insurance company is here to stay.
Here are the current ratings provided to USAA by 3 of the major rating agencies.
A.M Best Company– A++ (Superior)
Moody’s Investors Services– Aaa (Exceptional)
Standard and Poor’s -AA+ (Very Strong)
Additionally, USAA is currently ranked as the 5th largest auto insurance provider in the country.
USAA currently has more than 32,000 employees, 12.4 million members, and boast on their website that they have returned a total of 1.6 billion dollars to members in the year 2017.
Clearly, these numbers are nothing to be concerned with and go to show that USAA is financially sound and a company that’s dedicated to giving back to their loyal policyholders.
USAA Insurance Company Complaints and BBB Rating
Currently, USAA is not accredited with the BBB.
USAA is also currently being provided a B- rating from the BBB.
This isn’t the best, but it’s certainly not worth judging a book by its cover solely based on this information.
This doesn’t necessarily raise any red flags by any means, and we were still able to check on the overall number of complaints filed against USAA in the past 36 months.
During this time frame, USAA has had a total of 1336 complaints closed, and 430 of those complaints have been resolved and settled in the past 12 months.
Here’s a breakdown of how and why these 1336 complaints were filed against USAA Insurance Company.
Advertising and Sales Complaints- 14
Billing and Collections Complaints- 282
Delivery Issue Complaints- 15
Guarantee/Warranty Complaints- 39
Product or Service Comp- 989
USAA Car Insurance Coverages Offered
The coverage provided by a car insurance company is perhaps the most important thing to consider when you are in your research phase.
Let’s take a quick look at what car insurance coverages are currently offered by USAA.
Currently, USAA offers the same auto insurance as most car insurance companies you will find on the market.
These coverages include the following:
- Liability Coverage
- Uninsured Motorist Coverage
- Emergency Roadside Assistance
- Collision Coverage
- Comprehensive Coverage
- Bodily Injury Coverage
- Rental Reimbursement
- Towing and Labor
In addition to these coverages offered by USAA, they do also offer a few other coverages that may be beneficial to learn about.
Other Coverages Offered By USAA
Accident Forgiveness- With USAA, this is considered an Add on Coverage.
USAA won’t increase your rates for auto insurance after having one at-fault accident occur.
Additionally, if you remain accident-free for five years, USAA will lower your auto insurance premiums.
What Makes USAA Car Insurance Unique?
USAA is perhaps one of the most unique car insurance companies in the industry.
First and foremost, it’s well known that USAA only offers coverage to individuals that are either retired military, active military, or honorably discharged.
However, USAA does also offer coverage to individuals related to the military member or active policyholders with USAA that remain in good standing.
Furthermore, USAA has a solid reputation for offering excellent customer service not only for auto insurance products but within their individual banking locations.
Overall, USAA may be exclusive to some consumers and leave some potential business on the table but clearly based on the numbers, and financial ratings of the company, the model they run works perfectly fine.
Rideshare Coverage with USAA Insurance Company
USAA is also another company in the market that does offer car insurance to uber and lyft drivers.
Currently, USAA will claim they plug and fill the gaps in your coverage as a rideshare driver for as little as 6 dollars per month.
We did not go through the process to verify if this was the exact price increase, but we did take the time to compile a list of the states that USAA currently offers rideshare coverage.
Here’s a look at those states.
- Washington DC
- North Dakota
- New Hampshire
- New Jersey
- West Virginia
Rideshare coverage is something all car insurance companies should be looking to implement in their car insurance product lineup.
It’s imperative, and many individuals don’t understand how under-protected they are when driving for typical rideshare providers such as Uber and Lyft.
Overall, this is something that stood out to us and impressed us.
Discounts Available with USAA Car Insurance
Most consumers searching for the best possible car insurance in their area are always going to be wondering what discounts a car insurance company is offering.
When it comes to USAA, they have a decent lineup compared to some of the competition.
Here’s a look at the discounts currently offered by USAA for car insurance coverage.
Military Installation- Currently with USAA, if you have your vehicle in the garage on a military base, you can receive up to 15% off your comprehensive premiums.
Annual Mileage Discount- This discount is available only to drivers who are over the age of 29 and is provided for individuals who drive under the average annual miles per year.
Driving Research Discount- This is very similar to the discount that State Farm Insurance Company will offer you with their drive safe and save program.
To take advantage, you must be willing to have a telematics device in your vehicle to track driving behavior and mileage driven.
Premier Driver Discount- Having no accidents occurs for 5 years will afford you this discount with USAA.
Defensive Driving Discount- This is applied to drivers that take an approved USAA defensive driving course.
Driver Training Discount- This discount can be applied who complete the driver education course before turning 21 years of age.
New Vehicle Discount- This can apply if you own a vehicle that is 3 years old or less.
Good Student Discount– This can be implemented if you have a GPA of 3.0 or high or if you are in the top 20% of your class at an eligible college.
Family Discount- Family discount can be applied easily and only requires that you have another family member currently being insured by USAA
Automatic Payments Discount- This is self-explanatory. USAA will cut you a break only our car insurance premiums if you elect to use EFT and automatic billing for your policy premiums.
Cost of USAA Car Insurance Coverage
USAA does a great job keeping car insurance affordable for the exclusive members that it offers coverage for.
Compared to the competition, USAA is currently only being beaten out based on average annual premium by Geico Insurance Company.
Keep in mind, however, that this doesn’t necessarily mean anything.
Car insurance is always going to be based on your specific situation, your driving record, and even your credit score.
Not to mention, it’s hard to say which company you would qualify for more discounts.
With this being the case, it’s always imperative to shop the market, read multiple reviews to effectively find the best car insurance in your area.
Who Should Consider USAA Car Insurance Coverage?
This was one area when we reviewed USAA auto insurance that’s different compared to other car insurance companies.
It’s no longer necessarily a question of “who should consider USAA for car insurance” but becomes a question of “who can consider USAA for coverage.”
Like we stated previously in this post, USAA is offered exclusively to military personnel and their families.
If you don’t’ fall into this demographic, you will have to turn to other top car insurance companies such as the following:
State Farm Insurance Company
USAA doesn’t offer you the ability to take advantage of their products without meeting the military requirements set forth on their website.
While this may seem disappointing for some, it’s certainly not a big deal for those of you who do meet the requirements.
If you do meet the requirements, you should undoubtedly consider USAA for coverage.
Coming in second place for overall price per year and having plenty of discounts available, USAA could quickly end up being the cheapest and best car insurance coverage for you to purchase.
Pros of Working with USAA Insurance Company
All car insurance companies have areas that they do great and some areas that they don’t necessarily meet the gold standard for.
We took the time to put together a shortlist of the major pros of working with USAA Insurance Company.
- Top 5 Cheapest Option for Coverage
- Fantastic Rideshare Availability
- Well Known and Reputable Brand
- High J.D. Power and Associates Customer Service Rankings
- Great Direct to Consumer Model for Business
Cons of Working with USAA Insurance Company
On the flip side, perks usually will be followed some areas that aren’t nearly as desired by the consumer.
Here’s a look at some of the cons of working with USAA.
- Only Available to Military Personnel and Military Families
- Not the Cheapest Option for Individuals with Poor Driving Records
- Other Online Platforms such as Progressive Have Better Price Comparison Tools
- No ability to Work with a Face to Face Car Insurance Agent (Direct to Consumer Model)
Final Thoughts on USAA Car Insurance Coverage
I think we can all agree that although USAA Insurance Company has limited availability to a specific demographic, they are still one of the best car insurance providers in the industry.
We believe the exact same.
However, due to poor driving records negatively impacting rates and the limited group of consumers they allow coverage for, it’s never a bad idea to continue doing your research and homework.
Always consider all options and price comparison based on your specific situation and unique needs.
Otherwise, you could be leaving money on the table and settling for below-average car insurance.
Best of luck in your hunt for the cheapest and best car insurance.