USAA Insurance Review

USAA Insurance and its need have grown exponentially for decades. For most of the 21st century, many insurance companies offer customers a variety of competitive deals. You should research and look at different insurance rates and coverage to find the one that best meets your needs. 

The company I am sharing with you here has affordability but not much accessibility due to its niche and advertisement for military members. The main focus will be both auto insurance and home insurance that USAA offers. However, it also offers its products to family members and relatives related to family members of the military.

USAA Insurance History

USAA stands for United States Automobile Association, and it offers different kinds of insurance that range from Auto insurance to RV and home. This company has had a great legacy and reputation since its formation in 1922 by 25 Army officers who decided to create the organization by insuring each other’s vehicles. The organization’s president is William Garrison, and Harold Dunton came on board as the first-ever employee and general manager. 

Within the same year, Major Walter Moore purchased an auto insurance policy and became the first member of USAA. In 1923 another major milestone was the expansion of the membership to Navy and Marine officers. 

Other milestones include the further growth in 1961 to memberships and insurance policies that are still active after a member’s service in the military. Even later, in 1969, there was a formation of their first-ever disaster response team deployed to the gulf coast to help with Hurricane Camille.

Rates and Offers in Comparison With Other Insurance Providers

This section will show a comparison of USAA insurance versus two other companies in pricing for auto coverage (as shown in the table below). Of course, these numbers may be different for each person and it is dependent upon location, number of drivers you’ll insure, and other personal information.

Auto Insurance Comparisons

CompanyInsurance TypePricing
USAAAuto$75-110 per month
Liberty MutualAuto$52 per month
ProgressiveAuto$271 per month

You can expect a better quote for better driving habits, which is a part of most insurance policies for auto coverage. USAA Insurance comes with an excellent safe driver discount and has good coverage for personal injury, uninsured motorists, and property damage. The coverage is up to 

$50,000 per person for medium coverage. By comparison, Progressive Insurance provides Liability insurance for $50,000 and $25,000. 

The insurance policy also covers you and your passengers if you are uninsured or underinsured for up to $50k total or $25k per person. However, it may not cover all of the damages to your vehicle. 

Liberty Mutual offers three customizable packages, Lower premium, Well-Balanced, and More protection. Both Progressive and Liberty Mutual have competitive rates for military members, first responders, and family. 

USAA Insurance Vs. Other Companies

What USAA has to offer for standalone home insurance is relatively competitive with what other companies offer. A home insurance policy works as one or multiple policies or a policy with customizable add-ons, which is the case with USAA. The available types are worth considering, especially if you have a fixed mortgage. Of course, many people have questions about Homeowner’s insurance.

USAA Insurance Homeowners Insurance

Homeowners insurance provides protection and insurance of property and other things you own. But that is a broad definition. More specifically, there are policy or policy options that you can choose from and decide the level of insurance that covers damages to property and belongings that you own. And it can serve three main functions.

  • Repair or replacement of personal belongings. Coverage can be for repairs to your house, yard, and other structures.
  • It provides payment for a place to live while repairs are made to the home.
  • It can also cover personal Liability charges and damages for which you may be responsible. 

Most of the coverage and payouts depend on the house’s value, and the numbers will vary from customer to customer. It covers a certain percentage of the dwelling or structure most of the time.

Here are the Specific Offerings for Home Insurance:

  • Dwelling
  • Personal Property
  • Loss of Use
  • Personal Liability
  • Other Structures
  • Medical Expenses

USAA also has a great selection of add-ons that can benefit research. They offer identity theft and Replacement cost coverage and military uniform coverage. The amount of coverage is up to $5,000 in expenses. You can use the funds as soon as you make a claim or when it is legally possible. 

The details for replacement coverage are that USAA will cover the cost of stolen or damaged property. It will be the cost of the item when you purchase it new so that you can replace it with a comparable item.

Is Homeowners Insurance a Requirement for all States?

It’s best to research and find out what is available in your state. Your state will most likely not require it, but it’s good to have insurance for your home, even if you choose a smaller amount. 

Top Ranked Home Insurance Rates:

  1. State Farm Annual cost- $1,512
  2. Allstate Annual cost- $1632
  3. USAA Annual cost-$1,724

For reference, the national average annual cost for home insurance is approximately $1,765. However, discounts from the USAA Safe pilot program can also help with home insurance rates if you have both home and auto through USAA and can be up to 10%.

USAA Insurance The Pros and Cons

It’s essential to have as much info available if you are a potential customer who may be considering a membership with USAA. To assist you as you decide, here is a list of some of the main pros and cons of USAA insurance. 

Pros

  • Some policies can be so long-lasting that they extend down to children and grandchildren of retired military members. This option varies according to state. It does have reasonable offers and discounts for relatives of family members.
  • Auto Insurance policies can range from daily drive vehicles to RVs, ATVs, and boats.
  • It is available in many states.

Cons

  • Only military and family of the active military are eligible. 
  • They don’t offer as many bundles for home and auto. For example, if you have a boat and an RV, they don’t offer a bundle for that option, whereas some other companies do. They also don’t offer bundles for home and auto policies. 

Other Considerations

Here we will describe other options for insurance that you might consider. These options can include various discounts and how to get the most out of insurance by taking advantage of the different programs with exclusive discounts and offers. Here is a list of some:

  • Safe-driving discount
  • Multi-vehicle discount
  • Family discount
  • Vehicle-in storage discount

USAA offers the Safe Pilot program, which works through an app that tracks miles and driving habits to help motivate good drivers and get rewarded with discounts. 

It is also essential to do as much research as possible to find the right insurance possible for your needs. Sometimes it depends upon status, such as being married or unmarried, whether you rent or own your own home and other factors like the state in which you reside. These factors can all determine what is available to you for insurance options. USAA has an excellent reputation across many states and has expanded to banking and investments.

Final Score and Summary

The metrics for this review will be as follows, Personal experience rating, customer service rating, Return on Investment, and other final notes.

Personal Experience Rating: The experience is good. The website integrates all its policies in one place, allowing customers to find everything they need to make a decision there. It also has a good record of claims and services available for banking and investing and advice on how to get the most of your insurance. The rating for customer satisfaction suggests marginal satisfaction.

Customer Service Rating: One of the highlights of their customer service is over-the-phone services and getting assistance for anything from checking on the status of claims to home loans and investing advice.

Return On Investment: The ROI for most customers of USAA is that coverage can last well through the retirement of their military career. The Homeowner’s insurance offerings lack many discounts, so they might be less appealing. The auto insurance discounts and even accident forgiveness can also prove helpful. 

Final Rating: In my opinion, USAA is not for everyone based on the exclusivity reason and the fact that they have fewer tech-centered services. Recent reports of claims suggest some customers do not feel satisfied. However, loyal customers have some incentive to stay. But they make up for that by providing consistent rates for home insurance. Additionally, while being active duty military, you get discounts specific to having family live on base with you. The years you are active can count towards a discount with annual charges.

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