USAA Car Insurance Review [2024]

If you’re an active member of the United States military, a veteran, or related to a service member, you may struggle to find good car insurance discounts. Not all providers offer military discounts, and if they do, you sometimes don’t save as much as you could.

Though some providers do honor the military, none does more so than the United Services Automobile Association (USAA). The company provides car and other types of insurance and banking and investment services just to active United States military personnel, veterans, and their families. This provider is going on a century in business and has no intention of slowing down any time soon.

And their premiums often cost less than other car insurers’ policies. How’s that for honoring the hard work and sacrifices of our armed forces who sometimes have a hard time making ends meet?

So, we’ve gathered all the information you need to help you learn about USAA car insurance — from reviews to its car insurance coverage options and its website and app, to help you decide if it’s a good fit for you.

If you’re ready to join us on this mission, keep reading to learn more.

Start comparing car insurance rates today — just enter your ZIP code in our FREE online tool.

Rankings from Rating Agencies

When you choose an insurance provider, you want to check out what others have to say about it. Looking at reviews from credible sources can help you find out whether you’ve found the right insurer.

Here’s how the major review sites rank USAA.

Let’s translate those rankings for you. First, we’ll cover the raters of USAA’s financial strength.

• A.M Best — An “A++” means USAA can pay claims and meet other financial obligations.
• Moody’s —  Moody’s rating of Aa1 shows that USAA has the resources to pay its debts reliably.
• S&P Global — “AA” is one of S&P’s highest ratings and reveals that USAA is solid financially.

Customer satisfaction ratings:

• Better Business Bureau — In USAA’s “hometown” of San Antonio, the company receives a “B-,” which the BBB says is for “government actions against the business.” Those were resolved in January 2019, however, customers have filed several complaints, and only a fraction of them have been resolved.
• Consumer Affairs — This organization gave USAA Auto Insurance a poor or “one-star and a half” rating based on 267 reviews. Customers are more likely to speak up when they’re dissatisfied, which is a factor in this ranking.
• Consumer Reports — On the other hand, USAA ranked big with Consumer Reports, earning 95 out of 100 points.
• J.D. Power — With 899 points out of 1,000, J.D. Power considers USAA excellent enough to give it a “five-circle” rating in the Texas region.

These factors went into Consumer Reports’ overall rating:

For the most part, despite some low marks, most professional reviewers rank USAA highly for its solid financials, service, and coverage options.

Read more: 21st Century vs. USAA Car Insurance Comparison

USAA Company History

USAA boasts proudly that it has been there for its members for nearly 100 years, and its founding took some teamwork. In 1922, 25 members of the military met in San Antonio, Texas, and decided to insure each other’s vehicles.

That was the start of what would eventually become one of the largest insurers in the United States., as it expanded into other types of policies (home, business, life, and health) and financial services (banking, investing). In 2009, the company made all active members of the military and veterans who have honorably served in the U.S. military eligible for membership.

Now, with over 12 million members, the company continues to grow and focus on the latest changes in technology to better serve its customers.

Let’s further explore how the company scores in its market share, its advertising and giving, its position for the future, its work environment, and in recognition for its achievements.

USAA Market Share

A company’s market share tells us whether a company is growing, per the below information from the National Association of Insurance Commissioners.

Fortunately, in recent years, USAA’s market share has continued to rise steadily, reflecting its growth.

USAA Service Type

Like other insurers, USAA lets customers contact them online or through the more traditional means of meeting in person or talking on the phone.

At USAA’s website, customers can find policy information, get quotes, pay bills, research other offerings, or contact the company. Smartphone users can also use the USAA mobile app to do the same things.

Customers who want a more human touch can call a USAA agent or ask to meet with one in their area for their service needs.

These methods help make the company more accessible to its customers and reach even more.

USAA Commercials

USAA’s commercials stand out from other insurers through not relying on gimmicks and focusing on a more conventional approach. Many of their ads are consumer-centric, featuring testimonials about USAA’s insurance products and service and how much customers save.

Military families make up a large part of their market, so it makes sense for USAA to target them with a more relatable appeal showing actual customers. People like to see people who look like them, which helps build a sense of belonging.

Customer reviews and testimonials are still considered one of the most effective ways to market a product or service even in the digital age.

USAA’s ads also foster a sense of stability. They stress that the company will be there for its customers while it honors them, the members of the U.S. military who have served the nation in times of war and peace, and their families.

In keeping with the theme of service, let’s see how USAA gives back to the community as a whole.

USAA Community Service

USAA sees itself as a company that has a purpose to “lead and inspire actions that improve lives in the military and our local communities.”

As CEO Stuart Parker said, “As a business, USAA exists to serve the military community and facilitate the financial security of our members. Our corporate responsibility program pursues a common purpose. We prioritize USAA’s philanthropic investments to:

• Support military family resiliency nationwide.
• Improve the quality of living in the communities where we work and live.

In addition to investing money, USAA invests time. We provide employees with two days of paid time each year to volunteer in our communities.”

To that end, employees volunteer their time to fill meal distribution boxes to feed families in need, plant sustainable gardens for homeless military veterans and perform other kind acts.

As part of its charitable contributions, the company offers grants every year to “highly effective nonprofit organizations aligned with our Corporate Responsibility focus areas for military families and USAA’s local communities.”

The company has different areas it focuses on in its giving on the local and national levels.

Key areas the company puts its efforts into include fighting poverty, funding education, and national emergency response on safety. These show the company’s commitment to caring for those who serve its country and to using its prosperity to help the less fortunate.

USAA Position for the Future

As a consumer, you want to know if the company you pay your premiums to will stick around. It helps to find out how the company is doing financially and its plans for future growth.

Fortunately, as we mentioned earlier, with leading financial indicators, USAA ranks well and the company looks poised for continued success. On the customer satisfaction side, reviews were mixed, so it has its share of pros and cons. J.D. Power, a major surveyor of customer satisfaction, was among the organizations to rate USAA highly.

Overall, the best days for USAA appear yet to come, as it continues its steady rise among the ranks of the top insurance companies.

USAA Employee Experience

How a worker feels about the company that employs them tells a lot about the employer. Let’s find out more about USAA’s employees and explore their salaries and how they rate the company.

Employee age and tenure aren’t always related, but conventional wisdom suggests that younger workers are less likely to remain loyal to a company than older ones. It’s interesting to see what the majority of the data reveals.

As shown, most USAA workers are middle-aged, followed by Millennials and Baby Boomers. Here’s what the statistics say about how long they stay at USAA:

Most USAA employees remain on the job for five or fewer years. On the opposite end, 11 percent have worked at USAA for more than 20 years.

The issue of whether an employee is satisfied can play a big part in determining if he or she will stay and if it’s a great place to work.

Great Place to Work has certified USAA, and 89 percent of employees agree. Here’s more about what USAA employees think of the insurer:

Also, most employees feel welcome when they join the company and feel good about the ways it contributes to the community. None of the responses scored below 92 percent.

For another insight into USAA employee’s opinions, Glassdoor’s rating out of more than 2,600 reviews was 3.6 stars out of five.

According to the reviews, 65 percent of USAA employees would recommend the company to a friend, and 73 percent approve of USAA’s CEO.

Another major part of employee satisfaction is how well a company pays its workers. Payscale’s rating for USAA was 3.9 stars out of five. Their rankings of different aspects of employment at USAA appear below.

The company outlook, learning and development, and manager relationship were among the areas where Payscale ranked the company highly.

This news report shows what the company’s San Antonio, Texas headquarters is like:

USAA ranks well as a place where employees can feel that they’re working less at a job and more in a career.

USAA Awards and Accolades

USAA has received lots of awards and accolades for various achievements, which includes its financial strength and service and overall work environment.

The company won the following awards from Glassdoor:

• 2017 Best Places to Interview (#72)
• 2014 Top CEOs (#22)
• 2009 Best Places to Work (#36)

Below is a list of the most recent awards Great Place to Work has granted the company.

Though USAA has received much recognition for its workplace culture, it has also made such lists as the World’s Most Ethical Companies^® for four years straight (2016-2019) and Forbes’ World’s Most Admired Companies for the past several years.

Does USAA Have Cheap Car Insurance Rates?

If you don’t know how what affects your car insurance rates, you can end up paying too much and may not get all the coverage you need.

It’s easy to think that cheaper is better, but it depends on what you get in return. Though you pay less, frustration with poor service and lack of enough coverage for protection may be part of the deal and truly take a toll on you.

On the bright side, in this section, we’ve partnered with Quadrant to give you data on how your credit score, your driving record, your age, gender, and other factors affect your rates.

For more insights, read on.

USAA Availability and Market Rates by State

Here is data on the average annual cost of USAA premiums compared to the average prices in the 47 states where the company offers coverage.

Read more: Massachusetts Bay Car Insurance Review

USAA’s premium prices came in well below the state averages — in some states, such as Michigan, as much as over 50 percent.

How to Compare the Top Ten Companies by Market Share

Now, we’ll see how the leading insurance companies in each state compare to USAA.

In many cases, USAA’s average premiums also cost less than their competitors’.

What Are USAA Male vs. Female Car Insurance Rates?

As you’ll notice below, age now tends to play more of a role in setting rates than gender does.

Not surprisingly, younger, less experienced drivers of both genders pay more for USAA insurance. Rates drop dramatically by age 25 on up.

What Are the Average USAA Rates by Make and Model – Last Five-Years Average?

Below are some of the most popular makes and models of cars and pickups and the average USAA insurance coverage rates for them.

As shown, it costs more to insure newer vehicles, such as the 2018 Ford F-150 — as much as $300 more — compared to the 2015 model.

What Are the Average USAA Commute Rates?

Just how far can you go before your mileage affects your USAA rates? Let’s see below.

Luckily, there’s no major price difference between 10 and 25-mile commutes, which means commute distance isn’t a big factor in USAA’s rates.

What Are the Average USAA Coverage Level Rates?

It’s good to have options. Below, we show how USAA rates change from the lowest coverage to the highest.

There’s only about a $264 difference between the lowest and the highest coverage levels. So, for just a little more, you can get the most coverage for better protection.

What Are the Average USAA Credit History Rates?

USAA is among the companies that base their rates on customers’ credit scores. People with good credit are considered less risky to insure than those with bad credit.

With USAA, the difference in cost between poor and good credit can amount to as much as nearly $3,000.

What Are the Average USAA Driving Record Rates?

Just one minor infraction, such as a speeding ticket, can increase your insurance rates.

Under USAA, a DUI adds $1,500 more to your premium based on the rate for a clean driving record. Besides driving to protect yourself and others, paying lower rates is another incentive to drive safely.

USAA Coverage

For the amount you pay for car insurance coverage, you can worry that you won’t get all the coverage you need in case an accident happens.

Here we have some information to help set you at ease. We’ll go over all of USAA’s coverage options and the discounts available.

So, get ready to learn more about USAA’s car insurance and find out if the company provides coverage for your situation.

USAA Types of Car Insurance 

USAA offers customers many basic types of car insurance coverage. These are among their different coverage options.

Basic car insurance coverage:

• Bodily Injury Liability — If you cause an accident, this helps cover another driver’s medical bills.
• Collision — This will cover you if you hit an object or another vehicle.
• Comprehensive — This coverage will protect you from damage a vehicle didn’t cause, from such incidents as theft, hitting a deer, hail damage, etc.

Other options:

• Classic Car Insurance — For vintage vehicles of value.
• Extended Benefits Coverage — This will give you more protection if you also have medical payments coverage; it varies by location.
• Personal Injury Protection — This will help with medical bills from an accident as well as other costs as a result of .
• Property Damage Liability — If you damage another driver’s property, this will pay for it.
• Umbrella — This coverage will protect your assets from lawsuits.
• Uninsured and Underinsured Motorist Coverage — If another driver lacks adequate coverage or isn’t insured, this will kick-in to cover the bills from a hit-and-run or other type of accident.

Add-ons and more services:

• Car Buying Service — USAA has partnered with TruCar to provide low loan rates, savings off Manufacturer’s Suggested Retail Prices (MSRPs), and “bonus cash” military incentives.
• Commercial — For vehicles used for business.
• Ridesharing Gap Coverage — This will fill the gaps in your personal insurance and ridesharing insurance.
• Roadside Assistance — If your battery dies, you run out of gas or face other car-related calamities, this coverage will come to the rescue.
• Usage-Based Insurance — USAA’s SafePilot program gives discounts for safe driving habits.

USAA provides all of this and more. It has a decent variety of car insurance for different needs and budgets at a lower cost than many other insurers.

USAA Car Insurance Discounts

Besides the already low-cost coverage USAA provides, you can save further with the discounts below.

USAA offers fewer discounts than other insurers (roughly 28 vs. 38), but it’s more about quality rather than quantity. You can save the most with garaging, whether it’s private (90 percent) or military storage (15 percent).

Want to find out about the military discounts other providers offer? Below we’ve listed some of the top insurers and any discounts they provide.

Overall, USAA doesn’t have as many coverage options as other providers, but it makes up for that with much lower rates. You’ll find decent basic insurance with the company. Notably, it provides rideshare gap coverage, but no ridesharing insurance or car repair shop programs. USAA does, however, sell a solid insurance package at a fair price.

How to Cancel Your USAA Policy

If you want to buy insurance through another company, you can cancel your USAA coverage. You can cancel your USAA policy in the following ways:

• Online — Through the website, you may message USAA.
• Phone — Call 800-531-USAA (8722) and request cancellation.
• Mail — Send a request for cancellation to USAA’s main mailing address.
• In-Person — if you’re near a USAA office, you stop in to cancel.

Read More: How To Cancel USAA Car Insurance

What’s the Cancellation Fee?

Unlike other providers, you can cancel your insurance with USAA without facing any fees.

Is There a Refund?

If you decide to cancel, ask if USAA offers a refund beforehand, which may be available if you have more than a little time left before your term ends.

When Can I Cancel?

You may cancel your USAA policy at any time, and the company should cancel your policy immediately.

How to Make a Claim With USAA

If you’re in an accident, you may need to file a claim with your insurer. At such a difficult time, the ease of filing a claim is crucial. You want to make sure that following their instructions isn’t a hassle.

To prepare you for what you can expect with USAA, we’ll cover data about loss ratios and insurance premiums the company writes each year and most importantly, how to make a claim.

So, keep reading to learn more.

What Are the Methods of Making a Claim?

These are the ways you can file a claim with USAA. Just choose the method you prefer, and an agent should be able to help.

• Online — File a claim at USAA’s website or through their app, which can be helpful right after an accident at any time.
• In-Person — With an agent at any nearby USAA office.
• Phone — Call 800-531-8722 to file your claim.

What Is the Number of Written Insurance Premiums?

The number of premiums a company writes is a sign of its stability. If customers file many claims, the company should be able to afford to pay them. These statistics on USAA’s auto insurance premiums are from the National Association of Insurance Commissioners.

As shown, the amount of policies USAA writes has risen slightly in recent years, which has increased alongside its customer base.

What’s the Loss Ratio?

An insurance company’s loss ratio reveals how much it paid on claims compared to how much it earned in premiums.

For example, USAA’s loss ratio in 2018 was 77 percent. So, that year, for every $100 the company earned in premiums, the company paid $77.00 in claims.

Below are the company’s loss ratios from 2015 to 2018:

• • 2015 – 82.82 percent
  • 2016 – 86.24 percent
  • 2017 – 79.60 percent
  • 2018 –  77 percent

These ratios have decreased steadily since 2015, which shows that USAA is more likely to have the means to pay claims.

How to Get a USAA Quote Online

Now that you know more about the coverage USAA offers and what goes into their premium rates, you’re ready to get a quote online. This will let you see how much you can expect to pay for the insurance you need.

Before you proceed, you should have the following information with you:

• your Social Security number and contact information
• your driving and insurance history
• your vehicle information
• information about you or your family member’s military service
• your passport

Scroll on to find out how to get a quote through our easy visual step-by-step process.

Step #1 – Explore the USAA Site

Once you know you can qualify for a USAA car insurance policy, take some time to explore their site and read about their coverage.

There are a lot of benefits to a USAA auto insurance policy like rental reimbursement, accident forgiveness, and global coverage no matter where you’re stationed.

For military members whose posts change, USAA is a good provider to consider because they understand the unique needs and challenges a servicemember can face with auto insurance.

Step #2 – Sign Up or Log In

Register for a USAA account or, if you’re already a member, log in.

For Pre-existing Members

If you’re already a USAA member, your quotes process will be a bit easier since your information is already in the system and will be automatically imported.

Step #3 – Learn about USAA’s Offerings

Before you start the quote process, USAA will walk you through their offerings, advantages, and provide some helpful tips on buying a new car insurance policy.

If you’re a returning customer, you’ll be greeted with a welcome screen that reveals your current policy’s benefits and coverages.

The tips that USAA provide are designed to keep you informed and feel more confident in the insurance buying process. Even if you’ve successfully gotten a policy before, it can be difficult to understand exactly what car insurance limits you need as well as which discounts to keep an eye out for.

We found USAA’s quote system to be extremely helpful and intuitive, so if you have questions about car insurance and need some extra help along the way, this guide combined with their site is a winning combo.

Step #4 – Enter/Update Personal Information

For preexisting USAA members, you can review the majority of your information and update as you need. If you’re requesting an auto insurance quote from USAA for the first time, just follow along the prompts on the screen and enter the appropriate information into each box.

If you need to add an additional driver, like a spouse, you can easily do that by clicking “Add Driver”.

You’ll need to provide the same personal details for each driver you add to your quote, so make sure that you have all of the necessary info on-hand before you get started.

Step #5 – Answer Questions, Save Money

You’ll be asked some questions about each driver you list. Some of them might seem unrelated to car insurance, like “Do you own a house?”, but these factors can actually influence your car insurance rates and score you some sweet discounts.

Step #6 – Get Help if You Need It

On the side of the screen, you’ll see a phone number and business hours for the USAA Contact Center. If you have any questions about policies or need some additional help with the quote request process, a live representative can help you out.

If it’s a weekend, no worries. This guide will continue through all the steps and give you all the information you need to get a quote today.

Step #7 – Add Vehicle Details

You can enter your car’s year, make and model manually or enter your VIN. If your info is already in the system but you’ve gotten a new vehicle, simply update the information with your new car’s specs.

After you’ve entered your car’s details, you can add another vehicle or proceed to the next step.

Step #7 – Review Your Car Usage and its Features

USAA will ask you questions about your car’s safety features, which might help you qualify for discounts. You’ll have to specify how you use your vehicle as well as approximate how many miles you drive each year.

Step #9 – Review Your Coverage Needs

USAA’s quote system has an optional walkthrough that will help you identify the best limits and coverages for your policy.

Each step will ask you a question and provide a simple explanation.

We recommend using this walkthrough in order to assess your coverage needs and personalize your quote as much as possible. An important part of buying car insurance is comparison shopping, and you want to make sure the rates you’re comparing are as accurate as possible.

When you add additional coverages and explore all your options, you gain a better understanding of each company’s services and capabilities.

You can always reduce your auto insurance policy if you decide to add additional coverage, but it’s a good idea to go into the shopping process looking for exactly what you need, not avoiding coverage options to salvage a few dollars.

Step #8 – Check Out Discounts

USAA will give you a rundown of their discounts such as Safe Driver Discount, Defensive Driving, and the Good Student discount. Keep an eye out for these offerings from other companies you shop with to make sure you save as much as you can.

Any discounts you qualify for will automatically be deducted from your quote.

Step #10 – Get Your Quote

You’ll be presented with a personalized quote and a breakdown of each coverage included. You can review the limits of your custom rate, and check out similar coverage that matches your other limits.

Take note of these rates and keep them somewhere you easily return to later. Before you buy, it’s important to get several other quotes online and compare to find the best deal.

Why You Should Compare Car Insurance Before You Buy

Car insurance is an investment in your vehicle and your safety. To make sure you’re really covered, you have to peruse the market and see what’s out there.

A good car insurance company will strike a balance between cost and coverage.  Don’t settle for the bare minimum, which sometimes isn’t even the minimum requirement.
The form will request the following information:

Once you’ve provided the needed information, you should be able to get your quote.

What Does the Design of Website/App Look Like?

Especially if you’re busy, you want to get the information you need online quickly. If a site or an app isn’t well-designed or organized, a simple task can become hard. And, if customers can’t find what they want, they will go elsewhere.

Let’s explore how you can access information through USAA’s website and app.

Website

On the usaa.com home page, users will see a navigation bar at the top where they can get basic information.

For instance, when you click “Products” on the top left, you’ll reach the following page with more choices:

This long list can make it confusing to find out where you need to go.  Under the “Insurance” heading, you’ll find the link to “Auto Insurance,” where you can access information about USAA’s coverage.

Generally, typing a word or phrase into the search box at the top and clicking on the button cuts to the chase.

Though USAA emphasizes that it keeps up with technological advances, its site could be better organized to give users information more quickly. Right now, there’s lots of scrolling involved.

For instance, an easier alternative to the “Products” page would be to add headings such as “Insurance,” “Banking,” etc. in a drop-down menu that appears when users click on the “Products” link on the home page.

Apps

At Apple’s iTunes App Store, USAA Mobile scores 4.8 out of five stars (out of 444,000 ratings). On Google Play, it nets 4.6 stars out of five (from over 125,000 reviews).

The app’s features include:

• Banking: Pay bills, send money with Zelle®, deposit checks, calculate your loans, and locate an ATM.
• Insurance: Get an Auto ID card, request roadside assistance, and report a claim.
• Investments: Get real-time stock quotes, place trades, read relevant articles, and watch informative videos.
• Secure: Use a PIN or biometrics to log in to the app quickly.
• Digital Assistant: Access EVA, USAA’s digital voice assistant, to answer your questions.
• Widget: View your accounts and balances on your device widget without the need to log in each time, thanks to the company’s secure authentication infrastructure.

Some of users’ criticisms include bugs involving the fingerprint login and the “add a transaction” feature under banking and other issues that USAA later fixed in updates. For the most part, though, the app receives high marks.

On the other hand, USAA’s driving app, SafePilot, ranks just below Mobile with users. The program isn’t available in every state — only in Arizona, Ohio, Texas, and Virginia.

At iTunes, it received four out of five stars with fewer than ten reviews. It didn’t rank so well at Google Play, garnering 2.6 out of five stars out of fewer than ten reviews.

Some reviewers believe the app isn’t stable enough to track users accurately, yet others appreciate the opportunity to save based on their driving habits.

The app lets users check their driving habits: phone handling, hands-free phone use, and harsh braking. If they drive safely, they can receive discounts of up to 20 percent on their next premiums.

What Are the Pros and Cons?

To help you decide whether USAA is the right insurer for you, these are some of the best and the worst aspects of the company’s services and coverage.

No company is perfect. USAA performs well in its niche market. The company’s low premiums for active military and veterans and its solid financial record give it an edge over competitors.

What’s the Bottom Line

USAA is a financially stable company; it’s likely to stick around and is well-positioned for continued growth while it continues to attract new customers.

In exchange for their sacrifices in serving their fellow citizens, in a way, USAA’s low rates are like a much-deserved discount that honors active military and veterans alike. The company’s prices are often lower than other top-ranked insurers’ rates.

Though its online features could be improved for easier use and the company could expand some of its coverage offerings, it has a solid reputation and ranks highly for its financial standing and work environment.

With adequate basic coverage for past and present members of the armed forces and their families, USAA marches ahead of its competitors.