A Closer Look at USAA Insurance

usaa insurance

USAA insurance offers auto, home and life insurance coverage to active and former military personnel, cadets and midshipmen, along with their spouses, former spouses, widows, widowers and children.

The company was created in 1922 by 25 army officers who wanted auto insurance. From those humble beginnings, it has grown to offer a full suite of insurance and financial products to millions.

Reviews and Ratings

USAA insurance is widely recognized as the industry leader in providing excellent customer service to its members. The company also receives kudos for its secure mobile app that allows users to file a claim, pay their premium or get an ID card. Their innovative website stands out as a very informative source. A popular blog offers advice on financial topics and a community forum for members to share information among themselves.

Above all USAA insurance consistently receives the highest ratings from for financial strength and customer satisfaction. It also boasts fewer customer complaints when compared to its competitors.

USAA Auto Insurance Features and Discounts

The car premium rate you receive from USAA insurance is based on your location, age, driving record and the make and model of the vehicles you are insuring. Therefore rates are higher if you are under 25 or live in a large metropolitan area.

A significant advantage to USAA auto insurance is the discounts available to active military policyholders, including 60% off your automobile premium when you are deployed and a 15% rate reduction when your vehicle is kept on the base in a garage. Other discounts include:

  • Multi-policy
  • Good student
  • New vehicle
  • Safe driver
  • Accident-free
  • Customer loyalty
  • Multi-vehicle

USAA insurance is one of the few companies that offer rideshare service coverage for policyholders who have a second job as a Lyft or Uber driver. This provides protection while they are waiting for a customer.

Another worthwhile add-on is accident forgiveness, which offers no premium increase after one accident once you have established five years of accident-free driving with the company.

Customizing your coverage

In addition USAA insurance lets you control the cost of your premiums by customizing your coverage. The standard liability and dwelling coverage is available with an option to add on medical or flood insurance to your policy. Coverage includes:

  • Weather event damage (except for flooding)
  • Military uniform replacement for active and deployed members
  • Identity theft protection 
  • Fire damage
  • Vandalism
  • Theft

In certain states, USAA also offers optional coverage for earthquakes and protection for those who rent out their house on a home-sharing website.

You can reduce your policy premium by taking advantage of the following discounts:

  • Protective device discount when an ADT Home Security System is installed in your home
  • Multi-policy discount of 10% for bundling two or more insurance products
  • Loyalty reward when you stay with USAA for several years
  • Claims-free discount gives 10% off to those with no claims filed in five or more years

Life Insurance Features of USAA Insurance

The life insurance policies offered by USAA also include benefits specific to military personnel, such as coverage during wartime and $25,000 for expenses to treat traumatic injuries. A universal life policy gives lifetime coverage with tax-deferred cash value. The simplified whole life coverage is also a lifetime policy with cash value and features a set premium price that is never increased. Term life insurance is valid for 30 years and can be converted at any time to one of the lifetime coverage policies.

USAA Insurance: In Conclusion

Everyone who qualifies for USAA insurance should contact the company for a quote and compare it to other insurance providers. USAA is excellent insurance for deployed active military members. This is because it offers coverage to accommodate their unique needs. You can save a significant amount of money by bundling your policies and remaining with USAA for many years.

Quick Questions

Who is eligible for USAA insurance?

Generally, USAA membership is open to active, retired, and separated veterans with a discharge type of “Honorable” from the U.S. military and their eligible family members.

Why is USAA so expensive?

Each insurer has a circular period of time where they raise rates based on predicted future claims. Then rates are reduced according to actual experience. USAA has always been quick on that cycle. And so, at times their rates are much higher. However, when the other companies increase they reduce.

Does USAA use credit score for insurance?

Unlike an application for a loan, an insurance score, which is a score calculated from information on your credit report, doesn’t count against you or hurt your credit. We don’t see your credit score, nor do we evaluate your overall credit worthiness.

If you’re looking for travel insurance don’t forget to have a look at our comprehensive guide here.

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