USAA: 10 Things To Know Before You Get an Auto Policy

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When it comes to shopping for car insurance, USAA might be worth looking into. The company consistently ranks highly across annual customer satisfaction reports from sources like J.D. Power, Consumer Reports and The American Customer Satisfaction Index (ACSI).

But USAA isn’t available to everyone. So — before you reach out for quotes — this article will answer many common questions about the company, including:

1. Who Can Sign Up for USAA Auto Insurance?

USAA — or the United Services Automobile Association — was founded in 1922 by a small group of officers in the Army. According to the company site, “25 Army officers decided to insure each other’s vehicles.” Since then, USAA has grown immensely and offers multiple types of insurance products to millions of members. But, USAA continues to serve the military community exclusively.

If you’re part of the military or a military family, you can sign up for USAA auto insurance. Specifically, membership is open to the following:

U.S. Military Members

If you’re an active duty, guard or reserve member, then you qualify for coverage as a U.S. Military member. To sign up, USAA asks for your:

  • Branch of Service
  • Rank
  • Entry to active service date

Veterans

USAA lists eligible Veterans as those who are “separated or retired from the U.S. Armed Forces with an Honorable or General Under Honorable Conditions discharge.” In addition to your Branch of Service and Rank, you’ll need your service start and end dates to sign up.

Precommissioned Officers

You also qualify for auto insurance through USAA if you’re a contracted cadet or midshipman who is “attending a U.S. Service Academy, affiliated academy preparatory school or advanced ROTC program.” Officer or warrant officer candidates who will be commissioning within two years can also get coverage. When you’re ready to enroll, you’ll need to provide the following:

  • Branch of Service
  • Commissioning source
  • Commissioning date

Spouses and Children

To qualify for coverage as a spouse you must be married to someone who’s currently serving or a veteran. If your spouse is already a USAA member, you’ll just need to provide their Social Security number to enroll. Otherwise, you’ll need their Branch of Service, Rank and service dates.

If you’re divorced from a USAA member, you can also get coverage through USAA as long as you haven’t remarried and your ex-spouse was a USAA member before your divorce. Widows can also get coverage as long as their spouse was a USAA member. In either situation, you’ll need their USAA number to enroll.

For children, you can get coverage through USAA as long as your parent is a USAA member. To sign up, be prepared to provide your parent’s date of birth, phone number, email address, zip code and last four digits of their Social Security number.

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2. How Much Does Auto Insurance Cost With USAA?

It’s difficult to say how much an auto insurance policy will cost you with USAA. From where you live, to what you drive and how you’ve driven in the past, many factors influence will influence your rates.

But according to USAA, “members saved an average of $725 per year when they switched to USAA auto insurance.” Based on data from ValuePenguin, the average annual cost for full coverage with USAA costs around $1,176 annually.

This is cheaper than the reported national average of $1,780. It’s also cheaper than the annual averages from other leading auto insurance companies. ValuePenguin found, “For full coverage, USAA’s annual premium is 38% cheaper than the average across all insurers, while the company is 42% cheaper for minimum coverage.”

Again though, don’t be surprised if you’re quoted in a different ballpark. Consider this: The average cost of full coverage with USAA jumps to around $1,608 for drivers with an accident history. Your personal information can drastically impact rates.

So, how can you be sure you’re getting the best rate? To start, check out the average car insurance rates by state. Next, follow money expert Clark Howard’s advice and shop around! Contact at least three insurers for quotes and always compare the same amounts of coverage from each company. Then, check out customer service ratings for each company. If a price seems too good to be true, it might be. Clark says:

“Sometimes you’re better off paying a little more to be with a quality insurer who will be there when the chips are down.”

We’ve got a guide to walk you through the steps for shopping around for a lower rate on car insurance when you’re ready. And be sure to check out our list of the best auto insurance companies.

3. What Type of Auto Coverage Does USAA Offer?

There are four main types of auto insurance coverage that you can get from USAA. These standard coverages include:

  • Liability: pays for damages, losses and/or injuries to others and their vehicles resulting from an accident you caused
  • Comprehensive: pays for damages to your vehicle caused by events other than an accident (for example: your car is damaged by a weather-related event)
  • Collision: pays for damages to your vehicle after an accident, regardless of who’s at fault
  • Uninsured and Underinsured: pays for damages, losses and/or injuries to you and your vehicle resulting from an accident caused by an uninsured or underinsured driver

USAA also offers add-ons to customize your policy if you need more protection. For example, you might be able to get Car Replacement Assistance coverage, which works similarly to gap insurance. Depending on where you live, Medical Payments coverage (MedPay) may also be available. And USAA offers roadside assistance, but Clark warns against buying this protection from your insurer.

Read more about the different types of auto insurance coverage here. Otherwise, you can look at your existing auto policy to see what other types of coverages you might want to ask about when getting quotes from USAA.

4. What Discounts and Perks Does USAA Offer Drivers?

USAA offers several discounts and perks to its members.

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USAA Member Discounts

Here are some of the things you can get discounts for:

  • Anti-Theft Devices: discount for adding/having anti-theft device(s) in your car
  • Automatic Payments: discount of up to 3% for enrolling in automatic payment withdrawals
  • Bundling: discount for having two or more vehicles covered through USAA; discounts for having multiple types of insurance through USAA (ex: property insurance, condo insurance, renters insurance, life insurance, etc.)
  • Defensive Driving: discount for completing an approved defensive driving course or driver training course
  • Driving New Vehicles: discount on vehicles less than three years old
  • Good Driver: discount for having a good driving record for more than five years
  • Good Student: discount for full-time student drivers who maintain good grades (ex: has a B average or higher, included on Honor Roll, or ranked in upper 20% of class)
  • Loyal Member: discount for being a member for three or more continuous years; also offers up to 10% off through MyUSAA Legacy Discount for children of USAA members
  • Vehicle Storage: discount up to 60% for storing your vehicle while deployed or any other reason; discount up to 15% on comprehensive coverage when “garaging your car on a military installation”

If you’re interested, you can also save money through USAA’s SafePilot® program. This program requires your driving to be monitored. If you enroll, you’ll add the USAA SafePilot® app to your phone. When you drive, USAA will be able to monitor driving habits like how you brake and your phone usage. Then, they’ll calculate a driving score that rates how safe you are on the road to determine any savings on your insurance.

USAA Member Perks

When it comes to perks, USAA says they, “bring together top retailers and name brands to help you save with your everyday spending.” The company has what’s known as USAA Perks, which includes deals and discounts on products, services and experiences in six categories:

  • Car Care: includes deals on tires, repair shops, maintenance services, etc.
  • Entertainment: includes deals on cellular service, cash back shopping programs, theme parks and attractions, etc.
  • Health: includes deals on medical alert systems, fitness memberships, food delivery boxes, prescription discount service memberships, etc.
  • Home: includes deals on home security, moving trucks, storage rentals, junk removal, pet insurance, etc.
  • Shopping: includes deals on prescription discount service memberships, tax services, package shipping, fitness memberships, food delivery boxes, etc.
  • Travel: includes deals on cruises, flights, hotels, theme parks, travel insurance, etc.

You’ll find many perks with well-known brands such as Goodyear Tires, Avis rental cars, SimpliSafe, ADT home security and more.

5. Does USAA Offer Flexibility When Making Payments?

There are lots of ways to make payments with USAA. Like with other insurers, you have the option to pay your premiums in full or split payments into a monthly bill for your policy’s term. This is typically six months or 12 months. And payments can be made online, by phone, through the USAA app, or by mail.

Enrolling in automatic payments with USAA offers several benefits. For one, you can save up to 3% on your policy’s premium. But additionally, you’ll get more flexibility to make payments if you suddenly need a bit more time to pay the bill.

USAA members who are enrolled in automatic payments might have the option to pause payments for up to a month at a time. If you need to take advantage of this, USAA notes that “Your next bill will include your regular amount and any amount you didn’t pay the month before. A late fee may apply.”

If you’re not enrolled in automatic payments but need more time to pay, you should contact USAA before your missed payment. You might still be able to postpone payments. You’ll carry over your balance to the next month and pay what’s left along with your next bill. Again though, there might be a late fee.

Finally, if you’re only able to make a partial payment, USAA might allow you to spread the remaining balance on your bill over three months.

6. Does USAA Offer Accident Forgiveness?

Once you’ve been accident-free for five or more years with USAA, you may qualify for accident forgiveness coverage. It’s no secret that once you’re at fault for a car accident, your premiums will likely go up. But with USAA’s accident forgiveness coverage, you might be able to prevent your premiums from increasing after a future accident.

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That said — depending on where you live — you might not be able to get this protection from USAA. Read more about what accident forgiveness is and whether it’s worth it here.

7. Does USAA Offer Pay-Per-Mile or Usage-Based Insurance?

Usage-based insurance is a type of auto insurance policy that offers flexible monthly premiums based on how many miles you drive from month to month. As more people are working from home and car insurance rates continue to rise, pay-per-mile and usage-based insurance options are becoming increasingly popular. And many insurers are offering these policies to meet the demands.

Currently, USAA only offers a usage-based insurance option called USAA Pay as You Drive. Before you sign up, you should know a key difference between pay-per-mile and usage-based insurance options:

  • Pay-per-mile insurance means your premiums will be determined by how many miles you drive only
  • Usage-based insurance means your premiums will be determined by how many miles you drive and how you drive in general

With USAA’s usage-based insurance, not only will your miles be tracked. Like with their SafePilot® program, USAA will also monitor the quality of your driving including things like:

  • Phone usage while driving
  • Braking habits
  • Acceleration habits
  • When you drive (ex: late at night)
  • What routes you drive

Your premiums will be calculated based on a combination of your mileage and your driving quality. According to USAA, “Our pay as you drive app measures how many miles you drive and scores your driving to help you make safer choices and save money.”

8. Can You Canel Your USAA Policy Easily?

Canceling your USAA policy is simple. You can call 800-531-USAA (800-531-8722), use USAA’s online member portal or use their app to cancel your account. Typically, there are no penalties or fees for canceling your policy early. And if you’ve paid in advance, USAA will refund you for any unused amount.

You can get more contact information for USAA below. And we’ve got a guide with all the steps you need to cancel your policy or switch car insurance. Just be sure that you’ve got a new policy lined up before canceling your existing one!

9. What Is the Contact Info for USAA?

Here’s how you can contact USAA:

Online
Phone
Mail


usaa.com
Toll free: 800-531-USAA
(800-531-8722)

Local: 210-531-USAA
(210-531-8722)



USAA
9800 Fredericksburg Rd.
San Antonio, TX 78288.

iPhone users can access the USAA mobile app here. Android users can get the USAA mobile app here. You can also review USAA’s app guide with FAQs including how to get started.

10. What Do Current Customers Say About USAA?

USAA is often praised for maintaining high customer satisfaction ratings and low premiums. These are two key reasons why USAA scores so highly on auto insurance rankings, including Team Clark’s list of best auto insurance companies.

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But unfortunately, not every USAA customer is a satisfied customer. In fact, when we published our updated list of best companies (USAA has the highest Team Clark grade), we received a bit of conflicting feedback from our readers.

USAA Customer Feedback

Here’s some of what we heard from USAA customers:

“I’ve been a USAA or Amica insurance customer for 40 years. Something happened with USAA. I recently dropped USAA because of a hail claim I had on my house and my car. It was absolutely horrible service — all communication had to go through an app and you had to wait for a callback from the adjuster which I only got to talk to twice. Please check into USAA. They are not the company they used to be believe that. Going back to Amica. Thanks.”
– Dean

“Not actually a question, but a response to your article on insurance companies. I had been with USAA insurance for 45 years and in the past had good experience with the company. In recent years, their customer service has become progressively worse. After my son’s recent experience, I have switched all policies away. My son was in an accident and never was contacted by his adjuster. Emails were not answered. Communications through the webpage were ignored. Phone wait times could run into hours. It’s sad, but USAA is not the company it once was.”
– Robert

“I hit a bear, wrecking my car two weeks ago. I used your car buying guide and got a 2013 CR-V. My insurance is USAA and I know you’ve heard complaints on them lately, but they were great on my claim.”
– Christian

USAA’s Response

We reached out to USAA after receiving reader feedback, and here’s what the company had to say:

“USAA is well known for providing outstanding member service, which has defined our association for over 100 years. We certainly appreciate the feedback and would ask for an opportunity to resolve any concerns from our members. Members can reach us by using their USAA mobile app, by logging into their profile at usaa.com or by calling us at 800-531-USAA.”

USAA’s Claims and Customer Satisfaction Ratings

When ranking auto insurance companies here at Team Clark, we rely on data from two key sources. First, we review data and findings from J.D. Power’s annual Auto Claims Satisfaction study. Second, we review the annual car insurance ratings from Consumer Reports, which is based on claims satisfaction, prices and services offered by auto insurance companies.

This year, USAA’s auto claims satisfaction score from J.D. Power is 900. That puts the company in the #3 spot nationally — after Amica and Erie — and tied with NJM insurance. Meanwhile, Consumer Reports gives USAA a score of 92. USAA is the only company to score above a 90 on their list this year. The next highest score is NJM, with an 86.

Overall — and unfortunately for auto insurers — customer satisfaction with car insurance is down across the board. This is due to quite a few factors. As Clark explains:

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“Satisfaction is down because premiums are up so much. The time that people are having to wait to get their vehicles back from getting repaired is way up. It’s hard to get the adjusters there, hard to get claims paid, hard to get the work done. It’s a business that people are miserable about right now.”

Final Thoughts

USAA has a reputation for offering quality customer service and low premiums to the members of our nation’s military and their family members. USAA members also have access to several discounts and perks. If you qualify, it’s worth adding USAA to your list when shopping for car insurance. And be sure to check out Clark’s recommendations for calculating how much car insurance you need.

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