USAA Auto Insurance Review

Founded in 1922 by a group of U.S. Army officers, the United Services Automobile Association (USAA) is now a Fortune 500 company headquartered in San Antonio, Texas. Initially available only to officers, USAA now offers membership to active and retired service members, including enlisted men and women, and their immediate families.

Temkin, a firm that evaluates customer service across a number of industries, places USAA first in online experience for the last four years and awards the firm a top score in customer service for the last five.

Our findings below support those accolades.

USAA offers a range of auto insurance products including:

  • Bodily Injury Liability Coverage: This coverage protects your finances if you’re found responsible for another person’s death or injuries during an accident.
  • Comprehensive Coverage: This type of coverage protects you in the event of damage to your vehicle caused by anything other than a collision with another vehicle, such as hail, fire, and theft.
  • Roadside Assistance: This option contributes to the cost of a tow or repair if your car should break down. It also provides services such as retrieving locked-in keys, delivering gas if you run out, and changing a flat tire.
  • Rental Reimbursement: This policy add-on covers the cost of a rental vehicle during the period that your vehicle is being repaired for covered damages.

USAA Auto Claims Review

usaa car insuranceMost people have very little interaction with their automobile insurance company. Policies are purchased over the phone or online and bills are often paid automatically. Insurers can’t do very much to differentiate themselves in those areas. It’s the claims process that often sets one company apart from the others.

Organizations like J.D. Power and Consumer Reports provide studies and surveys that detail how insurance companies perform using different methods and ranking criteria. For the most part, customer satisfaction boils down to three key performance indicators: communication, ease of service interaction, and timeliness.

In a recent claim satisfaction study, USAA Auto insurance reviews were among the best in several categories and better than most in the rest. While a few other companies such as Amica Mutual and Auto-Owners Insurance also ranked high, most, including GEICO, Progressive, State Farm, and Allstate ranked much lower.

USAA Auto Customer Satisfaction Review

For those people fortunate enough to go years without having an auto insurance claim, it’s important to consider how well a company performs in other aspects such as its billing process, website, and customer service.

This study from J.D. Power ranks insurers on those topics as well as policy offerings and pricing. USAA Auto insurance ratings continue to impress, scoring 5 power circles, the maximum in J.D. Power’s rankings, in all but one category: local agents.

Only one company, Erie Insurance, scored higher and many scored considerably lower. Allstate, State Farm, and Progressive each scored 2 and 3 power circles, considered below average to average, without reaching 4 or 5 in any category.

In a further study, USAA Auto insurance reviews were broken down by 11 regions across the U.S. and rated in six different categories including billing process, interaction, and overall satisfaction. USAA scored 5 power circles in 65 of the 66 scoring opportunities. No other nationwide competitors were nearly as consistent.

Another way to get a feel for the quality of a company is to look at the complaints filed against them. States track what are considered justifiable complaints and report those numbers to the public. In California, the nation’s most populous state, USAA (general indemnity and casualty combined) received 24 complaints in 2017 with nearly 650,000 active policies. This ratio of 3.7 complaints per 100,000 policies puts USAA in the top 40 percent of the state’s providers.

Across the country, USAA (NAIC #25968) received 449 complaints in the 2017 National Association of Insurance Commissioners’ report, showing a 7 percent decrease from the previous year.

Pricing

USAA Auto insurance reviews are impressive, but for many, pricing is often the deciding factor when it comes to car insurance.

Your policy costs can vary widely depending on certain factors including age, geographic location, type of vehicle, past driving history, and state requirements. The rate people receive from a company in one state can be much different than one they would get from that same company in another city or state.

For this review, consider these two examples as they relate to USAA:

  • A single female, licensed for 9 years, living in Miami-Dade County, Florida, who drives a Toyota Camry about 12,000 miles per year, and has one accident and one ticket on record can expect to pay as little as $652 annually for the state minimum coverage. Among competitors in Florida, this is one of the lowest rates available with most others quoting between $1,000 and $3,000 per year.
  • A single male, licensed 9 years, living in San Francisco County, California, who drives a Toyota Camry about 12,600 to 15,000 miles per year, and has one accident and one ticket on record can expect to pay about $1,311 annually for liability coverage. This is also much lower than nearly all competitors in California, many of which would charge between $1,500 and $3,000.

USAA Financial Strength

When it comes to auto insurance, many never research beyond pricing and service reviews, but financial strength is another metric that is quite important to consider.

There are organizations that predict the future success of insurance and other industry’s corporations. Moody’s Investor Services, Standard & Poor’s, and Kroll Bond Rating Agency (KBRA) consider numerous factors and employ mock scenarios to test an insurance company’s ability to pay for claims, especially in the event of large-scale disasters.

These organizations assign a rating to individual companies that describe the risk a consumer takes when doing business. The rating from each organization varies, and they aren’t always in agreement with each other.

Not only are the USAA Auto insurance ratings strong, but the company also boasts an AAA rating with Moody’s, which is the firm’s highest rating. USAA receives an A++ rating from A.M. Best Company. The top rating is an A+; the other “+” indicates that USAA is at the top end of that grade range. Each of these ratings depicts USAA as having substantial financial strength.

This USAA Auto insurance review provides you with the research and tips you need to determine if USAA is the best choice for you. Remember to provide all pertinent details to your insurance agent before you obtain auto insurance quotes.

*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.