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USAA Insurance Review
USAA Insurance Review
Last Updated: Aug 20, 2024
Our reviews team recognizes USAA as the Best for Military Members for its low prices, unique benefits and superb customer care for those who serve
USAA Insurance: Summary Review
Key Takeaways
- Backed by over 765 hours of research, we found USAA car insurance rates are some of the cheapest in the nation, so we designated it as Best for Military Members.
- USAA car insurance coverage is limited to active-duty members of the military, veterans and their families.
- USAA has a stellar customer service reputation, regularly ranking the highest in customer satisfaction in J.D. Power studies.
In our USAA insurance review, we at the MarketWatch Guides team will take a close look at the coverage options, costs and customer reviews of USAA’s auto, home and life insurance policies. We rank the provider as one of the best car insurance companies and best homeowners insurance providers in the industry. Whether USAA is the cheapest car insurance option for you depends on several factors.More Auto Insurance Articles
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USAA Insurance: Summary Review
FLIP CARDUSAA Insurance Rating
RATING BREAKDOWN
Industry Standing4.5 / 5
Availability4 / 5
Coverage4.9 / 5
Cost and Discounts4.9 / 5
Our Take
USAA insurance products are available to active-duty military members and veterans as well as their immediate family members. The San Antonio-based company is one of the cheapest options for car insurance, which makes it a good choice for drivers who qualify.
How We Rate USAA Insurance by Category
Auto InsuranceHome InsuranceLife Insurance
| Overall Rating | 4.6 |
| Industry Standing | 4.9 |
| Availability | 4 |
| Coverage | 4.9 |
| Cost and Discounts | 4.9 |
| Customer Experience | 4.5 |
USAA Industry Ratings
Below are scores from some of the individual ratings sources we use to calculate the review scores you see throughout this article:
AM Best: A++
Better Business Bureau (BBB): A+
National Association of Insurance Commissioners (NAIC) Complaint Index: 1.35
Trustpilot: 1.3/5
BBB customer rating: 1.16/5
USAA Insurance Reviews: What Customers Say
USAA has low ratings on customer review sites. Positive reviews for the company usually mention USAA’s speedy claims process and good customer service. Negative USAA reviews cite poor communication.
Our team reached out to USAA for comment on its reviews but did not receive a response.
USAA Auto Insurance
Our Overall Rating
4.8
Key Takeaway
USAA offers affordable, high-quality auto insurance to members of the military, veterans and their immediate families.
USAA is the fifth-largest auto insurer in the U.S., according to the National Association of Insurance Commissioners (NAIC). The company wrote over $19 billion in premiums in 2023. USAA policies are available in all 50 states, but only to active military, veterans and their immediate family members, such as spouses and children.
USAA Auto Insurance Coverage
USAA offers all standard types of car insurance and a variety of add-on protections and perks.
USAA Auto Coverage Highlight: SafePilot Telematics Program
SafePilot®, USAA’s usage-based program, helps good drivers save up to 30% on their premiums upon policy renewal. There’s even a 10% discount just for signing up for the program. Once you’re enrolled in the program, the SafePilot app will monitor your driving habits and calculate your discount based on your behaviors behind the wheel.
The SafePilot program is not available in New Jersey, California or Delaware. It’s available in Massachusetts with some restrictions.
Minimum Coverage
A minimum-coverage policy is designed to meet state requirements and consists of liability insurance coverage. USAA offers these basic protections, which we’ve broken down below.
| Coverage | Description |
|---|---|
| Bodily injury (BI) liability | Covers medical expenses, lost wages and associated costs for other parties involved in an accident you’re found at fault for |
| Property damage (PD) liability | Covers damages to vehicles and other personal property resulting from a collision for which you are found at fault |
| Uninsured motorist/underinsured motorist (UM/UIM) liability | Covers the cost of damages when an at-fault driver lacks sufficient coverage |
| Personal injury protection (PIP) | Covers you and your party’s medical expenses resulting from an accident, regardless of who is at fault. Required in no-fault insurance states and some at-fault states. |
Read more: Liability Coverage
Full Coverage
A full-coverage policy combines liability insurance with protection for your own property and medical expenses. Here’s a look at what full-coverage car insurance includes.
| Coverage | Description |
|---|---|
| Collision coverage | Covers your vehicle and other personal property in an accident, regardless of who is at fault |
| Comprehensive coverage | Covers your vehicle from sources of damage other than an accident, such as fire, theft or severe weather |
| Medical payments (MedPay) | This covers medical expenses for you and your passengers, no matter who is at fault for an accident |
USAA Car Insurance Cost
USAA’s national average rate estimate of $1,741 per year for full coverage is about 35% cheaper than the national average for the industry as a whole. For those who are eligible for its policies, it’s tough to find a cheaper auto insurance option than USAA.AgeDriving RecordCredit Score
| Age | USAA Car Insurance Cost | National Average Car Insurance Cost | USAA Car Insurance Cost Comparison |
|---|---|---|---|
| 16 | $4,267 | $6,226 | -31.5% |
| 17 | $4,425 | $5,989 | -26.1% |
| 18 | $4,017 | $5,669 | -29.1% |
| 19 | $3,457 | $5,192 | -33.4% |
| 21 | $2,613 | $4,186 | -37.6% |
| 25 | $2,179 | $3,070 | -29% |
| 35 | $1,741 | $2,681 | -35.1% |
| 45 | $1,702 | $2,565 | -33.7% |
| 55 | $1,637 | $2,375 | -31.1% |
| 65 | $1,698 | $2,425 | -30% |
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USAA Car Insurance Discounts
Like all our top-ranked car insurance providers, USAA offers a wide selection of discount opportunities.
USAA Auto Insurance Discount Highlight: Storage Discount
USAA offers a discount of up to 60% for service members who are deployed or storing an insured vehicle for any other reason. Those who garage their vehicles on military installations can also save up to 15% on their comprehensive coverage.
List of USAA Car Insurance Discounts
Here are some of the other discounts USAA offers to auto insurance policyholders:
- Defensive driving discount
- Driver training discount
- Good student discount
- Multi-policy bundling discount
- New vehicle discount
- Multi-vehicle discount
- Annual mileage discount
- Vehicle storage discount
- Family discount
- Length of membership discount
- Military installation discount
- No payment plan fees
USAA Homeowners Insurance
Only military members, veterans and their family members are eligible to get home insurance quotes from USAA. According to data from Quadrant Information Services, the average annual premium for USAA homeowners insurance is $2,029. This is well below the national average premium of $2,511.
USAA Home Insurance Quotes
Home insurance quotes are customized based on a homeowner’s specific details and needs. You can expect the following factors to impact your USAA home insurance quote:
- Location: The city and state where you live can significantly impact your quoted premium because some areas in the U.S. are more prone to natural disasters. Additionally, your USAA insurance premium may cost more depending on rebuild and repair costs in your area.
- Home size and type: Larger and more expensive homes typically cost more to rebuild, resulting in higher home insurance costs. Your home’s construction type and features can also make it more expensive to rebuild or repair after an incident.
- Level of coverage: Your homeowner’s insurance rate will vary depending on your coverage needs. For example, you may pay more for dwelling coverage if your home has a higher value since it will cost more to repair or rebuild after a disaster or incident. However, USAA allows you to customize coverage to fit your needs and budget.
- Credit history: Homeowners with good credit scores generally have lower insurance rates.
- Deductibles: The lower your insurance deductible, the higher premium you will pay. If your budget allows, raising your deductible to a higher amount can help lower your insurance premium.
USAA Home Insurance Discounts
Homeowners can take advantage of the following discounts from USAA:
| USAA Home Insurance Discount | Details |
|---|---|
| Bundle and save discount | You can save up to 10% on your homeowners insurance premium if you get a car insurance policy with USAA. |
| Protective device credit | You can save on your policy by purchasing an ADT home security system. |
| Claims free discount | Homeowners or those with a condo or renters insurance policy can get 10% off their premium if they’ve had no claims for the past five years or more. |
| Connected home discount | You can save up to 7% by connecting your home devices to detect things like water leaks, smoke, break-ins and more. |
| Loyalty savings discount | If you maintain a property policy with USAA for at least three years, you can save 5% on your premium. |
| Multi-policy discount | By bundling your homeowners with rental, life, property insurance (or others), you can get 5% off your premium. |
USAA Home Insurance Coverage
A homeowners insurance policy provides financial protection after a disaster or accident, covering losses to a home and its contents. It can also include liability insurance for accidents like property damage or injury to others that occur at the homeowner’s residence or are caused by the homeowner or their family.
USAA offers the following standard types of home insurance coverage:
- Dwelling coverage: This coverage helps cover the cost of repairing or rebuilding your home after it is damaged or destroyed by a covered event. Keep in mind that you’ll want to have enough dwelling coverage to pay for estimated repairs or rebuild or replace your property.
- Personal belongings coverage: This covers the cost of repairing or replacing your personal property items that were damaged or destroyed by a covered event.
- Loss of use coverage: This insurance helps cover additional living expenses if your home is not livable after a covered loss.
- Personal liability coverage: This provides coverage when you are legally responsible for accidental injury or damage to the property of others.
- Other structures coverage: This helps pay for coverage for other structures on your property separate from your home, such as detached garages, storage sheds, fences and driveways.
- Home sharing coverage: This coverage option protects you and your guests when renting out a room or your entire house. It’s not available in all states.
- Earthquake coverage: This insurance helps pay for damages to your home after an earthquake.
USAA Endorsements
USAA also provides the following policy endorsements:
- Personal umbrella policy: A standard home insurance policy includes limited liability insurance to protect you from lawsuits if someone is injured on your property. Since liability coverage is only available up to a certain amount, a personal umbrella policy can provide more protection to help pay attorney fees and lost wages.
- Flood insurance: You can purchase flood insurance from USAA, which covers flood damage caused by hurricanes, melting snow and rain.
- Valuable personal property (VPP) policy: This policy has no deductible and provides extra protection for high-value items such as jewelry, guns and smartwatches that are lost or accidentally damaged. This is a separate policy from your home insurance policy.
- Computer coverage: You can add computer coverage to help protect desktop computers, laptops and tablets from drops or spills with a $250 deductible.
- Cell phone coverage: You can add this coverage to your policy for extra protection if you lose or drop your smartphone.
USAA also provides renters insurance and condo insurance.
USAA Life Insurance
Life insurance is a contract that provides your beneficiary with a lump-sum payout when you die. Your beneficiary can use the money to pay things like daily expenses, a mortgage, your kids’ education, medical bills and other expenses. USAA offers two types of life insurance policies — term life insurance and permanent life insurance.
Term life insurance provides temporary coverage lasting up to 30 years. Payments and coverage remain the same for the life of the policy. Two separate term life insurance policies are available, with different features to meet specific needs.
Permanent life insurance lasts throughout your lifetime. Payment and coverage options can be adjusted, and you are able to build cash value that earns interest.
USAA Car Insurance Review: The Bottom Line
USAA offers some of the most affordable car insurance in the U.S. The provider features a wide range of add-on coverages, discount opportunities and a well-reviewed telematics program.
However, USAA’s policies are only available to active military, veterans and immediate family members of either group. If you’re eligible for USAA auto coverage, you’ll have a hard time finding a better combination of quality coverage and affordability.
USAA Insurance Review: FAQ
Below are frequently asked questions about USAA insurance:
Is USAA cheaper than most insurance?
Is USAA worth joining?
Is USAA a good insurer?
Is USAA good at paying claims?
Why is USAA so cheap?
Where does USAA rank in insurance?
Is USAA insurance better than State Farm?
Is USAA homeowners insurance affordable?
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Cost and Discounts (25% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities are both taken into consideration.
- Industry Standing (20% of total score): Our research team considers market share, ratings from industry experts and years in business when giving this score.
- Customer Experience (15% of total score): This score is based on volume of complaints reported by the National Association of Insurance Commissioners (NAIC) and customer satisfaction ratings reported by J.D. Power. We also consider the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
- Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements score highest in this category.
Our credentials:
- 800 hours researched
- 130+ companies reviewed
- 8,500+ consumers surveyed
