Laura Berry

Former Licensed Insurance Producer

Laura Berry has experience as a licensed producer selling life, health, and property insurance coverage for both Allstate and State Farm. She has dedicated many hours to helping her clients understand the insurance marketplace so they could find the best car, home, and life insurance products for their circumstances. While she currently helps businesses take advantage of the federal R&D tax...

Former Licensed Insurance Producer

Melanie Musson

Published Insurance Expert

Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...

Published Insurance Expert

UPDATED: Apr 25, 2023

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Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

UPDATED: Apr 25, 2023

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider.

Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

UPDATED: Apr 25, 2023Fact Checked

USAA, or United Services Automobile Association, is a specialty insurer that provides coverage to military personnel and their families. In addition to auto insurance, the company provides homeowner’s insurance, life insurance and financial services like banking and credit cards. For qualifying members, USAA has some of the lowest rates and highest-ranked customer service of any insurance company. Coverage is not open to everyone, however, which does pose a major limitation to most people seeking affordable insurance.

USAA History

Based in San Antonio, Texas, USAA was founded in 1922 by a group of Army officers. Since then, it has grown to insure over eight million people. Most policies are sold through direct marketing utilizing the company’s website and toll-free number rather than agencies. Although it does run advertisements, USAA does not rely on an advertising campaign as heavily as other direct sales companies like Geico or Progressive.

Because all members need to either be in the armed forces or have a direct family relation to someone in the service, USAA receives most of its new policies through private invitations and family growth. As new drivers are added to their parents’ policies, they often choose to stay with the company and get policies of their own.

Children of current USAA members can obtain their own policies whether or not their parents are military personnel. Additionally, people who have ever been insured with USAA are able to return to the company and resume their membership at any time as long as their driving record is admissable.

USAA is a niche insurer, and as such it can afford to be selective. One of the ways it keeps cost down is by keeping fairly strict risk assessments. People with poor driving records may not qualify for USAA even if they are in the service.

What Makes USAA Unique?

Aside from its limited scope, USAA has several attractive features and discounts that make it stand out from the competition:

— Accident forgiveness for around $1 a year
— Flexible payment options to customize to a person’s pay schedule
— Affordable roadside assistance and towing
— Discounts for defensive driving and other driver’s education classes
— Loyalty discounts; USAA pays you back a month’s premium each year as a reward for loyalty
— Rate decreases for low annual mileage

Because people in the military may often need to put their vehicles in storage during deployment or other situations, USAA offers an extremely affordable policy for stored vehicles. Members can leave basic comprehensive coverage on the car and enjoy up to an 80% discount until the vehicle is put back into regular use.

USAA is also especially well-known for its exemplary customer service. It won the 2011 J.D. Power and Associates award for Customer Service Champion, and it’s received top rankings in customer service from Forrester Research, Inc., Satmetrix, Nunwood, EquiTrend and others. It’s also won multiple awards as an employer and financial institution.

How to Qualify for USAA Coverage

If you’re currently enlisted in any branch of the military or are a veteran, you automatically qualify for USAA coverage. If not, you may still be able to qualify if any of your blood relatives are in the military or currently carry USAA coverage. If your parents or grandparents have ever been insured with USAA, you may be able to qualify for a policy.

How much does USAA Car Insurance cost?

The overall cost of auto insurance will vary from one individual to the next, so it’s impossible to know for sure how much a policy will cost without getting an individualized quote. As a rule, USAA is able to provide cheaper insurance than most other companies. It can do this because, as a niche market, it has a smaller risk pool than other insurers. The fact that most customers are brand-loyal and carry multiple different accounts with the insurer helps the company keep costs low.

On average, people who switch to USAA save around $450 per year according to the website. A full coverage auto policy can cost as little as $80 per month in some cases, depending on the type of car being insured and the amount of the policy’s limits and deductibles.

The only way to know for sure how much your policy might cost is by obtaining a quote from the company. You will also need to prove your eligibility before purchasing a policy. If you can qualify, you can sign up for the policy online or over the phone after receiving your quote.

For people who qualify, USAA insurance is one of the best companies. Although all insurers will have consumer complaints, most members of USAA are extremely satisfied with their service and cost. If you cannot qualify for USAA, you may be interested in pursuing coverage with another direct-sales insurer.

For example, Geico was founded in a similar manner and offers policies through the same venues; people who do not qualify for USAA may like a company like Geico or Progressive. On the other hand, individuals who would prefer a more hands-on approach to their insurance would benefit from a company like Allstate or State Farm that utilizes agencies.

By assessing your desires and qualifications, you can determine what insurance company will best suit your needs. This will help you choose a company based on more than just price, ensuring that you will have a long-lasting positive relationship with your insurer.

Frequently Asked Questions

What is USAA car insurance?

USAA car insurance is an insurance policy that is designed specifically for members of the United States military, veterans, and their families. USAA is known for its excellent customer service and competitive rates, making it a popular choice for those who qualify.

What types of car insurance does USAA offer?

USAA offers a range of car insurance coverage options, including liability, collision, comprehensive, personal injury protection, and uninsured/underinsured motorist coverage.

What discounts does USAA offer on car insurance?

USAA offers a variety of discounts on car insurance, including safe driver discounts, good student discounts, multi-vehicle discounts, and military installation discounts.

Can I get USAA car insurance if I’m not a member of the military or a veteran?

No, USAA car insurance is only available to members of the military, veterans, and their families.

How can I become a member of USAA?

To become a member of USAA, you must be a current or former member of the United States military, an eligible family member of a current or former member of the military, or a cadet or midshipman. You can apply for membership on the USAA website.

How does USAA’s customer service compare to other insurance companies?

USAA is known for its excellent customer service and has consistently ranked highly in customer satisfaction surveys. In J.D. Power’s 2021 U.S. Auto Insurance Study, USAA received the highest ranking in overall customer satisfaction for the 22nd consecutive year.

How do USAA’s rates compare to other car insurance companies?

USAA’s rates are generally competitive with other car insurance companies, although rates may vary depending on your individual circumstances.

Does USAA offer roadside assistance?

Yes, USAA offers roadside assistance as part of its auto insurance policies.

Can I manage my USAA car insurance policy online?

Yes, you can manage your USAA car insurance policy online through the USAA website or mobile app.

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Laura Berry

Former Licensed Insurance Producer

Laura Berry has experience as a licensed producer selling life, health, and property insurance coverage for both Allstate and State Farm. She has dedicated many hours to helping her clients understand the insurance marketplace so they could find the best car, home, and life insurance products for their circumstances. While she currently helps businesses take advantage of the federal R&D tax...

Former Licensed Insurance Producer

Melanie Musson

Published Insurance Expert

Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...

Published Insurance Expert

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.