I'm sensing an element of unhappiness amid the confusion surrounding USAA's policy dividends and Subscriber Savings Accounts. The implication is that the dividends and SSAs are giving some USAA members a better deal than other members.
Over the last few months I've had a running conversation with USAA's Communications staff on this question. (The discussion had to include the insurance execs and the lawyers.) USAA's answer is not what I expected:
"It's best to contact your member service rep and ask them."
One member did just that, and reported the conversation to me:
Member:
"In any case, could you clarify who is eligible for an SSA? I've looked extensively on your web site and I haven't found a good answer."
Service rep:
"Because USAA is based on eligibility, our company is structured into several small companies. They are all USAA, but this allows us to have eligibility for officers, enlisted, dependents, and ex dependents. Due to your fathers rank and military service he would fall under the company of USAA.
Your company placement will be different than his since you are grouped with other military dependents. Members in the USAA company placement are eligible for the SSA."
As they said, the policy isn't clear on the website. That's one report from one service rep, and it'd be interesting to see whether the answer is consistent for a large group of members.
I don't know the details of USAA's corporate charters. I do know that members are insured by different subsidiaries depending on what they're insuring, the type of coverage they want for it, and their risk profile. I can't tell what criteria have a higher priority than others. USAA may even lay your coverage off to a company like Progressive.
The SSA is a powerful financial tool for helping USAA hold a large pile of float. It's also probably cheaper to structure it as an SSA instead of as simply a corporation's assets, but I don't know enough about insurance company taxation to clarify the situation.
If you're enjoying (or wanting) a dividend or an SSA then you're missing the point. I'm not sure whether an SSA or a policy dividend is a better deal than insurance through another USAA subsidiary. It's a great question to ask when you're comparing rates, but it's just one factor in deciding what's important to you and what level of customer service you want. A member with a SSA may still be paying more for the same coverage than a member without an SSA-- just because they're insured by different subsidiaries with different ways of pricing the risk pool.
Frankly, an SSA seems like a waste of USAA's time and the member's money. Running an SSA has to consume salary and expenses, and if you're getting back some of your premium every year then it's just an indication that the insurance company overcharged you. To add insult to injury, they earned interest from your money before giving it back to you. It's no better than getting a big tax refund. "Privilege" indeed.
Regarding OP, I recently switched to Geico from USAA. Wife had Geico, I had USAA when we got married last year. Had been meaning to combine insurance for months and finally did last at the end of last month. Geico was significantly cheaper for the same coverage on all accounts (home, autos, and rental property).
Wife has made claims with Geico and had nothing but good things to say about their customer service. I wanted to stay with USAA because of their typically stellar customer service but simply could not given the disparity in cost between the two companies.
I am curious about how rank impacts rate, though. I've heard that those of higher rank receive lower rates. If true, this is a nice benefit and promotes longevity in a certain sense but also seems typical of our society; those with money/status get more breaks than those who actually need it. Do you know if rank does have an effect on rates and to what extent?
Rank is not part of the algorithm for calculating rates, but that question comes up occasionally. I'm sure there's a
conspiracy correlation between rank & rates, but it's not causation. Personally, my rates went up with my promotions because I was buying less-crappy cars and starting a family. My rates went down when I retired because I was driving less and my cars became older and crappier again.
Can you imagine re-enlisting because you'll get cheaper car & home insurance? Yikes. Talk about missing the point.
As for price and customer service, I'd recommend going with whichever choice helps you sleep better at night. If you're an unusual insurance risk, though, then you'll probably appreciate customer service.
We've had our car insurance with USAA for over 30 years because they did a better job overseas (and in Hawaii). Even after I retired, their rates were better than GEICO and Progressive. USAA's home insurance, however, has been much more expensive than Armed Forces Insurance for (in my opinion) similar customer service. USAA even abandoned the Hawaii homeowner market for nearly a decade due to hurricane concentration risk. Now that they're insuring Hawaii homes again, though, I'll have to work up a quote for a possible package deal.
A couple weeks ago I had to call a tow truck-- in Spain, in Spanish, while I was borrowing my daughter's car, which was broken down in the security gate of the Rota naval base, while she was on a Mediterranean deployment. I was really glad to have the USAA rep (in Texas) pick up the phone promptly. They didn't bat an eye at the situation, they confirmed everyone's member info within a few minutes, and they actually have someone in London who can whistle up a tow truck (in Spanish) in Andalusia.
But instead of shopping for cheap insurance, it's better to carry the absolute minimum coverage and customer service that you need to sleep at night-- and to self-insure as much as possible.