Is USAA Insurance worth the premium?

[BiggerFishToFI]

I have USAA insurance for our vehicles, rental property, renters and umbrella insurance. I have gone through the claims process a couple of times and it has always been easy. Searching reviews USAA is always near the top of the list regarding customer satisfaction.

That being said, going to a more discount insurance company with comparable coverage (a Liberty Mutual company) would save us $630 per year. They get much worse reviews comparably.

Is USAA worth the premium?

[HawkeyeNFO]

I use USAA for everything.  For a while I did switch to Liberty Mutual for car insurance, because they were significantly cheaper.  Never filed a claim with them though, so I can't speak to their quality of service. 

Keep in mind that USAA historically only offered insurance to military officers and their dependents.  When they allowed other people to buy policies, they didn't all receive the same rates as their original cohort.  Several reasons for this, but the enlisted and non-military-connected received higher rates and premiums.

[FiftyIsTheNewTwenty]

For anything I've ever insured, the price difference was small, so always well worth it for me. 

Any difference would have paid for itself in time saved.

[BiggerFishToFI]

I use USAA for everything.  For a while I did switch to Liberty Mutual for car insurance, because they were significantly cheaper.  Never filed a claim with them though, so I can't speak to their quality of service. 

Keep in mind that USAA historically only offered insurance to military officers and their dependents.  When they allowed other people to buy policies, they didn't all receive the same rates as their original cohort.  Several reasons for this, but the enlisted and non-military-connected received higher rates and premiums.

Everything except investments I hope, I've heard their fees are pretty high. I use them for banking as well as insurance

I thought it was still the case that you had to be military or military connected. Both of my parents were military officers but I'm unsure what class of rate I would be in.

[Acorns]

I have used USAA for insurance for 15 years and I have no idea what the "premium" is, but the customer service has all ways been WELL worth it for me. I'm always able to call and talk to a real person without getting lost in a phone tree, their CS agents are really nice, and when I have had to file a claim it has been hassle free. Especially when I was deployed, the few times I did have to call them I didn't want to spend an hour on hold in the middle of the night to talk to an unhelpful semi-literate agent (like I had to do with a different financial institution when my pay got messed up).

For investments though, not worth it. I started out there years ago because of the low minimums but switched everything over to Vanguard a few years ago.

[Sailor Sam]

Chalk me up as another person who uses USAA for everything but investments. The customer service is a full cut above any other institution I've worked with. I've never had a problem being connected to a Real Live Person, who has always been ready and willing to help me sort out my issue. Most importantly to me, they understand deployments, and don't try any stupid shenanigans when I want to pause my insurance or need a new debit card expedited to some far flung location.

I've never shopped around for insurance, because I'm willing to pay a little more for the overall support offered by USAA. That being said, if you aren't going to deploy, the extra premium might not be for you. 

[Brother Esau]

We use USAA for all our insurance needs. Every time I've shopped to compare rates with other providers there has never been enough savings to justify changing. Their customer service has always been great as well.

[ROF Expat]

I'm another big fan of USAA.  I use them for most of my insurance.  As others have observed, their customer service reps seem to be several notches above the competition.  When I call them up to discuss my insurance needs, I consistently get reps who seem happy to be there, who know their products, and who give me options that prioritize minimizing my spending, not maximizing their sales and profit.  Sadly, I can only say that about a few of the companies I deal with.

[Rubic]

I used to have home/car insurance through USAA, along with checking, VISA,
and investment accounts.

The home/car insurance eventually became so un-competitive with other
companies that I switched.  I've also moved my investment accounts out
of USAA because everything's just more clunky.

I'll keep my checking account with them (though moved savings to banks
that give much better rates).  ACH transfers are limited to $5K per day,
which has sometimes been a problem when attempting to transfer a lot
of cash.

Overall, their customer service is excellent, just not enough to overcome
the added costs across all of their product lines.

[HawkeyeNFO]

I use USAA for everything.  For a while I did switch to Liberty Mutual for car insurance, because they were significantly cheaper.  Never filed a claim with them though, so I can't speak to their quality of service. 

Keep in mind that USAA historically only offered insurance to military officers and their dependents.  When they allowed other people to buy policies, they didn't all receive the same rates as their original cohort.  Several reasons for this, but the enlisted and non-military-connected received higher rates and premiums.

Everything except investments I hope, I've heard their fees are pretty high. I use them for banking as well as insurance

I thought it was still the case that you had to be military or military connected. Both of my parents were military officers but I'm unsure what class of rate I would be in.

Good point!  They are one of the best insurance companies for sure, but I also wouldn't recommend them for investments.  Go with Fidelity or Vanguard would be my advice.  Their banking is pretty good, but you can certainly do better elsewhere for a checking or savings account.  But I will say that the customer service for all products is top-notch.

[EricEng]

I've used USAA for years and love them.  I found them to be cheaper than most everyone else when I was in my 20s getting insured.  I find it convenient to have my checking in the same place.  Just started experimenting with their investing and ira side.  Their mutual funds have higher fees and trades are like $9, but I don't trade much so not a big deal.  They also do DAF which is nice to manage with everything else.

Currently using:
car insurance
motorcycle insurance/partnered with progressive
home insurance
checking
some investing
daf

[BiggerFishToFI]

I've used USAA for years and love them.  I found them to be cheaper than most everyone else when I was in my 20s getting insured.  I find it convenient to have my checking in the same place.  Just started experimenting with their investing and ira side.  Their mutual funds have higher fees and trades are like $9, but I don't trade much so not a big deal.  They also do DAF which is nice to manage with everything else.

Currently using:
car insurance
motorcycle insurance/partnered with progressive
home insurance
checking
some investing
daf

Based on the reviews here I'll likely stick with them for insurance / checking account (I love how they reimburse ATM fees, even out of country!)

You might want to check out Vanguard for your mutual funds, I'm seeing USAA's S&P 500 fund has an E/R of 0.28%, over 6x Vanguards VTSAX (0.04%)!! On a 1M dollar portfolio this could equate to $150,000 difference over 20 years!!! (assuming 7% vs 7.2% return)

[I'm a red panda]

We still use USAA for our insurance, but have slowly closed all of our banking products with them. They no longer seem to offer any value.

I'm thinking about looking elsewhere for insurance.

[lampstache]

I use USAA specifically for car insurance as no one else could beat their rates. However, I have found much lower home insurance rates through other providers. Even if I tried bundling them I would be significantly more than using separate providers.

[CoffeeR]

I do not use USAA, but a company that often ranks at the top with USAA on customer service is Amica (I use them). I recently had an independent agent check my rates and they could not improve my rates. I suggest you compare USAA to Amica and see if USAA is competitive. Price matters, but service does as well and I am not willing to drop a reputable insurance company to save a few dollars. By the way, recently I had the chance to talk to some people at a body shop to see who they recommend and they certainly thought Amica did a great job. You ask who they do not recommend? Glad you asked... that insurance company name starts with a G.

[Michael in ABQ]

It's been a while since I compared car insurance rates but when I did USAA was still cheaper than Progressive, GEICO, and one or two others. I'm a military officer so I get the good rates and the subscriber's account which usually provides an annual bonus/discount. This year it was about $17 which is essentially a refund of premiums paid since they're a mutual insurance company. Some people who have been with them for years get a few hundred dollars a year as they increase the amount after 20 or 25 years. Also, if you ever close your account permanently you get the funds. My account is currently at about $600 and grows about $100-150 per year. It's not exactly clear how they calculate the distribution and growth in your account. It appears to be some percentage of your annual insurance premiums or your existing account. This doesn't appear to be available to those who have membership through a family member.

USAA basically has two-tier coverage. Those who join through a family member connection are actually insured by a different subsidiary than those who are military officers (originally the only people it was open to). I can't recall which one enlisted military fall into. The lower-tier is more expensive and doesn't include that subscriber's account.

I've always received excellent service from them, even though all of my car accidents so far haven't been covered (other driver at fault and I didn't have comprehensive coverage on my vehicle). I use them for some banking and renter's insurance in addition to auto. I used to have valuable personal property coverage and when I lost my gold wedding ring they replaced it with no deductible (about $650). I ended up cancelling that coverage recently as I figured it wasn't worth it since I could always just go buy another one out of pocket. Still, it was a very good experience.

[MishMash]

I used to have home/car insurance through USAA, along with checking, VISA,
and investment accounts.

The home/car insurance eventually became so un-competitive with other
companies that I switched.  I've also moved my investment accounts out
of USAA because everything's just more clunky.

I'll keep my checking account with them (though moved savings to banks
that give much better rates).  ACH transfers are limited to $5K per day,
which has sometimes been a problem when attempting to transfer a lot
of cash.

Overall, their customer service is excellent, just not enough to overcome
the added costs across all of their product lines.

I've transferred six figures in and out of our USAA checking account in a day, several times.  You may want to call them about the transfer limit. 

We've used them on SEVERAL insurance issues, from hail damaged roofs to car accidents, to a wildfire in Colorado Springs that burnt down the deck of the rental.  Always smooth, always easy, always fast with no issues.

[Cowardly Toaster]

Second what all the other commenters are saying. I wouldn't switch from USAA even to save a few bucks.

Corporations talk a good game about caring, but USAA actually seems to care when you're at your most vulnerable (after a bad car accident for instance).

[Rubic]

I've transferred six figures in and out of our USAA checking account in a day, several times.  You may want to call them about the transfer limit. 

ACH or wire transfer?

I've been able to transfer larger amounts via wire by calling
in (for a fee).

[MishMash]

I've transferred six figures in and out of our USAA checking account in a day, several times.  You may want to call them about the transfer limit. 

ACH or wire transfer?

I've been able to transfer larger amounts via wire by calling
in (for a fee).

ACH transfer between USAA and either my online savings account or investment accounts.  And at least monthly we transfer smaller amounts, but more than 5k into or out of USAA.

[Rubic]

I've transferred six figures in and out of our USAA checking account in a day, several times.  You may want to call them about the transfer limit. 

ACH or wire transfer?

I've been able to transfer larger amounts via wire by calling
in (for a fee).

ACH transfer between USAA and either my online savings account or investment accounts.  And at least monthly we transfer smaller amounts, but more than 5k into or out of USAA.

I think it's harder to get around the $5K daily ACH transfer limit (hence
wire transfers) to external accounts.  Or it was for me at the time.

Currently if I need to transfer $20K, I just do it in $5K increments over
4 business days.

[MishMash]

No, that's what I'm saying, I can ACH transfer 20k or 100k daily.  There is no 5k daily limit on our account at least

[SunscreenYourGreen]

Yes, absolutely worth it IMO. We save some by bundling. Have had a pretty significant auto accident (my vehicle was totaled) and the process was as painless as it could be. The amount they gave me was very fair too. All concluded fairly quickly. Claims rep was outstanding.

[lizzzi]

I've used USAA for insurance--car and homeowners--since 1975 when as a military officer I married another officer.  I would not change to save a few dollars, and can echo all the positives stated upthread. I use their credit card, too--low interest rate, no annual fee, no foreign exchange fee. (I pay it off every month, so the interest rate doesn't really matter, but hey.)  Once in a while there is a nice surprise, like the $128 I got from the subscriber account last month. But for investments, I use Vanguard VTSAX and VBTLX in a lazy person's portfolio.

[Nords]

I have USAA insurance for our vehicles, rental property, renters and umbrella insurance. I have gone through the claims process a couple of times and it has always been easy. Searching reviews USAA is always near the top of the list regarding customer satisfaction.

That being said, going to a more discount insurance company with comparable coverage (a Liberty Mutual company) would save us $630 per year. They get much worse reviews comparably.

Is USAA worth the premium?

It's hard to put a price on an insurer's customer service, because you so rarely need that service.

But when you don't have that service and want to use it, then it's painfully clear what it's worth.

Here's a rundown of my last USAA conference, with thoughts on paying for customer service:
https://the-military-guide.com/usaa-answers-insurance-financial-questions/

[Paul der Krake]

I go with whomever is cheapest.

Insurance is a highly regulated industry, coverage is highly standardized, and contrary to what their marketing departments would have you believe, they all obey the same economic imperative of minimizing claim payouts.

We've been with Geico and I watch the highlights of Berkshire Hathaway's shareholder meeting every year. But if someone with a reasonable reputation comes along and offers a better deal, I won't think twice. $630/year a one hell of a better deal.

[Michael in ABQ]

I go with whomever is cheapest.

Insurance is a highly regulated industry, coverage is highly standardized, and contrary to what their marketing departments would have you believe, they all obey the same economic imperative of minimizing claim payouts.

We've been with Geico and I watch the highlights of Berkshire Hathaway's shareholder meeting every year. But if someone with a reasonable reputation comes along and offers a better deal, I won't think twice. $630/year a one hell of a better deal.

Be that as it may, there is a big difference between good customer service and bad customer service. All of the USAA reps I've spoken to have been helpful and knowledgeable. I've never got connected to someone where I've though about hanging up and calling back in hopes of getting a different person in the call center.

My vehicle was totaled by someone who was covered by GEICO. It went reasonably well though the accident occurred July 1st and I didn't receive payment for my injuries until December I believe. I did receive a check for my vehicle within a few days and they covered a rental for a week or so. My car had already been totaled for a minor accident a year earlier so I was pleasantly surprised to get well above the blue book value, especially considering the right rear quarter panel was unpainted bondo.

[Lance Burkhart]

Chalk me up as another person who uses USAA for everything but investments. The customer service is a full cut above any other institution I've worked with. I've never had a problem being connected to a Real Live Person, who has always been ready and willing to help me sort out my issue. Most importantly to me, they understand deployments, and don't try any stupid shenanigans when I want to pause my insurance or need a new debit card expedited to some far flung location.

I've never shopped around for insurance, because I'm willing to pay a little more for the overall support offered by USAA. That being said, if you aren't going to deploy, the extra premium might not be for you.

I'm the same - everything but investments.  Out here, we just had massive fires and many of the homeowners insurance companies like AAA aren't paying out their claims and are stalling so that their customers get frustrated and just accept a settlement.  A VP sits next to me and is thinking of suing his insurer for failing to take action on his claim. Several other employees are already in a class action lawsuit against their homeowners insurance companies.  People believe that since they've paid their monthly premiums they have coverage. This is only partially true. 

I haven't heard of anyone having a problem with USAA.  Then again, my house didn't burn down so I have no firsthand experience.

[Nords]

Chalk me up as another person who uses USAA for everything but investments. The customer service is a full cut above any other institution I've worked with. I've never had a problem being connected to a Real Live Person, who has always been ready and willing to help me sort out my issue. Most importantly to me, they understand deployments, and don't try any stupid shenanigans when I want to pause my insurance or need a new debit card expedited to some far flung location.

I've never shopped around for insurance, because I'm willing to pay a little more for the overall support offered by USAA. That being said, if you aren't going to deploy, the extra premium might not be for you.

I'm the same - everything but investments.  Out here, we just had massive fires and many of the homeowners insurance companies like AAA aren't paying out their claims and are stalling so that their customers get frustrated and just accept a settlement.  A VP sits next to me and is thinking of suing his insurer for failing to take action on his claim. Several other employees are already in a class action lawsuit against their homeowners insurance companies.  People believe that since they've paid their monthly premiums they have coverage. This is only partially true. 

I haven't heard of anyone having a problem with USAA.  Then again, my house didn't burn down so I have no firsthand experience.

USAA has a good record in this area (based on 3rd-party customer satisfaction ratings).  It's a great record by comparison.  But even if I have a policy from the world's best insurance company, if my house ever burns down then my first act after filing the claim would be hiring a claims adjustor to negotiate for me.

[mm1970]

Second what all the other commenters are saying. I wouldn't switch from USAA even to save a few bucks.

Corporations talk a good game about caring, but USAA actually seems to care when you're at your most vulnerable (after a bad car accident for instance).

This.  With our local fires and such, I have a friend who also has USAA.

She voluntarily evacuated for 2 weeks by herself with 3 kids while husband worked.  Air quality was poor even though she wasn't in an evac zone.

USAA first denied but after a written appeal, covered:
Food stipend every day for 2 weeks
Hotel for 2 weeks with $1k deductible
Thorough cleaning of house and ducts when fire was over, before they returned

I'd have done the same but I'm cheap, so our 7 days in hotels was less than $1k deductible, and we didn't eat out much at all, mostly cooked in the hotel room.

[nancyjnelson]

I have USAA for auto and home insurance, not for investments.  They might not be the very cheapest, but their service is worth it.  My car was stolen from a city parking lot one day and I called up USAA to report it.  By the time I made it home (30 minutes later) they had arranged for a loaner to be delivered to me the next morning.  When my adult daughter was in a car accident (she was fine, the car needed a new door), they did something similar.

Yep, I'll pay a few dollars more to keep them.

[Holyoak]

I have been with them for 30 years, as a cadet and commissioned officer, and IME they are a pale shadow of what they once were.  All I have now is a very modest checking and saving account, and auto insurance.  I'm actively looking to go to another auto insurance carrier, probably Amica.  At one time I had a brokerage account, mutual funds, two mortgages, car loans, shopping, and used their movers advantage...  Experiencing enough mistakes, sub-par service, surly and clueless CS reps (rare), and being almost hard sold other products, I voted with my $$$.  Just for a lark, I contacted their 'wealth management' group, and what a joke...  Crazy expensive funds and costs, middling CS, a lot of flash and dash, that cost more a year than what I planned on living on!

There was a time when you could not have pried a bad word about USAA from my mouth, esp when Gen. McDermott was at the helm.  IMO and experience they offer way too expensive home insurance, crazy priced riders, and lost focus on who and what got them where they are.

[Lance Burkhart]

I have been with them for 30 years, as a cadet and commissioned officer, and IME they are a pale shadow of what they once were.  All I have now is a very modest checking and saving account, and auto insurance.  I'm actively looking to go to another auto insurance carrier, probably Amica.  At one time I had a brokerage account, mutual funds, two mortgages, car loans, shopping, and used their movers advantage...  Experiencing enough mistakes, sub-par service, surly and clueless CS reps (rare), and being almost hard sold other products, I voted with my $$$.  Just for a lark, I contacted their 'wealth management' group, and what a joke...  Crazy expensive funds and costs, middling CS, a lot of flash and dash, that cost more a year than what I planned on living on!

There was a time when you could not have pried a bad word about USAA from my mouth, esp when Gen. McDermott was at the helm.  IMO and experience they offer way too expensive home insurance, crazy priced riders, and lost focus on who and what got them where they are.

This is concerning.  Every time I've had to file a claim with USAA, I've received notices that I need to buy more insurance.  I got an auto insurance quote from GEICO once and it was the same. 

Ultimately, there's no way to know how an insurance company will behave until you file a claim.

[ysette9]

I have been a USAA member since I was in my teens (my mother signed me up). I suspect I get a better deal because of my long relationship with them, and because we use them for so many things. Basically everything except investments, and we keep a little money in a credit union to be able to walk into a physical institution every few years. I love USAA. They give good phone. I agree with others that their customer service is a world apart of every other company I have ever dealt with. You call Comcast and you can tell that the person on the other end of the phone hates his/her job. With USAA I get the sense that their people are knowledgeable professionals who are treated as such by their employer. It makes a big difference as a customer.

No experience filing claims, knock on wood.

[Nords]

I love USAA. They give good phone. I agree with others that their customer service is a world apart of every other company I have ever dealt with. You call Comcast and you can tell that the person on the other end of the phone hates his/her job. With USAA I get the sense that their people are knowledgeable professionals who are treated as such by their employer. It makes a big difference as a customer.

USAA has invited many of us bloggers into their Member Service Representative lab.  I mention it about two-thirds of the way down in this post, with the header "Declining Service":
https://the-military-guide.com/usaa-answers-insurance-financial-questions/

Ironically only 5% of USAA's member interactions are via the call centers.  The app (and the website) do most of the work.