USAA Auto Insurance Review: Should you buy in 2024?

Although USAA has strict membership requirements, it’s considered one of the best insurance companies in the country. As long as you are an active or retired military member or a close family member, you should check if USAA auto insurance meets your needs.

However, you should still research other options. Even though USAA usually has the lowest rates, you might find a better price with another company. Comparing multiple auto insurance quotes is the best way to ensure you find the most affordable coverage.

What You Should Know About USAA

Although it’s often hard to say if a company is overall good or bad, USAA makes the task easy. It’s a good insurance company. USAA would top most lists of the best insurance companies if it didn’t have such strict membership requirements.

USAA combines excellent customer service, quality products, and affordable rates into policies most customers renew yearly.

An integral part of how well a company performs is its financial strength. A.M. Best rates companies on their financial stability, and USAA earned its highest rating of A++. That means you won’t have to worry about USAA being unable to pay any claims you might make in the future.

Does USAA have good customer service?

USAA usually does well in customer satisfaction surveys, with many customers renewing their coverage every year. Some customer reviews report that representatives treat them courteously and resolve issues quickly.

However, USAA is plagued with numerous complaints about its customer service. Many USAA policyholders complain that representatives are hard to contact and give them the runaround during claims.

The National Association of Insurance Commissioners (NAIC) rates companies on the number of complaints they receive compared to their size. The national average is 1.0, with higher numbers meaning the company gets more complaints.

USAA currently has a 1.95, meaning it gets nearly double the complaints compared to similar companies. USAA’s NAIC rating has been on an upward trend, which means the company has been steadily getting more complaints.

Despite its NAIC rating, USAA receives favorable reviews from J.D. Power. Although USAA is ineligible for a ranking due to its eligibility requirements, it remains a top-rated company.

If you’d like to talk to someone about a customer service-related issue, you can call the USAA car insurance phone number to speak with a representative.

Does USAA have good claims handling?

USAA might struggle a bit with customer service, but it does well with its claims-handling process. According to J.D. Power, USAA is one of the top companies for claims satisfaction.

You have several options to file USAA claims. The easiest way is to use the mobile app, where you can upload pictures of any damage caused to your car. While wait times for claims processing are usually a few weeks, USAA says you might have an estimate after four hours if you use the photo tool.

Another option is to access your account online and fill out the form. This option isn’t as fast, but it is easy, and you don’t need all your information to get started.

Finally, you can call the USAA claims phone number and speak with a representative to start a claim. Unfortunately, there aren’t many physical locations, so you’ll need to call the USAA claims number if you want to speak with someone.

Does USAA give back to its community?

Aside from offering affordable coverage for military members, USAA also strives to give back to its communities.

USAA works with charities to promote the following goals with national and local organizations:

• Education
• Families in need
• Workforce development
• Natural disaster response
• Arts and culture
• Diversity and equality
• Veteran services

USAA also allows organizations to petition the company for donations by offering USAA employees to donate directly. USAA then matches its employee’s contributions, dollar for dollar.

USAA Insurance Coverage Options

All major car insurance companies sell enough coverage for you to meet both your state’s minimum insurance requirements and full coverage.

Most states require a minimum amount of insurance before legally driving or registering a car. Except for Virginia and New Hampshire, all states require liability insurance. Several others require either uninsured motorist or personal injury protection insurance.

No state requires full coverage, but you’ll probably need it if you have a car loan or lease. As its name suggests, full coverage offers a complete package of protection for your car.

In order to meet your needs, USAA sells the following types of coverage:

• Property damage liability. As the first half of liability insurance, this covers damage you cause to other people’s cars, buildings, and other property.
• Personal injury liability. This part of liability insurance pays for injuries you cause in an at-fault accident. Liability insurance does not cover your medical bills or repairs to your car.
• Collision. Collision insurance pays for repairs to your car after an accident It also pays for damage if you hit a stationary object like a tree.
• Comprehensive. To get coverage for things like weather, fire, animal contact, theft, and vandalism, you need comprehensive car insurance.
• Uninsured/underinsured motorist. If a driver without insurance hits you, you’ll need uninsured motorist insurance to pay for your car’s repairs. It also covers you if you’re the victim of a hit-and-run.
• Personal injury protection/medical payments. These insurances help pay for medical bills for you and your passengers after an accident. The type you can buy depends on the state you live in.

When you’re in the market for full coverage, you’ll need every type of insurance listed above. However, you’ll probably only need liability insurance if you’re looking for your state’s minimum coverage. You don’t need to worry about knowing your state’s exact requirements — a USAA representative can help.

Does USAA sell car insurance add-ons?

Although the basic types of car insurance offer solid protection for your car, USAA offers add-ons to increase the value of your policy.

You can select the following options for your USAA policy:

• Roadside assistance. If you find yourself stranded on the side of the road, USAA will send help with things like towing, fuel delivery, jump starts, and locksmith services.
• Rental reimbursement. If your vehicle is stuck in the mechanic shop after a covered event, USAA will reimburse you part of the cost for a rental car.
• Accident forgiveness. Selecting this add-on will protect you from increased rates after your first accident. USAA offers accident forgiveness for free to any driver who goes five years without an accident.
• Rideshare. Lyft and Uber drivers can buy a rideshare add-on to protect themselves while working when their personal car insurance doesn’t cover them.
• Classic car. American Collectors and USAA work together to offer specialized coverage for classic and collectible vehicles.
• Car replacement assistance. USAA offers an additional 20% on top of your car’s actual cash value if it’s declared a total loss.
• Glass coverage. If your windshield can be repaired instead of replaced, USAA will waive the deductible.

Although some of its competitors offer more customization options, most customers are satisfied with USAA’s selection. Most USAA members also enjoy the special perks that come with their policies.

Do USAA car insurance policies come with extra features?

USAA insurance requires membership. While you won’t see special features specifically for car insurance, your USAA membership qualifies you for a variety of special perks, including:

• Goodyear tires. Members save up to 30% on new Goodyear tires.
• Member travel. You get access to some of the lowest rates for cruises and get dining credits, drink packages, and shore excursions.
• Rental cars. Budget offers USAA members a 35% discount for car rentals and a free upgrade.
• Member theme park deals. USAA members get access to a variety of theme park deals, like $80 off a ticket to Disney World.
• Cashback offers. You’ll get cash back at specific stores and restaurants.
• Fitness and health. USAA offers gym memberships for just $25 a month.
• Hotels. Members get up to 25% off at certain hotels, and some bookings can earn you $250 towards a future cruise.

Other USAA member benefits vary throughout the year, so you’ll never run out of ways that USAA can help you save. Not only does USAA offer members great deals, but it also helps them save on car insurance.

What other types of insurance does USAA sell?

USAA insures nearly everything important in your life, usually at some of the cheapest rates on the market. As a bonus, you’ll probably earn a bundling discount if you buy multiple policies from USAA.

Available policies include:

• Boat
• Motorcycle/ATV/UTV
• Classic car
• Aviation
• Bicycle
• Mobile home/renters/condo/motorhome
• Valuable personal property/collectibles
• Life/annuity
• Health/Medicare
• Dental/vision
• Landlord
• Personal or business umbrella
• Small business
• Commercial auto
• Farm/ranch
• Pet
• Travel

Unlike other insurance companies, USAA does not write every type of insurance it sells. Instead, most of USAA’s policies for sale are written by partners. For example, Cigna and IHC write USAA’s dental plans, while American Collectors handles classic car policies.

USAA also offers a variety of banking and financial services to help military families manage their money. With a USAA membership, you’ll gain access to loans, investments and mutual funds, retirement advice, and credit cards.

USAA Insurance Rates Breakdown

Insurance companies look at a variety of factors to craft your rates. Everything from your age and gender to your credit score impact how much you’ll pay for coverage.

USAA usually offers the lowest rates for car insurance, no matter what demographic you look at. While there are many ways to determine who has the lowest insurance rates, it’s a good idea to start with coverage levels. Below, you can get an idea of how much USAA might charge you for minimum and full coverage insurance.

Monthly Minimum vs. Full Coverage Rates for the Top 10 Auto Insurance Companies

You might notice that some states have much lower rates than others, especially for minimum insurance. Some states require more insurance than others, which usually raises its overall rates. Other states have higher risks of extreme weather or accidents, which also drives up rates. See minimum insurance required by state for full details.

USAA Insurance Rates by Age and Gender

Another good place to start in your search for affordable prices is with your age and gender. Insurance companies keep careful track of claims numbers and know that young, inexperienced drivers and men file more claims on average.

Young drivers are more likely to engage in reckless behaviors like interacting with passengers or using their phones while driving. They also lack the know-how to deal with some dangerous situations they’ll eventually encounter.

Similarly, men are more likely to engage in bad driving habits, especially by engaging in road rage or driving under the influence.

For these reasons, young men pay some of the highest rates for car insurance. However, your rates will eventually lower as you get older, as long as you keep your driving record clean. Likewise, the gap between genders also lessens with age.

USAA offers relatively low rates for teen drivers, and the gap between males and females isn’t too noticeable at 16. The gap between genders becomes more noticeable for 18-year-olds, but rates for older drivers are practically the same. For more details, see buy cheap auto insurance for teenagers.

USAA Insurance Rates for Low Credit Scores

Unless you live in Massachusetts, California, or Hawaii, insurance companies use your credit score to determine your rates.

Your credit score plays into your insurance rates for two reasons. First, insurance companies — and many other service providers — assume that people with higher scores pay their bills on time.

The second reason has to do with statistics. Insurance companies track who makes claims by their credit score, and people with low scores are more likely to file a future claim.

People with lower credit scores can pay up to 60% more for insurance than people with higher scores. However, some companies are more forgiving than others. Check below to see how USAA rates look compared to other companies.

Average Monthly Auto Insurance Rates by Credit Rating

Although USAA offers relatively low rates, you might find better prices at Nationwide or GEICO, see Nationwide auto insurance review or Geico auto insurance review for more details. Before you write USAA off, though, remember that these numbers are just average prices. You might still find that USAA offers the lowest rates for your situation.

If your rates are higher than you’d like due to a low credit score, you should know you won’t be stuck with them forever. If you can raise your credit score, your rates will drop.

For more details, see buy cheap auto insurance for drivers with bad credit.

USAA Insurance Rates After Traffic Incidents

Most people know that their car insurance rates increase after an at-fault accident, but did you know other traffic violations affect them too?

Statistically speaking, people with one traffic incident on their driving record will probably add another in the future. To protect themselves financially, insurance companies charge more after a variety of traffic violations.

You can check what USAA rates look like after various traffic violations, but keep in mind that different infractions increase your rates at different percentages. For example, a speeding ticket increases your rates by about 23%, while driving with a suspended license increases rates by about 62%.

Average Monthly Rates for the Top Insurance Companies After an Accident

USAA offers rates much lower than the national average after most traffic tickets. For example, the national average after an at-fault accident is $181 monthly, while USAA’s price is $117.

Average Monthly Rates for the Top Insurance Companies After a Traffic Ticket

Just because your rates increase after a traffic ticket doesn’t mean you’ll pay that price for the rest of your life. If you keep your driving record clean of additional tickets, your rates will return to normal after about three years.

For more details see cheap auto insurance companies that accept drivers with multiple accidents.

USAA Insurance Rates After a DUI

Does auto insurance cover DUI accidents? While some traffic violations affect your rates slightly, DUIs can double your rates. Some companies drop customers after a single DUI, and drivers with multiple charges often need to buy from a high-risk car insurance company.

If you get a DUI charge, it’s imperative that you compare rates with multiple companies, even if you already have a policy. It’s difficult to tell which companies offer the lowest rates after a DUI without comparing quotes.

Average Monthly Rates for the Top Insurance Companies After a DUI

Once again, USAA offers some of the cheapest rates. USAA’s rates after a DUI are so affordable that every driver who qualifies for membership should request a quote.

Like with traffic violations, you won’t be stuck with high DUI rates forever. However, DUIs take much longer to clear your driving record. On average, you’ll be stuck paying higher prices for about seven years.

USAA Discounts Available

One of the most important things to look for when shopping for a policy is how many auto insurance discounts a company offers. Insurance can get pricey quickly, but finding the right discounts can help keep your rates low.

To help military members and their families save money, USAA offers the following discounts:

• Defensive driver. Drivers who pass an approved defensive driving course can earn this discount.
• Safe driver. USAA rewards policyholders who spend five or more years avoiding traffic incidents.
• Driver training. You can cut your insurance rates by passing a driver’s education or training course.
• New vehicle. USAA offers lower rates if you add a brand-new car to your policy.
• Good student. Full-time students under 25 who maintain a 3.0 GPA earn a discount from USAA.
• Multi-vehicle. If your household has more than one driveable car, you’ll get lower rates for both if you insure them on the same policy.
• Vehicle storage. USAA will lower your rates if you plan to store your car for an extended period. You’ll see even deeper savings if you leave your vehicle on a military base.
• Family. Young drivers who start an individual policy after being on a parent or guardian’s will earn discounted rates.
• Loyalty. USAA rewards its long-term customers with insurance savings.
• Low mileage. You’ll see lower rates if you drive less than 12,000 miles a year.
• Multi-policy. USAA sells a lot more than car insurance. You can lower your rates by buying multiple policies from USAA.
• Pay in full. Drivers who pay for their entire policy at once and skip the monthly payments will earn a small discount.

USAA might offer fewer discounts than companies like Farmers and American Family, but there are still plenty of ways to save. However, if simple discounts aren’t enough to lower your insurance, you should consider SafePilot.

SafePilot by USAA

SafePilot is USAA’s usage-based insurance program. Today, most of the larger companies offer a usage-based program. Also known as telematics insurance, these plans offer significant savings in exchange for monitoring your behavior.

So, how does SafePilot stack up to its competitors? USAA offers a decent 10% discount for signing up for SafePilot, and drivers have the opportunity to save an additional 30% by practicing safe driving behaviors.

To determine how much you should save, SafePilot tracks the following behaviors:

• Touching your phone
• Harsh braking
• Making hands-free phone calls
• What time you drive
• Speeding
• How much you drive

SafePilot gets decent reviews, but it’s not the best usage-based insurance because you can’t make hands-free phone calls. Most other telematics programs do not hold phone calls against you as long as you’re not holding your phone.

A common complaint about SafePilot is that the app doesn’t always work the way it should. For example, many drivers report frustration getting the app to recognize when they are a driver or a passenger. It’s also only available in 37 states, so you might not be eligible for coverage.

On the positive side, USAA promises that your rates will never increase from using SafePilot. It’s only used to calculate discounts.

For more details, see USAA SafePilot review.