- USAA ranks No. 1 for customer service and purchase experience in three J.D. Power 2020 and 2021 auto studies.
- USAA has an A++ ranking with A.M. Best, showing superior financial strength to pay claims.
USAA car insurance and other products are tailored to current military members, veterans, and their spouses and children. Offered in all 50 states plus Washington, D.C., USAA has a vast offering of insurance, banking, and investment products.
USAA offers award-winning customer support and an easy-to-use mobile app, plus a large online community offering advice and support whenever it’s needed. With the highest financial strength rating available, USAA is able to pay claims no matter how large. We conducted a USAA car insurance review based on customer satisfaction, discounts, and more through our in-house, evidence-based methodology.
USAA’s Full Coverage Average Premium In Each State
|State||Average Annual Full Coverage Premium|
|California||Data not available|
|Florida||Data not available|
|Massachusetts||Data not available|
|New Jersey||Data not available|
|North Carolina||Data not available|
|Wyoming||Data not available|
Data source: Bankrate.com
USAA Car Insurance Overview
USAA offers a full suite of insurance, banking, and investment products for military families. The USAA community site extends its excellent customer service to offer support and advice online 24/7. In all three J.D. Power 2020 U.S. auto insurance studies, USAA outranked all other car insurers but does not meet eligibility criteria due to membership restrictions. According to YouGov, USAA is the seventh most popular insurance brand with a 46% positive opinion rating. Furthermore, in 2020, USAA provided over $1 billion in dividends to auto insurance customers and committed $50 million over three years to advance racial equality in the U.S.
- Superior financial strength USAA’s ability to pay claims is shown in its superior financial strength ranking of A++, the highest available.
- Ranked No. 1 in auto studies USAA is ranked No. 1 in all three J.D. Power 2020 auto insurance studies.
- Number of available discounts USAA has a high number of auto insurance discounts compared to competitors.
- Available countrywide USAA provides auto and other insurance products across 50 states and Washington, D.C.
- Membership criteria required To purchase USAA car insurance, you must be an active or retired military or family member.
- High complaint index NAIC scored USAA a 1.89 on its complaint index, well above the industry average of 1 for insurance products.
- Mixed online reviews Customers on Trust Pilot and Better Business Bureau have complained about USAA customer and claims service.
- Limited add-on coverage Though USAA offers standard car insurance coverage, it lacks in offering add-on coverages.
USAA offers the standard auto insurance coverages like liability, comprehensive, collision, and uninsured/underinsured motorist. Qualifying members can work with a licensed agent to determine coverage needs based on household criteria and the state members reside in. Coverage costs can be reduced by taking advantage of available discounts and members enjoy payment flexibility without paying additional fees.
Though USAA outshines all competitors in J.D. Power’s 2020 U.S. auto insurance studies, it has a high complaint index with the National Association of Insurance Commissioners (NAIC). With the industry complaint index set at 1.00, USAA is almost twice as high at 1.89, signaling a high number of complaints compared to similar sized competitors. BBB and Trustpilot also give USAA low scores of 1.3 and 1.25 out of 5 stars, respectively.
USAA offers 12 discounts for military car insurance members, including safe driver, defensive driving, driver training, good student, new vehicle, multi-vehicle, free payment plans, annual mileage, vehicle storage during deployment, family discounts, membership loyalty, and military installation.
Add-on coverages are limited to personal injury protection in select states and roadside assistance. Rideshare gap protection coverage is also available for as little as $6 per month in 37 states and Washington, D.C.
USAA offers the option to file claims online, over the phone, or through the mobile app. Non-policyholders can also file and track claims online. Once the incident is reported, the claim is investigated and liability is assessed to the driver at fault. Repairs and rental car details are arranged so the vehicle can be repaired or replaced if totaled as the result of a covered accident.
USAA’s Car Insurance Bundling Discounts for Cheaper Insurance
One way to save on car insurance with USAA is to take advantage of the bunding discount available. This discount is extended to military members who place both auto and home insurance with USAA and can save about 10% on homeowners or renters insurance for purchasing car insurance. However, the discount is not extended to USAA’s auto insurance policies. According to USAA’s website, members save on average $707 per year by switching to USAA auto insurance. To sign up for a bundle insurance policy, speak with a USAA licensed agent to get a quote for both home and car if you have neither or to add auto insurance if you already insure your home or belongings in your rental.
USAA Car Insurance vs. The Competition
|Provider||AM Best||J.D. Power Customer Satisfaction*||No. of Discounts|
Information accurate as of June 2021
*J.D. Power 2021 Auto Insurance Satisfaction Study average rating across all regions. Based on a 1,000-point scale.
USAA vs. Nationwide
Like USAA, Nationwide offers a wide range of insurance, banking, and investing products to tailor to your individual and household needs. Nationwide is available to all qualifying consumers whereas USAA is limited to past and present military, spouses, and children. Both auto insurers offer coverage nationwide. USAA offers 12 car insurance discounts while Nationwide only offers 11.
USAA vs. State Farm
In addition to insurance, State Farm offers banking and investment products, though its offerings are limited compared to USAA. Like Nationwide, State Farm offers car insurance to drivers who qualify based on driving history and does not limit membership like USAA. State Farm’s multi-policy discount offers up to 17% savings compared to USAA’s 10% and is eligible on both the auto and home policies. State Farm has 13 available discounts, but USAA only offers 12.
USAA vs. Allstate
Allstate is available across the nation like USAA, though it does not offer banking services. Though USAA ranked higher in the J.D. Power 2020 U.S. Auto Claims Satisfaction Study, it does not have Allstate’s Claim Satisfaction Guarantee, available to car insurance customers in 43 states. When comparing available auto insurance discounts, USAA has 12 to choose from but Allstate only offers 11 options.
USAA Car Insurance FAQ
The USAA national average car insurance is $1,225 per year for full coverage, according to 2021 data from Bankrate.com. However, the price for auto insurance with USAA varies by the state you live in, your driving record, the car you drive, and the coverage you need.
USAA restricts membership for car insurance and other products to pre commissioned officers, active duty military, veterans, and their spouses and children. Siblings and parents of military members are not eligible.
We evaluated USAA based on discounts, coverage, online resources, financial strength, and customer satisfaction to determine our best car insurance reviews. To compare car insurance companies with other providers across the board, we analyzed the following:
- Discounts: Auto insurance companies that advertised more discounts received higher scores in our methodology.
- Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each car insurance company’s financial stability.
- Customer Satisfaction: J.D. Power ranks car insurance companies by customer satisfaction, so we used its 2021 Auto Insurance Satisfaction Study to compare the average rating of insurers across all regions.
- Coverage: Car insurance companies were awarded higher scores for advertised coverages beyond the body liability, property liability, collision, and personal injury protection.
- Online Resources: We reviewed the digital resources of each car insurance company and awarded higher scores to insurers with mobile claim estimates, digital insurance cards, and more.
As for average pricing, we used Bankrate.com’s data of car insurance, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.