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USAA Auto Insurance Review

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Amazing customer service and satisfaction
Unique discounts for members
Strong financial outlook and backing

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Reviews Report

  • 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

StateAverage Annual Full Coverage Premium
Alabama$1,230
Alaska$1,069
Arizona$1,288
Arkansas$1,142
CaliforniaData not available
Colorado$1,310
Connecticut$1,264
Delaware$955
FloridaData not available
Georgia$1,506
Hawaii$1,009
Idaho$725
Illinois$1,242
Indiana$834
Iowa$1,026
Kansas$1,225
Kentucky$1,466
Louisiana$2,035
Maine$718
Maryland$1,574
MassachusettsData not available
Michigan$1,255
Minnesota$1,491
Mississippi$1,109
Missouri$988
Montana$931
Nebraska$1,138
Nevada$1,549
New Hampshire$681
New JerseyData not available
New Mexico$1,102
New York$2,137
North CarolinaData not available
North Dakota$815
Ohio$820
Oklahoma$1,388
Oregon$1,038
Pennsylvania$1,126
Rhode Island$1,297
South Carolina$1,447
South Dakota$1,337
Tennessee$1,116
Texas$1,344
Utah$839
Vermont$807
Virginia$890
Washington$818
Washington, D.C.$876
West Virginia$1,185
Wisconsin$785
WyomingData not available

Data source: Bankrate.com

USAA Car Insurance Overview

In business since:
1922
A.M. Best: AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
A++
J.D. Power: J.D. Power scores are based on surveys for customer satisfaction and product quality.
889*
States Served:
50 + D.C.

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.

PROS

  • 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.

CONS

  • 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.

Coverage
Customer Experience
Discounts & Add-ons
Claims

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 

ProviderAM BestJ.D. Power Customer Satisfaction*No. of Discounts
USAAA++88912
NationwideA+81411
State FarmA++84713
AllstateA+82511

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

Methodology

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.

About the Authors

Mandy Sleight is an insurance writer for Reviews.com. Over the last three years, she has covered insurance providers, coverage, costs of insurance, and more at MoneyGeek, Bankrate, and The Simple Dollar.

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