USAA auto insurance review 2024 (2024)

The upside and downside to getting car insurance from USAA.

Pros

• Cheapest policies for liability-only coverage. USAA is over 30% less than the national average
• Stellar customer satisfaction. Some of the top scores on J.D. Power's customer surveys.
• No penalty for paying monthly. Unlike other insurers, USAA doesn't charge more if you pay your premiums monthly rather than per term.

Cons

• Limited eligibility. Policies are limited to military families and veterans.
• No brick-and-mortar offices. Customer service is not available on Sundays or holidays.
• No gap insurance. USAA offers car replacement assistance, which can pay more than your car's actual cash value but is more expensive than gap insurance.

To get a policy, you'll need to join USAA. Membership is typically limited to:

• Active duty officers and enlisted personnel
• National Guard/Reserve officers and enlisted personnel
• Officer candidates in commissioning programs
• Retired or separated military personnel
• Children and spouses of current USAA members

Separated military personnel must have received an Honorable Discharge or better.

USAA is available to military families and veterans in all 50 states and Washington, D.C. In addition to automobiles, policies are available for motorcycles, motorhomes, boats, bicycles and other vehicles.

Basic coverage

Collectively known as full coverage car insurance, these policies are typically required if you lease or finance your car.

• Liability: the minimum coverage allowed in most states, liability insurance pays for damages if you are at fault for an accident.
• Collision: Pays to repair or replace your vehicle after an accident.
• Comprehensive: Pays for damages or losses not caused by a collision, including theft, weather damage and hitting an animal.

Additional coverage

These policies may be required in some states and optional or unavailable in others.

• Car replacement assistance: While gap insurance covers the difference between what's owed on a vehicle and what it's worth, this policy can pay out 120% of a car's cash value if it's totaled or stolen.
• Accident forgiveness: If you are accident-free for at least five years, your USAA rates won't increase because of one at-fault accident.
• Medical payments insurance: Also known as MedPay, this covers medical bills for you, your passengers and any pedestrians, regardless of fault.
• Personal injury protection: PIP, or no-fault insurance, can cover lost wages, child care and even funeral costs stemming from an accident.
• Roadside service: Get help with jump starts, fuel delivery, lockouts, flat tires, towing and winching.
• Rental car insurance: If your vehicle is damaged in a covered accident, USAA will reimburse the cost of a rental while it's being repaired.
• Rideshare insurance: Rideshare companies usually only cover drivers after they accept a ride request. This add-on expands coverage to any time you're logged on to the rideshare app, even if you're waiting for a request.
• Uninsured/underinsured motorist insurance: Covers repairs and medical bills if you are in an accident with a driver with little or no insurance. (Required in about half of U.S. states)

High-risk drivers

People with speeding tickets and at-fault accidents typically pay more for insurance. USAA's rates are lower than typical for high-risk drivers and it will also consider drivers with DUIs, which some insurers won't.

USAA offers many money-saving discounts. Not all are available in all states and some policies may not be combined.

• Anti-theft devices: Discount for installing a car alarm or other security systems.
• Automatic payments: Save up to 3% by paying premiums through autopay.
• Basic driver training: Eligible drivers can save after completing a basic driver training course.
• Defensive driver training: Discount for completing an approved defensive driving course.
• Deployment/storing: Get up to 60% off if you store your vehicle during deployment (not available in Hawaii, North Carolina or Virginia).
• Good student: Drivers under 25 who maintain a B or better grade average can get up to 10% off.
• Loyalty: Discount of up to 10% after remaining a policyholder for three years
• Multi-vehicle: Discount available if you insure two or more vehicles with USAA.
• Multi-policy: Customers who bundle USAA home and auto insurance can save up to 15%
• Military on-base: Get up to 15% off comprehensive coverage if you garage your car on a military installation.
• Newer vehicle: Discount for vehicles that are no more than three years old.
• Pay as You Drive: Aimed at people who don't drive often, this pay-per-mile plan combines a fixed lower base rate with a variable rate determined by how much and how safely you drive.
• Safe driving: Discount for maintaining a good driving record for at least five years
• SafePilot: Let USAA's usage-based insurance app track your driving habits and get up to 30% off for good behavior behind the wheel. (Not available in California, Delaware or New Jersey.)
• MyUSAA Legacy discount: Earn up to 10% off if you were on your parent's USAA insurance and take over as the new policyholder. Available to drivers under 25 who haven't had any major violations in the past three years.

Compare prices for car insurance

The company has also received high scores from credit rating agencies like A.M. Best and S&P Global, a testament to its financial strength and a good indicator of its ability to pay on claims.

Though it was founded by Army officers to insure their vehicles, USAA offers many other kinds of insurance, including:

• Homeowners insurance
• Renters insurance
• Condo insurance
• Flood insurance
• Life insurance
• Umbrella insurance
• Long-term care insurance
• Business insurance
• Pet insurance through Embrace

Customers who bundle home and auto policies can save up to 15%. USAA also offers banking and credit products, including credit cards and auto loans.

CNBC Select chose USAA as a top pick for:

Both State Farm and USAA made CNBC Select's best car insurance list, but USAA is tops for price. The average annual premium for full coverage is $1,709, compared to $2,406 with State Farm.

If you're an active-duty service member, USAA has discounts for parking your car on-base or storing it during deployment. State Farm, on the other hand, doesn't have any specific military discount.

Both companies offer accident forgiveness, but USAA only requires drivers to be accident-free for five years, compared to nine years for State Farm.

USAA vs. Geico

In a price comparison, Geico and USAA are close contenders: Geico comes in at $1,782 for 12 months of full coverage, while USAA is $1,709. Geico does offer a military discount of up to 15%, which could give it the edge depending on your circ*mstances.

However, Geico ranked well below average for both customer service and claims satisfaction.

• Driver's license number
• Make, model, year and Vehicle Identification Number for the car(s) you want to insure
• Information on any tickets, at-fault accidents or DUI convictions.

You can also apply over the phone, but USAA doesn't have 24/7 customer service. Representatives can be reached at 800-531-8722, Monday to Friday from 6 a.m. to 10 p.m. CT and Saturdays from 8 a.m. to 8 p.m. CT. (Customer service is not available on Sundays or major holidays.)

There is a live chat option on the USAA website, where an agent will answer questions about coverage. On the USAA mobile app, you can file and track claims, get proof of insurance, add drivers and vehicles to your policy, pay bills and request roadside assistance.

If you're a veteran or part of a military family, seriously consider USAA. It has some of the best rates for both full and liability-only coverage and multiple discounts that can lower your premium even more.

Best of all, since USAA is available in all 50 U.S. states, you can scratch finding new insurance off your to-do list if your home base changes.

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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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