It's possible to love your insurance company
Written: Sep 14 '00 (Updated Jul 07 '01)
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Pros: Inexpensive, great service, always available by phone
Cons: no agents (or is this a pro?), restricted eligibility
The Bottom Line: With inexpensive rates, great 24 hour customer service, and a tradition of serving those who serve our country, USAA can't be beat.
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| Zski's Full Review: USAA Group - Auto |
My family has been insured by USAA for almost 50 years. While I only recently became a USAA member, I have had auto insurance with them through my parents for 8 years, and have always been completely satisfied with the service I’ve received. I also worked for USAA’s financial services arm for six months last year, where I learned a lot about how the organization operates. It really does function on the philosophy of taking care of its members.
In the first part of this epinion, I’ll write about my experience with USAA, and in the second half I’ll explain a little bit about the company for anyone who might be interested. Before I get started, I'd like to thank Epinions member Sweetsue_98 for another of her kind anonymous NR's. Now for the review.
Excellent Service for 8 Years
I’ve been insured by USAA since I started driving. My family was eligible for USAA coverage because my father was a career army officer. While I did not open my own USAA account until recently, I took on the responsibility of ensuring I had the proper insurance some time ago. USAA does not have agents, instead operating from an enormous call center in San Antonio, Texas, as well as a few smaller offices around the country. I’ve never felt the need to have a local agent, however, as the representatives I’ve spoken with have all been very knowledgeable, helpful and polite. I’ve called at all hours of the day and night to do business, and have never had to wait on hold more than 30 seconds.
Cost
Because I was covered on my parent’s policy up until the end of college, I never really bothered to compare costs. Now that I am on my own, I checked around with 3 or 4 other companies and found that USAA’s rates were indeed pretty low. Progressive came in about $5 cheaper for a six-month policy but did not offer as much coverage. As an under-25 driver, I pay about $900 every six months for liability, underinsured/uninsured motorist coverage, comprehensive, collision and rental reimbursement coverage. Premiums can be paid all at once, over the first 4 months of the policy, or over the entire six-month policy. If you choose to pay over six months and do not arrange to have your payment deducted from your bank account, USAA will assess a $3 monthly fee.
Claims
Fortunately, I’ve only had to make one claim while I’ve been driving. Soon after getting my license, I hit a car that was stopped at a light. I was going not more than 10 mph at the time; no damage was done to my car, and it did not appear to me or the other driver that her car was very damaged either. I knew that an accident causing less than $500 in damage didn’t have to be reported, so I gave the other driver my insurance information and we both drove off. The USAA claims representative who dealt with my claim really listened to my side of the story and didn’t brush me off, even though I was just 16. It turned out that the other driver sustained fairly extensive damage inside her trunk. However, the USAA claims adjuster found that the damage could have been caused by a prior accident repaired incorrectly. USAA still decided to pay the other driver about $2000. While I wasn’t exactly thrilled with that, I understand that lawsuit costs would have far exceeded that amount. I was also very pleased to find out that since they could not conclusively determine that I caused the damage, my rates did not go up.
Extras
As with most insurers, you can add extra coverages to your policy. The best one that USAA offers is towing and labor. If you should have any problem that leaves your car incapacitated, you can call a toll-free number and USAA will send someone out to change a tire, fill up your tank, or tow you to the nearest service station. They'll pay for everything up to $120. All at the cost of between $2 and $6 every six months, depending on your car!
Benefits
There are a number of benefits associated with USAA membership. (See below to see who is eligible). USAA is member-owned, so those insured that belong to the association receive a share of the profits of the association, in the poorly-named “subscriber savings account”. Everyone insured by USAA is given premium rebates when casualty losses do not reach the amount that the USAA number-crunchers estimate at the beginning of the year. USAA also markets banking, investing, life insurance, financial planning, and shopping services to its insured, however, anyone can obtain these services, even if they’re not eligible for auto or property insurance with USAA.
Exceptional Service for Military Members
Military personnel can be assured that USAA does all it can to develop policies that make their lives easier. USAA also has an in-house education program which teaches customer service staff all about military lifestyles, protocol, etc., so not only will they be able to address you properly, they also have an idea of what you may be going through in your life. They understand all the issues unique to the military lifestyle and won't make it difficult for you when you move, even overseas, etc.
Web Site
The USAA website is a little lacking. It currently lets you view your bill, print out an application for electronic payment, and submit primary claims information. It does not currently allow you to obtain quotes, but I believe that functionality is coming soon.
Recommendation
I would highly recommend USAA to any eligible person, particularly those in the military. Many executives have military experience themselves. They know the aspects unique to their members’ lives and cater to their needs. In my book, USAA’s combination of superior service and reasonable prices cannot be beat.
Now for the technical mumbo-jumbo, in case anyone is interested
What is USAA?
USAA stands for United Services Automobile Association. A group of Army officers founded USAA in the early twentieth century because they were unable to get auto insurance from more traditional issuers. They formed an insurance pool and agreed to insure each other. USAA has since expanded first to officers of all the armed services, then to their dependents, and lately to enlisted personnel. They now insure over 3 million people. The business structure consists of USAA and a number of subsidiary companies; your type of affiliation with the military, along with your driving record, dictates which USAA company will insure you.
Sounds complicated. Why are you even bothering to explain this stuff?
There are a great deal of epinions that mention a variety of benefits available to USAA members, but don’t get them exactly right. I thought I might be able to clear up some misconceptions while telling of my USAA experience.
So, what’s with all these different companies, and who gets insured by who?
USAA
USAA membership is extended to military officers (regardless of time in service), enlisted personnel above E-4 with more than 4 years of service, students in commissioning programs, and selected other federal employees, such as officers in the Foreign Service. Eligibility is also extended to officers and enlisted personnel who have separated or retired within the last 2 years. USAA also has a policy of “once a member, always a member”, so you don’t lose your eligibility when your military status changes. This group adheres to the original business model; they technically own the assets of the association and share the profits when USAA has a good year, and also receive premium rebates.
USAA-CIC
Ex-dependents of people in the group above and enlisted personnel E-4 or below and/or with less than 4 years of service are insured by the “casualty insurance company”. This is a subsidiary of USAA and these people only receive premium rebates; they’re not entitled to the “subscriber savings account” – the account where USAA’s profits are distributed to members. Ex-dependents of CIC insureds also fall into this group, however USAA is in the process of creating a different company to do business with them.
USAA-GIC
If your driving record becomes poor, USAA will drop you into the “general indemnity company” which is their pool of people they consider to be high-risk drivers. This allows them to continue to offer low rates to drivers with good records and continue to insure those who may not have the best record. People in this group are moved back to USAA or CIC when their driving records improve. In Texas, USAA uses something called a county mutual insurance company to insure "high risk" drivers.
USAA Ltd
USAA's European branch for servicemembers stationed there. This company, as well as GIC, requires a down payment. USAA and CIC do not.
What about USAA’s other services
Except for property and casualty insurance, anyone can obtain any of USAA’s other services, such as financial planning, banking, investing, life insurance, etc. They just don’t market these services to anyone outside of their target group.
You may be interested in my other USAA reviews:
USAA Federal Savings Bank located at:
http://zski.epinions.com/finc-review-7FF7-BA623E4-38E66A78-prod2
USAA Homeowners/Rental Insurance located at:
http://zski.epinions.com/finc-review-3369-1FB210D2-39EB31F6-prod3
Recommended:
Yes
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Epinions.com ID:
Zski
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Location: Texas
Reviews written: 25
Trusted by: 56 members
About Me:
Zski is a med student and Air Force Officer from the great state of Texas.
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