Why Is USAA Insurance So Expensive? (Top 5 Reasons)

Acknowledged for the services to military, navy, and air forces community and their family, USAA (United Service Automobile Association) is a prominent company in the US.
 
Founded in 1922 in Texas, it is a provider of insurance and other financial services to its customers with a qualification of membership.
Why Is USAA Insurance So Expensive
As USAA is for the royal class of people, it has manifold facilities with outstanding services.
 
From all of its services, insurance is a predominant one.
 
When it comes to the cost, some customers find it outrageously expensive.
 
Analyzing so many aspects, it is explored that USAA insurance has a vast number of coverage and benefits along with praiseworthy services that have enhanced the popularity and acceptability of the insurance. Apart from these, customers’ satisfactory reviews indicate that it is sincere enough about its responsibility. All of these matters greatly influence raising the price.
 
In this article, the reasons for being so expensive as well as some frequently asked questions about USAA insurance are discussed elaborately.
 

Why is USAA insurance so expensive?

Why is USAA insurance so expensive
At the very first of the discussion, the reasons are mentioned and illustrated here.
 
Amongst several reasons, some prominent reasons are primarily responsible for making USAA insurance highly expensive.
 

Wide range of coverage

Wide range of coverage
USAA insurance provides a wide range of coverage and facilities to its customers that makes it so expensive.
 
It includes various types of insurance such as auto insurance, home insurance, life insurance, vision insurance, cell phone protection insurance, travel insurance, etc.
 
Every insurance offers a good number of coverage.
 
USAA auto insurance covers liability that protects you financially when you are in an accident and makes injuries or damages property.
 
Then, it has comprehensive and collision coverage which provides aid in damage from rollover.
 
The insurance also offers car replacement coverage.
 
USAA’s optional coverages include roadside assistance, rental reimbursement, and accident forgiveness.
 
By spending nearly $20 extra, you can get gas delivery, tire change, and labor cost of repairing facilities.
 
Besides, rideshare insurance and gap insurance are also there for customers’ convenience.
 
Together with auto insurance, USAA has homeowners insurance that concludes a notable range of benefits.
 
This insurance offers liability coverage that provides injury, deaths, property damage, medical payments, etc.
 
Some other noteworthy facilities under this insurance are fire, smoke and lighting damage, theft, vandalism, personal property, replacement cost, and so on.
 
Because of this wide range of coverage and benefits, USAA insurance is versatile and thus so expensive.
 

Responsible service

Responsible service
USAA is cordial enough in bringing out its committed coverage and facilities successfully.
 
You don’t need to worry after a car accident. USAA employees provide all the services instantly.
 
If you are found guilty of an accident, it offers accident forgiveness that doesn’t lower your insurance rate.
 
There are so many discounts options for USAA consumers that facilitate its services and make them accessible.
 
In the case of auto insurance, if you have a good driving record, you will get a discount from USAA.
 
The discounts also include defensive driving discounts, new vehicles, multi-vehicle, multi-policy discounts, loyalty discounts, accident-free discounts, good student, military installation, family discount, etc.
 
Then, you can also get discounts on every insurance including home insurance, life insurance, and travel insurance.
 
Moreover, USAA is a promising agency that ensures all the facilities.
 
It is reliable and trustworthy due to its stable financial condition.
 
Considering its great service record, it has increased the price reasonably.
 

Customer satisfaction

Customer satisfaction
The satisfaction of customers is a great concern for every organization.
 
If customers are satisfied, the value will prosper automatically. And consequently, the value will raise the cost.
 
USAA is such an agency that has earned customers’ satisfaction.
 
According to J.D. Power 2020 US Auto Claims Satisfaction Study, USAA has secured 890 points out of 1000 in terms of customer satisfaction.
 
Then, in the 2021 US Home insurance Study, it obtained 905 ratings out of 1000 being an excellent insurance agency.
 
Moreover, customers’ feedback and reviews are seen on various related websites and the mobile app of USAA.
 
Overall, USAA is the winner in contrast to most of the competitors such as Geico, State Farm, Progressive, Travelers, etc.
 

Popularity

Popularity
USAA is one of the most top insurance agencies in the United States.
 
Because of its wonderful services and prolific advantages, its demand and popularity have increased widely.
 
With the advent of the agency in 1922, it had expanded its membership to enroll various classes of people.
 
Then it included navy and marine corps officers.
 
Consequently, it started to provide different fields of services like banking insurance, investments, and retirement.
 
Following all the benefits and accessibility, USAA is now a family of more than 13 million people and 35,000 employees throughout the country.
 
Therefore, the popularity of USAA makes its insurance so expensive and exorbitant.
 

Limited membership

Limited membership
Unlike most other insurance agencies, USAA insurance is not open for everyone, rather limited to certain members.
 
Only military members of the US and their families can join the USAA and enjoy its insurance coverage.
 
Broadly speaking, some individuals can qualify for USAA insurance including all the serving members of the US navy, airforce, army, marines, coast guard, national guard, reserves, etc.
 
Besides, all the retired and isolated members of these responsible services can also have membership and insurance of USAA.
 
Along with them, current spouses, children, and widows of USAA members also can purchase its insurance.
 
Midshipmen and cadets are also capable of buying USAA insurance.
 
However, USAA insurance is limited in this way, eligible only for a few chosen people of a certain position.
 
As a result, its price is so hefty that it seems to be very ridiculous.
 

Is USAA insurance good?

Is good
USAA is a considerable option for auto and home insurance.
 
With a lot of benefits and services, its insurance is satisfactory and reliable.
 
It is committed to providing all the facilities to its customers.
 
Thus, it has obtained an A++ rating by the AM Best for its financial strength that makes it excellent, remarkable, and superior to most other agencies.
 
So, it can be said that USAA is good insurance.
 

How much does USAA insurance cost?

How much does cost
The cost of USAA insurance varies from customer to customer.
 
Basically, auto and home insurance depend on coverage and benefits, locations, and customers’ age, gender, driving history, accidents, etc.
 
In general, starting from $1000 on average, a customer with a good driving record can purchase auto insurance at more than $1,200 per year.
 
If any customer has an accident, the rate moves on to $1,700 with an extra charge of $500.
 
That means, its monthly payments range up to $100.
 
On the other hand, the average annual cost of USAA home insurance is more than $1500.
 

How does USAA rank as an insurance company?

How does USAA rank as an insurance company
With impressive customer satisfaction scores, a wide range of coverage options and benefits, and affordable premiums, USAA insurance has ranked one of the most-top insurance agencies in the USA.
 
Although it has limited membership for the relevant sectors, its insurance service is praiseworthy and reliable.
 
On account of its manifold feature, it has secured the best-reviewed and top-ranked auto insurance and home insurance company according to Zebra’s Customer Satisfaction survey.
 

Are USAA insurance rates competitive?

Are usaa insurance rates competitive
Yes. USAA insurance rates are competitive with major insurance companies.
 
Like USAA, Geico’s auto insurance rate ranges from $1200 up to $1500 regarding various factors.
 
Progressive, another prominent competitor, costs almost $2000 annually.
 
State Farm Drivers who caused an accident with injury and damage have to pay nearly $1750 and Geico drivers almost $2500.
 
Besides, drivers with a DUI on State Farm should pay $1950 while USAA consumers have to pay $2150, and Progressive $2330.
 
However, State Farm, Geico, Progressive, Allstate, Liberty Mutual are some of the competitors of USAA.
 

What are the benefits of using USAA?

What are the benefits of using USAA
USAA provides a greater level of benefits with various accessibility and services.
 
Joining USAA is very advantageous. It has the best customer service of any bank or financial institution.
 
With a lot of services for all accounts, it serves free checking and savings accounts with no minimum balance fees, free rewards debit card, overdraft protection, free checks, free web bill pay, and much more.
 
The company also has multiple kinds of insurances including auto, life, homeowners, renters, property insurance, etc.
 
It also has different sorts of loans for customers.
 
Along with these, some other fundamental benefits are there provided by USAA for the military and responsible community.
 

Is USAA cheaper than other insurance companies?

Is USAA cheaper than other insurance companies
According to some reports, USAA insurance is the cheapest regarding most other prominent insurance companies in the USA.
 
They reveal that USAA is cheaper than Geico, State Farm, and Allstate insurance companies
 

How can I get a discount on USAA?

How can I get a discount on USAA
In terms of getting discounts, USAA is one of the best insurance companies.
 
It provides a vast number of discount facilities to customers.
 
You can get these discounts from USAA insurance –
 
You can get discounts if you are a good driver.
 
You can get driver training and defensive driving class discounts.
 
Get discounts for being an ardent member.
 
You may have a military car insurance discount.
 
You can earn discounts for newer vehicles, multiple vehicle discounts, and anti-theft devices.
 
You can get a good student discount.
 
There is also a family discount.
 

Can you save with USAA?

How to save money
Yes, you can save money from USAA by following several policies.
 
The very first way is having discounts.
 
As I’ve already mentioned in the previous answer, USAA insurance provides so many discounts in favor of customers.
 
By earning these discounts, you can largely save money.
 
Then, you should increase your deductible to save money.
 
By dropping collision and comprehensive coverages from your service list, you can again save.
 
And finally, you can lower your cost by decreasing accidents, physical injury, and property damages.
 
Frequently Asked Questions:
 

How much does USAA save on auto insurance?

 
As USAA offers numerous discounts on particular sectors, you can save money from its insurance.
 
Overall, you can save up to $700 from USAA auto insurance.
 
The saving is possible due to discounts, your driving excellence, lowering coverage, and maintaining the rules.
 

Is USAA insurance only for the military?

 
Yes, USAA insurance is available only for the military community and their families.
 
Discussing elaborately, military, airforce, navy, midshipmen, cadets, marines, coast guard, national guard, and reserves are eligible to have a membership and consequently all other services from the company.
 
Along with them, retired and separated men from this particular group can also enjoy its services.
 

What is the difference between USAA and Garrison?

 
Garrison Property and Casualty Insurance Company is one of the subsidiaries of USAA.
 
It joined USAA in 2008 when it fell into economic collapse at that time.
 
Like USAA, it also provides different types of insurances like auto insurance, boat insurance, business insurance, home insurance, renters insurance, rental property insurance, valuable personal property insurance, and life insurance.
 
Therefore, they have no difference at all.
 

What’s the difference between USAA and Navy Federal?

 
Navy Federal Credit Union and USAA are two leading companies for the military community of the US.
 
Navy Federal services are available for service members and veterans including members of the Army, marine corps, Navy, Air Force, Coast Guard, national guard, department of defense, etc.
 
And USAA also for the military community and their families.
 
Both of them work with 24/7 customer service, online and mobile banking features.
 
But there are some differences between them in terms of their services systems.
 
Regarding bank account offerings, they differ in some ways. NFCU helps avoid account monthly fees while USAA takes a minimum amount of fee.
 
Moreover, NFCU has greater rates than USAA.
 
After all, both of them are praiseworthy in the sphere of their customer services.
 
Bottom Lines:
 
In the light of the discussion, it is quite clear why USAA insurance takes an expensive price.
 
Because of excellent services, manifold coverage and benefits, customer satisfaction, wide popularity, and limited eligibility, USAA insurance claims a good sum of money in return.
 
Although it seems to be expensive, it is reasonable and advantageous.
 
You can save money by taking different discounts and enjoying other options.
 
Hence, USAA stands for one of the prime insurance companies in the country with its overall services.