Candace Baker, Car Insurance Writer
@candacebaker
USAA is so expensive because car insurance is expensive in general, due to rising costs for insurers. But the average USAA car insurance policy ($487 per year for minimum coverage) is cheaper than coverage from most competitors, which means USAA is actually one of the cheapest car insurance companies nationally.
For example, teenagers pay an average of $1,581 per year for USAA insurance, compared to $487 per year for older drivers. Additionally, drivers who recently had an at-fault accident pay an average of $701 per year for USAA coverage, which is 44% more than drivers with a clean record.
Factors That Can Make USAA Insurance More Expensive
- Being a young or inexperienced driver
- Purchasing a full coverage policy versus minimum coverage
- Causing an accident or being convicted of a moving violation
- Living in a high-risk ZIP code
- Driving an expensive vehicle
- Having a poor credit-based insurance score
If you're having trouble affording your USAA insurance, there are ways for you to lower your premium. For example, you can take advantage of USAA discounts or reduce your coverage.
In some cases, it might be better to switch insurers altogether. It's usually a good idea to compare quotes from at least three different insurers to see if you can find a better deal elsewhere. Each insurer uses its own algorithm to calculate premiums, so even if USAA is charging you a high premium, you may be able to find a cheaper policy with another insurance company.
To learn more, check out WalletHub's USAA insurance review.
Bilz Arkz, Member
@bilzarkz
The average USAA auto policy is not less than $500. That average rate mostly likely includes muliple car and home owner insurance bundle discounts. It's more like $750-800 every six months for people that have not been in any accidents for one car and no other insurance with them. They keep claiming it's bc of inflation and what they've paid out in claims. There's no discounts for loyal safe drivers. It keeps going up with minimum wages but having changed since 2009.
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We just purchased a Subaru and added my 15 year old to our USAA auto policy. I hadn’t paid much attention to the cost of our coverage recently but I was shocked to discover our auto insurance cost for 3 cars was $6700 for six months. $13,400 for a year! 100% clean driving records. I immediately called USAA to understand why the cost was so high and really didn’t get much of an explanation other than hospital costs were high and that was reflected in the bodily injury rates we were paying. So I went online and quoted similar coverage with progressive and the annual cost for everything was around $5,000. I am planning to switch but just disappointed that USAA implies through their advertisements that they are looking out for military and families of military when really they are charging exorbitant fees. I am interested to hear if anyone else has had a similar experience.