USAA Insurance Review

Yes, USAA insurance rates are competitive, as the company is one of the 10 cheapest auto insurers nationally, according to WalletHub analysis. USAA car insurance customers pay an average of $487 per year for coverage. USAA's car insurance rates are based on your driving record and experience, along with factors like the type of car you drive, your ZIP code, your insurance history, and more. Your coverage and deductible choices also impact your final quote, as does your eligibility for discounts.

USAA Car Insurance Rates vs. Popular Competitors

Note: Rates are an approximation based on a 45-year-old driver in California. Actual rates will vary. For more information, check out the methodology section of our USAA car insurance review.

Other Factors That Make USAA Insurance Competitive

• USAA offers 15 auto insurance discounts.
• USAA offers 37 different types of insurance.
• USAA customer service representatives are available Monday-Friday 6 am - 10 pm, and Saturday 8 am - 8 pm CST.

To learn more, read WalletHub's complete review of USAA.

USAA is rated 3.3 out of 5 by WalletHub's editors, based on factors such as customer reviews and watchdog-group ratings. For example, USAA has a rating of 2.35 from he National Association of Insurance Commissioners (NAIC), meaning it has more customer complaints than the average insurer its size.

USAA Insurance Ratings

• WalletHub Editors: 3.3
• A.M. Best: A++
• J.D. Power: 4.5
• NAIC: 2.35
• BBB: A
• Standard & Poor's: AA+
• Moody's: Aaa
• Average User Rating on WalletHub: 2.7/5

To learn more, check out WalletHub's complete USAA car insurance review.

USAA is so cheap because the company is the largest insurer of the military community, and that volume allows USAA to offer more competitive rates. USAA has more than 6% of the total private-passenger insurance market, despite only offering coverage to service members. A minimum coverage policy from USAA costs an average of $53 per month, and USAA premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and annual mileage discount. Plus, USAA rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.

Average Monthly Rates for USAA vs. Top Competitors

Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.

USAA is especially cheap for young drivers in particular. That's because USAA has special savings opportunities for drivers in this category, such as discounts for students who maintain at least a B average.

Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though USAA is among the cheapest car insurance companies, the only way to confirm you've found the lowest price is to compare quotes from multiple companies.

To learn more, check out WalletHub's review of USAA and see USAA's full profile.

To file a complaint about USAA, go online and submit your issue to the Better Business Bureau as well as your state's insurance regulator, then write a review of USAA on WalletHub. This will either allow USAA to fix their mistake or it will warn other consumers of potential problems with USAA's service.

How to File a Complaint About USAA

1. File a complaint with the Better Business Bureau (BBB). Use the Bureau's online claim submission process to file your claim. The Better Business Bureau forwards complaints within two days, and customers will be notified of any response from USAA or if they fail to respond.
2. Submit a formal complain to your state's insurance regulator. Click here to find the database of the state insurance departments. Select your state and complete the online consumer complaint form.
3. Write a review on WalletHub. USAA customers can voice their opinion by going to USAA's profile on WalletHub and clicking "Write a Review". At the very least, this will help other consumers thinking about doing business with the company.
   
4. Complain on social media. Use whatever social media platforms you have to your advantage. This can help build awareness for your issue, including from USAA. If you have the ability to contact the company directly via social media, that's a good idea too.

What You Need to File a Complaint About USAA With Regulators

• Your name, address, and phone number
• The name of any specific agent/broker
• Your policy number
• Any relevant claim number
• The details of your complaint/concern

So, if you're disappointed with any element of USAA's service, you can rest easy knowing that you have several options for filing a complaint.

The main USAA NAIC number is 18600. USAA's NAIC number is the five-digit code given by the National Association of Insurance Commissioners (NAIC), which assigns numbers to authorized insurance providers in order to track customer complaints and ethics violations across state lines.

With USAA's NAIC number, anyone can learn more about the company's financial data, the kinds of complaints that have been filed by customers, and any enforcement actions taken against the company. Customers will need USAA's NAIC number to report fraud or file an insurance claim, as well.

Although the main USAA NAIC number is 18600, the NAIC has assigned a separate code for each of USAA's affiliate companies, which are listed below. You can find the number that applies to your particular policy on your USAA insurance card. 

USAA NAIC Numbers

USAA's NAIC number is not the same thing as the three-digit code assigned by each state's department of motor vehicles. These numbers, issued by state insurance commissioners, are given to the companies that have been authorized to sell insurance policies in a particular state. However, they are not standardized across state lines, like NAIC numbers are.

Yes, USAA does offer a grace period for customers' payments. USAA gives policyholders who pay monthly until the end of the next billing cycle to pay any outstanding balance if they have not previously been delinquent on payments. If you pay your bill before the next statement, a late fee of $2 to $15 will be added to your premium for the next month. If the grace period ends without the necessary payment being made, USAA will cancel the policy.

When USAA sends a notice of cancellation, it will include the final date that they will accept full payment before your coverage lapses. Since almost every state requires you to have car insurance, a lapse in coverage could lead to serious consequences, including fines and even a license suspension if you're caught driving. Additionally, a lapse in coverage designates you as a high-risk driver and can make car insurance more expensive in the future, so it's important that you pay your car insurance premium prior to the final cancellation date.

USAA insurance rates go up by an average of 44% after an accident. Drivers who have USAA accident forgiveness will not see their car insurance rates go up at all after their first accident in 5 years, however. Even if the accident can't be forgiven, it will only affect your insurance rate for 3-5 years, depending on your state.

The exact amount that premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, and the policyholder's driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Repeat offenders also see relatively large rate hikes.

To learn more, check out WalletHub's complete review of USAA car insurance, as well as our guide to accident forgiveness.

USAA is owned by the company's policyholders. USAA is a type of insurance company called a reciprocal insurance exchange, which means that policyholders assume each other%s risk, though daily operations are managed by the company's executive council. USAA is headquartered in San Antonio.

For more information about car insurance from USAA, check out WalletHub's full USAA review.

USAA is so expensive because car insurance is expensive in general, due to rising costs for insurers. But at $487 per year, the average USAA car insurance policy is actually cheaper than coverage from most competitors. In fact, USAA is one of the cheapest car insurance companies nationally.

Even though USAA offers cheaper-than-average rates, its premiums can get expensive for drivers with certain characteristics. 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 struggling to afford your USAA insurance, there are ways for you to lower your rate. 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 insurer.

To learn more, check out WalletHub's USAA review.

Yes, USAA offers full coverage car insurance. Full coverage from USAA typically includes at least a state's minimum required car insurance coverage along with collision and comprehensive insurance to protect the policyholder's vehicle.

Full coverage car insurance from USAA costs $2,802 per year, on average, and is more expensive than a liability-only policy since it provides more coverage.

Cost of USAA Full Coverage by Driver's Age 

Common USAA Full Coverage Insurance Components

Liability insurance. Almost every state requires drivers to carry liability insurance, which includes property damage liability and bodily injury liability coverage. Liability insurance pays for others' expenses after an accident you are at fault for.

Collision and comprehensive insurance. Collision insurance covers the cost of fixing or replacing the policyholder's vehicle after an accident, regardless of who was at fault. Similarly, comprehensive insurance covers the policyholder's car if it's damaged by something besides an accident, like vandalism, a fire, or a natural disaster. Collision and comprehensive are not mandatory in any state, but they are usually required for leased and financed cars.

Uninsured/underinsured motorist coverage. This type of coverage protects you if you are involved in an accident with a driver who either does not have car insurance or does not have enough coverage. Uninsured/underinsured motorist insurance covers your expenses after an accident that should have been paid for by the at-fault driver's liability insurance. It will automatically be included in your full coverage policy if it is required in your state.

Personal injury protection/MedPay. Personal injury protection (PIP) insurance and MedPay coverage both cover medical expenses for you and your passengers after an accident, regardless of fault. Depending on your state, you may be required to carry one or the other.

Although these types of insurance are commonly included in a full coverage policy, what your specific policy includes will depend on your state. Full coverage is not the official name of any type of insurance, so be sure to clarify whether these types of insurance are included if you're purchasing a USAA policy.

When You Should Consider Full Coverage From USAA

A USAA full coverage policy is a good choice for drivers who don't want to pay for vehicle repairs out of pocket. If you are leasing or financing your car, you may be required to get full coverage.

To get a quote from USAA for a full coverage policy, you can call 800-531-8722. To learn more, check out WalletHub's guide to full coverage car insurance and our full review of USAA.

Note: Rates are an approximation based on a driver with full coverage and a clean driving record in California. Actual rates will vary.