USAA Auto Insurance – Cost, Coverage and Discount

If you’re in the U.S. military, active, or have a family member with military service, then you should consider getting a USAA auto insurance. USAA offers a blend of affordable car insurance rates paired with excellent customer satisfaction scores. Established in 1922 in San Antonio, USAA originated from a collective of Army officers aiming to self-insure their vehicles.

USAA Auto Insurance - Cost, Coverage and Discount

Presently, USAA exclusively serves military members, veterans, and their families, providing a range of insurance and financial products. However, it stands out for its exceptional customer service and competitive rates, typically lower than those offered by other providers. It’s important to note that USAA’s auto insurance coverage is exclusively accessible to active-duty military members, veterans, and their immediate family members.

What Is USAA Auto Insurance?

USAA emerged as our top-rated auto insurance company, outperforming competitors across various categories. Notably, it exhibited the most budget-friendly rates overall, surpassing all companies analyzed, and excelled in categories such as age, gender, and other demographics.

For eligible drivers, it’s an appealing choice with its cost-effective coverage, standing out as one of the most budget-friendly options in our analysis. Typically, it’s particularly evident for teen drivers, adult and those with a history of accidents, DUIs, or speeding infractions.

However, when evaluating car insurance providers, pricing is just one aspect to consider. In our assessments for both the best and cheapest car insurance, USAA falls slightly behind some competitors.

Additionally, though more expensive, it shows an average complaint level 2% higher than the industry average, per NAIC data. In comparison, rivals such as Geico, American Family, Nationwide, Auto-Owners, Travelers, and Westfield exhibit better performance in this regard.

Furthermore, it’s limited to the military community and eligible family members, restricting access to a specific demographic.

How Much Does it Cost?

USAA consistently demonstrates below-average rates for drivers with a single accident, DUI on their record, or poor credit. Savings with USAA can be significant, ranging from $1,000 to $2,000 a year compared to national averages for full coverage, minimum coverage, speeding tickets, and young adult drivers.

This highlights USAA’s commitment to providing cost-effective solutions for a diverse range of drivers, even those with specific circumstances that often result in higher premiums.

Full Coverage

USAA is the most budget-friendly among leading carriers, providing full-coverage car insurance at just $883 per year in our review. Following closely, GEICO holds the second spot with a premium of $1,047 annually.

A comprehensive full-coverage policy includes state-required coverage like bodily injury and property damage liability, plus optional components like comprehensive and collision coverage. Typically, comprehensive protection safeguards your financial interests in accidents you’re responsible for, covering injuries, vehicles, and property damage.

Minimum Coverage

USAA’s cost-effectiveness is evident with minimum-coverage car insurance at $409 a year, substantially lower than competitors. GEICO is the second most affordable, at $513 annually.

A minimum-coverage policy provides the essential state-required liability insurance at the lowest limits permitted by law. This coverage ensures compliance with legal mandates while keeping costs at a minimum for policyholders.

Speeding Ticket

Having a speeding ticket or other moving violation typically leads to an increase in car insurance premiums. USAA stands out in this regard, offering the most economical option for drivers with a speeding ticket, with a premium of $1,015 per year.

This rate significantly outperforms those of other insurers in our analysis, underscoring USAA’s competitive pricing even for individuals with traffic violations.

Young Drivers

USAA stands out as the most affordable option for insuring an 18-year-old driver, with a yearly premium of $2,382. This rate is notably less than half the cost of the most expensive option, with Progressive charging 18-year-olds $5,990.

However, with the higher likelihood of accidents among young, less experienced drivers, insurance costs for this demographic can be considerably elevated. Despite this trend, USAA offers a cost-effective solution for teen drivers in our analysis.

Who Qualifies for USAA Auto Insurance?

USAA car insurance is exclusively available to a specific group of individuals, primarily members of the U.S. military. This includes active-duty personnel, retired military members, and separated veterans who have received an honorable discharge.

Additionally, eligible family members for USAA car insurance include spouses, widows, widowers, former spouses (not remarried), and children (biological and stepchildren) of USAA members.

Moreover, this restricted eligibility ensures that USAA car insurance remains tailored to the military community and their immediate families.

Types of Coverage offered by USAA Auto Insurance

USAA provides a versatile array of car insurance coverage options designed to address various scenarios. These coverage types can be customized and combined for comprehensive protection. The primary car insurance offerings from USAA are:

Liability Coverage

State mandates usually require minimum liability coverage, protecting against damage to others’ vehicles and securing finances in accidents causing injury or fatality. While there are minimum limits, opting for higher limits is advisable. For enhanced protection, consider an umbrella policy with more extensive limits.

Collision Coverage

This option caters to the costs of repairing damages to your car resulting from collisions. Consequently, it guarantees repairs for your vehicle in various incidents, including collisions with other vehicles or objects like poles and mailboxes.

Comprehensive Coverage

Comprehensive coverage goes beyond collision-related damages and shields your vehicle from various non-collision events. Typically, this includes protection against hail, debris, fires, floods, and other unforeseen circumstances that could harm your car.

Uninsured and Underinsured Coverage

Not every driver adheres to insurance requirements or possesses sufficient coverage in case of an accident. Uninsured and underinsured motorist coverage steps in to cover injuries if you’re harmed, and there’s inadequate coverage. In some instances, it may also extend to damage to your vehicle in hit-and-run incidents.

Roadside Assistances

Choosing roadside assistance is a wise move for prompt help in breakdowns—tow, jumpstart, flat tire, or running out of gas. Comprehensive plans cover lockouts and getting stuck at no extra cost.

Notably, USAA offers an impressive 50-mile towing limit, and requesting aid via their app brings assistance within 1–1.5 hours.

Rental Reimbursements

In the face of unexpected car troubles, rental reimbursement becomes invaluable. This coverage steps in when your vehicle is incapacitated due to an accident, reimbursing you for a rental and easing your mobility without bearing the full financial burden.

Rideshare Gap Protection

For those engaged in ride-sharing apps, rideshare gap protection proves beneficial. Typically, it ensures continuous protection during the wait for the next ride booking, extending beyond what regular insurance and ride-share companies offer during app-related duties.

Umbrella Insurance

Considering the limitations of standard liability coverage, umbrella insurance from USAA offers an extra layer of protection. With coverage reaching up to a million dollars, it shields personal assets during severe events, providing financial security beyond conventional liability limits.

Classic Car Insurance

Classic car enthusiasts find tailored support through specialized auto insurance from USAA and American Collectors Insurance. Tailoring to classic car collectors, this unique coverage considers the car’s value and mileage, providing distinct benefits for enthusiasts’ specific needs.

Other Insurance Products offered by USAA Auto Insurance

USAA provides a comprehensive suite of insurance products and financial services exclusively tailored for its members. As outlined on the USAA website, these offerings encompass:

  1. Homeowners insurance.
  2. Renters insurance.
  3. Life insurance.
  4. Checking accounts.
  5. Credit cards.
  6. Auto loans.
  7. Home mortgages.
  8. Retirement savings.

This company strives to meet the diverse financial needs of its primarily military members, veterans, and their families through a wide range of products and services.

USAA Auto Insurance Discount

USAA extends various discounts to its policyholders that could prove advantageous. In addition, these discounts encompass:

  1. Unlock savings with USAA SafePilot! Qualifying states can enjoy discounts of up to 30%. Simply download our app, allowing it to monitor and reward your safe driving habits.
  2. Bundle your home and car insurance policies with USAA and save up to 10%.
  3. For those on military bases who secure their vehicles in garages, enjoy an additional 15% off.
  4. Explore more discounts by storing your car or maintaining low annual mileage.
  5. Opt for automatic payments and receive a 3% reduction on your USAA auto insurance coverage.
  6. Benefit from the MyUSAATM Legacy Discount by securing a policy when your parents are USAA members, which grants you a 10% discount.
  7. Teen drivers with good grades can unlock special discounts.
  8. You’re eligible for a multi-vehicle discount, maximizing your savings. USAA is committed to rewarding responsible choices and providing you with valuable discounts.

For nearly a century, USAA has stood as a reliable source for car insurance. Obtain free instant quotes online by visiting your local USAA website and kick-starting the process of securing your insurance quote today.

Conclusion

USAA stands out with its competitive car insurance premiums, extensive range of financial products, and top-notch customer satisfaction ratings. Moreover, USAA offers a compelling proposition for its target demographic—active and retired U.S. military members and their families. Exclusive benefits are restricted, though.