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USAA Insurance Review 2020

Jan. 2, 2020
Auto Insurance, Insurance
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

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USAA insurance reviews and ratings

  • USAA’s customer satisfaction ratings are among the best in the industry.
  • Consumer complaints are around the industry median for auto insurance, with fewer than the median for home and life insurance.
  • Earns 5 stars out of 5 for auto insurance in NerdWallet’s ratings.

USAA offers a wide variety of insurance products and gets high marks in customer satisfaction surveys. Customers can also invest and bank through USAA, which is the fifth-largest auto insurer, according to the National Association of Insurance Commissioners.

USAA is open only to active military members, veterans and their families.

USAA auto insurance

5.0 NerdWallet rating

USAA auto insurance earned 5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account pricing and discounts, ease of filing a claim, website transparency, financial strength, complaint data from the National Association of Insurance Commissioners and more.

Based on these ratings, USAA is among NerdWallet’s Best Car Insurance Companies for 2020.

USAA offers the usual types of auto insurance coverage and discounts to its customers in addition to:

Accident forgiveness: With this add-on coverage, USAA won’t increase your auto insurance premiums after one at-fault accident if you are accident-free for five years with the company. Not available in all states.

Rideshare insurance: This optional coverage is available for customers who drive for companies like Uber or Lyft. Ridesharing companies generally pay for some liability when drivers are on their way to pick up a passenger and until drop-off, but not in between rides.

» MORE: Compare car insurance rates

USAA’s auto insurance discounts:

  • Safe driver discount.
  • Defensive driving discount.
  • Discount for drivers younger than 21 who complete a basic driver training course.
  • Good student discount.
  • Discount if your car is 3 years old or less.
  • Multi-vehicle discount.
  • Discount based on the number of miles you drive in a year.
  • Vehicle storage discount.
  • Family discount.
  • Length of membership discount.
  • Discount on comprehensive coverage when you garage your vehicle on a military base.
  • Multiple policy (bundle) discount.

USAA homeowners insurance

USAA offers homeowners insurance with all the standard features, plus:

  • Identity theft coverage with a limit of $5,000 to pay expenses to restore your good name if you’re a victim of identity theft. This coverage is not available in all states.
  • Military uniform coverage: If your uniform is damaged or stolen in an event your policy covers, and you are on active duty or deployed, USAA will reimburse you without a deductible.
  • Replacement cost coverage: If belongings in your home are damaged or stolen, USAA will reimburse the cost to replace them, rather than the depreciated value, like most home insurance policies.

USAA’s home insurance discounts:

  • Multiple policy (bundle) discount.
  • Claims free discount.

USAA life insurance

USAA offers a full range of life insurance products to military members and their families, including permanent life and term life insurance.

Military term life insurance is designed to supplement servicemembers’ group life insurance and costs the same as USAA’s regular term life insurance. Coverage for either type is available for 10, 15, 20, 25 or 30 years. Some perks include:

  • Severe injury benefit: USAA will pay $25,000 to active service members with this policy who are severely injured in the line of duty.
  • Coverage during time of war guarantees you will still be covered if your death is caused by terrorism or during war.
  • Expandable coverage: If you’re between 18 and 35, you can add $100,000 worth of coverage when you marry, buy a house or have a baby.
  • Military policy replacement: If you retire or are discharged from service, you can replace some or all of the military’s life insurance policy (known as SGLI) with USAA coverage.

USAA complaints and customer satisfaction

USAA had close to the expected number of complaints for auto insurance to state regulators relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners. It had fewer than the median number of complaints about home and life insurance.

2019 J.D. Power StudyUSAA ranks...
Auto Insurance ShoppingBetter than most
Auto Insurance Claims SatisfactionAmong the best
Home InsuranceAmong the best
Property Insurance ClaimsAmong the best

More about USAA

The USAA website is packed with information about coverage options and advice on topics such as how to live in retirement, plan your estate or buy or sell a home or car. Planners and calculators help you determine your insurance needs.

The USAA mobile app provides secure account access. You can pay bills, get ID cards or file a claim.

Other types of insurance from USAA include:
Condo insuranceMobile home insurance
Renters insuranceBoat insurance
Farm and ranch insuranceClassic car insurance

Recap: USAA pros and cons

ProsCons
High customer satisfaction ratings for auto and home insuranceOnly available for active military members, veterans and their families
One-stop shop for insurance including auto, home and life as well as banking and investing products
Had fewer than the expected number of complaints for life and home insurance compared to other companies

Auto insurance ratings methodology

NerdWallet’s auto insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, website transparency and affordability. Using our editorial discretion, we also consider customer satisfaction surveys. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Methodology: Insurer complaints

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2016-2018. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home and life insurance.

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