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So I just switched. Still have USAA for banking but not for insurance. I took the emotion out of it and assumed all insurance companies can have customer service issues from time to time. I just compared rates.

For both home & auto I used my existing USAA coverages and got estimates that matched (apples to apples). I got quotes from Progressive, Geico, Nationwide, Liberty Mutual, All State, Farmers and State Farm. All had easy, online systems for adjusting coverage to match my USAA policies. I examined costs for auto/home bundles and separate policies. I also looked at each company's app just to make sure it didn't suck. I ended up choosing Liberty Mutual (31% less than USAA) for auto and Nationwide (35% less than USAA) for home. Bundling with one company did not save money overall.

Surprisingly, in the comparison USAA had the highest rates by far for both -- and it was even close. They were 24% above the average of all the auto quotes and 17% higher than the next closest competitor. For home they were 22% higher than the average and 16% higher than the closest competitor. For bundling they were better as it seems each company tends to have better rates for one or the other. For bundling they were only 9% above average and within 7% of the next closest competitor. However, the bundling appears to be a red herring as none of the companies had a deal anywhere close to the combined rates when using two separate companies.

With my switch I'm saving so much that I decided to increase my coverage. For example, I was able to reduce my auto deductible to just $250 for each vehicle for both comprehensive and collision, zero deductible for glass, twice the liability, add uninsured motorist, add rental car reimbursement, upgraded towing (100 miles free), and "better car replacement" (next year model newer and 15,000 less miles if car is totaled) and still save 26% over my crappy USAA coverage. For home I increased my overall coverage by $265K, reduced my wind/hail deductible to $1500 (USAA was at $12,500), add increased coverage for guns, tools and jewelry (and a bunch of other extras) plus guarantee rebuilding regardless of building cost. That Cadillac coverage still saved me 26% over USAA's crappy coverage.

What I learned is that I've been wasting a lot of money with my loyalty to USAA and false assumptions about their competitiveness. I recall looking into this 15 years ago and found nobody could come close to their rates. Now they are not competitive. The were significantly higher than every other company. It's also not small change. As a bonus, my USAA Subscriber Savings Account (some profit sharing thing) pays out in full with give me over $10K cash. That's actually a nice incentive to switch.

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So I just switched. Still have USAA for banking but not for insurance. I took the emotion out of it and assumed all insurance companies can have customer service issues from time to time. I just compared rates.
For both home & auto I used my existing USAA coverages and got estimates that matched (apples to apples). I got quotes from Progressive, Geico, Nationwide, Liberty Mutual, All State, Farmers and State Farm. All had easy, online systems for adjusting coverage to match my USAA policies. I examined costs for auto/home bundles and separate policies. I also looked at each company's app just to make sure it didn't suck. I ended up choosing Liberty Mutual (31% less than USAA) for auto and Nationwide (35% less than USAA) for home. Bundling with one company did not save money overall.
Surprisingly, in the comparison USAA had the highest rates by far for both -- and it was even close. They were 24% above the average of all the auto quotes and 17% higher than the next closest competitor. For home they were 22% higher than the average and 16% higher than the closest competitor. For bundling they were better as it seems each company tends to have better rates for one or the other. For bundling they were only 9% above average and within 7% of the next closest competitor. However, the bundling appears to be a red herring as none of the companies had a deal anywhere close to the combined rates when using two separate companies.
With my switch I'm saving so much that I decided to increase my coverage. For example, I was able to reduce my auto deductible to just $250 for each vehicle for both comprehensive and collision, zero deductible for glass, twice the liability, add uninsured motorist, add rental car reimbursement, upgraded towing (100 miles free), and "better car replacement" (next year model newer and 15,000 less miles if car is totaled) and still save 26% over my crappy USAA coverage. For home I increased my overall coverage by $265K, reduced my wind/hail deductible to $1500 (USAA was at $12,500), add increased coverage for guns, tools and jewelry (and a bunch of other extras) plus guarantee rebuilding regardless of building cost. That Cadillac coverage still saved me 26% over USAA's crappy coverage.
What I learned is that I've been wasting a lot of money with my loyalty to USAA and false assumptions about their competitiveness. I recall looking into this 15 years ago and found nobody could come close to their rates. Now they are not competitive. The were significantly higher than every other company. It's also not small change. As a bonus, my USAA Subscriber Savings Account (some profit sharing thing) pays out in full with give me over $10K cash. That's actually a nice incentive to switch.

What liability coverage are you carrying? Last time I looked, none of the online quotes would match the $1M bodily injury and $300k for property I have with USAA.


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5 hours ago, skibum said:

 

What I learned is that I've been wasting a lot of money with my loyalty to USAA and false assumptions about their competitiveness. I recall looking into this 15 years ago and found nobody could come close to their rates. Now they are not competitive.

Not a spear, but just a general comment to anyone browsing in the future that an annual financial self-examination can be a helpful way to avoid losing out.

There are plenty of small charges that creep, and we switched insurance agencies after a similar scenario.

 

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11 hours ago, JBueno said:

Not a spear, but just a general comment to anyone browsing in the future that an annual financial self-examination can be a helpful way to avoid losing out.

There are plenty of small charges that creep, and we switched insurance agencies after a similar scenario.

 

Great point, and I feel pretty stupid for just assuming I was getting a deal. I'll not make that mistake again. These are just businesses making money, and the capitalist world turns on competition. I shouldn't act like a socialist consumer. I dumped the BX and commissary decade ago, and here I am hanging out in front of USAA for nostalgia sake.

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12 hours ago, CaptainMorgan said:


What liability coverage are you carrying? Last time I looked, none of the online quotes would match the $1M bodily injury and $300k for property I have with USAA.


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That's pretty astute! I did an online draft change to my USAA policy to make it $300K/$500K (all the online quotes had this option) to see what the USAA rate was and then compared that estimated rate in the online systems. I then called the companies and asked how much more it would be for the $1M. In the end, the cost was insignificant for all companies but is included in my percentage figures. Because my assets still exceed coverage I carry an additional umbrella policy but that is separate.

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  • 1 month later...

Gotta love the newest USAA commercials with Gronk. “It’s only for the military community.” I’m guessing their barrage of ads over the past years has resulted in plenty wasted time of the phone with prospective customers. Maybe advertising to a TV demographic that is largely ineligible for your product is a waste of ad $.


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On 10/3/2021 at 10:15 AM, CaptainMorgan said:

Gotta love the newest USAA commercials with Gronk. “It’s only for the military community.” I’m guessing their barrage of ads over the past years has resulted in plenty wasted time of the phone with prospective customers. Maybe advertising to a TV demographic that is largely ineligible for your product is a waste of ad $.


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Yeah I don't get it.  They have decreased a lot of their services offered while at the same time it seems they are advertising everywhere.  Nobody in the military is not with USAA because they've never heard of them.  

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8 hours ago, uhhello said:

Yeah I don't get it.  They have decreased a lot of their services offered while at the same time it seems they are advertising everywhere.  Nobody in the military is not with USAA because they've never heard of them.  

Name recognition and the aura of exclusivity.

 

That way, when they eventually stop being a military-only bank, people will view it as a great opportunity to join an organization they weren't previously allowed into, but "always" knew about.

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  • 4 months later...

Not sure if I'm late to the party or what but the "new & improved" USAA homepage on their website just went live for me today. Whoever designed it should be drawn and quartered. It literally might be the last straw. #GetOffMyLawn

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Overall, their product has gone downhill considerably over the last 6-9 years.  Used to be great and way ahead of the competition.  Now it is mediocre at best.  All the disadvantages of a virtual bank with almost no advantages over the standard commercial big bank.  I'd move everything now, but that's a pain.  Once I retire, I'm probably done with them.

I also noticed my dividend basically disappeared and everything started the downhill slide about the time they started putting ads on TV.  Strange coincidence....

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18 minutes ago, Smokin said:

Overall, their product has gone downhill considerably over the last 6-9 years.  Used to be great and way ahead of the competition.  Now it is mediocre at best.  All the disadvantages of a virtual bank with almost no advantages over the standard commercial big bank.  I'd move everything now, but that's a pain.  Once I retire, I'm probably done with them.

I also noticed my dividend basically disappeared and everything started the downhill slide about the time they started putting ads on TV.  Strange coincidence....

Have checking/savings and a credit card with them is all now.  

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I am so over them. A fricking Nav hit my car months ago and the claim still hasn’t been fully closed out. What other companies can ya’ll suggest? Geico quoted me a little cheaper, but didn’t offer the higher liability coverages that USAA does.


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I see the downfall of USAA starting with the expansion of clientele to the enlisted ranks. 

Now, before I catch hell; I am a prior-E myself and had USAA when I wore stripes on my uniform as I was on my father's policy prior, thus eligible to get my own. 

Then, when it opened up to anyone who ever served, that further accelerated the skid.

Having been a member for going on 40 years soon, it was initially tough to be critical of USAA; but it's gotten a lot easier. 

For one, their main bank lobby has been closed since the first signs of COVID, and it's practically the only bank in the area that hasn't reopened.  

Secondly, their customer service has decreased considerably.  Even when the lobby was open (i.e. pre-COVID), it was near impossible to talk to someone in person outside of the tellers.  We had some questions about a trust for our youngest, and they put us in a small room and we had to VTC with someone.  That really didn't sit well with me.

The only reason I haven't moved is I have yet to find anyone that is considerably better.  We have a lot wrapped up in USAA...banking, insurance, investments (until they sold out to Schwab), and as I mentioned, a trust.  Some of those are easy to move, others not so much.

But if I do find a better option worth the trouble, I won't hesitate to switch.

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Planning on moving my banking over to Navy Federal.  Much better rates and physical locations in my area.  Need to find good rates for insurance, both vehicle and personal property.  

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15 minutes ago, sixpack said:

Planning on moving my banking over to Navy Federal.  Much better rates and physical locations in my area.  Need to find good rates for insurance, both vehicle and personal property.  

I move to Navy Federal in 2019. They've been awesome, much like USAA was 20 years ago. Only items I have left with USAA is a credit card and insurance.

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Something I wasn’t aware of is if you have USAA insurance they put some money into an account that you don’t have access to until you stop using ALL of their insurance policies for I believe 6 months. Either way it was a nice little chunk of change for me. Something like $600. I was sick of their over priced insurance policies and it was just another reason to leave them.

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2 hours ago, Lifer said:

Something I wasn’t aware of is if you have USAA insurance they put some money into an account that you don’t have access to until you stop using ALL of their insurance policies for I believe 6 months. Either way it was a nice little chunk of change for me. Something like $600. I was sick of their over priced insurance policies and it was just another reason to leave them.

That was their pitch to keep me.  "well your quote might be $800 cheaper but you're not factoring in your subscription dividend".  I asked for the money up front to stay but they wouldn't do it 🙂

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What about all of the million dollar TV ads USAA puts on during college football season...

 

 you know, an ad saying, “we are only for the military, but thanks for letting us spend millions to tell everyone that”

 

 

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Let me know if this is in another thread but I couldn't find it.

Even as bad as USAA is being made out here, is it still worth having OCONUS for insurance/banking? Recently found out I'll be PCSing before the end of the year is out and was leaning towards moving things with USAA since they get the "military" thing and would be more understanding about overseas.

Biggest things I can think of needing is rental insurance for on-base housing and maybe car insurance.

Any advice would be greatly appreciated especially if I'm missing anything.

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4 hours ago, Dirty Herky said:

Let me know if this is in another thread but I couldn't find it.

Even as bad as USAA is being made out here, is it still worth having OCONUS for insurance/banking? Recently found out I'll be PCSing before the end of the year is out and was leaning towards moving things with USAA since they get the "military" thing and would be more understanding about overseas.

Biggest things I can think of needing is rental insurance for on-base housing and maybe car insurance.

Any advice would be greatly appreciated especially if I'm missing anything.

Depends on where you are going. They can’t provide service in some countries like Japan, but can provide more in most European countries. When I was in Japan they wouldn’t even talk to me on the phone, but a lot of that is local law. In Germany I had a direct line to the UK USAA phone center.

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Depends on where you are going. They can’t provide service in some countries like Japan, but can provide more in most European countries. When I was in Japan they wouldn’t even talk to me on the phone, but a lot of that is local law. In Germany I had a direct line to the UK USAA phone center.

Agree on Germany for USAA.

It worked well there, but I’ve got friends in other countries that had issues when they needed them. I wouldn’t call those issues specific to them, more they held no advantage where in Germany they seemed to do very well.


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