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USAA insurance pros and cons

USAA auto insurance review

USAA has been in business since 1922, serving the military community and their families. Because its

auto insurance
is only available to military and veterans, USAA is not ranked in J.D. Power’s auto claims satisfaction (had it been ranked, it would have tied for third). USAA is also the best option for military members in Insider’s guide to the best car insurance companies.

USAA offers comprehensive, collision, full, liability, and uninsured and underinsured coverage. It features a safe driving program with the opportunity to get discounts, telematics-enabled claims for faster processing times, and rideshare coverage for Uber and Lyft drivers. It also offers discounts for vehicle storage, safe drivers, good students, and completion of a driver’s training course. Like most insurance companies, USAA also provides discounts for bundling your home and auto insurance.

There are four types of insurance coverage: liability insurance (required by most states), comprehensive, collision, and full car coverage. If you lease or finance your car, your lender may require comprehensive and collision coverage.

The difference between the various coverage types is outlined in the table below:

USAA homeowners insurance review

Because USAA’s homeowners insurance is limited to military and veterans, it’s not ranked in J.D. Power’s homeowners customer satisfaction survey. However, its members were surveyed, and had it been included on the list, USAA would have ranked No. 1. USAA also ranked No.1 on Insider’s guide to the best homeowners insurance companies.

USAA offers homeowners, condo, renters, and mobile home insurance. It also offers flood and earthquake insurance. It has a rider endorsement for home sharing if you rent your home or a room for short-term or long-term.

USAA gives discounts for Connected Home (a leak detection system), ADT security systems, and if you’ve been claims-free for at least five years. It also covers your personal belongings using today’s replacement cost, with no depreciation.

Homeowners insurance protects your dwelling, personal belongings, and offers personal liability coverage for injuries that happen on your property. Standard homeowners insurance looks like the table below, but coverage varies depending on your provider:

*Available as add-on coverage if not part of policy

**Flood insurance is available through the NFIP and approved insurers

***If you live in hurricane or tornado areas, additional windstorm rider may be required

USAA life insurance review

While USAA is focused on serving the military community, its “life insurance, health insurance and retirement products offered by USAA Life Insurance Company, USAA Life Insurance Company of New York and USAA Life General Agency are available to the public,” according to the company’s website.

USAA offers

term life insurance
with special benefits for active duty military, guaranteed issue whole life insurance through a partnership with Mutual of Omaha, and universal life insurance. USAA digitized its underwriting process to help speed up application processing.

There are two types of life insurance: permanent life and term life. Term life insurance lasts for a specified period. When it’s up you can reapply for coverage, but the premiums most likely will go up as you age.

Permanent life insurance never expires, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. Some financial advisors recommend a combination of term and permanent life insurance.

USAA insurance versus the competition

USAA has a national presence with highly rated customer service and reasonable rates. If you’re looking for an established insurer with good customer service, USAA delivers. Its auto and homeowners insurance are limited to military and veterans, so you’ll need to look to other carriers such as Geico and State Farm if you’re not military, but USAA’s life insurance is open to the public.

*Because USAA is limited to the military and veterans, its ranking isn’t included, but its members are included in the J.D. Power surveys

Is USAA trustworthy?

We checked the NAIC Complaint Index for complaints against USAA. The NAIC complaint index starts at 1.00 and means that a company with a 2.00 has a complaint index twice as high as expected within the market.

USAA’s complaint index number is 2.36, which means twice as many complaints have been filed against it compared to other insurers. However, you may decide it’s still worth purchasing an insurance policy from USAA given its high customer satisfaction ratings.

Its financial stability is strong, with an A.M. Best’s rating of A++ (superior).