Five Officers founded USAA Image Credit: Drakegoodman
In 1922, five fellow Army officers in Texas formed a group along the lines of a cooperative or a mutual group to find a way to insure their collection of automobiles and equipment.
By maintaining their focus on the men (and later women) who served our country in the armed services, they were able to grow and even thrive during the Great Depression, the Dust Bowl and WWII.
Today, United Services Automobile Association (USAA) routinely rings in at either the 5th or 6th largest provider of car insurance in the country (alternating that position with Farmers) with annual direct premium approaching $8 billion. USAA can also boast membership and participation by more than 90% of currently active military service personnel.
Membership eligibility
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Maintaining its focus on the men and women who serve of who have served our country, and their families, USAA requires certain conditions of membership in order for drivers to have access to car insurance through them.
Membership in USAA (and therefore access to its products and services) is limited to:
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Active, retired and honorably separated officers and enlisted personnel of the U.S. military
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Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS)
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Adult children of USAA members who have or had a USAA auto or property insurance policy (children under the age of 18 can be added to a parent or legal guardian’s policy and after they turn 18, separate policies can be purchased for them or they can remain on a parent or guardian’s policy until they turn 25 or 26, depending on the state where they live and drive and in some circumstances, only if they are a full-time student)
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Widows, widowers and former spouses of USAA members who have or had a USAA auto or property insurance policy while married (and USAA does recognize same-sex marriages and legally recognized partnerships for this eligibility requirement.)
There are certain USAA products (including investments, financial planning services and life insurance products) that are available to the general public.
Policy options
USAA is licensed to offer car insurance in all 50 states, the District of Columbia, our territorial lands and it also offers unique coverage for established military outposts where service personnel are on extended deployment.
Drivers and car owners can build USAA policies using most of the standard coverage options, including:
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Bodily injury liability coverage
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Property damage liability coverage
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Collision coverage
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Comprehensive coverage
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Personal injury protection (PIP) coverage
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Medial payments & extended benefits coverage
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Uninsured/underinsured motorist bodily injury coverage
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Uninsured/underinsured motorist property damage coverage
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Roadside assistance
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Rental reimbursement
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Accident forgiveness
While USAA does not, generally speaking, offer GAP car insurance or loan/lease payoff options, it does offer that
USAA Family – Image Author Owned
endorsement for drivers and car owners who live in the state of Washington. They are also routinely reviewing and upgrading the coverage options they can offer state-by-state and it’s always a good idea to check in with them from time to time to see what is available in your state.
Generous discounts
By keeping the focus on a targeted group (military personnel and their families) USAA is able to maintain solid control over the prices and premiums it has to charge its members.
Even beyond the generous rates members will find, USAA offers an impressive range of discounts that members can apply for.
While not all discounts will be available in every state, USAA members can apply for these discounts on premium for their car insurance coverage:
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Safe driver discounts
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Defensive driver training discounts
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Driver training courses discounts
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Good student discounts
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Loyal member discounts
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Family plans discounts
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Multi-policy discounts
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Low mileage discounts
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New car discounts
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Multi-vehicle discounts
Members can also receive discounts of up to 90% off standard premium if they store a car (especially if storage is due to a deployment or other military-related event.)
Excellent ratings
While joining USAA has its own incentives as an organization that supports our servicemen and women and their families, the consistent high marks earned by USAA are other impressive reasons to consider them for your insurance and financial investment needs.
USAA has a great reputation like this perfect Chevorlet! Image Credit: Cristian Viarisio
Combined ratings from A.M. Best and Standard & Poors give USAA a perfect score of 100. (The only other major provider in the country to earn that rating is Amica.) J.D. Powers & Associates has a five-point scale they use to rate companies and USAA has earned a five-point rating for several years in a row.
A nationwide survey of state insurance commissioners and departments indicates that few people have complaints about USAA.
The company earns a 4.9 ranking in a consumer complaint survey where 5 is the highest mark given (the higher the mark, the fewer the complaints from consumers.)
If you or your relatives have served this country as a member of the armed services you owe yourself the opportunity to get some of the best and most affordable coverage you can buy and USAA could be your source for it.
