USAA Insurance review 2023

Bankrate Award winner for best home insurance company overall

Bankrate’s insurance editorial staff includes three licensed agents, and we use our industry knowledge to conduct an annual review of major insurance companies. Based on our holistic evaluation, USAA earned the 2023 Bankrate Award for best home insurance company overall.

Why USAA won

After considering the company’s unique military-focused coverage options, countrywide availability, financial stability and consistently high third-party customer experience scores, USAA stands apart from its competitors. As a result, we’re happy to present USAA the Bankrate Award for best home insurance company overall for the second year in a row.

USAA car insurance

Thanks in part to USAA’s outstanding J.D. Power scores, online accessibility and low average premiums, we issued USAA’s auto insurance a Bankrate Score of 4.3 out of 5. Our USAA insurance review found that this carrier could be one of the best car insurance companies, assuming you meet its eligibility requirements. To qualify for membership with United Services Automobile Association, or its brand name USAA, you must be an active-duty military member or veteran. Certain family members are also eligible, including spouses and children.

USAA is available nationwide and can even help you get insurance coverage if you are stationed outside the U.S. in some cases. No matter what type of auto insurance you are looking for — minimum coverage to full coverage — USAA offers all the standard coverage options plus a few extras, like roadside assistance and car rental reimbursement. USAA consistently receives high customer satisfaction scores from J.D. Power, although the carrier is not eligible for official ranking due to its eligibility restrictions. In the 2022 J.D. Power U.S. Auto Insurance Study, USAA is the highest-scoring company in almost every region of the country.

Pros and cons of USAA car insurance

When comparing car insurance quotes, you may want to compare the pros and the cons of USAA to other insurers.

USAA car insurance cost

According to proprietary rate data from Quadrant Information Services, the average cost for a full coverage policy from USAA in 2023 is $1,361 per year. A minimum coverage policy from USAA is, on average, $371 per year. For comparison, the 2023 national average cost of car insurance is $2,014 and $622, respectively. However, car insurance premiums are highly individualized, so you may pay more or less than average depending on your rating factors.

USAA car insurance rates by driving history

Auto insurance companies look at several rating factors to determine your premium, including your driving history. Drivers that have at-fault accidents or moving violations on their driving records may expect to pay higher premiums, as demonstrated in the tables below.

DUIs are also usually heavily weighted during the underwriting process, but not all companies will offer a policy to drivers with this type of driving infraction. Although Bankrate sources proprietary rate data from Quadrant Information Services and tracks car insurance premium trends over time, you will need to contact an agent at your insurance company for more information on DUI rates and eligibility.

USAA car insurance quotes by age

The Insurance Information Institute (Triple-I) reports that nearly 39 percent of all fatal car accidents in 2020 involved a driver aged 16 to 20. Younger drivers typically pay more for car insurance than any other group due to their higher risk. However, how much a young driver costs to insure may depend on if they are listed on their parent's policy or if they have a policy of their own.

The rate data below may help paint a picture of how much extra young drivers cost to insure. Please note that these rates are based on a clean driving record.

Average cost of car insurance for drivers on their parent’s policy

Average cost of car insurance for drivers on their own policy

USAA car insurance discounts

USAA may have some of the cheapest car insurance, but it also offers plenty of discounts that could help you save even more. Although not all of these discounts are available in all states, some stand-out savings opportunities include:

USAA car tools and benefits

USAA is more than just an insurance provider; the company offers a host of other financial products and benefits for its members. If you want to consolidate numerous financial services with one company, USAA could be a good fit.

In addition to auto insurance coverage, USAA partners with other insurers to offer coverage for other types of vehicles too, including motorcycles, ATVs, antique and classic cars, RVs and motorhomes. Along with insuring your car, USAA could also finance it. On top of standard auto loans (which you can apply for in just five minutes online), the company also offers leisure vehicle loans, motorcycle loans and RV loans.

USAA home insurance

No matter where you live in the country, USAA could be one of the cheapest homeowners insurance companies for those that qualify. Because of its superior financial strength, high customer satisfaction ratings, coverage options and more, our insurance editorial team issued USAA’s home insurance a Bankrate Score of 3.7 out of 5.

USAA home insurance comes with all the standard coverage types — including dwelling, personal property, other structures coverage, additional living expenses and liability coverage — and can also be personalized to suit your needs. Coverage even includes military uniforms that are damaged while on active or reserve duty. Optional coverage types include home sharing coverage, earthquake coverage and flood insurance. The company also scored 884 out of 1,000 points in the 2022 J.D. Power U.S. Home Insurance Study, the highest score of any company included in the study.

Pros and cons of USAA homeowners insurance

Shopping for the best homeowners insurance can be daunting, but making a list of pros and cons may be beneficial.

USAA home insurance cost

As with its auto insurance, many homeowners may find cheaper-than-average rates with USAA. Nationally, the average cost of a homeowners policy in 2023 is $1,428 per year for $250,000 in dwelling coverage. In comparison, USAA’s average annual homeowners insurance rate is $969.

USAA home insurance discounts

Although USAA’s average home insurance rates are already lower than the national average, the company offers a few discounts that could help you save even more. Some of its options include:

USAA home tools and benefits

USAA offers several home-related products and services that you may want to keep in mind when comparing home insurance quotes. You could get your mortgage through USAA, for example, or refinance your existing mortgage. USAA is also a lender of VA loans. Additionally, the company has a “Mortgage Assistance Team” you could talk with if you are struggling with your monthly mortgage payment.

USAA also offers numerous online tools to help you with everything from buying your home, prepping your home for sale and completing home renovations. The Home Contractor Network might even help you find a trusted contractor in your area based on the details of your project. USAA can even track your current home and monitor its market value.

USAA life insurance

USAA’s life insurance quotes are more limited than other companies, but the company could be a good choice if you are looking for one of the products it offers. Unlike its auto and property insurance policies, USAA makes its life policies available to all U.S. citizens, with or without a military background. The company also has financial advisors available to help you understand your needs and choose a product or policy based on your financial needs.

USAA offers a few different life insurance products, including term life, simplified whole life and universal life. Guaranteed whole life policies are also available, although Mutual of Omaha underwrites them. And in 2021, USAA introduced its first digital life insurance policy, with no medical exam required. The policy offers a guaranteed $100,000 in coverage for eligible individuals age 21-35. Life insurance is designed to help give your loved ones a financial cushion if you pass away, so choosing the best product type for your needs is an important part of your financial plan.

Pros and cons of USAA life insurance

USAA life insurance may not fit everyone’s needs, as each life insurance company caters to different types of needs. Here’s some information that may help you decide:

USAA life insurance endorsements

Whether you choose term or permanent life insurance, you have options to get more out of your USAA life insurance policy. These benefits vary, depending on the type of policy you choose.

• Those between the ages of 18 and 35 have the option to add another $100,000 term life coverage if getting married, buying a house or having a baby.
• Children can be insured for less than $8 per month with a simplified whole life policy, with the option to convert to a permanent policy once they grow up, regardless of their health.
• By paying a small fee upfront when buying a permanent policy, you can make sure your premiums are waived if you become disabled.

USAA life tools and benefits

USAA customer satisfaction

To measure a company’s customer satisfaction, Bankrate’s insurance editorial team studies third-party scores issued by J.D. Power, which ranges up to 1,000 points. The higher a company’s score, the higher that company’s overall satisfaction.

In addition to these scores, we also analyze where the company falls on the National Association of Insurance Commissioners (NAIC) complaint index. To understand this data, know that the baseline number of complaints is 1.0. If a company scores above 1.0, it has more complaints than average (or the baseline). The inverse also applies — if a company falls below 1.0, it has fewer complaints than the baseline.

USAA auto satisfaction

USAA earned the top spot in the 2022 J.D. Power U.S. Auto Insurance Study in every region except California (although it only fell short by three points). However, due to USAA’s eligibility requirements, J.D. Power does not include it in its official ranking. Still, these high scores may indicate that most of USAA’s auto policyholders are satisfied.

Regarding the NAIC complaint index, USAA’s private passenger auto insurance product scores a little higher than the baseline, with an index of 1.06. Shoppers wary of this higher-than-baseline score may want to talk to a friend or family member currently insured with USAA to better understand the policyholder experience.

USAA homeowners satisfaction

USAA’s score for overall customer satisfaction in the 2022 J.D. Power U.S. Home Insurance Study was 884, the highest of all the companies included (although it is not officially ranked). USAA also received a high number of customer satisfaction points in the 2022 J.D. Power U.S. Property Claims Satisfaction Study, scoring 893. Like the company’s auto product, these high scores could show that homeowners are happy with USAA’s customer service and claims handling.

According to the National Association of Insurance Commissioners (NAIC), USAA fares better with its homeowners product. It has a complaint index of 0.38, far below the industry baseline. This means that, on average, fewer homeowners customers complain about USAA than the average company.

How to file a claim with USAA

USAA will ask you for basic information when you file a claim. However, that information depends on the type of claim you need to file. For instance, your company will ask you for the vehicle and driver information of everyone involved in an auto accident. If you’re filing a life insurance claim, you may need to provide the policyholder’s name and the date they passed.

When you’re ready, you can file a claim with USAA by:

• Visiting the online auto claims portal
• Visiting the online homeowners claims portal
• Reporting the claim on the USAA mobile app
• Connecting with the Survivor Relations team to file a life insurance claim

USAA availability

USAA writes insurance in all 50 states, plus Washington, D.C., for those who qualify. Coverage is also available in Puerto Rico, Guam, U.S. Virgin Islands, and U.S. territories and possessions.

Other USAA perks worth considering

USAA may have one of the most extensive lists of benefits of all the insurance companies Bankrate has analyzed, including:

• Banking products: USAA offers banking products, including checking and savings accounts, credit cards and loans.
• Mobile app: USAA offers a mobile app as part of its digital presence for policyholders, which has high ratings in the App Store and Google Play Store. Additionally, USAA scored highly in the Service category of the 2022 J.D. Power U.S. Insurance Digital Experience Study.
• Renters insurance: If you rent your home or apartment, USAA has renters insurance options that could help protect your belongings.
• Landlord insurance: Landlords can buy landlords insurance policies to protect the homes that they own and rent out.
• Umbrella insurance: Umbrella policies can provide excess liability coverage to help protect your finances.
• Flood insurance: Standard homeowners insurance policies do not cover floods. Not all companies offer flood insurance policies, but they are available at USAA.

USAA corporate sustainability

USAA has several areas of focus for its charitable giving, which is done through a grant program, both on a national and local level (local to USAA office locations). Contributions support military caregivers and families of the wounded or fallen, families facing homelessness and hunger, and disaster response efforts.

Additionally, the company has made a three-year, $50-million commitment to address economic, education, and employment disparities faced by minority communities.

USAA also operates an employee volunteer program, which is currently suspended due to the COVID-19 pandemic. However, USAA employees do still have the option to volunteer virtually, and nonprofits can submit volunteer opportunities through USAA Serves.

Not sure if USAA is right for you?

If you want to compare USAA with other insurance companies that offer military-related perks, these three companies may be a good place to start:

USAA vs. Geico

As one of the few insurance companies that offer a discount to active-duty military members and veterans, you could earn savings off your Geico auto insurance policy if you meet its military discount eligibility criteria. Although Geico stands for Government Employee Insurance Company, you don’t have to be a military member or government employee to be eligible for a policy.

Learn more: Geico Insurance review

USAA vs. Liberty Mutual

Liberty Mutual is a well-known insurance company, but what may not be as commonly known is that it offers a savings for military members who are active duty, in the reserves or retired. Teachers may also be interested in obtaining a quote for Liberty Mutual for its unique teacher’s auto insurance coverage options.

Learn more: Liberty Mutual Insurance review

USAA vs. Farmers

Farmers offers a multitude of discounts that help policyholders earn an affordable premium. One of its discounts is an affinity discount for military members who may qualify for additional savings. Also, shoppers who prefer to do business in person may find Farmers attractive, as it sells its policies through a network of exclusive captive agents.

Learn more: Farmers Insurance review

Is USAA a good insurance company?

Our insurance editorial team includes three licensed agents with decades of combined experience, and we used our intimate knowledge of the industry to conduct this in-depth USAA insurance review.

Based on our evaluation, USAA company could be an excellent choice for those seeking coverage with military-focused options, but it depends on your needs (and eligibility status). It scores high in customer and claims satisfaction for both home and auto J.D. Power insurance studies. It offers lower-than-average rates and a wide selection of insurance and banking products. However, USAA products may not be available to you if you aren’t military-affiliated, and those who are eligible may not find USAA the best option if they prefer to do business with a local agency. Additionally, USAA’s Bankrate Score dipped from 5.0 to 4.0 from 2022 to 2023, primarily due to our latest evaluation of each company’s performance, as well as USAA’s move away from 24/7 customer service. While this may not be an indicator of a trend, it may be worth considering. In the end, the best way to determine if USAA is the company for you may be to request a free quote.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

Auto

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

Age: Rates were calculated by evaluating our base profile with the ages 16-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.

The rates for drivers ages 16-20 added to their parents’ policy reflect the good student and driver's training discounts applied. The rates for drivers aged 16-20 on their own policy do not include the good student and driver's training discounts. Additionally, 25-year-old rates are based on the driver as a renter and 30+ on the driver as a homeowner.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident. 

Homeowners

• Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.