USAA, or the United Services Automobile Association, is the fifth-largest U.S. auto insurance company by market share. USAA offers coverage to veterans, active-duty military members, and their qualifying family members. Army officers founded the company more than 100 years ago in San Antonio, Texas.
Today, the insurer and financial services company sells property, business, pet, life insurance, and more coverages in addition to vehicle insurance. Since USAA only offers services for the military community, many drivers can’t take advantage of its competitive rates. But for those who can, USAA offers discounts catered toward service members and a popular telematics program that can save drivers up to 30%.
Here’s what to know about USAA as you shop for car insurance.
How USAA compares to other insurance companies
USAA beats out or measures up to its competitors in nearly every way, Kickbackly’s research finds. The company has some of the lowest rates available, according to Kickbackly data. While USAA doesn’t offer as many discounts as other insurers, active-duty military members can get discounts for garaging their car on a military base or storing a vehicle during deployment.
Here’s how USAA compares in a few categories.
Factor | How USAA Compares |
|---|---|
| Rates | Cheaper |
| Customer service | Better than competitors |
| Discounts | Fewer than competitors |
| Availability | Geographically similar to competitors, but limited to the military community |
| Financial strength | Stronger than competitors |
How USAA rates compare to competitors
USAA offers extremely competitive rates and is often the best and most affordable option for veterans, active-duty military members, and qualifying family members.
USAA is among the cheapest car insurance companies, and only a handful of regional insurers beat USAA’s full-coverage rates, according to Insurify data. COUNTRY Financial, NJM, Auto-Owners, Erie, and Root have cheaper average full-coverage rates, but none sell insurance in all 50 U.S. states like USAA.
Here’s how USAA’s national average full-coverage rate compares to the rates of other national insurance companies.
Average cost of USAA auto insurance
USAA’s average auto insurance rates are less than half the national average for full-coverage and liability-only insurance. Even the insurer’s rates for higher-risk drivers — like teens and drivers with a speeding ticket or DUI on their record — are relatively low. For example, teen drivers on their own insurance policy pay about 52% more for a USAA auto insurance policy versus 64% more for a State Farm policy.
Here’s how USAA’s average monthly liability-only rates compare to the national average for a few different driver profiles.
| Driver | USAA Average Quote | National Average |
|---|---|---|
| Drivers with a clean record | $52 | $100 |
| Drivers with a speeding ticket | $67 | $127 |
| Drivers with an at-fault accident | $68 | $133 |
| Drivers with a DUI | $77 | $147 |
| Teen drivers | $97 | $193 |
| Senior drivers | $40 | $85 |
USAA car insurance cost by state
Several factors affect your car insurance premiums, and your location is one of the big ones. Your state insurance market, regional inflation, and local severe weather like hail or hurricanes can influence your rates. Drivers in urban areas also tend to pay more than rural drivers, given the increased risk of theft and accidents in densely populated areas.
USAA prices are still among the cheapest for eligible drivers in most states. These are the average monthly liability-only insurance quotes for USAA in each state, compared to the overall state average liability-only quote.
| State | USAA Average Quote | State Average |
|---|---|---|
| Alabama | $54 | $65 |
| Arizona | $105 | $93 |
| Arkansas | $55 | $82 |
| California | $81 | $93 |
| Colorado | $79 | $93 |
| Connecticut | $151 | $168 |
| Delaware | $84 | $157 |
| Florida | $101 | $155 |
| Georgia | $116 | $159 |
| Hawaii | $41 | $59 |
| Idaho | $42 | $62 |
| Illinois | $85 | $80 |
| Indiana | $50 | $67 |
| Iowa | $41 | $53 |
| Kansas | $51 | $76 |
| Kentucky | $131 | $115 |
| Louisiana | $81 | $104 |
| Maine | $40 | $81 |
| Maryland | $160 | $185 |
| Massachusetts | $70 | $105 |
| Michigan | $68 | $137 |
| Mississippi | $44 | $66 |
| Missouri | $57 | $90 |
| Montana | $52 | $65 |
| Nebraska | $66 | $70 |
| Nevada | $108 | $155 |
| New Hampshire | $44 | $53 |
| New Jersey | $73 | $174 |
| New Mexico | $115 | $68 |
| New York | $134 | $168 |
| North Carolina | $34 | $64 |
| North Dakota | $54 | $66 |
| Ohio | $59 | $69 |
| Oklahoma | $51 | $83 |
| Pennsylvania | $140 | $91 |
| Rhode Island | $82 | $146 |
| South Carolina | $68 | $162 |
| South Dakota | $41 | $59 |
| Tennessee | $58 | $66 |
| Texas | $105 | $120 |
| Utah | $59 | $97 |
| Vermont | $39 | $62 |
| Virginia | $88 | $110 |
| Washington | $56 | $93 |
| Washington, D.C. | $217 | $263 |
| West Virginia | $61 | $81 |
| Wisconsin | $37 | $59 |
| Wyoming | $43 | $55 |
USAA car insurance discounts
It’s important to consider car insurance discounts when choosing the right insurance company since savings vary and insurers offer different options. USAA, for example, has a few discounts for military personnel on base or during deployment, as well as others like new car, multi-car, loyalty, and safe driver discounts. Add them up, and discounts can lower your premium significantly.
Always ask about what discounts you’re eligible for since not all insurers automatically apply them and you may have to provide documentation.
| Type of Discount | % Discount |
|---|---|
| Garaging your vehicle at a military installation | Up to 15% |
| SafePilot (app-based safe driving program) | Up to 30% |
| Bundling with home insurance | Up to 10% |
| Legacy | Up to 10% |
| Deployed or storing vehicle | Up to 60% |
| Low-mileage | Varies |
| Good student | Varies |
| Safe driver (five years accident-free) | Varies |
| Defensive driving or basic driver training course | Varies |
| Anti-theft device | Varies |
How customers feel about USAA
Like most insurers, USAA’s online reviews are mixed, but many drivers seem satisfied with USAA’s coverage and affordability. USAA has consistently high scores in industry customer and claims satisfaction. Still, USAA has a score of 1.2 out of 5 on Trustpilot, and some reviewers report a slow claims process and frustrating price increases.
These are a few sources to consider to learn how policyholders feel about their insurers.
USAA ratings
Industry ratings can help you understand an insurance company’s business reliability and how it scores for customer satisfaction. Global credit-rating agency AM Best rates insurer’s financial strength and credit. A higher score indicates an insurer has good risk management and can reliably pay claims.
Consumer insights agency J.D. Power measures customer and claims satisfaction among auto insurers, and USAA scores the best or among the top scores in recent studies. The insurer’s National Association of Insurance Commissioners (NAIC) company complaints index score will tell you how that company’s number of complaints compares to the industry standard for a company of its size.
| Rating | Score | What This Means |
|---|---|---|
| AM Best | Financial strength rating: A++Long-term credit rating: AAA | Highest possible scores (best operating performance, business profile, and risk management) |
| J.D. Power | 900 (2023 claims satisfaction study)748 average (2024 auto insurance study) | Customer satisfaction scored out of 1000Scored higher than others or in the top five |
| NAIC Complaint Index | 1.36 | Received 36% more complaints than the market average |
USAA car insurance coverage options
USAA offers standard coverage options, including liability coverage that meets state-minimum insurance requirements, collision, comprehensive, and uninsured/underinsured motorist coverages. Drivers can also purchase optional coverages like USAA roadside assistance, accident forgiveness, and rental reimbursement.
To get an accurate quote, be sure to have information about your or your family’s military affiliation, your government ID, and your Social Security number since USAA uses them to confirm your affiliation.
Liability coverageThis includes bodily injury and property damage liability protection, which cover injuries or damage you cause to another person or their property.- Collision coverageCollision insurance pays for damage to your car from a collision with another vehicle or object, like a fence or tree. It also pays in case of rollover accidents.
- Comprehensive coverageComprehensive insurance reimburses you for losses from theft or damage from something other than a crash with a car or object. It covers damage from fire, windstorms, hail, vandalism, animals (including a collision with a deer), and more.
- Uninsured/underinsured motorist coverageUninsured/underinsured motorist coverage reimburses you if a driver without insurance — or enough insurance to cover the damage — hits your vehicle. This coverage can also pay for medical expenses and vehicle damage in a hit-and-run accident.
- Medical payments (MedPay) coverageMedical payments coverage is optional in most states and helps cover accident-related medical bills and funeral expenses for you and your passengers, no matter who’s at fault.
- Personal injury protection (PIP) coveragePIP covers accident-related medical expenses, lost wages, household services, and funeral expenses for you and your passengers regardless of fault. Some states with no-fault insurance systems require drivers to carry personal injury protection.
- Roadside assistance coverageLike most large insurers, USAA offers roadside assistance coverage. This optional add-on includes 24/7 service for towing after a breakdown, changing a tire, jump-starting your battery, and more.
- Rental car reimbursement coverageThis coverage will help pay for a rental if your car is in the shop for repairs after a covered event.
- Rideshare gap coverageThis unique add-on for rideshare drivers can cover the gap between your personal auto policy and the rideshare company policy active when driving a passenger or delivery. That gap is when you’re logged into the app and waiting for a request.
- Car replacement assistance coverageUSAA doesn’t offer standard gap insurance, but this coverage is similar. If you total your car or someone steals it, gap coverage pays the difference between what your insurer covers and what you owe on your loan. This USAA add-on pays out the actual cash value (ACV) of your vehicle to you or your lender, plus 20% ACV to you that you can use freely.
Liability coverageThis includes bodily injury and property damage liability protection, which cover injuries or damage you cause to another person or their property.
Collision coverageCollision insurance pays for damage to your car from a collision with another vehicle or object, like a fence or tree. It also pays in case of rollover accidents.
Comprehensive coverageComprehensive insurance reimburses you for losses from theft or damage from something other than a crash with a car or object. It covers damage from fire, windstorms, hail, vandalism, animals (including a collision with a deer), and more.
Uninsured/underinsured motorist coverageUninsured/underinsured motorist coverage reimburses you if a driver without insurance — or enough insurance to cover the damage — hits your vehicle. This coverage can also pay for medical expenses and vehicle damage in a hit-and-run accident.
Medical payments (MedPay) coverageMedical payments coverage is optional in most states and helps cover accident-related medical bills and funeral expenses for you and your passengers, no matter who’s at fault.
Personal injury protection (PIP) coveragePIP covers accident-related medical expenses, lost wages, household services, and funeral expenses for you and your passengers regardless of fault. Some states with no-fault insurance systems require drivers to carry personal injury protection.
Roadside assistance coverageLike most large insurers, USAA offers roadside assistance coverage. This optional add-on includes 24/7 service for towing after a breakdown, changing a tire, jump-starting your battery, and more.
Rental car reimbursement coverageThis coverage will help pay for a rental if your car is in the shop for repairs after a covered event.
Rideshare gap coverageThis unique add-on for rideshare drivers can cover the gap between your personal auto policy and the rideshare company policy active when driving a passenger or delivery. That gap is when you’re logged into the app and waiting for a request.
Car replacement assistance coverageUSAA doesn’t offer standard gap insurance, but this coverage is similar. If you total your car or someone steals it, gap coverage pays the difference between what your insurer covers and what you owe on your loan. This USAA add-on pays out the actual cash value (ACV) of your vehicle to you or your lender, plus 20% ACV to you that you can use freely.USAA insurance FAQs
If you’re still considering whether USAA insurance is a good fit for you, here are some answers to frequently asked questions to help inform your decision.
Is USAA legitimate?
Yes. USAA is a legitimate company. Its high financial strength and long-term credit ratings from AM Best reflect strong business. USAA has served the military community since 1922.
What is the average cost of USAA car insurance?
A USAA liability-only policy costs $52 per month, on average. A full-coverage policy costs $99 per month, on average. Your location, driving record, credit history, age, and other factors affect how much you pay.
Is USAA good at paying claims?
Yes. USAA has the financial strength and customer service to pay claims, according to its industry ratings.USAA’s high AM Best score shows it has strong risk management and can pay out claims. USAA’s J.D. Power customer satisfaction ranking is also high, indicating policyholders are satisfied with the claims process.
How do I cancel my USAA insurance policy?
Policyholders must call USAA to cancel a policy. To avoid a lapse in coverage, be sure to set up your next auto insurance policy before canceling your USAA policy.
What are the disadvantages of USAA?
USAA’s competitive rates are only available to veterans, active-duty military members, and their qualifying family members. The insurer also doesn’t offer 24/7 customer support.
If you have any further questions, please contact us.
