USAA Auto Insurance Review

USAA was established by military officers to provide insurance and other financial services to members of the U.S. military. The company offers competitively priced car insurance policies and has a reputation for excellent customer service.

TIME's Take

If you’re an active or retired member of the U.S. military—or have a close family member who served—you owe it to yourself to look into USAA car insurance. USAA combines low car insurance premiums with high customer satisfaction ratings.

USAA car insurance premium comparison

Here’s how USAA stacks up against several other leading car insurers:

These figures come from a series of recent reviews by MoneyGeek and are provided for comparative purposes only. Keep in mind that the car insurance premium for an individual driver may vary from those shown here.

Compare more auto insurance service providers

How much is USAA car insurance?

Full coverage

A USAA car insurance policy with full coverage costs $883 per year. This is the cheapest car insurance among the leading carriers in our review. GEICO had the second cheapest premium at $1,047 per year.

A full-coverage policy typically includes bodily injury and property damage liability, which are state-required coverages, plus optional comprehensive and collision. This level of coverage protects you financially if you’re responsible for an accident that causes injuries or damage to vehicles or other property.

Minimum coverage

A USAA car insurance policy with minimum coverage costs $409 per year. Again, this is considerably cheaper than what competitors charge. GEICO offers the second cheapest minimum coverage policy in our review at $513 per year.

A minimum-coverage policy includes only state-required liability insurance at the lowest limits allowed by law.

Speeding ticket

A speeding ticket or other moving violation often results in a higher car insurance premium. The USAA premium for a driver with a speeding ticket is $1,015 per year. From the pool of insurers analyzed, this is the cheapest rate by a significant margin.

Young driver

The cost to insure an 18-year-old with USAA is $2,382 per year. This is the least costly car insurance for teen drivers in our review. In fact, the USAA premium is less than half the most expensive. Progressive charges 18-year-olds $5,990.

Young drivers, with less experience behind the wheel, tend to be in more accidents than mature drivers. For this reason, the cost of insuring a young driver can be quite high.

USAA: Pros and cons

USAA car insurance discounts

USAA provides a wide range of car insurance discounts. Many are similar to those available from other car insurance companies, while some are tailor-made for people affiliated with the military. Discounts include:

Bundling

Save 10% when insuring both a car and a home with USAA.

Annual mileage

Pay less if you drive fewer miles per year than average.

Storage

Save up to 60% if the car is in storage. This discount is particularly attractive to those who wish to continue to insure their car at home while deployed overseas.

Good student

Teens who get good grades in school can save money on insurance.

Military on-base

Save up to 15% if the car is garaged on a U.S. military base.

Automatic payments

Save up to 3% if payments are made by automatic withdrawal from a bank account.

Multi-vehicle

Get a discount for insuring multiple vehicles on the same policy.

USAA legacy

Children of parents with a USAA car insurance policy save up to 10%.

Pay as you drive

Like many other car insurance providers, USAA offers a usage-based insurance option that uses real-life driving data to help calculate your insurance premium. Drivers with safer habits behind the wheel can pay less for car insurance.

More about USAA car insurance

USAA was founded by U.S. military members and provides insurance and other services exclusively to active-duty and retired military personnel as well as their family members. The company is known for its military advocacy, breadth of financial products, and reputation for customer loyalty.

Who can get USAA car insurance?

USAA insurance services are exclusively for people connected to the U.S. military . To become a member and qualify, you must be one of the following:

• Individuals currently serving in the Army, Marines, Navy, Air Force, Coast Guard, and Space Force.
• Veterans who have retired or separated from the U.S. military with an Honorable or General Under Honorable Conditions discharge.
• Current spouses, widows, widowers, and unremarried former spouses of USAA members who joined USAA before or during the marriage.
• Children of USAA members.
• Cadets and midshipmen at U.S. service academies or accredited prep schools.
• Individuals in advanced Reserve Officers' Training Corps (ROTC) or on ROTC scholarships.
• Officer candidates within 24 months of commissioning.

How to buy USAA car insurance

To buy USAA car insurance, you must first become a USAA member. Membership is limited to members of the U.S. military and close family (see above).

If you qualify for membership, you can get a car insurance quote on the USAA website or by calling 1-800-531-8722. Note that USAA car insurance is not sold through local agents. Policies can only be bought directly from the company.

USAA car insurance reputation and customer satisfaction

USAA has some of the highest customer satisfaction ratings of any major U.S. car insurer. In fact, the company’s reputation for customer service and customer loyalty transcends the insurance industry.

This was made apparent once again in the 2023 JD Power U.S. Auto Insurance Study. USAA, which is not eligible for a formal JD Power ranking because of its exclusivity, torched the competition, scoring highest for customer satisfaction across all regions and other categories.

USAA also boasts the highest Net Promoter Score (NPS) in the insurance industry. NPS is a measure of customer loyalty and willingness to recommend a brand to a friend or family member.

USAA financial strength

USAA has an A++ (Superior) rating from A.M. Best, an independent provider of financial strength ratings for the global insurance industry. This is A.M. Best’s highest possible rating, allowing customers to be confident in the company’s financial strength and ability to pay claims.

Which services does USAA offer besides car insurance?

USAA offers a wide range of insurance products and financial services exclusively to its members. According to the USAA website, these include:

• Homeowners insurance.
• Renters insurance.
• Life insurance.
• Checking accounts.
• Credit cards.
• Auto loans.
• Home mortgages.
• Retirement savings.

Bottom line

With its low car insurance premiums, breadth of additional financial products, and high customer satisfaction ratings, USAA offers a compelling proposition to its target customer: active and retired members of the U.S. military and their close families. Not everyone can take advantage of these benefits, however.

Frequently asked questions (FAQs)

What is USAA’s phone number?

You can contact USAA by phone at 1-800-531-USAA (8722).

How do I report a car insurance claim to USAA?

You can report a claim to USAA on the company’s website. Open claims can be tracked online or through the USAA mobile app.

How can I cancel a USAA car insurance policy?

To cancel a USAA car insurance policy, call 1-800-531-USAA (8722).

Does USAA offer gap insurance?

USAA does not offer gap insurance, but it does offer car replacement assistance. With car replacement assistance, your total loss claim settlement amount will include an additional 20% of the vehicle’s actual cash value.