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USAA insurance uses your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates. In states like California, Hawaii, Massachusetts, and Michigan, USAA insurance does not consider your credit score. Other factors that influence your car insurance rates include your age, driving record, and your car's make and model. Additionally, USAA offers discounts for safe driving habits, such as enrolling in SafePilot, maintaining a clean driving record, and installing anti-theft devices.
| Characteristics | Values |
|---|---|
| Whether USAA does a credit check for insurance | Yes, USAA does use your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates. |
| States where credit scores do not affect insurance rates | California, Hawaii, Massachusetts, and Michigan |
| Factors other than credit scores that USAA considers for insurance | Age, driving record, location, and car's make and model |
| Ways to lower USAA insurance costs | Taking advantage of USAA discounts, opting for a higher deductible, and reducing coverage |
| USAA credit card approval credit bureau | Equifax, TransUnion, or Experian |
| USAA credit card approval impact on credit score | Likely to drop your credit score by about 5 to 10 points |
| USAA credit card limit | $1,000 for secured cards and $3,000-$5,000 for unsecured cards |
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What You'll Learn
USAA uses credit scores to determine car insurance rates
USAA uses credit scores as a factor when determining car insurance rates. While USAA considers a variety of factors when calculating premiums, some are beyond the customer's control, such as age and location. However, customers can influence other factors to lower their rates. For instance, USAA offers safe driver discounts for maintaining a clean driving record for more than five years and installing anti-theft devices.
In states where it is legal, USAA, like most major insurers, uses credit scores to determine car insurance rates. California, Hawaii, Massachusetts, and Michigan do not allow credit scores to influence car insurance rates. Therefore, USAA insurance rates in these states are not affected by credit scores.
USAA examines credit history for items like bankruptcies, late payments, and foreclosures, which can lead to higher premiums. Credit checks by auto insurers do not harm credit scores and are only performed in states where credit scores can legally impact insurance rates. There is a proven correlation between lower credit scores and a higher likelihood of filing auto insurance claims. Consequently, individuals with poor credit scores pay approximately 143% more for car insurance than those with good credit scores.
USAA also uses credit scores when considering applications for credit cards. USAA primarily uses Equifax to assess creditworthiness for credit card applications, but they may also use TransUnion or Experian. A hard inquiry is performed on the credit report, which may temporarily lower the credit score by a few points. If approved, USAA reports card usage and payment history to Equifax, Experian, Innovis, and TransUnion monthly.
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Credit checks by USAA do not harm your credit score
USAA considers a variety of factors when calculating your premium, including your credit score. While USAA does use your credit score as a factor when determining your car insurance rates, credit checks by auto insurers do not harm your credit score. These checks are only done in states where it is legal for your credit score to impact your rates.
USAA mainly uses Equifax to assess your creditworthiness when you apply for a credit card. They may, however, use TransUnion or Experian. When you apply, USAA will perform a hard inquiry on your credit report, which might temporarily damage your credit score by a few points. If you’re approved for the card, USAA will report information about your card usage and payment history to Equifax, Experian, Innovis and TransUnion once a month.
USAA also does a hard inquiry when you apply for a loan. This credit report inquiry will likely drop your credit score by about 5 to 10 points, but you'll be able to get back on track with a few months of on-time payments. USAA's hard inquiry will stay on your credit report for two years, but it won't affect your credit after one year, and the impact may subside before then.
It's important to note that your credit score is not the only factor USAA uses to determine your car insurance rates. They also take into account factors like your age, driving record, and the make and model of your car. Additionally, USAA offers various discounts and safe driver programs that can help lower your insurance costs.
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USAA offers discounts for safe driving habits
USAA considers several factors when calculating insurance premiums, including age, location, driving record, and vehicle make and model. Notably, USAA also takes credit scores into account when determining car insurance rates, as do most major insurers. However, credit checks by auto insurers do not impact an individual's credit score and are only performed in states where it is legal for credit scores to influence insurance rates. In states like California, Hawaii, Massachusetts, and Michigan, USAA does not factor in credit scores when setting car insurance rates.
While USAA does consider credit scores in certain states, it also offers various discounts for safe driving habits. One way to obtain a safe driver discount is by enrolling in the SafePilot program, which monitors hours driven, braking, mileage, location, time of day, and phone usage. USAA offers a discount of up to 10% for participating in SafePilot and up to 30% off premiums for safe driving habits. Additionally, USAA provides safe driver discounts for maintaining a clean driving record for more than five years and installing anti-theft devices in vehicles.
USAA also offers defensive driving courses, such as SafeDriver.com, which teach practical skills for handling hazardous road situations. These courses are typically approved by independent organizations and can lead to significant savings on car insurance premiums. The discount amount varies by state, and USAA customers can retake the course to renew the discount once it expires.
By leveraging these safe driver discounts and taking advantage of defensive driving courses, USAA customers can substantially reduce their car insurance costs. It is important to note that the availability and specifics of these discounts may change over time, so USAA customers should regularly review their options to optimize their insurance rates.
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USAA uses Equifax to assess creditworthiness for credit card applications
USAA considers various factors when determining your car insurance rates, including your credit score, age, driving record, and the type of car you drive. However, it's important to note that USAA does not use credit scores to determine car insurance rates in California, Hawaii, Massachusetts, and Michigan. In these states, your credit score will not impact your rates, and USAA will not perform a credit check.
While credit checks by auto insurers do not harm your credit score, they can result in higher premiums if certain factors are identified. Specifically, USAA looks for bankruptcies, late payments, and foreclosures in your credit history, which may lead to higher premiums. Nevertheless, your credit score is not the sole factor in determining your car insurance rates, and USAA offers various discounts and safe driver programs to help lower your costs.
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USAA credit card limit can be increased online
USAA uses Equifax to assess your creditworthiness when you apply for a credit card. They may also use TransUnion or Experian. USAA will perform a hard inquiry on your credit report, which might temporarily damage your credit score by a few points. If you're not satisfied with your credit limit, or your credit utilisation is too high, you can request an increase for most USAA credit cards (except the Classic or Secured ones) online, through the USAA mobile app, or by calling customer service at 1 (800) 531-8722 or (800) 285-8585.
To increase your chances of being approved for a higher credit limit, pay your bill on time for at least six straight months, reduce your outstanding debt, and update the income USAA has on file. USAA will be more likely to increase your credit limit if the revised income shows that you can afford a higher limit.
Log in to your online account and choose the USAA card for which you're requesting the increase (if you have more than one card). Click “Account Services,” and then “Change Credit Limit.” Enter the required information and click "Continue." Confirm the information and click “Submit.” You should receive a decision in just a few seconds. If you’re approved, the new limit will be effective immediately.
Credit limit increases are never guaranteed, and if you’re denied, you’ll need to wait at least six months before asking again. USAA will increase your credit limit no more than once every six months. This time frame applies whether you request a credit limit increase yourself or wait for USAA to offer you an automatic increase.
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Frequently asked questions
Yes, USAA insurance uses your credit score as a factor when determining your car insurance rates, as do most major insurers. However, credit checks by auto insurers do not harm your credit score and are only done in states where it is legal for your credit score to affect your rates.
There is a proven correlation between a lower credit score and a higher likelihood of filing an auto insurance claim. As a result, people with bad credit pay around 143% more for car insurance than people with good credit, on average.
USAA insurance looks for bankruptcies, late payments, and foreclosures in your credit history. These will likely result in higher premiums.
