U-Turn: Usaa's 12-Month Auto Insurance Offering

USAA offers auto insurance exclusively to active-duty and retired military personnel and their family members. The company is known for its military advocacy, breadth of financial products, and high customer satisfaction ratings.

USAA offers both six-month and 12-month auto insurance policies. A 12-month policy can lock in your rate for a year, which is ideal for those who want to avoid unexpected increases. However, 12-month policies are less common and may need to be specifically requested from the provider.

The biggest advantage of a 12-month policy is the opportunity to lock in a lower rate. With a locked rate, your premium will not increase during the year. However, this could also be a disadvantage if you improve your driving record during the policy period, as you will have to wait longer to take advantage of lower rates.

USAA offers a wide range of car insurance discounts, including:

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

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

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

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

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

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

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

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

USAA's customer service

USAA offers 24/7 customer service to its members, which includes current and former military service members and their families. The company provides multiple ways to get in touch, including over the phone, via email, and through its website and mobile app.

The USAA website allows members to get quotes, file and track claims, pay bills, and access insurance ID cards. The website also features a search function, a chat feature, and a community forum.

The USAA mobile app offers similar functionality, allowing members to access insurance ID cards, member-exclusive discounts, and mobile wallets. It also enables members to request roadside assistance, review an accident checklist, send money, and join the USAA member community.

USAA has received high ratings for its customer service. In a survey conducted by U.S. News, 60% of respondents reported being completely satisfied with the company's customer service, and 64% said they were completely satisfied with the ease of contacting USAA's customer service.

USAA's claims handling

USAA offers auto insurance exclusively to military personnel and their families. It is rated highly for its customer service and claims handling, receiving 4.9 out of 5 in a US News & World Report survey.

Policyholders can file a claim on the USAA website or mobile app, or by calling the company. A claims representative is automatically assigned to the case, and simple claims can be completed without a phone call. Policyholders can upload photos of the accident or damage to their vehicle, review their coverage, and request a rental car.

USAA recommends filing a claim if someone was hurt in the accident, or if there was serious damage to another person's vehicle or property. If the damage is minor and the cost of repairs is less than the deductible, USAA suggests that policyholders may not want to file a claim.

USAA has been criticised for its handling of auto accident claims, with lawyers noting that the company will try to pay victims less than the full settlement amount. USAA uses a computer-based program called Colossus to assist in the claims process and value accident claims for settlement. Colossus has been criticised for undervaluing claims.

USAA's grade from collision repair professionals is a D+, indicating that it could improve its claims procedures for customers with collision damage.

USAA's customer loyalty

USAA has a strong focus on customer loyalty, with high member retention and satisfaction rates. In a 2020 report, 64% of members reported being "very satisfied" with the services they received. USAA also has the highest Net Promoter Scores in home insurance, auto insurance, and banking for 11 consecutive years.

The company's leadership team is committed to putting its people first, including its members and its employees. This commitment to its members and employees is reflected in USAA's high customer satisfaction and employee experience ratings.

• Understanding customer needs: USAA aims to provide a customer experience that rivals the best digital-native companies. They track customers' journeys and interactions to gain a deep understanding of their needs and preferences.
• Employee satisfaction: USAA recognizes that happy employees lead to happy customers. By prioritizing employee satisfaction and creating a positive work environment, USAA ensures that its employees are well-equipped to deliver exceptional service.
• Problem resolution: USAA excels at resolving customer issues promptly and effectively. Their ability to handle problems efficiently is a key factor in maintaining high customer satisfaction and loyalty.
• Quality of service: USAA consistently delivers high-quality service that meets the unique needs of its military members and their families. They offer a range of financial products and services tailored to this specific community.
• Loyalty programs: USAA offers loyalty programs, such as the USAA Rewards program, which provides benefits and rewards to its members. This helps foster a sense of loyalty and engagement.
• Digital experience: USAA provides a range of digital tools and resources, including a mobile app and website, that enable members to easily access their services, manage their accounts, and file claims.
• Discounts and competitive rates: USAA offers various discounts and competitive rates on insurance, banking, and other financial products. This not only saves members money but also increases their loyalty and satisfaction.

USAA's insurance for senior drivers

USAA is a terrific option for current and former military members and their families, offering the lowest rates for senior drivers among insurers. USAA's rates for female and male senior drivers are hundreds of dollars cheaper than the national average.

USAA also offers a wide range of discounts for its policyholders, including:

• Multi-policy discount
• Military on-base discount
• Good student discount
• Clean driving record discount
• Safe driver discount
• Defensive driver training discount
• Basic driver training course discount
• Newer vehicle discount
• Anti-theft devices discount
• Deployment/storing discount
• Driving less discount
• Loyal member discount
• Multi-vehicle discount
• MyUSAA Legacy discount

USAA also has an optional SafePilot Program that tracks your time behind the wheel and rewards you for safe driving habits. By downloading the SafePilot app to your smartphone and enrolling in the program, you can receive a discount of up to 30% (with 10% just for enrolling). The program is not available in Delaware, New Jersey, or California.

USAA's insurance discounts

USAA offers a wide range of insurance discounts to its customers. The company provides 14 auto insurance discounts, including:

• Safe driver discount: For maintaining a good driving record for more than five years.
• Defensive driving discount: For completing an approved defensive driving course.
• Driver training discount: For completing a basic driver's training course.
• Good student discount: For students aged 16-25 who are enrolled full-time and maintain at least a "B" average.
• New vehicle discount: For insuring a brand-new car.
• Multi-vehicle discount: For insuring more than one car on the same policy.
• Annual mileage discount: For driving less than 12,000 miles per year.
• Vehicle storage discount: For storing your car, for example, while you are away on deployment.
• Family discount: For those who were previously listed as a named driver on a family member's USAA policy.
• Length of membership discount: For long-time customers.
• Military installation discount: For comprehensive insurance if your car is stored on a military base.
• No payment plan fees discount: For paying your premium upfront.
• Multi-policy discount: For buying multiple types of insurance from USAA.

USAA does not disclose the exact amount customers can save with these discounts, but other companies typically offer discounts of 20-30% with similar incentives.

Frequently asked questions