Orlando Harmon
USAA, or the United Services Automobile Association, is an insurance company that offers coverage for veterans, active-duty military members, and their qualifying family members. USAA insurance rates are said to be lower than the national average, with outstanding J.D. Power scores and great customer satisfaction ratings. However, some customers have complained about unexpected hikes in their insurance premiums. USAA's average annual car insurance rate is $1,335, lower than competitors like Geico, which charges $1,778 on average. USAA also has cheaper rates than State Farm, especially for drivers with poor credit. USAA's full-coverage insurance rates are also among the cheapest in the market, with an average annual premium of $1,199.
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What You'll Learn
USAA's auto insurance rates compared to other companies
USAA auto insurance rates are generally lower than the national average and are cheaper than many other companies. According to US News, USAA has the second-lowest average rate among the ten companies analysed and is the second or third cheapest in most driver categories. USAA's average annual premium is $1,335, the lowest among the ten companies in the US News rating, while Geico's is $1,778. USAA is also cheaper than Geico in every driver category analysed.
NerdWallet's June 2025 analysis found that USAA car insurance costs an average of $1,464 per year for full coverage, compared to the national average of $2,290. USAA's average annual full coverage rates are cheaper than many other companies. Bankrate's June 2025 analysis found that the average cost for a full coverage policy from USAA was $2,068 per year, while the national average was $2,680.
However, it is important to note that USAA insurance is only available to active-duty military members, veterans, and their families. Additionally, some customers have reported that USAA has raised its rates in the past year, although it was in line with the industry as a whole. While USAA is one of the cheapest car insurance companies, there may be other insurers that offer lower average annual rates, such as Plymouth Rock and Root.
Overall, USAA's auto insurance rates are competitive and often lower than those of other companies, but it is always recommended to get multiple quotes to find the best rate for your specific needs.
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Home insurance rates
USAA's home insurance rates are generally considered to be affordable and among the lowest of its competitors. The Zebra reports that USAA has the cheapest rates at $106 per month, although this is for auto insurance. For homeowners insurance, USAA's average annual cost is $1,790, according to NerdWallet's rate analysis, which is lower than the national average of $2,110 per year. The average USAA home insurance rate nationwide is $2,506 for a standard sample coverage level of $300,000 in dwelling and liability coverage with a $1,000 deductible. USAA's premiums for dwelling coverage of $300,000 are $193.44 per month, which is also below the national average of $231.39.
USAA's rates are influenced by various factors, including the customer's credit history, claims history, and the broader economic trends. For example, if an insurer loses money due to wildfires in a particular state, it may raise rates for everyone in that state. Inflation has also contributed to increasing insurance premiums. USAA's rates are also impacted by the customer's eligibility, as it offers insurance exclusively to military personnel, veterans, and their families.
USAA's home insurance rates are generally well-received, with customers reporting reasonable rates. However, some customers have reported issues with claim resolutions and unexpected rate increases. USAA's rates for $1 million dwelling coverage are over $1,000 cheaper than the national average, reinforcing its competitiveness in the market.
Compared to other insurance providers, USAA's rates are often lower. For example, a customer reported a drop in their homeowners insurance premium from $7,000 with USAA to $3,000 with Erie for nearly identical coverage. USAA also offers bundling discounts, although these are not as generous as those offered by some competitors.
In summary, USAA's home insurance rates are considered affordable and are often lower than the national average and those of its competitors. However, customers should be aware of potential rate increases and claim resolution issues. USAA's eligibility requirements also limit its availability to military-affiliated individuals and their families.
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USAA's rates for military members
USAA is an insurance company that serves the military community exclusively. It offers insurance products and services tailored to the unique needs of military members and their families.
USAA's insurance rates for military members are generally competitive and often lower than those of other insurance companies. For example, USAA's average annual car insurance rate is $1,335, which is lower than that of its competitors, such as Geico, whose average annual rate is $1,778. USAA also offers lower rates for teen drivers, with an average rate of $2,068 per year for drivers with clean driving records, compared to the national average of $2,680. USAA's rates for minimum coverage policies are also lower, with an average cost of $597 per year, compared to the national average of $802.
However, some customers have reported that USAA's rates for homeowners insurance can be significantly higher than those of other companies. One customer mentioned that their homeowners insurance premium with USAA increased from $72 to $174 in a five-year period, despite living in an area with a low crime rate and no history of natural disasters. Others have also noted that USAA's interest rates for mortgages are not very competitive, with some opting for local credit unions that offer lower rates.
It is worth noting that insurance rates can vary based on individual factors such as age, gender, driving history, location, and coverage selection. While USAA offers competitive rates for many military members, it is always advisable to compare quotes from multiple insurance companies to find the best rate for your specific needs.
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USAA's rates for high-risk drivers
USAA insurance rates are generally lower than the national average. For instance, USAA's average annual car insurance rate is $1,335, compared to the national average of $2,680. USAA's rates are also lower than those of its competitors, such as Geico, in every driver category.
USAA's rates for drivers with poor credit are 38% below the national average of $4,064 a year. USAA's rates for drivers with poor credit are 84% higher than its rates for those with good credit. USAA's rates for drivers with a DUI on their record are over $1,200 less than the national average. USAA's sample rate for young adult (single 25-year-old) female drivers is 34% lower than the national average. For single male drivers in this age group, it’s 35% cheaper. USAA is also the second cheapest in our analysis for married 40-year-old drivers, with sample rates of $726 less per year for females and $759 less for males.
USAA also offers the cheapest rates for multiple driver profiles, including good drivers, drivers who have caused accidents, motorists with speeding tickets, drivers with a DUI, and people with poor credit. USAA's rates for high-risk drivers are also impressive, with the lowest costs for drivers who have caused accidents, drivers with one or two speeding tickets, and those with a speeding ticket and accident on their record. USAA also offers the lowest average rates for state minimum car insurance, which is good for high-risk drivers seeking a basic policy. USAA's average annual rate for low-mileage drivers (7,000 miles per year) is 38% lower than the national average. USAA's average annual premium for high-mileage drivers (14,000 miles per year) is $733 lower than the study average.
However, it is important to note that USAA's rates for adding a 16-year-old driver are higher than those of many competitors and the national average. Additionally, USAA's rates may not always be competitive with other companies, and they may not provide coverage for older homes. USAA's insurance is also only available to current military members, veterans, and their families, which limits its accessibility to those who do not meet these criteria.
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Customer satisfaction
USAA insurance rates are generally lower than the national average, and the company consistently ranks high for customer satisfaction. USAA has been in business for over 100 years and is the fifth-largest auto insurance company in the US. Its longevity and size are not its only distinguishing features, as it also offers exceptional discounts and services designed for military families.
USAA's average annual car insurance premium is $1,279, 36% lower than the national average. The company's rates are typically lower than the national average and are often more competitive compared to other major insurers, such as State Farm Progressive and Allstate. USAA's average rates are lower than the national average across all driver demographics analysed. For example, USAA's average annual rate for low-mileage drivers (those who drive 7,000 miles per year) is 38% lower than the national average for this category. USAA's sample premium for drivers with a DUI on their record is over $1,200 less than the national average.
USAA has received high ratings for customer satisfaction, with a smooth process for obtaining quotes, managing policies, and accessing documents. The company also offers a range of coverage options, including valuable add-ons like accident forgiveness, rental car coverage, and roadside assistance. USAA's website is also highly regarded, with a simple process for obtaining quotes, and the company's mobile app experience is also rated highly.
According to a NerdWallet survey, USAA received an overall satisfaction score of 80 out of 100, with the average score among 11 insurers being 79, and the highest score being 81. USAA also had fewer than the expected number of complaints about auto insurance relative to its size. USAA also scored very well in J.D. Power's 2023 Digital Experience study for servicing policies online. The company also received the highest score possible from AM Best, indicating it is considered extremely financially sound.
While USAA consistently ranks high for customer satisfaction, some customer reviews on platforms like Trustpilot and Better Business Bureau (BBB) indicate unhappy customers. The main complaint is about claims, with reviewers alluding to a lack of claim updates and delays in claim payments.
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Frequently asked questions
USAA insurance rates are generally lower than the national average. USAA's average annual car insurance rate is $1,335, which is the lowest among the 10 companies in our rating. USAA also has cheaper rates than GEICO, which is marketed to enlisted service members and NCOs. USAA also has lower rates than State Farm, especially for drivers with credit scores lower than 580.
USAA insurance is only available to current military members, veterans, and their families.
To get a quote from USAA, you must first qualify for membership. Then, you can contact USAA to obtain a free quote.
