Lowering Auto Insurance: Tips For Usaa Members

USAA car insurance is exclusively for military members and their families. It offers some of the lowest rates for car insurance in the US, with an average annual cost of $1,364 per year, which is 33% cheaper than the national average. There are a number of ways to lower your USAA car insurance premium, including taking advantage of the various discounts on offer, such as the 10% family discount, and the 10% discount for bundling home or renters insurance with auto insurance. You can also try to improve your credit score, as this is correlated with the likelihood of filing an insurance claim, and so impacts your premium. Another way to lower your premium is to increase your deductible, although this means you'll have to pay a higher amount in the event of a claim.

Discounts for family, bundling, safe driving, anti-theft devices, good students, and low mileage

USAA offers a wide range of discounts to its members, which can help lower the overall cost of car insurance.

Family Discounts

USAA offers a discount of up to 10% for former dependents under 25 with a clean driving record. They must have been listed as a named driver on their parents' USAA policy for at least three years. Children of USAA members can also get up to 10% off through the MyUSAA Legacy Discount.

Bundling Discounts

USAA offers discounts for having multiple types of insurance with them, such as property insurance, condo insurance, renters insurance, and life insurance. You can also get a discount for having two or more vehicles covered by USAA.

Safe Driving Discounts

USAA offers a safe driver discount, also known as the Premier Driver Discount, for those with a clean driving record for at least five years. They also offer a 20% discount for drivers who take an approved defensive driving course. USAA's SafePilot program also rewards good driving with discounted premiums. By tracking driving habits like speed, acceleration, braking, distance driven, and location, drivers can save up to 30%.

Anti-Theft Device Discounts

USAA offers a discount for adding/having anti-theft devices in your car.

Good Student Discounts

Full-time student drivers aged 16-25 who maintain good grades (a B average or higher) can receive a discount.

Low Mileage Discounts

USAA offers an annual mileage discount for drivers who are 29 or older and drive less than 12,000 miles per year. They also offer a vehicle storage discount of up to 60% for storing your vehicle while deployed, and up to 15% on comprehensive coverage when garaging your car on a military base.

Raise your deductible

Raising your deductible is a great way to lower your auto insurance costs. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. Typically, you can choose a deductible of $250, $500, or $1,000, but amounts can go as high as $2,500. When you first purchase auto insurance, you choose your deductible, but you can change it at any time your policy is active.

Raising your deductible can lower your premium, but it's important to ensure you can afford the higher deductible if you need to file a claim. Increasing your deductible from $500 to $1,000 may lower your car insurance rate by 10%, and you could save hundreds of dollars a year. For example, increasing your deductible from $250 to $500 could reduce your collision and comprehensive coverage cost by 15% to 30%, and going to a $1,000 deductible can save you 40% or more.

When choosing a deductible, consider your financial situation, the value of your vehicle, and your driving habits. If you have a stable financial situation and a good driving record, you may be a good candidate for a higher deductible. However, if you drive frequently, in high-risk areas, or own a less valuable car, you may prefer the more predictable costs of a lower deductible.

It's also important to note that raising your deductible may not always be the best option. While it can lower your premium, it also means you'll pay more out of pocket if you need to file a claim. Consider your own financial situation and comfort level with risk when deciding whether to raise your deductible.

Reduce your coverage

Reducing your coverage is one way to lower your USAA auto insurance premium. While most states require a certain amount of bodily injury liability and property damage liability coverage, there are other coverage options that you may not need to purchase, such as comprehensive, collision, personal injury protection, and uninsured motorist coverage.

Before reducing your coverage, it's important to understand the risks involved. Lower coverage usually means lower premiums, but it could also lead to higher costs in the long run if you're involved in an accident or experience vehicle damage that isn't covered by your policy.

• Understand your state's minimum coverage requirements: Make sure you know the minimum amount of coverage required by your state. This typically includes bodily injury liability and property damage liability.
• Evaluate your needs and risks: Consider your driving habits, the age and condition of your vehicle, and the likelihood of potential risks such as accidents or theft. If you have an older vehicle or drive infrequently, you may be able to reduce your coverage.
• Compare coverage options: Review the different coverage options offered by USAA and consider which ones are most important to you. For example, if you have a safe driving record and a low-risk vehicle, you may be able to reduce your collision or comprehensive coverage.
• Consider the financial implications: Reducing your coverage will lower your premium, but it's important to ensure you can still afford the deductible if you need to file a claim. Additionally, consider the potential costs of repairs or medical bills if you're in an accident and your coverage is insufficient.
• Review your policy regularly: Your insurance needs may change over time, so it's important to review your policy periodically. For example, if you get a new car or move to a different state, you may need to adjust your coverage.

Improve your driving record and credit score

Improving your driving record and credit score can help lower your auto insurance costs. USAA considers a variety of factors when calculating your premium, and while some factors like age and location are beyond your control, you can take steps to positively influence others.

Improving Your Driving Record

USAA offers a 20% discount to drivers who take an approved defensive driving course. Practicing safe driving habits and avoiding moving violations can help you qualify for lower USAA insurance rates in the long term. In some states, you may also be able to attend traffic school to remove a violation or points from your record.

Improving Your Credit Score

Improving your credit score can also help lower your auto insurance costs. Your credit score impacts your car insurance rate, and a higher credit score typically leads to lower rates. Improving your credit score can take time, but it's worth the effort to ensure you get the best rate. Here are some strategies to improve your credit score:

• Pay your bills on time: Make it a habit to pay your bills on or before the due date. A pattern of late payments or credit delinquencies can negatively impact your credit score.
• Minimize hard credit inquiries: Hard credit inquiries occur when you apply for a new line of credit and can lower your score. Soft inquiries, such as when insurance companies review your credit, do not impact your score.
• Monitor your score regularly: Regularly checking your credit score can help you identify errors or signs of identity theft and take corrective actions.
• Maintain old lines of credit: Keeping long-standing credit accounts can positively impact your credit score. Instead of closing unused credit cards, consider using them sparingly and making timely payments.
• Manage your credit utilization ratio: Aim to use no more than 30% of your total available credit. If you're using more, paying off some debt can help improve your credit score.

Sign up for SafePilot

SafePilot is a USAA telematics program that rewards good driving with discounted premiums. Signing up for SafePilot is a great way to save money on your auto insurance. Here's a detailed guide on how to sign up and maximize your savings:

Eligibility

Before signing up, it's important to note that participation in the SafePilot program is currently limited to USAA members with an active auto insurance policy in select states. To be eligible, you must have a USAA auto insurance policy and reside in one of the eligible states. You can check your state's eligibility by visiting the USAA website or contacting their customer support.

Enrollment

To sign up for SafePilot, you can download the USAA SafePilot app on your smartphone. The app is available on both the Apple App Store and Google Play Store. Once you have downloaded the app, follow the instructions to enroll in the program. You may be asked to provide information such as your USAA membership details and vehicle information.

How SafePilot Works

The SafePilot app monitors your driving habits, including phone handling, hands-free phone use, harsh braking, and how much you drive. It's important to note that the app does not increase your insurance rates based on your driving behavior; it only offers discounts for safe driving. The better your driving score, the greater the discount you can earn on your next premium. All members of a household included on a USAA auto insurance policy can participate, and the earned discount will be based on an average of each driver's individual score.

Maximizing Your Discount

To maximize your discount, focus on improving your driving habits. This includes avoiding phone handling and hands-free phone use while driving, as these are considered distractions that can impact your score. Additionally, try to maintain a smooth driving style by avoiding harsh braking and acceleration. By combining safe driving habits with the usage of the SafePilot app, you can save up to 30% on your auto insurance premium.

Additional Tips

• Be mindful of your driving behavior, especially in busy cities with heavy traffic.
• Review your trips regularly and correct any false flags or passenger trips that may impact your score.
• Consider using an old phone exclusively for the SafePilot app to avoid battery drain and constant location tracking on your primary device.
• Take advantage of other USAA discounts, such as bundling multiple types of insurance or enrolling in automatic payments, to further lower your insurance costs.

Frequently asked questions