Haris Ashley
USAA, an American financial services company, is known for its strong brand reputation and commitment to customer satisfaction. During the COVID-19 pandemic, USAA returned $520 million to its members, providing a 20% credit on two months of premiums. This was due to reduced travel and a decrease in accidents, resulting in fewer insurance claims. Additionally, USAA has faced data breaches, with a $3.25 million settlement reached following a security breach in May 2021. While USAA has not admitted wrongdoing, customers whose information was compromised are eligible for compensation.
| Characteristics | Values |
|---|---|
| Reason | COVID-19 |
| Amount | $520 million |
| Form | 20% credit on two months of premiums |
| Beneficiaries | Auto-insurance customers |
| Action required by customers | No |
| USAA's statement | "Returning premiums provides timely help for our members." |
| USAA's previous customer benefits | USAA returned $2.4 billion in dividends, distributions, and bank rebates and rewards last year |
| USAA's brand reputation | Excellent customer service and a clear commitment to helping members reach their financial goals |
| USAA's data breach settlement | $3.25 million |
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What You'll Learn
USAA returned $520 million to customers due to COVID-19
In April 2020, USAA, the country's fifth-largest property and casualty insurer, announced it would be returning $520 million to its auto-insurance customers. This was due to the reduced number of miles driven and accidents as a result of the COVID-19 pandemic and the associated stay-at-home and shelter-in-place guidance.
USAA's auto-insurance customers received a 20% credit on two months' worth of premiums, which was automatically applied to their bills. This was in line with the company's history of returning a portion of profits to members. In 2019, for example, USAA returned $2.4 billion in dividends, distributions, and bank rebates and rewards.
USAA's decision to return $520 million to customers was part of a wider trend among auto insurers during the pandemic. Other companies that gave money back to customers during this time include Geico, Liberty Mutual Insurance, Allstate Corp., and American Family Insurance.
In addition to the $520 million returned to auto-insurance customers, USAA also offered other financial support to its members during the pandemic. USAA Life Insurance Co. offered a 60-day extension to the grace period on life and health insurance policies, while USAA Investment Management Co. cut managed portfolio fees by 50% for April and May 2020.
In August 2024, USAA agreed to pay $64.2 million to settle a class-action lawsuit alleging that its banks improperly charged fees and high-interest rates that violated federal protections for service members with loans. The company stated that it “strongly disagrees” with the charges but settled "in the best interest of [its] membership".
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USAA's $3.25 million data breach settlement
In May 2025, a federal judge gave the final approval for United Services Automobile Association (USAA) to pay $3.25 million to settle a lawsuit from a class of policyholders impacted by a data breach. The insurer USAA, which serves members of the military, veterans, and their families, faced allegations that it failed to protect the personal data of its customers through reasonable cybersecurity measures. As a result of the breach on or around May 6, 2021, the personal information of approximately 22,600 individuals was compromised.
USAA denied any wrongdoing but agreed to the settlement, which will provide class members with an equal share of the net settlement fund. The exact payments will depend on the number of participating class members and the amount deducted from the fund for fees and costs. To receive their share of the settlement benefits, class members were required to submit a valid claim form by April 7, 2025, with a deadline of April 7, 2025, for exclusion and objection.
Qualifying members of the claim were notified by USAA via email or mail after the settlement was reached in December 2024, and these notifications included specific ID numbers for review, namely a claimant ID code and a confirmation code. It is important to note that those impacted by the breach who did not file a claim may not receive any payment.
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USAA's commitment to customer satisfaction
USAA has demonstrated its commitment to customer satisfaction in several ways. Firstly, the company has a strong sense of purpose and a clear commitment to helping its members achieve their financial goals. This purpose, "to serve those who serve", is deeply rooted in the company's culture and has helped build trust and loyalty with customers.
In line with this purpose, USAA has taken several actions to support its customers financially. During the COVID-19 pandemic, the company returned $520 million to its members due to reduced driving and accidents. Auto-insurance customers received a 20% credit on two months of premiums. The company also offered special payment arrangements on life and health insurance policies, including a 60-day extension to the grace period.
USAA has also been known to give back a portion of its profits to members. In one instance, the company returned $2.4 billion in dividends, distributions, and bank rebates and rewards. Additionally, they provide their members with various deals and perks, such as cash backs, travel protection, and discounts on moving and rental trucks.
Furthermore, USAA offers 24/7 customer service with thoroughly trained representatives who are knowledgeable and helpful. The company also encourages its staff to submit ideas for improvement, fostering a culture of innovation and continuous enhancement of the customer experience.
Overall, USAA's commitment to customer satisfaction is evident through its purpose-driven culture, financial support for members, and dedication to providing excellent customer service.
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USAA's auto-insurance customers to receive 20% credit
In 2020, USAA, the country's fifth-largest property and casualty insurer, announced it would be returning $520 million to its auto-insurance policyholders. This was due to the reduced number of miles driven and a reduction in accidents as a result of the coronavirus pandemic. Customers with insurance policies in effect as of March 31 would receive a 20% credit on two months of premiums. The credit would be automatically applied to customers' bills with no action required on their part.
USAA CEO and President Wayne Peacock acknowledged the impact of the pandemic, especially on the military community and their families, many of whom were working on the front lines of the crisis. He stated that returning premiums would provide timely help for members.
USAA has a history of returning profits to its members. In 2019, it shared $2.4 billion with its members, and in 2020, it also offered special payment arrangements on life and health insurance policies, including a 60-day extension to the 30-day grace period.
In addition to USAA, other major auto insurers, including Geico, Liberty Mutual, Allstate, and American Family Insurance, also gave back money to their customers during the pandemic. These insurers provided credits, refunds, or percentage returns on monthly premiums or per covered vehicle.
USAA's initiative to return money to its auto-insurance customers during the pandemic was a significant step in recognizing the financial challenges faced by its members, especially those serving on the front lines.
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USAA's special payment arrangements during COVID-19
During the COVID-19 pandemic, USAA offered its customers special payment arrangements and financial relief.
USAA, the fifth-largest property and casualty insurer in the country, returned $520 million to its members due to the COVID-19 pandemic. This was done to provide timely help to its members, especially those in the military community and their families, who were on the front lines of the crisis.
USAA auto-insurance customers received a 20% credit on two months' worth of premiums, which was automatically applied to their bill with no action required on their part. This was a result of members suspending non-essential travel, driving fewer miles, and experiencing a reduction in accidents.
USAA Life Insurance Co. also offered special payment arrangements, including a 60-day extension to the standard 30-day grace period for life and health insurance policies. Additionally, USAA Investment Management Co. reduced its managed portfolio fees by 50% from April 1 through May 20, 2020.
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Frequently asked questions
Yes, USAA is giving back money to customers in the form of credits on their monthly bills or refunds.
USAA is giving back money to customers in response to the COVID-19 pandemic. The company is also doing this due to the reduced number of miles driven and accidents as a result of the pandemic.
USAA is giving back a total of $520 million to its members. Auto-insurance customers will receive a 20% credit on two months of premiums.
If you are eligible for a refund, the credit will be automatically applied to your bill. No action is required on your part.
