Understanding Usaa Auto Insurance Deductibles: What's My Deductible?

USAA is an insurance company that offers car insurance to military members and their families. The company was founded in 1922 by 25 Army officers who wanted to insure each other's vehicles. Today, USAA offers some of the lowest car insurance prices in the nation to military members and their families, with average annual premiums ranging from $432 to $2,002. USAA also offers various discounts that can help lower insurance premiums, such as bundling, good grades, safe driver, and defensive driving course discounts. One aspect of car insurance that USAA policyholders may want to understand better is their deductible. A deductible is a specific amount of money that a policyholder must pay before their insurance company starts paying on a claim. While USAA strives to provide excellent customer service, there have been reports of delays in recovering deductibles from at-fault parties.

USAA deductibles and eligibility

USAA is a member-owned insurance and financial services company that primarily serves military service members and their families. It offers a range of insurance and financial products, including auto insurance.

Eligibility for USAA membership includes active, retired, and honorably separated members of the U.S. military, as well as cadets and midshipmen at U.S. service academies and their eligible family members. Eligible family members include spouses, children (including step-children), widows/widowers, and former spouses who have not remarried. For children to be eligible, the parent must join USAA while living.

Once someone becomes a USAA member, their family members become eligible for membership, even if they are not in the military. For example, if the child of a USAA member joins, their spouse and children are then eligible for membership as well. However, eligibility does not extend to siblings or parents.

Regarding deductibles, in the context of insurance, a deductible refers to the amount you are required to pay as part of a claim. For instance, if a covered windstorm causes $10,000 worth of damage to your home and your deductible is $2,000, your insurance will pay $8,000 toward the repairs, and you will pay the remaining $2,000. You can choose the amount of your deductible from the options offered by USAA, with higher deductibles generally lowering the cost of your insurance premium and lower deductibles tending to increase it.

Deductibles and fault

A car insurance deductible is the amount of money you pay out of pocket when you file an insurance claim. Once you pay this amount, your insurance company will cover the remaining cost for damages (up to your policy limit).

A deductible is commonly required with collision coverage, which is coverage that would protect you in an accident that is not your fault. You would also pay a deductible with comprehensive coverage and sometimes with uninsured or underinsured coverage.

If you are not at fault for a car crash, you can choose to go after the liable driver's insurance company and have them pay for your damages. However, this can take time and is often filled with hurdles, as the other insurance company may try to pay out as little as possible. In the interest of time, you may decide to file a claim with your own insurance company, pay your deductible, and have them cover the remaining costs. If this is the case, your insurance company will then attempt to recover the amount of your deductible from the at-fault driver's insurance company through subrogation.

Subrogation is the process by which one insurer (e.g. your insurance company) receives money from another insurer (e.g. the at-fault driver's insurance company) so that the not-at-fault driver gets their deductible back. Here's how it works:

• You pay your deductible, and your insurance company pays for the damages.
• The insurance companies determine who is at fault for the crash. They will often ask for a statement from the involved parties and collect as much information about the incident as possible. This is why it is important to obtain a police report, pictures, and other evidence from the scene.
• Your insurer will recover your deductible. Once it is determined that the other driver was at fault, your insurance company will work through the subrogation process to recover your deductible. You may need to submit proof that you paid your deductible, such as a body shop invoice or credit card statement.

The deductible recovery process time depends on the circumstances of your accident, and each claim is unique. On average, it can take about six months to recover your deductible, but if both sides are cooperative, you could get your money back in as quickly as one to two weeks.

Getting your deductible back

• When both parties have USAA insurance: If you are in an accident with another driver who also has USAA insurance, the process for recovering your deductible may be faster and more streamlined. However, it is important to note that USAA will only cover the repairs minus your deductible. If you want the at-fault party to pay your entire repair cost, you may need to file a claim with the other driver's insurance company directly.
• When the at-fault party is identified: If the other driver is found to be at fault for the accident, USAA may reimburse your deductible. This process can take some time, and you may need to follow up with your adjuster to ensure that your claim is being handled properly.
• When you have comprehensive coverage: If you have comprehensive coverage, you may be able to avoid paying your deductible upfront by filing a claim with the at-fault driver's insurance company. This will depend on their insurance company and their willingness to accept liability.
• When you have rental car reimbursement coverage: If your car is being repaired due to an accident, and you have rental car reimbursement coverage, USAA will typically cover the cost of a rental car for the duration of the repairs. This can help offset some of the costs associated with the accident.
• When you have accident forgiveness: USAA offers accident forgiveness as an add-on or as a free benefit if you go five years without an accident. This means that your first accident may not affect your rates or deductible.
• When you are a military member or veteran: USAA offers special discounts and benefits for military members and veterans, including reduced rates and coverage for stored vehicles. If you fall into this category, you may have additional options for recovering your deductible.

It is important to carefully review your insurance policy and understand the terms and conditions before filing a claim. Additionally, seeking legal advice or consulting with a USAA auto claims lawyer can help you navigate the process and improve your chances of recovering your deductible. While there is no guarantee of getting your deductible back, staying informed, proactive, and persistent can increase your chances of a positive outcome.

Discounts on deductibles

USAA is an insurance company that provides auto and home insurance to people who have served in the military or are affiliated with the military through their family members or spouse. USAA is known for its low insurance rates and numerous discounts.

Safe Driver Discount

USAA offers a discount for customers who have maintained a clean driving record for more than five years. This discount also qualifies drivers for USAA's accident forgiveness program.

Driver Training Discount

If you are under 21 years old, you can receive a discount on your auto insurance by taking a driver's training course. This discount is available whether you learn to drive from a family member, friend, or through a formal course.

Defensive Driving Discount

USAA offers a discount for customers who take one of their approved defensive driving courses. This discount may vary depending on your state, age, and other factors.

Mileage/Annual Mileage Discount

If you drive less than a certain number of miles per year, you are eligible for a discount. The threshold is typically set at 12,000 miles annually, and this discount is only available for drivers over the age of 29.

New Vehicle Discount

If your vehicle is less than three years old, you are eligible for a discount on your auto insurance.

Automatic/Electronic Payment Discount

USAA offers a small discount if you schedule electronic payments instead of paying manually. This reduces the risk of missed payments and is rewarded by the insurer.

Family Discount

USAA provides a discount if you have multiple family members using their insurance services. This discount is available for former dependents under 25 with a clean driving record who were previously listed on a family member's policy for at least three years.

Length of Membership Discount

Long-time customers of USAA are eligible for a length-of-membership discount, rewarding their loyalty to the company.

Military Installation Discount

If you store your car on a military base, you can save up to 15% on your auto insurance. This discount is one of the most significant offered by USAA.

Good Student Discount

Full-time students aged 16-25 who maintain at least a "B" average or are in the upper 20% of their class academically are eligible for a discount.

Bundling/Multi-Policy Discount

USAA offers a discount if you purchase multiple types of insurance from them, such as home insurance, life insurance, or renters insurance, in addition to your car insurance.

Multiple Car/Multi-Vehicle Discount

Insuring multiple vehicles with USAA can qualify you for a discount on your overall premium.

SafePilot Discount

SafePilot is a USAA program that tracks your driving habits through a mobile phone app. If you exhibit safe driving behaviours, you can receive lower auto insurance rates of up to 30%.

These discounts can help USAA members save a significant amount on their auto insurance premiums, making their already low rates even more affordable.

Deductibles and full coverage

USAA offers auto insurance to its members, with membership restricted to military members, their spouses, and their dependents. The company offers some of the lowest car insurance prices in the nation, with average annual premiums ranging from $432 to $2,002.

Full coverage auto insurance costs around $2,002 per year and includes collision and comprehensive coverage, which are not required by any state law. Collision coverage pays for damage to your vehicle in the event of a collision with another vehicle or object, excluding animals. Comprehensive coverage, on the other hand, covers damage to your vehicle caused by something other than a collision, such as theft, fire, vandalism, flooding, or collision with an animal. Both collision and comprehensive coverage are subject to deductibles.

A deductible refers to the amount you pay "out of pocket" on a claim before your insurance covers the rest. In the context of auto insurance, you are responsible for paying your policy's stated deductible every time you file a claim. The two most common car insurance coverages that include deductibles are comprehensive and collision. However, depending on your state, you may also have a deductible for personal injury protection or uninsured/underinsured motorist property damage.

When choosing a deductible, you typically have the option of selecting a low or high deductible. A low deductible means you will pay a higher insurance rate, while a high deductible results in a lower insurance rate. For example, if you have a $500 deductible and $3,000 in damage from a covered accident, your insurer will pay $2,500, and you will be responsible for the remaining $500.

It's important to note that some insurers offer a disappearing deductible program, where your deductible amount decreases or is waived if you go a certain period without a claim or violation. Additionally, in some states, your insurer may repair or replace your windshield without requiring a deductible, or they may offer you the option of choosing a $0 deductible for glass claims.

Frequently asked questions