Haris Ashley
USAA, or the United Services Automobile Association, is an insurance company that offers a range of personal and commercial insurance products, including auto, homeowners, life, health, and property insurance. The company was founded in 1922 by 25 United States Army officers who wanted to ensure reliable and economical auto insurance for its members. USAA is unique in that it is a private company, not publicly traded, and its policyholders own the company's assets and insure each other. The company has received high ratings from customers and credit rating agencies and is known for its competitive rates, especially for eligible military members and their families, who are the company's niche market.
| Characteristics | Values |
|---|---|
| Year founded | 1922 |
| Founder | 25 United States Army officers |
| Headquarters | San Antonio, Texas |
| Membership eligibility | Officers and enlisted personnel, including those on active duty, those in the National Guard and Reserve, Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS), retired or honorably discharged members, and their families |
| Insurance products offered | Auto, homeowners, life, health, property, motorcycle, renters, umbrella, personal property, business, pet |
| Banking services | In-person, mail, phone, internet |
| Mobile banking | Check deposits via mobile app for Apple iPhone and iPad and mobile devices with Android operating system |
| Number of employees | 32,000 (2015); 35,000 (2023); 37,000 (mid-2020s) |
| Number of members | 11.4 million (2015); 13 million (2023); 13.5 million (mid-2020s) |
| Annual revenues | Over $31 billion (2018) |
| Ratings | "AAA" or exceptional from Moody's Investors Service; "AA+" or very strong from Standard & Poor's; exceptional long-term outlook from AM Best; 4.5 out of 5 stars from TrustedChoice.com |
| Average insurance rates | Cheaper than the national average for auto and homeowners insurance |
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What You'll Learn
USAA's history and founding
USAA, or the United Services Automobile Association, was founded in 1922 by twenty-five US Army officers who met at the Gunter Hotel in San Antonio, Texas. The officers agreed to insure each other's automobiles, aiming to secure reliable and economical auto insurance.
Initially, membership was restricted to US military officers, but in 1924, the name was changed to the United Services Automobile Association when commissioned officers of other US military services became eligible to join. Despite this early success, the company faced challenges in the late 1920s due to a dispute between competing factions vying for control. This issue was resolved with the appointment of Major General Ernest Hinds as general manager and secretary-treasurer in 1928, a position he held until his death in 1941.
In the following decades, USAA expanded its services and membership. In 1951, American Business Magazine recognised USAA as one of the best offices in America. The company opened its first international office in Frankfurt, Germany, in 1952, serving members of the American occupation forces. USAA continued its international expansion with an office in London, England, in 1962, and began offering homeowner's insurance the same year.
In 1973, USAA further broadened its membership eligibility to include the National Guard and Reserves, and in 1996, enlisted members of the armed services also became eligible. While USAA has traditionally served the military community, it offered restricted membership to civilians between 2009 and 2013, providing access to investment products and most bank deposit offerings.
Today, USAA is a significant player in the insurance and financial services sectors, offering a wide range of insurance products, including auto, homeowners, life, health, and property insurance. The company has received recognition for its workplace culture and benefits, consistently ranking among the best companies to work for in America. With its focus on serving military families, USAA has established itself as a trusted and competitive provider within its niche market.
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USAA's insurance products
USAA, or the United Services Automobile Association, was founded in 1922 by 25 United States Army officers who agreed to insure each other's automobiles. The company has since expanded its range of insurance products and, as of 2025, offers the following types of insurance:
Auto Insurance
USAA offers auto insurance to veterans, active-duty military members, and their qualifying family members. Its auto insurance rates are cheaper than the national average across every driver age category. USAA's auto insurance includes bodily injury liability coverage, property damage liability protection, collision insurance, comprehensive insurance, and uninsured/underinsured motorist coverage.
Homeowners Insurance
USAA's homeowners insurance premiums are also cheaper than the national average. For example, a home insurance policy with $300,000 in dwelling coverage from USAA costs $1,232 annually, compared to the national average of $2,258.
Life Insurance
USAA offers whole life insurance, term life insurance, and annuities. Its life insurance policies do not include a war-exclusion clause, which is a unique feature in the industry.
Property Insurance
USAA provides property insurance, including renter's insurance and umbrella insurance.
Health Insurance
USAA also offers health insurance products.
In addition to the above, USAA also offers business and pet insurance. The company contracts with third-party insurance providers to offer products and services that USAA does not provide directly.
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USAA's membership and eligibility
USAA, or the United Services Automobile Association, was founded in 1922 by twenty-five US Army officers who agreed to insure each other's automobiles. The company motto was changed to "Service to the Services" in 1924 when commissioned officers of other US military services became eligible for membership.
USAA membership is offered to officers and enlisted personnel, including those on active duty, those in the National Guard and Reserve, officer candidates in commissioning programs (Academy, ROTC, OCS/OTS), and all those who have served in the aforementioned categories and who have retired or have been discharged honorably. Historically, only US military officers (among certain other federally sworn officers) were eligible to join USAA, with descendants of USAA members able to purchase insurance from USAA-CIC. It did not matter if one was an active-duty or retired officer; one could join at any time. In 1973, membership was opened to members of the National Guard and Reserves, and in 1996, eligibility was expanded to enlisted members of the armed services. USAA also offered restricted membership to civilians between September 2009 and August 2013, which provided access to USAA's investment products, most bank deposit products, and life insurance.
USAA's insurance policies are only available to military members and their families, but the company provides a multitude of insurance products for this niche market. The company offers auto insurance, homeowners insurance, renters' insurance, life insurance, health insurance, property insurance, personal property and casualty insurance, whole life insurance, term life insurance, and annuities. USAA's life insurance policies do not include a war-exclusion clause, which is unique in the industry.
USAA has consistently received high marks from major credit rating agencies, and its insurance rates are often cheaper than the national average. The company has also been recognised for its workplace culture, making Fortune's "100 Best Companies to Work For" list annually from 2010 to 2023.
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USAA's financial performance
USAA, or the United Services Automobile Association, is a San Antonio-based insurance and financial services company. It was founded in 1922 by a group of military officers to provide reliable and economical auto insurance. Since then, it has expanded its offerings to include a range of personal property and casualty (P&C) insurance, including automobile insurance, homeowner insurance, renters' insurance, and life insurance.
USAA has consistently demonstrated strong financial performance and growth over the years. In its 2023 Annual Report, USAA highlighted several key financial achievements. Firstly, the company reported a net income of $1.2 billion, a significant improvement from the previous year's loss of $1.3 billion. This loss in 2022 was a rare occurrence for USAA, as it had not posted a loss since 1923, the year after its founding.
Secondly, USAA's revenues rose to a record $42.5 billion in 2023, representing a 17% increase from the previous year. This growth was driven by strong product revenue performance across all three lines of business. Thirdly, the company's net worth increased by $1.7 billion, or 6% year over year, ending at $29.1 billion. This growth in net worth is especially impressive considering the economic challenges and high inflation that persisted into 2023.
In addition to its financial performance, USAA also demonstrated its commitment to its members and the military community. In 2023, the company paid out $23.9 billion in claims, including over 350,000 catastrophe-related claims. USAA also returned nearly $1.9 billion to its members in distributions, dividends, and bank rebates and rewards. Furthermore, the company expanded its credit card offerings and increased the borrowing amount for mortgages through the Veterans Affairs jumbo loan program.
USAA's financial strength and stability are further evidenced by its ability to withstand challenges and economic downturns. Despite facing difficulties in the 2020s, including divestitures and compliance issues, USAA has maintained its position as a significant player in the insurance and financial services sectors. The company's focus on serving military families and its commitment to innovation and technological advancement position it well for continued financial success and growth in the future.
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USAA's customer reviews
USAA insurance is a top-rated insurance company, particularly for members of the military community. The company offers a wide range of insurance products, including auto, property, and life insurance policies.
USAA has received generally positive reviews from its customers, with WalletHub giving it a rating of 3.5/5. The Zebra also rates USAA highly, with a score of 4.6/5, praising the company for its top-notch customer satisfaction and wide range of coverage options. USAA has also been commended for its competitive rates, with some customers highlighting that its insurance policies are cheaper than those of its competitors. One customer review on WalletHub mentions that USAA offered rates that were 25% cheaper than other insurance companies.
USAA's auto insurance has been praised for its accident forgiveness feature, where customers will not experience increased rates after one at-fault accident. The company also offers a wide range of discounts, including loyalty discounts, early quote discounts, and automatic payment discounts. USAA also provides roadside assistance as a paid upgrade, offering services such as towing, winching, flat tire repair, fuel delivery, and battery jump-starts.
However, some negative reviews highlight issues with customer service and the claims handling process. Some customers have expressed frustration with long hold times, a lack of responsiveness, and difficulties in resolving issues. There are also complaints about rate increases, with some long-time customers feeling disappointed that their loyalty was not rewarded with better rates.
Overall, USAA insurance reviews are mixed, with some customers praising the company for its competitive rates, extensive coverage options, and customer satisfaction, while others have expressed disappointment with customer service and claims handling.
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Frequently asked questions
USAA, or the United Services Automobile Association, is an insurance company that provides a range of insurance products, including auto, homeowners, life, health, property, and more. USAA was founded in 1922 by a group of army officers who wanted to insure each other's automobiles. Today, it offers its products to military members, veterans, and their families.
USAA insurance is available to military members, veterans, and their qualifying family members. Historically, only U.S. military officers and certain other federally sworn officers were eligible to join USAA. However, over time, eligibility was expanded to include members of the National Guard, Reserves, and enlisted members of the armed services.
USAA offers a wide range of personal and commercial insurance products. In addition to auto insurance, they provide homeowners insurance, life insurance, health insurance, property insurance, and various other types of coverage. USAA is known for offering competitive rates and has been recognized for its excellent customer service.
