USAA Insurance is getting to expensive

So USAA has been my auto and home insurance company for 18 years. I was recently talking to a few veterans about insurance and I asked him if he used USAA. His reply kinda shocked me. He quickly stated that he used to, but they got to expensive so he switched companies. Now I have to admit that when I first got USAA insurance, they were way cheaper than everyone else, so it never dawned on me to do a check to see if I was still getting a great rate; 18 years of blind bliss I guess?


Fastward to yesterday, I had a simular conversation with a co-worker, and he said the same thing. He dropped USAA years ago because their rates were too expensive. Granted I don't know their driving history (accidents, tickets, DUI) so I don't know what external factors drove up their rates. But I have to admit, I was now curious if I was still getting a great rate from USAA. So I decided to check and here was the results:


  • USAA was 2.5 times more expensive than Flo' given the same coverages and deductibles.
  • USAA was 1.5 times more expensive than State Farm given the same coverages and deductibles.


I figured this must be some sort of an oversight by USAA. So I called them to see what was going on. I have a perfect driving record, and my last vehicle accident was when I got rear ended in 2004. (At no fault of mine) 


At the end of the day, USAA had nothing so say. No explination, and basically gave me the best answer they could; which was their rates are their rates. If I wanted a cheaper rate, I would have to reduce my coverages. 


Granted a big deciding factor when shopping isn't just their rates. Their customer service is a big portion, as is the speed and ease in which they pay out in the event you need them. But with that being said, I can't speak to Flo', but I know State Farm has a wonderful reprutation and handles claims effectively.


Has anyone here experienced a simular issue with USAA? Seems like they are not now what they once were. . . 


(Even as I write this, USAA's system is blocking me from using the real name of the insurance provider listed above) But I think eveyone knows who Flo' is.


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Take a hard look at AmicaMutual.  They have a similar (mutual association) business model to what USAA had in the old days, and claims/customer service is great -- comparable to what USAA was 20 or 30 years ago.  I've moved all my insurance over to them now. 

And I agree that USAA (nor any business for that matter) should be involved in all the political "causes."  I mean, why alienate 50% of your potential customers?  But I guess that it's more trendy to support "social justice warriors" than actual Warriors these days.


I guess it's true: 



So USAA IS using part of our premiums to play politics.  It looks like 1.5 million in 2020.   I have no interest in adding to the (legal) corruption of our government through USAA.


Oh, and USAA is no longer led by a military man.   And it was sold last year to Charles Schwab. 


Another sign that USAA is becoming just another market player using the same playbook as the rest.  


Unfortunately, Mr. Peacock and his staff have a big hole to try and climb out of.  The previous CEO (Parker) is the main architect for USAA's woes today. He continued getting those sizeable pay raises during his 5-yr tenure until he retired Jan. 31, 2020, and received at least $6.5 million in severance payments (Source: SA Express-News, 3/5/2021, Former USAA CEO Stuart Parker receives more than $6 million golden parachute). He (the Captain) probably knew when it was time to leave a sinking ship. He took the life boat and left the passengers (members) and crew (employees/Board) to fend for themselves. Of course, he now works for one of USAA's competitors--Chicago based Kemper Corp. I think most members understand that USAA will never return to being what it was decades ago--and are looking at alternatives. Why pay big money on premiums if you're not going to get the help/service you expect. You're almost better off going with someone else. At least, you're going to save some money in the process. What I don't understand is how does USAA continue to get better than average reviews by magazines/reporters?

My vehicle insurance rate just went up again. Wonder if that could have been avoided if the money USAA donates to social engineering causes went to lower member's premiums instead?

@ wrote:

"Wonder if that could have been avoided if the money USAA donates to social engineering causes went to lower member's premiums instead?"

And money donated to CEO pay raises/severance payments, commercials and government fines. Many members are it could have gone to other areas like low premiums, etc--but it didn't and never will--like many others have already mentioned.


To USAA CSR: No need to escalate.

Do you think it depends more on your state and car? Last year, I found State Farm and Geico to be incredibly more expensive...

The rate comparison was apples to apples, same vehicles, same coverages, same physical locations.

@IRQVET, I can understand your point and your hesitation. It's always a good idea to take a second look to ensure we reviewed all your policy characteristics, discounts and savings. We understand we are not always the cheapest, but our goal is to always be competitive. If you change your mind, please give us a call at 800-531-8722 or chat with an Insurance Professional by selecting your policy online and clicking "Contact USAA" on the top right-hand corner. Thank you. -Cynthia 

USAA is no longer competitive due to a intentional shift in the way it does business.  What has been done to USAA is a disgrace.

Hello @young Person Learnin, thank you for your membership. We know how important the rates are and here to help anyway we can :) -Paula

I placed a second call into USAA based on the feedback from you folks here.


Same conversation ensued. No way to reduce the cost without dropping coverages. This is not acceptable and will no longer be tollorated. Keep in mind I've reached out to more insurance provides, and none of them will be charging me as much for the same coverages.


  • Allstate
  • Farmers
  • State Farm
  • Flo'


Every single one of those listed above are offerring me better rates. And to them, I'm just John Q. Customer off the street. Not an 18 year member like I am at USAA. Its truely unfortunate. So if you folks are examining trends to ensure you reamin competitive, you're failing miserably to accomplish that goal. 


Whats the military term for that, "Go wrong- Stay wrong."

@IRQVET, sorry to hear the outcome was not what you would have liked. Please know we value your membership and would hate to see you go. I will be sure to share your comments with the appropriate area. Thank you. -Cynthia 

Hello, @IRQVET. We appreciate you sharing this and giving us the opportunity to review. USAA understands that no member wants to pay more for insurance. As a result, we constantly evaluate competitiveness, member feedback, and emerging trends. So ensuring competitiveness is a major focus for us at this time, while still providing the best in service and claims experiences in the industry. We are certainly happy to review with you again at any time to seek out any potential savings opportunities that may be available. Please don't hesitate to to connect with us via chat on or by dialing 800-531-8722 to review going forward. 🤝 ~ Steven

What exactly can you do for me that wasn't already attempted? Like I stated in my post, I gave you folks the benefit of the dought, assuming it was just a mistake or some sort of oversight. The only sugguestion I received was in order to get better rates, I need to reduce my coverages. Doesn't seem like a real viable solution to the problem at hand. 


Keep in mind that was the information provided to me by USAA when I called. What will calling again do other than raise my blood preassure?