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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You may want to speak with some body shops as to what it is like to wrk with State Farm. I have not heard great things

In my experience USAA has always been competitive. Over the last few years a insurance company, has been cheaper but didn’t want to fall victim to bait and increase to future costs. I understand pricing subjective to so many variables and some based out of an insured control. I also, have been using safe pilot to reduce cost and find the app very easy to use. For data point, other insurance, has been cheaper by 40% for 2 years now. I check with other insurance every 6 months to make sure I am okay with USAA cost. The Insurance that starts with a G, has never been cheaper, many users report them to half the cost. Not for me
batman23 there was no bait and switch for me.  I left USAA after 40 years and am still paying less than 1/2 of the cost I was paying USAA after 4 yearly policies.  The yearly policies are way better than USAA's 6 month policies with their automatic cost increases. 

I agree with you 100%.  I had USAA auto insurance for 50 years but recently dumped them for the gecko.  I'm saving 44%.

Yeah I hope USAA can figure it out and pull the nose up. Lately I've found them to be all talk and no action, which is unfortunate to see them fall from such a high level of grace. I used to be proud to do business with them, but that is no longer the case. 


I always thought I'd have USAA till I die, and my kids would have it for the rest of their lives. Seems like USAA is stepping over a dollar to pick up a dime with their short sighted business practices. IMHO they need to round back to what made them sucessful in the first place. 

USAA has been dropping a lot of coin on advertising campaigns these past few years.  Given the way they've been chasing out long-time members, perhaps they need to...

@ wrote:

USAA has been dropping a lot of coin on advertising campaigns these past few years.  Given the way they've been chasing out long-time members, perhaps they need to...

And loosening membership requirements. I think it's a matter of time until they go further. The first step was to hire a CEO with zero military background. I've been actively looking elsewhere as well. They're good as long as you continue to pay their premiums and never need to get on the phone with them for assistance.

I am with you, had similar experience about insurance both home and auto, I do not understand USAA pitch, but if you watch thier commercial and they boasting they are all into our active duty forces and veterans and how they care about our sacrafices  as you probably remember USAA used to cater only to military officers and thier depends and left the enlisted ranks in the back burner, I am not here to trash USAA, they did good thing to help our community, but I do not understand with the customers base that they servicing they should have clouts to negotiates lower cost to it members, hopefully they will nade this a priority nmuber 1 in 2021 to to move forward live up up to thier commiment to ouractive duty and veterans and help them achieve thier financial goals and save a little.

Semper FI

Peace Out 

Won't happen.  USAA's main priority now is to enrich it's CEO and upper management.


Won't happen.  USAA's main priority now is to enrich it's CEO and upper management.

Don't forget--and federal regulators with their fines.

Fast forward a few months and here is the SitRep. I held off on changing insurance because I was doing a refinance, but now that- that is over with; I went ahead and got updated rate comparisons as of 10/22/2021.


These are apples to apples comparsions, same coverages, same vehicles, same state.


Keep in mind these are ANNUAL figures, for both home and auto combined.


USAA = $5,954

State Farm= $4,323

AAA= $3,507

All State= $4,790

Farmers= $3,926


I could literally go ANYWHERE else and save myself some considerable money, without going to some unknown/ unproven insurance company. These are the titan's of the insurance industry, your direct competition!


So if you are anything like me, and you failed to do your due dilligence ASSUMING Usaa was the best rates in town (because for the longest time they were hands down), please start calling around to see if that is still the case. I was absolutely blown away at how EXSPENSIVE Usaa has become. 


I'm pulling the trigger today!

18 year member is moving on! 


Hi, @IRQVET. Thank you for reaching out and for your membership of eighteen years. This is concerning to read, indeed. Were you able to review with our team already as well? ~ Steven 

I sugguest you re-read this thread in its entirity, you'll find the answer to your question explained at nasium . . .

Happy to report, I have severed my relationship with USAA.


Saved $2,324 Per Year on my Home & Auto Insurance by switching to AAA.





Hi, Tango Sierra. We appreciate you sharing your concerns and expressing your thoughts on this experience. If I may ask, have you been able to review with us, by chance? ~ Steven

Thanks for bringing this up - I've noticed how crazy the USAA prices have become, and you've now given me the kick to explore other options. I also heard from a real estate friend that USAA's homeowner's insurance is also actually quite difficult and known to be such. So I guess that's exploring alternative insurance options is my next thing on the to-do list.

Hello, @JEAM! We appreciate you sharing your concerns. If I may ask, when were we last able to review your policies with you? ~ Steven

I did that twice to no avail. All I got was a sob story about how they'd hate to see me leave. Just saying . . .

IRQVET - I left USAA after 40 years for a major company that offers 1 year policies and not 6 month policies.  It just renewed for the second time, so I am beginning the 3rd year with them.  I have 4 vehicles.  When I was with USAA the 4th vehicle was in storage so it was charged a lower rate by USAA than having full coverage.  The new company does not offer stored vehicle coverage so I went with full coverage for that vehicle.  The initial policy with the new company was significantly lower than USAA for better coverage.  And with this latest renewal, my policy is now 67% cheaper than USAA.    Earlier this week, I was contacted by Mr. Hugo Estrada of the USAA CEO's office and informed him of this situation and even offered to prove it to him.  It was obvious that he was stunned by this situation and offered no response at all.  Nothing.  I even told him that I could not even remember any 6 month renewal where the cost went down.  Again, he seemed to be stunned and offered no response.  A while back, it is very obvious that USAA made a strategic business decision to change the way they do business.  Their insurance rates are now non-competitive and their customer service has gone down the drain.  I also have a sibling who left USAA.  When asked why, her response was "USAA had become too expensive."  Shop around.  I suggest using SelectQuote.  What has been intentionally done to USAA is a disgrace.

I'm a 37 year member and was motivated to check out other insurance companies several months ago because I was tired of USAA's  political activism and support of extremst groups and their deteriorating customer service. I discovered GEICO to have superior rates on both the car and house side and am very happy we dropped USAA and switched. The one benefit that USAA does have is dividing payments into montly increments without penalty- GEICO charges a significant fee to do this. Hence, if you can pay a 6-month premium at one time GEICO is far better than USAA, but you need to be aware of this when comparing rates. We've also removed most of our money from USAA on the banking side, again for their politrcal extemism, awful customer service, and anemic rates on savings- Ally Bank offers something like 12 times more in interest on savings than USAA.