I am in the process of selling my house and buying a new one. I wanted to use USAA, but in Texas, we have the Texas Veterans Land Board. They offer Texans a lower intrest rate than what USAA does. In order to use them, I had to find a lender. I contacted USAA to see if they were a lender that I could use so that I could get this great rate. They advised that they did not participate in the program. I found this weird, as they are suppose to be a bank for Veterans. Here is a program, the Texas Veteran Land Board, who is providing a great oppurtunity to Veterans to get lower rates when buying a house and USAA is not a lender with them.
Has anyone found that USAA Home Insurance is more expensive than others? I have USAA Home insurance on my current house. I checked on getting it for the new house and it was way to high. What shocked me the most was that they show you a price, for example. $5000 for the price of the policy, but because you are a USAA member and you have these other accounts, they will only charge you $2500 for the policy. But what I have found, is that other insurance companys are offering me below the $2500 price, without being a member or haveing other accounts with them. So why is the amount that USAA proivdes before the decuctions so high?
Just wondering about other peoples experience and maybe some advice on finding a good company that offers a fair price.
Bevo, you need to do what is best for you. It is always smart to shop around when looking for a mortgage, insurance or investment to find a product that suits all your needs.
I have heard that USAA will not originate Texas Veterans Land Board loans. I don't know the reason, but can assume that because the interest rate it is so low that it probably is not the best utilization of their members funds. USAA is still a business that must answer to the board of directors and membership.
As for insurance, it always best to do a comparison of all your insurance products to ensure they meet what you want and need at the best possible price. You have to ensure you are comparing apples to apples, though, as not all insurance products are the same. USAA has to determine their premiums based on their own risk analysis and may not always be in a position to provide the lowest premiums in some markets or individual risk levels. Same can be said for any insurance company. For example, USAA tends to be high (and in some case won't even write a policy) in coastal areas on homeowners. Where other insurance companies are able to off-set the higher cost by spreading it out, USAA doesn't have the numbers or the will to increase rates across the board to insurance that group of people at a lower rate.
I recently did a comparison of my insurance products - Auto/Homeowners and the only other insurer that was close was Gieco/Liberty Mutual (Geico homeowners is through Liberty Mutual). I had to actually price my USAA coverage down to compare as Gieco didn't offer coverage as high. It was fairly neck to neck until I factored in what USAA pays back in the way subscriber account allocations. In my case, USAA is the most competitive.
It is quite a feat for USAA to remain competitive with the big insurance companies on a the limited membership basis it exist on. Limiting their risk and charging appropriate rates for those fall into the higher risk category is what helps to keep rates competitive for the majority of members.
The reason that the Texas Veterans Land Board is so low, is because they are serving the Veterans. Which is what I thought USAA was there for. At least, that is how there T.V. spots are geared. The regular rate is low, and if you are a Veteran with disability, you get an even lower rate. I got my mortgage at 2.55!! My questions is why USAA will not be a lender that will process the loan? Are they so money hungry now, with profits in their eyes, that they forget who they are advertising to serve? Just seems to me a case of false advertisiment when you get down to it, as far as wanting to be a bank for Veterans.
As far as the insurance, i can understand some things about offering a good product at a higher price thatn some others. But you did not address the fact that when I requested the quote, it was about $3000 higher than anyone else. USAA then reduces that price by saying, 'Well, you have this account, and this account, etc. so we will reduce it to $2000 a month". This price is still about $500 to a $1000 more than the other quotes. So, why do they start it with such a high price, then try to say because you are a member, we weill reduce it when the other companys that I do not have any account with start out at a more fair price.?????
It's a shame that as a Texas based company, USAA does not participate in this great program for Vets. I guess I will be forced to go through another company (USAA's competators, and not USAA) so more and more, USAA is just another big bank, and not there for Vets and Military members.
I appreciate you reaching out in the Community. While I never want to hear of a USAA member going with a competitor, I also understand that our members must do what is best for them. I can promise that your feedback has been notated for review. It is the feedback from our members that ultimately drives change and improvement to our products and services. Our primary goal is to serve the military community and their families.
I sincerely hope you will consider USAA for your future real estate needs. Thank you. -Gus