My great-grandfather was LTG Edward H. Brooks (WW1, WW2, Korea). His daughter married COL R. Potter Campbell, Jr (WW2, Korea, Vietnam). Their second daughter, my mother, married my father, COL Jack Kempster (Vietnam). I am a 3rd generation Army "brat" and the 4th generation to trust USAA. My children are the 5th generation, and my second son resumes the legacy of service by heading to Parris Island after HS graduation in June 2015!!
As a member of over 20 years, I've never had a terrible experience with USAA (though some less-than-perfect), and most have been terrific. Around the globe, USAA understands my needs and those of my family, and we'll stay with them as long as they keep this up and will have us.
Until you have an issue, then you will see the light. Try calling their customer support and see what happens. Get in an accident... try to get an issue resolved. Move to a predominately African American neighborhood and see how fast they raise your rates and push you away.
I've had a minor auto accident claim (in 1999, my fault), had water damage from a broken toilet that flooded my home and left my family of five in a hotel for 3 months ($80k+), have had to deal with customer service numerous times to square away insurance for my various vehicles and teenage drivers... even lived in Germany for two years (private, not military).
I also lived in a predominantly minority neighborhood for several years (Brazilian immigrants of all shades of African ancestry).
Through all that, USAA hasn't been perfect, but they've always come through when I needed them to with good service and competitive rates.
I'm sorry your experience has been negative, but I guess there are different experiences to be had. Good luck!