If you or a relative served our country in the armed forces, USAA car insurance could be a great option for you
United Services Automobile Association (USAA) has been insuring drivers since it was founded in 1922 by twenty-five Army officers who chose to insure one another instead of going through an established company. Since then, USAA has been offering insurance and other financial services at discounted prices to military service members and their families. A commitment to this targeted market and a commitment to service after the sale is one reason why USAA car insurance routinely ranks among the nation’s best.
Coverage options
Most states require its licensed drivers to purchase a minimal amount of liability car insurance coverage (both bodily injury and property damage liability) in case you cause an accident. Bodily injury liability coverage helps to pay to treat injuries you cause others in a car accident (though in most cases, this won’t cover injuries sustained by the passengers in your car at the time of an accident you cause.) Property damage liability protection is used to pay for damages you cause to other people’s property (including their cars) in an accident deemed to be your fault. States set minimum required levels of both bodily injury and property damage liability for its licensed drivers. While you can easily get USAA car insurance with liability levels set to meet your state’s minimum requirements, it is strongly encouraged that you put levels in place that exceed your state’s requirements. USAA encourages this by setting your base rate for calculating coverage lower when you do have higher liability levels set for your policy.
If you have financed the purchase of a new or newer car or if you are leasing a vehicle, you may be required to add collision coverage, comprehensive coverage or both options to the car insurance you have in place. The terms and conditions of most car loans or leases will require you to have one or both of these options in place to protect the collateral interests of the lender or lessee during the term of the loan or lease
USAA collision coverage protects your car and will pay to have it repaired if it is damaged in a collision with another car or a permanent object (like a tree or building.) Collision coverage also pays to repair damage your car sustains if you are involved in a rollover accident.
USAA comprehensive coverage protects your car from what are known as non-collision events. It will pay to repair any damage your car sustains due to things like severe weather, floods, car fires, damage caused by animals, even theft and vandalism.
The “limits” you can set for either collision or comprehensive coverage depends on what the current market or what’s referred to as the actual cash value of your car is. The value of your car is the top limit paid out for any claim on your collision of comprehensive coverage. With these coverage options, you will also have to select a separate deductible for each. USAA offers a wide range of deductible options for both (though the average deductible for collision and comprehensive is $500.)
You can compare quotes on USAA and other lines of car insurance coverage here
Along with required lines of auto insurance, USAA offers additional coverage types that are suitable for a variety of accident or non-accident incidents:
Personal Injury Protection (PIP) coverage - often referred to as expanded no fault coverage, PIP is used to pay for the medical expenses of you, your passengers and any named family members covered by your policy in the event you are in an accident. PIP can also be used to reimburse you for lost wages should your recovery from an accident prevent you from getting back to work. PIP options will also pay for any lost services incurred due to the injuries a covered person may have provided (such as child care or even housekeeping.) PIP options will also pay funeral expenses in the event a fatality results from a covered accident. PIP benefits pay regardless of who is found to be at fault for an accident. PIP benefits are not subject to deductibles. PIP can pay to treat injuries you or your covered family members sustain when they are injured riding bikes or even walking. There are some states that specifically require licensed drivers to put PIP in place to meet no fault insurance coverage requirements.
Medical payments coverage - another form of no fault car insurance coverage, medical payments is typically not as comprehensive in what it covers as PIP. It does cover reasonable expense for treating injuries you, your passengers or your named family members sustain in a car accident. Some medical payment options also provide for disability payments, long-term medical and rehabilitation costs, and death and funeral benefits in the event of a fatality. As with PIP, there are some states that specifically require licensed drivers to have medical payments coverage in place to fulfill no fault coverage requirements. (There are also some states that allow you to choose either medical payments or PIP as a way of fulfilling these no fault coverage obligations.)
Underinsured motorists or Uninsured driver coverage - these are two distinct coverage options that are often combined as a single policy addition. These options are put in place to protect you in the event you are in an accident with a person who does not have insurance, or who has liability coverage at such low levels as to leave you with additional costs to cover in the aftermath of an accident they caused. These options are also able to help cover the cost of treating injuries or repairing damage done by a hit-and-run driver. There are some states that require licensed drivers to have one or both of these options in place in addition to liability coverage. As with liability coverage, there are two parts to most uninsured motorist options: bodily injury and property damage. Many states require that if you do put uninsured/underinsured motorist coverage in place, you must do so at limits equal to the liability coverage you have in place on your policy.
Roadside assistance coverage - this can be an invaluable option to add to your USAA car insurance and it can cost as little as $9 in additional premium over the course of your coverage term. Wit this option in place, you can access emergency roadside services should you or your family need them on the road. It can cover everything from short-distance emergency towing to a repair facility (or back to your home) to minor roadside repairs. It can also help you if you’ve run out of gas, blown a tire or locked your keys in your car.
Rental reimbursement coverage – can keep you on the road if you car has to undergo extensive repairs in the aftermath of an accident. With this option in place, USAA will pay directly or reimburse you for the cost of a rental car when your covered car is unusable due to a covered event. You can buy coverage set at a flat rate per-day with a maximum benefit per-incident. (An average plan will pay $30-per day up to $900 in total benefits per incident.)
Accident forgiveness – USAA has joined the crowd of other car insurance provider in rewarding drivers who go extended periods without a claim. If you go five years without a claimable accident, USAA won’t increase your premium in the event you do have an accident. (You can even accumulate some of that five-years of safe driving with another insurer and USAA will honor that time.)
Generous discounts
By keeping the focus on a targeted group (military personnel and their families) USAA is able to maintain solid control over the prices and premiums it has to charge its members. Even beyond the generous rates members will find, USAA offers an impressive range of discounts that members can apply for. While not all discounts will be available in every state, USAA members can apply for these discounts on premium for their car insurance coverage:
- Safe driver discounts
- Defensive driver training discounts
- Driver training courses discounts
- Good student discounts
- Loyal member discounts
- Family plans discounts
- Multi-policy discounts
- Low mileage discounts
- New car discounts
- Multi-vehicle discounts
Members can also receive discounts of up to 90% off standard premium if they store a car (especially if storage is due to a deployment or other military-related event.)
Excellent ratings
While joining USAA has its own incentives as an organization that supports our servicemen and women and their families, the consistent high marks earned by USAA are another impressive reason to consider them for your insurance and financial investment needs.
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Combined ratings from A.M. Best and Standard & Poor's give USAA a perfect score of 100. (The only U.S. car insurance provider in the top 10 country to earn that rating.) J.D. Powers & Associates has a five-point scale they use to rate car insurance companies and USAA has earned a five-point rating for several years in a row. A nationwide survey of state insurance commissioners and departments indicates that few people have complaints about USAA. The company earns a 4.9 ranking in a consumer complaint survey where 5 is the highest mark given (the higher the mark, the fewer the complaints from consumers.)
Membership has its privileges
The benefits and discounts available through USAA car insurance are, in part, made possible due to its limiting the pool of customers. There are membership requirements to fulfill before you can access the car insurance and related products offered through USAA. Membership in USAA is limited to:
- Active, retired and honorably separated officers and enlisted personnel of the U.S. military
- Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS)
- Adult children of USAA members who have or had a USAA auto or property insurance policy (children under the age of 18 can be added to a parent or legal guardian’s car insurance policy and after they turn 18, separate policies can be purchased for them or they can remain on a parent or guardian’s policy until they turn 25 or 26, depending on the state where they live and drive and in some circumstances, only if they are a full-time student)
- Widows, widowers and former spouses of USAA members who have or had a USAA auto or property insurance policy while married (USAA recognizes same-sex marriages and legally recognized partnerships for this eligibility requirement.)
(There are certain USAA products (including investments, financial planning services and life insurance products) that are available to the general public.)
As you can see from the eligibility standards, benefits accrued through your membership in USAA can be passed down to future generations of family members, whether they choose to serve or not.
Consulting with an insurance professional may be the best first step you can take to making sure you are getting all the car insurance coverage you need at rates you can afford. Whether you select USAA or some other insurance provider, Reply! can help by putting you in touch with insurance providers in your area who can offer you competitive quotes and options for getting all the car insurance coverage you need.