Originally Posted by
Jetjok
I just logged on to Geico's web site to get a quote for our two "daily drivers." We live in Connecticut and without going into detail about the cars we own, here's what I did: First I logged on to USAA's site and printed out a copy of my automobile policy, which includes both cars. Then I built a "custom quote" on Geico's site, using the exact same coverages, benefits, and liabilities that I have with USAA. Needless to say, Geico was less expensive. My USAA auto bill is $1992.32 a year. For the exact same coverage through Geico, I'd pay $1493.64, for a difference of $498.68.
So on the surface it appears that going with Geico would save me about $42 a month. That's enough for one Friday night visit to our favorite pizza place. However, every year for the past 42 years, USAA has sent me a check, usually somewhere between $600 and $1000, in November or December and as well puts additional money into our "account", which eventually I'll withdraw, after leaving USAA. I think I'd be foolish to switch insurers. Truth be told, I wasn't going to switch anyway, regardless of the outcome of the comparison, but I did want to see if there was any real savings to be had, and for me, there just wasn't. YMMV, obviously.
I agree with you on a lot of the above. If the price is somewhat competitive (within two standard deviations), USAA is worth it. Their service, in my opinion, is outstanding. I made my first auto insurance claim in about 9 years with them, and they handled it very well. We shall see how much they jack my rate up.
Sometimes, though, their products just aren't that good. When shopping around for life insurance for retirement, they wanted way too much for way too little. Navy Mutual blew them out of the water, and didn't charge extra for the privilege of flying for a living.
I think USAA is starting to cast their net too wide in an effort to appease their shareholders and make money in the short term. The ads on TV are telling. They used to have an extremely low risk pool of insured members, which kept rates fairly low. Now you can get USAA insurance if your mom or dad spent 6 months in the Army and got a general discharge.