No secret to those who know me I'd rather try to change the environment rather than adapt to it... Whether its a curse or a blessing, I don't know, but its kept me riding horses at times I probably shouldn't have.

I sent this note to Tricia based on her invitation. If you love USAA...write and tell her. If like me you've gotten a bit sour lately...write her too. Maybe if there is enough grass roots input some changes can be made. Heck...we video tape ALPA meetings now...anything can happen!





Dear Tricia,



I am writing because of your recent invitation on an aviation message board.



I have been an USAA member since I was an AFROTC cadet at Auburn University. Back then, USAA was marketed as a full service, low cost insurance company primarily for officers and retired officers. The implication was that by being in such a historically low risk group, not only would you have good service but at a very competitive price.



My USAA number is xxxxxxxxxx. I have used your services over the years all over the globe, and had a few minor auto claims and two flood claims along the way. You can research and see where we've been and what we have done all these years.



For years, I smugly sat around and listened to others complain about their insurance travails. I didn't have such problems, as USAA kept my family covered with great service and very good rates. To be honest, although I compared rates and shopped around in the 90s, I didn't comparison shop again until this year when my homeowner premium doubled. I just didn't feel the need to shop--because historically (although it was very OLD data) when I did compare USAA always had the best rates, and I appreciated the service.



Along the way, however, I began to see some changes. My auto premiums climbed steadily, and I often wondered if expanding the services outside of the officer ranks increased the premiums for everyone. Again...I didn't really shop around...I was content.



A couple years ago, I was told USAA would not renew a policy on an investment property we have near Tyndall AFB. Despite the fact we never made a claim, the home was cinder block construction on a fairly high lot, I had no choice but to find another company when USAA refused to cover anything but primary residences in the state of Florida. I elected to stay with USAA for my other insurance needs, but consulting an independent agent who found a policy for me that actually was less expensive that my previous USAA policy. However, I liked your company, so I used USAA for the other policies you continued to honor.



This year, however, my premium effectively doubled on my primary residence. I estimate the value of the home structure to be $250,000 or less to rebuild, and we don't have expensive taste in furniture, clothing, or appliances, and I expect we could redo everything after a loss for less than $75,000. When I tried to adjust the policy down, I was told the impact would be negligible on the total premium. At that point I gave up and started shopping other places.



USAA has always marketed itself as a friend to the military member. The fact is that I have retired from the Air National Guard now, make a comfortable living as an airline pilot, and have a wife who is very well connected in the community as we have made it our home the last 10 years. I have the time, money, and contacts available to deal with some insurance headaches, and changing providers, while disappointing, is not that difficult for us. However, I think many of your active duty military members who are facing a PCS, and cannot sell their home without taking a huge loss would be in dire straights if they were forced to lean on USAA right now. In addition to the stress of moving their families and possessions, if they are elect to rent their home to another family they will have to add changing insurance companies to their out processing checklist. Moving in the military is a stressful time under the best of circumstances...moving into or out of Florida is now much more difficult for service members who have trusted you all these years. I can live without you--I've got options. However, I still remember the hectic pace of PCSing and grimace when I think about adding a bunch of insurance changes into that mix. If you don't change that policy, I suggest you market yourself as "our mission is to facilitate the financial security of military families...that do not live in coastal areas..."



When I elected to share my experiences within the virtual pilot community, I discovered several people had similar experiences. Quite a few were very defensive of USAA, just as I had been for about 23 of the last 25 years. However, like me, there are some who have noticed the changes that have taken place over the last few years and are disappointed. I am also sensing a trend of USAA no longer being "our insurance company", but rather "an insurance company". Servicemen don't always get the choice on whether or not they in higher risk areas, nor do they get to chose when they have to move in our out of those locations. You've got a business to run, and I'm sure your underwriters have done plenty of due diligence. However, from Corpus Christi Texas to Brunswick Maine, there are literally thousands of service men and women along the coasts who have counted on your company for years. I know the 2004-2005 Hurricane Season was devastating, but most military homeowners simply cannot accept a doubling of their premiums. It seems USAA is out to recoup a few tough years of losses, and the cost advantage we have had for years has not only evaporated but many of us find ourselves paying considerably more by sticking with you than by moving our policies.



What I can say without reservation is I've never had a single claim that was not handled to my satisfaction. I am grateful for the prompt, professional, courteous service I have gotten over the years. There is probably an amount I'd pay to keep that level of service--but with three daughters to raise paying more than $450 more a month on homeowner policies is just too much. Considering the very few times I've ever needed to make a claim, I'm willing to take a chance on someone else to save some funds for my girls' education funds.



In short--I don't feel like I quit USAA. Instead, I feel like I was deliberately pushed aside and "encouraged" to shop around by offering a policy that is more than double what other competitors quoted. That's okay--business is business and your board of directors and underwriters provide the guidance. I know this is not personal. However, the risk is becoming just another insurance company is that there are a ton of insurance companies out there. My subscriber savings account, when refunded, will pay my homeowner premium for the next three years. That's a lot of incentive to give someone else a try. And its not personal...its just business.



Regards,



Axxxx Hxxxxx

Member xxxxxxxxx