I had USAA car insurance for over twenty years, but they kept raising my TX insurance so when I got one of those "save 50%" fliers in the mail in January, I called. I had the 15 minutes to burn and was curious. This was to AIG. I was currently spending 2000 a year for two cars, an Ody and a Beemer.

AIG gave me a quote of 1200 to which I asked that's nice but how much for BOTH cars. They said it was for both. This was apples to apples coverage, so I said thanks and I would get back to them. I called USAA and told them AIG was offering same coverage at 1200/yr and they thought I had been mistaken about how much coverage AIG was providing at that quote. They said they wanted to keep me as a customer and they would see how low they could go and call me back.

An hour later they called back and said 1700/yr was the best they could do, but they were in the process of redoing their rates. Still 500/yr more than AIG so I switched. I haven't called USAA back to see if they actually dropped their rates yet.

 

I too dropped USAA. After 20 years with them I got in an accident. It's questionable if it was my fault, but I didn't fight it and they blamed me. My rates shot up to about 4 times the previous rate, i.e. $500 to over $2,000 per six months. I switched to State Farm and it was only about 30% more than my previous USAA rate. Then three years later the accident was removed from my record and State Farm was still cheaper than USAA.

When I was first notified of the rate increase, I wrote a letter to USAA with my outrage. The response I got was; USAA had been getting a lot of claims from the south coastal areas since they have a large population of members down there, and they were loking for any excuse they could to raise rates to the maximum level.

Apparently I'm not the only one who dropped them, since they are trying to get back to a more realistic. rate.