Usaa
 

Joined USAA in 1984 as an AFROTC cadet. Since then, been through multiple hurricanes, a war, several overseas moves, and a host of changes.

The company slowly raised rates over the years...used to be cheaper than others, but later was just "slightly" less. I suspect opening the company up to a wider demographic caused some of that, but the service was still good so I stuck around.

In 25 years, we've had maybe 2 fender benders with the cars. We had a 10k claim on flood policy for Hurricane Ivan, and a 35k claim for Hurricane Dennis....but those policies were underwritten not by USAA but by Federal Flood insurance.

In 2005 they quit insuring a Florida rental house. They also advised that if we moved and our house was no longer a primary residence it would no longer be covered. (I wonder how this affected military guys who bought but had to PCS, and rather than eat a huge loss kept their Florida homes as rental properties). This year, they raised rates on our residence from 3600 to 6666. Yes...that second number is right.

So...I made calls. "We have to make sure we can cover our Florida losses..." I took that to mean "we REALLY don't want to cover military guys in Florida..."

Today I found some other companies that offered similar coverage for well under $3000. In short, I've been overpaying for home insurance for the last 5 years. Once I realized USAA doesn't want to cover my home anymore, I really didn't want to give them any credit card, auto insurance, or other business. So after about an hour online I now have a new capitial one mastercard with my Navion on it, and I found that Progressive will actually provide coverage to include my teenage driver for $400 less a year than I am paying now for just me and my wife. I've saved a lot of money the last 24 hours, and am moving on.

So...with anyone else I'd just flip the bird and leave. Unfortunately, this company has been part of our family a lot of years...and 15 years ago when I looked closely at policies they seemed to always be less expensive and provide better service. I quit worrying so much about price the last few years...figured they were close...and wouldn't have even looked anywhere else if they hadn't doubled (yes, doubled) my homeowner premium this year.

Just throwing this out in cyber space for those of you fellow warriors who have USAA. They may be the very best deal for you where you are. However, you might want to at least check. I really haven't looked around in years, but this time had no choice. What I found will save me some money. Companies grow and change, and USAA has done so. It may be perfect for you, but it doesn't fit us anymore.

You are correct that once the demographics change - the prices and service changed. I've always had USAA for my auto insurance - nothing else - and I recently used them again to insure my car. I'll be buying a house in the next few months to a year - so thanks for the head's up about home owner's insurance. When the time comes I'll be sure to shop around instead of going with the comfortable opinion.

USMCFLYR

They have never hassled me on claims. A hallmark of the discount insurers is that they will try anything to avoid paying a claim, especially a large one. I still get a few hundred bucks back each year in disburements.

I agree that the expanded demographic may be an issue, but I thought they limited that to E-5 or better?

Maybe I'll check out some other options out of curiosity.

Like anything else (and a lot of the USAF), many organizations seem to run a while on their reputation that was once well-deserved. Eventually, their good times seem to end when the people realize the good deal is no longer automatically such a good deal. Hopefully, the pressure of many of their customers taking their business elsewhere will cause them to reflect and potentially return to the basics.

Had the same thing happen to me a few years back. Had a small fender-bender. It was my fault, so USAA tripled my rates. I was furious, I know insurance is year to year but seriously, I had never had another accident in my entire life.

I called State Farm and was able to get insurance at about 20% more than the old USAA rate, even with the accident on my record.

As I looked farther I was able to reduce all my insurance by about 20% by transferring to State Farm.

I was so irate I sent a letter the CEO of USAA. Actually got a letter back from him. Basically he said there are so many retired USAA military members living in hurricane prone areas, that when they all hit, USAA took a big hit. Now they are looking for any excuse they can to raise rates.

Albie,

I have heard from those in the "know" that USAA changed its focus about 5 or so years ago. Customer service, which was its #1 priority, has taken a back seat to expanding their product portfolio, cutting costs, and increasing revenue (i.e. the bottom line.)

In my opinion, USAA has gone from a great service company to one that is only concerned about $$$. A friend who used to work there said it was when they got a new CEO, that things started to go downhill.

You are correct, that if they don't want to assume a certain risk (e.g. florida), they will price themselves out of the market.

I've always received great service from USAA.

USAA is a bank, not your grandmother. The bottom line is the bottom line, especially in today's market.

Um, no one here is complaining about the service. They are complaining about the price that service costs and how equal service can be obtained elsewhere at a more competetive price. I think Albie is just telling folks to shop around...that USAA isn't the end all beat all it used to be.

That "bottom line" mentality is a cop out. Corporations have other responsibilities than just to make as much profit as possible. Profit being the only motive was what caused the creation of labor unions.

Wow, that sucks! Sounds like USAA is ensuring they will be able to meet their liabilities in the hurricane areas. I live in North Dakota in a 6 bedroom, 3 bath, 2900 sq foot house and only pay $650/year for full replacement coverage from USAA. ($1000 deductible) and still remain satisfied with their auto ins rates. I can't imagine paying $6000! I don't blame you for taking action.

We moved to MS last year and were introduced to windstorm/hail policies. USAA does NOT have those provisions in their policy. We had to buy coverage through a centralized (state) fund. Our homeowners insurance is about 1/3rd of the windstorm. This year, the premium (home owner) went up about 20%. I called asking about it and was told that it was part of the "inflation protection" for the replacement of the house. I hadn't heard that inflation had reached 20%. :rolleyes: Our can insurance also went up by about 20% when we moved from metro DC to southern MS. I was told that they were in the middle of reevaluating premiums (new modeling software or something) and that it had been done in MS, but not in DC. I thought that sounded strange.

After reading this, I'm going to do a little more digging.

Usaa
 

I bought a house in '02 in a historic district in Florida and USAA wouldn't touch it for homeowners. They've been great for auto and banking though. Progressive is cheaper on the motorcycle. Always shop around.

State Farm actually has an article on their home page about florida property coverage and the change in regulations. Both are solid companies and actually seem to care about being able to cover ALL their obligations. I'm sure you can get property insurance anywhere in Florida, but if half the state gets hit, I'm sure it will be a while before you get your settlement if at all.

Actually, not quite true in this case.

I believe USAA was formed back in the day when service people could not obtain life insurance. They are not really a for-profit business, they are a member association. That's why they send me a check when they have money left over at the end of the year. They should operate to please the members...whatever we want that to mean.

Hmmm. Maybe I should do something with that proxy material they send us every year :rolleyes:

moved to Denver and found I could save a lot more with Nationwide insurance through my builder, they bundled home and auto, so I switched from USAA. USAA even asked me if they could lower my rates to keep me and I told them if they wanted to keep me, they shouldn't wait until I leave to offer lower rates.

I'm still getting decent, not great, rates on car insurance in CA. The service part of USAA seems to be unchanged (been with them 35 years), but the prices are not nearly as competitive as the old days.

Shopped around and got my home insurance with Armed Forces Insurance, another company catering to military. Excellent rates and great sevice.

I moved to Syracuse recently and found USAA wanted double what Geico and Progressive charged for the same auto coverage levels. So, like Albie, I never really questioned their rates in the past b/c if it was close, you'd rather stay w/ someone you trusted. After several phone calls back and forth to Geico and USAA to try to figure out how there could be a discrepancy like this, I switched and just got a sorry about that.

I'm also tired of being offered life insurance at competitive rates every time I call, even for banking or credit card related calls...

Interesting...so it wasn't just me, and it wasn't just Florida.

Too bad...it was great while it lasted.

That is one I've been experiencing for years. I'll call and ask for loan rates. Their's always suck, I'll ask if they can lower them. They say no. Then I'll say I was quoted x.x% from somewhere else and they'll say oh, well we can match that. What the hell sense does that make?

I'll have to check rates on insurance, I've also been operating under assumptions.

When I recently bought my car I was offered 4.9 by the dealer. When I called to insure the car they asked if I had checked with banking. So I called them and they quoted the 5.24% new car loan. I told them that I was disappointed they could not at least match the dealer. Btw - Navy Federal gave me the same quote as USAA. Those two have always been the best interest rates in the past.

USMCFLYR

Each state has their own State Insurance commission/department. They set policy and state legislatures make state law that governs the rules insurance companies must follow to offer insurance in their state. Guess what, states determine what rates insurance companies can raise and when. Example: States often allows insurance companies to raise rates a maximum of XX% after a certain set of triggers are met. Be it auto/homeowners, etc. So when you move from one state to the next, you fall under new laws that USAA/State Farm etc must follow. The individual company chooses how to apply the min/max of the laws. i.e. Insurance companies may make it policy to charge max allowed by law. USAA in my experience would raise rates the max allowed by my current state law. When you move, that is the determing factor. Not your old state laws. Common sense for USAA would be to look at old rate, look at new state law and try to keep you close or lower to keep business. Maybe at one time they followed that business policy since we are a member company (not a pure for profit company) More like a credit union concept. Any way, MS allowed and controls what insurance companies can charge and offer in MS. USAA then works between the lines. Hope this helps. Here is the MS link for your situation, check the laws/policies section.
Mississippi Insurance Department

My experience dealing with USAA has been great. For me, the bottom line is no longer the premium that I pay (within reason), but the security of the coverage that I have. I know now from experience that USAA is both quick and generous when you have a claim. I have already had a car stolen and totaled, and had a house hit by a tornado. In both cases, the amount of money that USAA gave me was above what I expected and I didn't have to haggle with an adjuster for every nickel and dime. With other companies, I've known friends who spent months fighting with adjusters trying to break even on their claims.

There is something to be said for shopping around though. Every region will have its nuances, and sometimes USAA will not be competitive if you shop around. I could certainly understand why USAA would want to limit its exposure to claims in expensive and hurricane prone parts of Florida, for example. It is just good business sense. As a national company, lowering their rates in FL would mean raising them in the rest of the country, or making more aggressive investments (i.e. AIG :eek:) to make up the difference.

Like most people in the military, every time I move, I'm in for a surprise as to how my insurance rates will change. It's gone both up and down for me. I've shopped around other companies, but right now, I am located someplace where USAA wins the competition hands down.

If I need to get a mortgage or a car loan... Pentagon Federal Credit Union usually has some excellent rates. USAA doesn't seem too competitive there, either, but it is still a great place for my checking account.

Are there any good websites that compare plans and give realistic estimates?

I too have the "Quarter Century" sticker from USAA. Over the last 26 years I also had a few minor auto claims and two national flood policy claims from Ivan and Dennis. No problems with USAA on how the field agents handled my calims. For over 25 years I banked with USAA, and everything I have was insured with USAA a year ago, now I can't even get contents insurance in Florida. That was the last straw when I was told that because I sold my Florida house they will no longer insure a house or contents if it is in the state of Florida. Having to shop for this coverage has opened my eyes. Not the USAA I grew up with!

Albie,

Are you expecting a check from USAA for the amount that's listed in your "Subscriber's Account"? I've been with them for over 20 years and enjoyed great service, but I do need to do some rate comparison that is long overdue. If I were to terminate my USAA account, my reading of the "USAA Subscriber Account" information brochure leads me to believe I should be receiving a check six months later. And the current balance is enough to have a really good weekend in Vegas as well as a Christmas that would help stimulate the economy.

GG

Actually, it cover enough to pay for the 20th Anniversary trip to Greece my wife and I will make later this year.

I'd rather them keep it and continue to provide the "old" service, but that just isn't happening...

The main benefit to USAA is when it comes to deployments, living overseas and PCSing and the associated challenges they get it. Everytime an issue come up related to one of these things, dealing with USAA was a breeze compared to a nightmare with almost any other company I had to deal with. In case anyone isn't aware, when you are deployed they will reduce your car insurance to virtually nothing (assuming it sits parked the majority of the time) and the same goes for the interest rate on thier credit card.

I had USAA fir 25 years with only 1 minor fender benders totaling less than $4,000, and a broken rear window. My wife was hit, not her fault, by an Oklahoma City cop and USAA told us that OKC self insures. They offered to cover it and get reimbursed from the city and my wife said OK. 2 weeks later they notified me that my rates were going to tripple because we had too many accidents. I told USAA to pound sand and have never looked back.

One of the new hires at Syracuse a month behind me was looking at Homeowner's insurance and it was $1600 from USAA and less than $500 from Progressive and others for the same coverage... Not sure where the disconnect is.

They raised auto/home insurance rates across the board in CO too. My homeowners went up 20% this year and I spent a lot of time on the phone with them. In the end, they just told me that's how it has to be. I only stuck with them because the new higher rate was still competitive. That started me looking at my other policies I had with them and I found out I was overpaying on car insurance (exact same coverage) by $200 every six months. So I switched auto insurance. Their landlord policies suck too. I also got a different credit card with better cash back. Their customer service has been really lacking lately as well. They've lost paperwork, haven't returned calls, etc. It's sad as I have been with them over ten years now. The one major claim I ever had with them did go really smoothly--but that was a few years back. Definitely shop around.

For Texas...

OPIC


a little clumsy but informative IRT coverage differences...

USAA has been better than anyone else I've used as far as claims processes go. I've had to make comprehensive claims with USAA and they have been seamless.

I had to switch to esurance earlier this year after a PCS, since I saved almost $600 every 6 months. I've already had to make two claims, and it has just been outrageous. Additionally, I've found that I can't get the same coverage levels that I had with USAA. For example, my liability was $500,000 per accident with USAA. I've had trouble finding anything over $300,000 with other companies. Also, I always ran $0 deductibles with USAA, I haven't been able to replicate that since switching.

Despite the savings I'm getting this year, I think I may switch back next year even if the premium is slightly higher.

I can't speak for homeowners insurance claims other than when my car got broken into and items were pilfered, and when I made a claim for a broken laptop and ipod touch screen. Both were paid immediately with no hassle and money issued for a replacement.

Again...not here to debate but just to remind folks to at least take a look around.

My progressive premium is $1414 a year...down from USAA $1860. Not a huge deal, and but for the homeowner issue I'd have not switched.

Homeowner....get ready....$1725 verses $6666. It took a couple days for an independent agent shopping around to finally cross the ts and dot the i's, but that is quite a savings. Coverage is not quite apples to apples, but pretty darn close. Biggest difference was USAA paid 70k for 24 months of loss of use, but this policy is only about 30k. Structure, contents, and general liability were the same.

As soon as I can get my wife's life insurance somewhere else, we will officially close the book on USAA. That means a 25 year subscriber savings will be showing up...and its about double what I thought it was. Funny thing is with such an incentive to LEAVE, once they went so high on the homeowners there really is an incentive to take all your insurance somewhere else. When I was moving the flood policy the agent tried to do a sales pitch on me saying I wouldn't save anymore on the FLOOD policy moving it. When I told him "okay...but I'm passing up getting x thousand dollars back if I cancel ALL my USAA policies...." he couldn't think of a good reason for me to stay. The other agent had reminded me "its just business...", and I had to agree. But if it is just business, then I'm going somewhere less expensive.

In other places...maybe they are the best insurance. For now, however, saving 5 grand a year in this economy is worth moving some paperwork around. Maybe if enough folks do it the old USAA will come back.

well said Albie

Are you living in a McMansion? I'm 300 yards from the Santa Rosa Sound with $425,000 dwelling coverage and a $1,000 deductible; USAA charges me $1,777/year. I need to compare rates; I'm sure I can probably get something cheaper for the autos, but the service is fantastic so it'll make it hard to leave unless the savings are something similar to yours.

No...its the same house I bought as a captain in the AF in 1998, and the coverage was about $350K for a dwelling (which I thought was high). I was baffled too...but tried to work through it with no luck.

I agree...over the years their service was very very good.

I work at USAA and wanted to reach out. Our mission is facilitate the financial security of the military and their families. In so doing, we strive to offer members competitively priced products and services complemented by award-winning customer service. If we are not meeting your needs or expectations, please e-mail me at [email protected]. I'd like to help resolve any issues you're experiencing.

Thank you for placing your trust in USAA. We're honored to serve you.

Tricia Phillip
USAA Social Media

Tricia, thanks for posting.

I'll admit that after following this thread, I have been shopping around. Here are my specific "beefs" with the USAA policy:

1) Auto: I moved from metro DC (crazy Beltway drivers drafting at 80 mph) to coastal MS (anti-Beltway). The auto premiums went up about 25%. I was told it was because of hurricane losses. My unanswered question was "But if we evacuate, we're DRIVING the cars out of harms way. Why is that a threat?"

2) Home: Just got the renewal. The premium went up over 20%. When I called about that, I was told it was the inflation protection. I'm sure CNN would be covering the financial armageddon with an inflation rate of 20%. FWIW, it was 3.8% in 2008.

I think most of the gripes revolve around unfounded increases with the ol' mushroom treatment.

15-yr USAA member

Sent to Tricia on Friday to email address
 

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

Albie...Your letter is very well spoken and as my Kiwi wife would say it's Spot On! Please let us know what the response is. I'm still with USAA but when I get back from the desert I'll be looking around. I just hope I don't have to switch. Although that "Subscriber Account" is starting to sound promising.

Cheers,
Tweet

Albie,

Tricia posted here (I'm guessing) because of a letter I sent to the CEO of USAA after reading your initial post. I sent them the link to this site. A few days ago, I received a call from the office of Gen Robles (Ret.), and I had a relatively long conversation with one of his staffers (I think it was Tricia). I explained to them that your post had illuminated some key points to several of the active members of this board, and I brought it to their attention out of respect for the company that has served so many of us over the years.

The point I wanted to get across to them was the old adage of speaking "truth to power"...if the good General is only hearing about how happy their members are, then he's not hearing the whole story. In this day and age of viral marketing, bad news can reach the masses faster on the internet than any multi-million dollar ad campaign could ever hope to do. (Just ask the guy who wrote the song called "United Breaks Guitars"...it was a nightmare for United Airlines.)

YouTube - United Breaks Guitars

The fact of the matter is that I never even considered shopping around outside of USAA until I read your post. If USAA is listening, and I believe they're a smart enough company to do so, they just might realize what is happening & make it right for guys like you. Thanks for taking the time to share your experience with us here.