USAA is going down hill lately

[grampi]

I used to love USAA. They had the lowest insurance rates, always had excellent claims service, and they even had easy to obtain low interest loans, but something has changed with this company.

A few months ago, I applied for a loan through them for my wife's Sienna. They disapproved it. I applied for the same loan through the dealership and the loan officer laughed at the notion that any financial institution would disapprove my loan application based on my credit scores, which are all in the high 700s. USAA said they disapproved my application because of one late payment they claim occurred over 3 years prior. I contacted the financial institution they claimed my late payment was with and they said they had no record of me EVER having a late payment. Obviously USAA is out in left field on this issue.

Just today I found out that USAA just implemented a 20% statewide rate increase (for OH and several other states too). I can understand them having to adjust their rates every once in a while, but 20%? Come on! That's nothing but price gouging, pure and simple! It's time to start shopping around for another insurance company...

 

[Triple_Se7en]

Originally Posted By: grampi
I used to love USAA. They had the lowest insurance rates, always had excellent claims service, and they even had easy to obtain low interest loans, but something has changed with this company.



See what happens when an insurance company is constantly seen on TV advertising?

 

[Bud]

Three years ago I got a quote from them for auto insurance and they were 500 bucks higher than anyone else. When I asked why their rates were so high, they said good customer service. No thanks.

 

[Nyati]

Originally Posted By: Triple_Se7en
Originally Posted By: grampi
I used to love USAA. They had the lowest insurance rates, always had excellent claims service, and they even had easy to obtain low interest loans, but something has changed with this company.



See what happens when an insurance company is constantly seen on TV advertising?


I agree. I have been a USAA member for over 40 years. They have been going steadily downhill for years. I think sponsoring Bowl games and TV advertising was the beginning of the end. I remember for years you got a rebate at the end of each year out of the surplos of not having to pay claims. That hasn't happened for years either.

 

[Irishman]

A few years ago I got an auto quote from USAA and several others. USAA was the highest quote. I still receive credit card offers from them just about every month. Well, guess what? They're really looking out for the veteran's aren't they!!!

 

[FowVay]

USAA couldn't/wouldn't touch my State Farm coverage. I thanked them and moved on. I'm very happy with State Farm.

 

[CT8]

Corporations know how to rape the consumers as possible.

 

[doitmyself]

Originally Posted By: grampi
USAA said they disapproved my application because of one late payment they claim occurred over 3 years prior. I contacted the financial institution they claimed my late payment was with and they said they had no record of me EVER having a late payment.

I had a similar situation with my workplace credit union where I was a loyal and excellent credit rated member for some 25 years. One would expect better loyalty from a business, but I think that just varies now a days and can change with just one employee's attitude. We are free to vote with our wallet, which is what I did.

 

[SZR48207]

They got big and popular. More people use them and as a result more people are claiming insurance for accidents. They gotta pay out while having enough reserve money, so there's your rate hike.

 

[69GTX]

I've been with USAA for 40 years too. I've never even bothered to get an auto insurance quote from anyone else. For the past several years I've gotten "rebates" to my auto insurance....though in the form of subscriber saving's account payouts. The previous 2 years those payouts were $300-$375, enough to cover car payments for 3 months. I figure my net car payments run about $750 per year after those payouts. This year the payout was less, only about half of what it had been.

I've had 7 or 8 auto claims with them, all being covered reasonably well. The last one was a side swipe in a parking lot with no car to blame it on. While they sent me one of their approved shops ($730 estimate), the one I picked said that wasn't adequate and estimated ($1320). They covered the higher amount. I have a credit card with them as well but pay it off every month. Never took out a loan through them or purchased a car with their buying service.

If their should be a 20% rate hike coming, I'll start looking around. My auto insurance rates have been pretty much the same for the past 10 years.

 

[John_K]

My wife's Dad was in the military, she has everything USAA.

When we bought a house, USAA said my name couldn't be on the homeowners insurance because her Dad was the sponsor and I had never been in the military. Weird, but ok.

Later I got an invitation in my name to have a USAA credit card. What? I can have a credit card but not my name on the homeowners insurance?

I called USAA, and after an argument my name is now on the homeowners insurance. I would dump them but the wife loves them.

John

 

[The Critic]

Originally Posted By: Triple_Se7en
Originally Posted By: grampi
I used to love USAA. They had the lowest insurance rates, always had excellent claims service, and they even had easy to obtain low interest loans, but something has changed with this company.



See what happens when an insurance company is constantly seen on TV advertising?


Auto (Commercial and Personal) has been unprofitable for many carriers in the last 1-2 years due to an uptick in frequency and severity. +20% is not uncommon and you can expect most carriers to take similar increases in the near future as they begin to see their own loss trends develop unfavorably.

This article describes the situation pretty well:
https://www.google.com/amp/s/amp.insuran...m?client=safari

 

[grampi]

Originally Posted By: 69GTX
I've been with USAA for 40 years too. I've never even bothered to get an auto insurance quote from anyone else. For the past several years I've gotten "rebates" to my auto insurance....though in the form of subscriber saving's account payouts. The previous 2 years those payouts were $300-$375, enough to cover car payments for 3 months. I figure my net car payments run about $750 per year after those payouts. This year the payout was less, only about half of what it had been.

I've had 7 or 8 auto claims with them, all being covered reasonably well. The last one was a side swipe in a parking lot with no car to blame it on. While they sent me one of their approved shops ($730 estimate), the one I picked said that wasn't adequate and estimated ($1320). They covered the higher amount. I have a credit card with them as well but pay it off every month. Never took out a loan through them or purchased a car with their buying service.

If their should be a 20% rate hike coming, I'll start looking around. My auto insurance rates have been pretty much the same for the past 10 years.


You might want to check with them to find out if your state is one of the ones that was hit with an increase...

 

[grampi]

I'd be interested to find out which companies have lower rates along with not having terrible claims services (like GEICO for one)...

 

[robertcope]

Like others in this thread, I had USAA quote me a few times and it was never very competitive. Hype is a powerful thing. Also, maybe I'm crazy, but I kind of don't care how great my insurance's customer service is; I have had to use it, like, once in the last ten years. And my take on big companies is that it's really going to depend on the particular agent you get in touch with as much as anything else, so... I'll take the cheapest "big name" insurance I can find, thanks. ESurance, GEICO, etc.

robert

 

[69GTX]

Originally Posted By: grampi
Originally Posted By: 69GTX
I've been with USAA for 40 years too. I've never even bothered to get an auto insurance quote from anyone else. For the past several years I've gotten "rebates" to my auto insurance....though in the form of subscriber saving's account payouts. The previous 2 years those payouts were $300-$375, enough to cover car payments for 3 months. I figure my net car payments run about $750 per year after those payouts. This year the payout was less, only about half of what it had been.

I've had 7 or 8 auto claims with them, all being covered reasonably well. The last one was a side swipe in a parking lot with no car to blame it on. While they sent me one of their approved shops ($730 estimate), the one I picked said that wasn't adequate and estimated ($1320). They covered the higher amount. I have a credit card with them as well but pay it off every month. Never took out a loan through them or purchased a car with their buying service.

If their should be a 20% rate hike coming, I'll start looking around. My auto insurance rates have been pretty much the same for the past 10 years.


You might want to check with them to find out if your state is one of the ones that was hit with an increase...


Just did. It's up $15/6 months which is about +3%. In checking back to the previous two, they were +$5 and -$20. So really no net change over the past 18-24 months. I have home insurance with them along with a brokerage account. They make plenty off the trades of my brokerage account, probably a lot more than via auto insurance.... so they'd be screwing themselves if they jacked up my other rates. If the bean counters only look at individual policies and not what the total customer brings in, they'd be very foolish.

 

[grampi]

Originally Posted By: 69GTX
Originally Posted By: grampi
Originally Posted By: 69GTX
I've been with USAA for 40 years too. I've never even bothered to get an auto insurance quote from anyone else. For the past several years I've gotten "rebates" to my auto insurance....though in the form of subscriber saving's account payouts. The previous 2 years those payouts were $300-$375, enough to cover car payments for 3 months. I figure my net car payments run about $750 per year after those payouts. This year the payout was less, only about half of what it had been.

I've had 7 or 8 auto claims with them, all being covered reasonably well. The last one was a side swipe in a parking lot with no car to blame it on. While they sent me one of their approved shops ($730 estimate), the one I picked said that wasn't adequate and estimated ($1320). They covered the higher amount. I have a credit card with them as well but pay it off every month. Never took out a loan through them or purchased a car with their buying service.

If their should be a 20% rate hike coming, I'll start looking around. My auto insurance rates have been pretty much the same for the past 10 years.


You might want to check with them to find out if your state is one of the ones that was hit with an increase...


Just did. It's up $15/6 months which is about +3%. In checking back to the previous two, they were +$5 and -$20. So really no net change over the past 18-24 months.


My 6 month premiums with USAA just went from $1000 to $1200....to me, that completely unacceptable and unnecessary for someone with a clean driving record, and the only claim I ever filed with them was over 15 years ago...I could see a 5% adjustment, but 20% is just beyond ridiculous!

 

[barkingspider]

I work at the dept of insurance, and I choose USAA for my auto, home and rental property. There are a lot companies out there that I would NOT have, even if their premiums were less expensive.

 

[grampi]

I'm shocked to see the number of people saying that USAA had the highest rates when you compared vs other companies. I have compared their rates in the past and I was never able to find another company that could touch USAA's rates. What companies do you have your insurance through?

 

[Stewart Fan]

Originally Posted By: Nyati
I remember for years you got a rebate at the end of each year out of the surplos of not having to pay claims. That hasn't happened for years either.


I've had USAA for 20+ years. I don't ever recall not receiving a year end dividend check. Its always in my mailbox by mid December.