Author Topic: Switch from USAA Auto Insurance? (Read 10520 times)

captainawesome

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Switch from USAA Auto Insurance?
« on: July 24, 2014, 07:39:29 AM »
So out of curiosity I went and got a quote from Geico for our auto insurance, and they quoted me at a savings of roughly $800 per year less than USAA. As it is a decent amount of money, I have been contemplating switching. I've never had any issues with USAA, and they have always given me great customer service. However, if I can have the same coverage and deductible for less money, with a reliable insurer, then what's the loss? Has anyone else made the transition to another auto insurance from USAA? And if so, which company as there are many to choose (although Geico has been hitting up the military community as of late) I'm hesitant based on the length of time I have been with USAA but I also would love to save that money and put it into my TSP. Any help would be appreciated!

CabinetGuy

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Re: Switch from USAA Auto Insurance?
« Reply #1 on: July 24, 2014, 08:29:28 AM »
I faced this dilemma last year. I went through the trouble of changing everything over to Allstate. Then the fun started. Never received bills or paperwork for my policy in a timely fashion, horrible customer service. Luckily, my USAA policy was still good til the end of the month, so I promptly cancelled Allstate.

Call up USAA and tell them the price difference, they may lower your rate or make minor changes to your policy that could save you serious cash.

Usaa customer service is top notch, but an 800.00 difference is hard to pass up.

Best of luck

Jon

Deepsouth

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Re: Switch from USAA Auto Insurance?
« Reply #2 on: July 24, 2014, 08:31:37 AM »
We recently switched from USAA to Geico. We are very glad we did. GL

senecando

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Re: Switch from USAA Auto Insurance?
« Reply #3 on: July 24, 2014, 08:37:35 AM »
There's a discount if you own any BRK.A or BRK.B with Geico, btw.

Ashyukun

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Re: Switch from USAA Auto Insurance?
« Reply #4 on: July 24, 2014, 08:47:36 AM »
This is something we've been contemplating as well after talking insurance with a friend of ours (who was also our realtor so it came up when discussing the insurance for the house we just bought) and he told us how he'd found several places that had much lower rates than USAA- and that the only car insurance he still had through them was actually just a special insurance for his classic car (which I'd also need for my D) that was technically provided by another company. We've not gotten to the point of really digging into it yet though since we're still getting settled in at the new house.

purplepants

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Re: Switch from USAA Auto Insurance?
« Reply #5 on: July 24, 2014, 09:27:12 AM »
I would have a really hard time leaving USAA, just because of their incredible customer service when processing claims, etc...

Random side fact about USAA: One of the factors that determines your rate is rank. I don't think that's suprising to anybody, but here's what did surprise me.

I had USAA auto insurance as a legacy member because my late grand-dad was in the Air Force. DH had it because he is active duty Air Force. When we called USAA to combine our policies, they checked the cost of adding me to his policy vs adding him to mine.

It ended up being almost 30% cheaper to add DH to my policy, because they had on file that my grand-dad retired as a Colonel. As a 3rd generation USAA member, I apparently still enjoy the priveleges of Grandpa's rank, even though he retired long before I was even born.

I just thought that was weird.

slowdive

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Re: Switch from USAA Auto Insurance?
« Reply #6 on: July 24, 2014, 09:53:45 AM »
I dropped USAA and went to Geico a few years ago. USAA wanted $230/month for car insurance. Geico is $84/month. All of the coverage levels are the same. I have no accidents or tickets. Ridiculous pricing.

I also just dropped them from my homeowners! They were going to renew my policy with a $400+ price increase. No thanks. Geico provided higher coverage levels for much less.

zataks

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Re: Switch from USAA Auto Insurance?
« Reply #7 on: July 24, 2014, 10:19:01 AM »
Just switched to USAA this month from State Farm. During two accidents (for which I was not at fault) State Farm was actually very good to me and their rates have been good. But on 2 separate occasions the inexplicably raised my Auto rate and I had to call & e-mail to get it returned to the previous premium level. Then I reduced my coverage (raised my deductibles) and the premium was reduced obviously. Then the following month, without explanation, the cost of the premium went up to what it was before I reduced my deductibles! I e-mailed the agent, spoke to him, then e-mailed again over the course of a week and got no resolution so I jumped ship.

USAA is a little bit more expensive for my housing policies but a little cheaper for auto. I'm paying about 100$ more/year overall. I'm ok with that given how awesome their customer service has been and will be great with it if I don't have to call every six months like they're a cable company (or State Farm!).

nedwin

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Re: Switch from USAA Auto Insurance?
« Reply #8 on: July 24, 2014, 10:22:09 AM »
I had all my insurance with USAA, auto, home and renters. I switched auto to Geico because it was about 50% less than USAA for the same coverages. I switched from USAA homeowners because their premium increases year-over-year were about 50% for both of my homes (one rental), with no claims whatsoever on any house. I was able to find home insurance for about 50% less then USAA's higher premium. I called USAA and told them of the premium differences for both auto and home and that if their rates were not more competitive they were losing a customer, they were not able to lower to rates at all absent lowering the coverages or raising deductibles.

I was never as impressed with their customer service as others have been, and I certainly was not willing to pay a premium for it. I had a claim on auto insurance that took over six months for them to address at all. Twice they would not release a vehicle title after I had paid off the loan, I had to call at least twice on each loan before the titles were released. I also financed a home through USAA, and the processor never answered the phone and was very slow to return my calls. I had to provide the same underwriting documents to him several times, and the document requests kept coming. Thankfully I was purchasing a shortsale so it took 90 days to close anyway. Another time they collected the premium for a home-owners policy that I had cancelled from my mortgage's escrow account, and refused to refund the premium. It took three phone calls to them and the threat of legal action before it was refunded.

MillenialMustache

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Re: Switch from USAA Auto Insurance?
« Reply #9 on: July 24, 2014, 12:02:45 PM »
I had USAA for about 7 years as my first car insurance. My grandfather was an officer in the military. Their customer service was so great I was reluctant to switch. I finally switched to Allstate and saved about $300 every six months. I do not regret it at all, and it has been three years. I would highly recommend you doing it.

CommonCents

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Re: Switch from USAA Auto Insurance?
« Reply #10 on: July 24, 2014, 12:26:13 PM »
I was told the reason for the higher costs of home insurance is that they insure a population where one partner may be out of the country and not able to help if the house burns down. So USAA insures for full removal of debris, etc., where many other companies don't include. So make sure you check what you're really covered for before switching, to make sure it's an apples to apples comparison.

Franklin

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Re: Switch from USAA Auto Insurance?
« Reply #11 on: July 24, 2014, 12:36:10 PM »
I priced out Geico and USAA when leaving State Farm, and saw the same disparity in pricing that the OP saw. So I went with Geico.


slowdive

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Re: Switch from USAA Auto Insurance?
« Reply #12 on: July 24, 2014, 12:41:06 PM »
I was never as impressed with their customer service as others have been, and I certainly was not willing to pay a premium for it. I had a claim on auto insurance that took over six months for them to address at all. Twice they would not release a vehicle title after I had paid off the loan, I had to call at least twice on each loan before the titles were released. I also financed a home through USAA, and the processor never answered the phone and was very slow to return my calls. I had to provide the same underwriting documents to him several times, and the document requests kept coming. Thankfully I was purchasing a shortsale so it took 90 days to close anyway. Another time they collected the premium for a home-owners policy that I had cancelled from my mortgage's escrow account, and refused to refund the premium. It took three phone calls to them and the threat of legal action before it was refunded.

I had a claim on my house - which they promptly attempted to deny. They even sent me a formal letter indicating I wouldn't be covered. Reading the policy itself, it was obvious I should be covered. After my lawyer got involved, they changed their position and covered it. Long story short, they didn't pay me for the repairs for 11 months. Luckily I had savings to pay for the repairs up front, so I could get my house functional again.

IMO, terrible company. My experience prompted everyone in my multi-generational military family to start looking elsewhere for coverage.

usmarine1975

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Re: Switch from USAA Auto Insurance?
« Reply #13 on: July 24, 2014, 12:55:11 PM »
I was told the reason for the higher costs of home insurance is that they insure a population where one partner may be out of the country and not able to help if the house burns down. So USAA insures for full removal of debris, etc., where many other companies don't include. So make sure you check what you're really covered for before switching, to make sure it's an apples to apples comparison.

That is one of the weirdest things I have heard. I sold insurance for a time and from my recollection all of the homeowner policies I quoted covered full removal of debris. It's figured into the replacement cost of the home.

The only thing I would say is to be sure you are comparing apples to apples. Meaning your coverages are the same and that you actually have all the same coverage. Before you switch call your current company especially if you have been happy with the service and give them the opportunity to keep you. I would tell my clients that every 3 years they should reprice their insurance. Shop it around and make the current company requote. Most homeowner policy's automatically increase the replacement cost every year.

I cut a clients bill in half 1 time just by readjusting his replacement value that had not been readjusted in about 15 years. He just kept paying the increases until it got pretty high. He didn't have to reapply or even switch policies we just re valued the home.

Your credit score and how often you switch insurance companies effects your rate and so does which company you are insured with. Top tier companies will charge you more if you are currently with a lower tier company. Just a thought.

Kriegsspiel

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Re: Switch from USAA Auto Insurance?
« Reply #14 on: July 24, 2014, 03:41:32 PM »
We recently switched from USAA to Geico. We are very glad we did. GL

Did the same last year, also happy.

trixs

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Re: Switch from USAA Auto Insurance?
« Reply #15 on: July 24, 2014, 09:18:06 PM »
Well I just tried Geico out for car insurance on my two vehicles. Full coverage from USAA is 567.77 every 6 months and Geico is $629. Yep, I'll stay with USAA.

purplepants

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Re: Switch from USAA Auto Insurance?
« Reply #16 on: July 25, 2014, 09:27:28 AM »
I was told the reason for the higher costs of home insurance is that they insure a population where one partner may be out of the country and not able to help if the house burns down. So USAA insures for full removal of debris, etc., where many other companies don't include. So make sure you check what you're really covered for before switching, to make sure it's an apples to apples comparison.

That is one of the weirdest things I have heard. I sold insurance for a time and from my recollection all of the homeowner policies I quoted covered full removal of debris. It's figured into the replacement cost of the home.


I could see how having a 2nd adult in the home could reduce the *likelihood* that the home burns down in the first place.

Say a small fire breaks out. One adult can evacuate the kids and pets while the other adult grabs the extinguisher and puts out the fire and/or handles business until the fire department arrives.

When Mom or Dad is deployed, the remaining parent is going to be focused on getting the kids and animals to safety. Meanwhile, a small kitchen fire turns into a huge housefire.

Having a spouse deployed can be very stressful, and I could see how it could result in having more (or more expensive) homeowner's claims. Maybe you don't notice right away that the hot water heater is leaking in the basement, or you don't know how to turn the water off. Maybe you put off dealing with the dead limb on the big tree out front, and it comes crashing through the roof. I don't know.

Not saying this is the case, just saying this might be where that train of thought originated.

usmarine1975

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Re: Switch from USAA Auto Insurance?
« Reply #17 on: July 25, 2014, 09:49:14 AM »
I never had to ask the question nor did any forms ever have it on if a spouse was deployed. I was deployed twice and it never raised my premiums. Of course I never really went out of my way to tell the insurer that I was deployed.

I wouldn't think it's possible the laws regarding Military members while deployed protect them from over charging etc....

My Mortgage interest rates had to be lowered while I was deployed to the allowable percentage and the banks were not or could not foreclose on me while deployed for late payments etc....

In light of the laws I don't see how it's possible. If you find it's the case I would call a Navy Lawyer and let him or her have at it.

captainawesome

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Re: Switch from USAA Auto Insurance?
« Reply #18 on: July 25, 2014, 09:54:36 AM »
Thanks for all the great responses. I have been a member since I started driving (Parents had USAA, then I joined and was eligible) and they used to have a lot lower rates it seems. I have a relatively high credit score, I think it was 820 the last time they pulled it so you would figure most companies would be willing to give me good rates.

I have my homeowners through USAA and it looks like I should start shopping around for that too. Assuming the coverages are the same, I would assume Geico is cheaper there too.

usmarine1975

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Re: Switch from USAA Auto Insurance?
« Reply #19 on: July 25, 2014, 12:11:50 PM »
I should clarify when I state that your credit rating effects your rates. It's not your score via your credit score but a rating scale the insurance company uses that from my understanding comprises your credit score and other financial data such as insurance history, claims history etc.... Prior carrier does play a role as well. Shop it out clarify your coverage what is what is not covered and make sure you are getting the same coverage. They really should make it easier to compare policies but they do not. Reading the fine print is necessary. It would be ideal if a standard coverage form was required to be provided to clients that simply had a check mark with details below on what coverage it had or did not have.

Cheaper is not always better.

Nords

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Re: Switch from USAA Auto Insurance?
« Reply #20 on: July 30, 2014, 10:42:55 AM »
However, if I can have the same coverage and deductible for less money, with a reliable insurer, then what's the loss?
You've asked a question that's very hard to answer without going through a few claims to assess the customer service.

When I do the GEICO/USAA comparison, it's usually about the same. We do not carry collision or comprehensive insurance on our cars-- only liability and UM/UIM. If you're seeing a big difference over USAA's rates then scan/e-mail them the GEICO quote and ask USAA what's going on.

We can't insure our home with USAA because they haven't insured Hawaii homeowners (other than first-time buyers) for quite a while. But back when we used to compare quotes, USAA was much higher than Armed Forces Insurance. However my reading of AFI's annual reports indicates that they're much less exposed to geographic risk than USAA, so they charge less. Either that or they're undercapitalized!
« Last Edit: July 30, 2014, 10:50:55 AM by Nords »
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