USAA Insurance Profile
One of the best-rated insurance companies in the United States both for service and for rates, USAA has been around for nearly 100 years. The company serves a specific market – members of all branches of the U.S. military and their families. This makes them different from most insurance companies.
USAA has been in business since 1922, when they started out offering car insurance to members of the army. The company was founded in response to the high rates army members found themselves paying for insurance due to insurance companies considering them to be higher risk drivers.
After a few years, the company expanded to offer coverage to all branches of the military. A few decades later, they added more products and now offer home and life insurance as well as auto.
USAA is an inter-insurance exchange, meaning that all of the policyholders insure each other and are owners of the company. Products are only available to those who meet specific criteria: mainly active, retired, or honourably discharge military members and their families.
USAA offers auto, home, and life insurance as well as a range of specialty products. These include common options such as watercraft, motorhome, and ATV, and some less common ones, particularly aviation insurance.
The company’s auto insurance is their best-known and most popular product. Their insurance policies are designed for their target market, offering specific discounts and coverage options that apply to people who are in the military.
USAA’s life insurance products stand out as a good choice for military members as they do not have a war exclusion, which is common on most life insurance policies.
Because of the set-up as the company, policyholders also have what are known as Subscriber Accounts. Profits that aren’t otherwise allocated are placed into these accounts, and policyholders will receive a cheque for whatever amount is distributed annually.
USAA products are marketed towards a specific group, which impacts the company’s desired image. Generally, USAA is seen as a patriotic company providing a service to the military.
The company has a good reputation, and generally scores well in claims satisfaction and other surveys. They ranked at the top of J.D. Power’s claims satisfaction survey for 2014, with an above average score that only one other company attained.
Because not everyone is qualified for a USAA policy, they are sometimes left off of comparisons.
Quoting with USAA
Quoting is available online as well as over the phone, but in order to avoid giving quotes to those who don’t qualify for coverage, customers are required to log into the website to get a quote.
Since they don’t sell to the general public, USAA doesn’t show up on most quote comparison sites. Those who seek out quotes are often families of USAA members or have some experience with the company, although USAA has increased advertising in recent years.
Will USAA Come to Canada?
Unless USAA forms an agreement with the Canadian military, they are unlikely to cross the border. Because of their history and position as a very American company providing services to the American military, expansion to Canada is possible but unlikely.