USAA’s fall from grace

[IRQVET]

Not sure if you consider something like insurance in the same realm as investments, but as more of a PSA I like to share something I’ve been experiencing with USAA Insurance.

I’ve been a USAA member for almost 20 years, and I have been pretty happy for the most part. But when I relocated for work last year and my insurance rates doubled (almost tripled) I began looking at other options. USAA was for years the cheapest/ best insurance around, I remember other insurance companies wouldn’t even what to quote you if they discovered you had USAA.

But when I moved last year and started talking to other veterans, all of them said when they moved here they were forced to drop USAA because they were too expensive.

I heard Charles Swab aquired USAA a few years back and consequently (or unconsequently I’m not sure) their rates have been increasing and their customer service seemed to be on the decline. There employees are no longer empowered to make common sense decisions to handle issues at the lowest level, and instead have to push everything upward toward management.

USAA CEO’s Office started a community discussion portal on the USAA website, and I can tell you its a blood bath on there. 20-30-50 year members are expressing their concerns and leaving USAA in droves. Alot of folks took issue with the manner in which USAA has been donating money to groups like BLM, instead of other veteran centered charities. Citing USAA woud rather support social justice warriors oppose to america’s war fighters.

I went ahead and price shopped my insurance based on the coverages and rates I had with USAA, and I was shocked to learn that EVERY insurance carrier beat my rates with USAA; and some quite substantially so.

I’ve always viewed insurance as a vessel that protects the wealth I’ve been building throughout my life. Not to get too personal, but I was paying annually for both home and auto about $6,000 per year through USAA. And I got quotes for AAA, All State, State Farm, Farmers, and a few more. Every single company could offer me better rates in a apples to apples comparison.

So I called USAA six times and escalated this issue as far north as I could to no avail. USAA (with a defeatist attitude) simply could not get my rates down unless I wanted to drop my coverages.

Anyone else experiencing this? I decided to severe my relationship with USAA last week, which was unfortunate, but it just didn’t make financial sense to stay with them moving forward. I ended up going to AAA and saved $2,600 per year for the exact same coverages.

So if your in the same boat, I highly suggest you do your due dilligence as you may be shocked what you learn.

Salute

[wmfullen]

Sounds like my experience with geico a year or so ago. Both their auto and the company i had thru them for home ins (travelers) was crazy high compared to just about anything else. They would not budge. Basically my new agent says that that is what happens after you've been with a company for awhile...they just keep jacking up the rates thinking you either wont notice or wont care. I pay less than half still what i was paying them.

[Scarfinger]

I dropped USAA last year.

But honestly they all have done the same to me. After 2 to 5 years my rates seem to go up anywhere from 50% to 100%. American family went up 70% after some storms hit on the east coast one year. Dropped them. Picked up USAA and they went up one year by 50%. They said don't drop us because you will loose your seniority? I dropped them and now have Gieco and saved 600 dollars a year so far.

But... I expect them to do the same one year and raise my rates substantially. I will in turn drop them. And on and on the cycle seems to go..at least for me. Sometimes they raise it little by little and sometimes its raises a whole bunch because of some event.

Either way you need to shop around every couple of years.

[NUC SHARK]

i dont have USAA. GEICO has been best for me. But when i saw USAA hiring pro football players in its advertising, i figured something is up like policy holders are dropping like flies.

[mjedlin66]

I have never had USAA. But I had been with Farmers for everything for like 8 years. I got a quote from Geico and I was blown away- I emailed my Farmers agent and he replied point blank "I cannot compete with a Geico quote."

[bloobs]

I have never had USAA. But I had been with Farmers for everything for like 8 years. I got a quote from Geico and I was blown away- I emailed my Farmers agent and he replied point blank "I cannot compete with a Geico quote."

Beware: "Cost of premiums is likely to be correlated to amount of payouts received should one have to file a claim."
- Every actuary that works for the insurance companies

[PhilJohn]

My trailer was stolen last year. I was insured through USAA. I know, I know, a trailer you're thinking. It was a 30 ft enclosed with all the bells and whistles.

I called USAA and reported it. They offered me 8k. The trailer was only two months old, purchased new. Paid 19k. I had to fight with these people for 4 months. They kept trying to give me low ball offer after low ball offer, increasing a little each time. I finally told them I have had enough and would seek an attorney. They finally paid up for fair value.

I have been with them since 2001.

[VAmanBulls]

Check it out: https://clark.com/insurance/car-insuran ... companies/

USAA usually scores high as does Amica Mutual. I've had USAA for years. Auto, home and an umbrella policy. I have never found USAA to be the cheapest. But I look for more than the premium prices. I had two claims with USAA, both home issues. Leak in roof, to fix it right a large portion around the chimney had to be replaced costing $3,600. USAA cut me a check with no issues. Next was a pipe freeze/burst situation (two pipes on opposite sides of the house). The bill was $60,000 in damages to include all new hardwood floors. USAA paid the claim with no issues. They did not raise my premiums as a result of my claims. Just my experience. If your not happy with the service, shop around but I would caution using the premium prices as the only measuring stick. Good luck and Ride that Bull!

[IRQVET]

shop around but I would caution using the premium prices as the only measuring stick.

Funny you mention that. I’ve experienced the complete opposite, not in home claims- but with auto claims.

In the summer of 2005, I was parked a busy California freeway and stuck in gridlock traffic on the exit ramp when I was rear ended by a car doing 45 mph. Filed a claim with USAA, and everything went smooth outside of an argument where they we’re trying to persuade me into using one of their “preferred shops.” A practice I think they are no longer (legally) allowed to do.

Fast forward to 2013, my wife gets rear ended in her brand new car while stopped at a light. I’m told by the shop that it's pretty straight forward repair, a new $800 rear bumper and about 4 days in the shop; great news!

3 weeks later and we still don’t have our car back and I’ve been driving a rental car this entire time. So I call the shop and I’m told they are waiting for USAA to source a “used bumper.” I call USAA and its explained to me that they keep their rates low by sourcing used parts. I ask what the cost of a used bumper is, and I’m told $450. I explain that they are stepping over a dollar to pick up a dime, and the $350 cost savings they’d get has already been spent on my $50 per day rental car (times 21 days). I had to get transfered to one of their supervisors in order to talk sense into them, at which time he agreed and my vehicle was repaired.

Shortly after this SNAFU, during that summer, I get a call from USAA telling me they’re temporarily “suspending my home insurance” due to the fires raging in San Diego County at the time. Keep in mind at the time my house was located right outside San Francisco some 12 plus hours away. I asked to be elevated to a supervisor and I said, “Lets play a role reversal.” Your in San Antonio Texas correct? He answers in the affirmative. I said okay, I calling you to cancel your home policy due to the fires raging in Detroit. Then I asked, “Does that make any sense to you.” He then says no because Detroit is far away from San Antonio. So I explained it was about the same distance as San Diego to San Francisco. (California is a LONG state going north to south)

In the end, they didn’t suspend my coverage. But then the most obvious question remained, Why TF do I pay insurance just to have you attempt to suspend my policy in the event that I might need you!?

Couldn’t get a straight answer out of the supervisor who knew at that point he was in a losing argument and USAA kissed the donkey on that one.

I’ve heard of insurance companies suspended new policies from being written in an area experiencing a disaster, but I had never heard of an insurance company suspending coverages for existing policies. I wouldn’t have though that was even legal! But USAA tried to do it to me!

I have to admit, I’ve had reservations about USAA for some time after that. But even that wasn’t enough to tip the scales for me and I still stayed loyal to USAA, until this year when my rates jumped and I decided enough was enough.

I didn’t want to lead this thread based on the depiction of these events, as this forum revolves more around a cost v. benefit sort of mindset. But since you brought it up, the cost of premiums wasn’t the only deciding factor.

[bsmith123]

Shame to hear this as this has been a great and reliable worldwide companion for VETS. One of the best things
when you move back and forth from overseas --everything was seamless

I have been with USAA a long time and I will say that the customer reps have been good to me in sorting out anything that comes up. I can call them and talk to a person. When auto accidents hit they were on top of it
and everything was smooth. I wondered why investing was turned over to Schwab though.

All in all I would rate it as one of my best and longest term relationships with a company in a world that makes you feel like a number and nobody knows you or cares.

That being said it could all be ruined if things are not run as well as in the past---I will be looking more closely now

[Bubba]

Not sure if you consider something like insurance in the same realm as investments, but as more of a PSA I like to share something I’ve been experiencing with USAA Insurance.

I’ve been a USAA member for almost 20 years, and I have been pretty happy for the most part. But when I relocated for work last year and my insurance rates doubled (almost tripled) I began looking at other options. USAA was for years the cheapest/ best insurance around, I remember other insurance companies wouldn’t even what to quote you if they discovered you had USAA.

But when I moved last year and started talking to other veterans, all of them said when they moved here they were forced to drop USAA because they were too expensive.

I heard Charles Swab aquired USAA a few years back and consequently (or unconsequently I’m not sure) their rates have been increasing and their customer service seemed to be on the decline. There employees are no longer empowered to make common sense decisions to handle issues at the lowest level, and instead have to push everything upward toward management.

USAA CEO’s Office started a community discussion portal on the USAA website, and I can tell you its a blood bath on there. 20-30-50 year members are expressing their concerns and leaving USAA in droves. Alot of folks took issue with the manner in which USAA has been donating money to groups like BLM, instead of other veteran centered charities. Citing USAA woud rather support social justice warriors oppose to america’s war fighters.

I went ahead and price shopped my insurance based on the coverages and rates I had with USAA, and I was shocked to learn that EVERY insurance carrier beat my rates with USAA; and some quite substantially so.

I’ve always viewed insurance as a vessel that protects the wealth I’ve been building throughout my life. Not to get too personal, but I was paying annually for both home and auto about $6,000 per year through USAA. And I got quotes for AAA, All State, State Farm, Farmers, and a few more. Every single company could offer me better rates in a apples to apples comparison.

So I called USAA six times and escalated this issue as far north as I could to no avail. USAA (with a defeatist attitude) simply could not get my rates down unless I wanted to drop my coverages.

Anyone else experiencing this? I decided to severe my relationship with USAA last week, which was unfortunate, but it just didn’t make financial sense to stay with them moving forward. I ended up going to AAA and saved $2,600 per year for the exact same coverages.

So if your in the same boat, I highly suggest you do your due dilligence as you may be shocked what you learn.

Salute

I have USAA for banking and car insurance (but I'm abroad). For car insurance they've always handled everything professionally. Even so, I've come to see the cost of their to be very, very high. I could probably pay half price with a local insurer and I'm considering going that direction. I once called USAA about this and they responded with "meh, go to someone else if you want a cheaper price." Sadly, I'm so busy and my partner doesn't know/want to know how to handle anything administratively that I simply cannot get to this point. Also, given that I'm abroad, it's not easy navigating the whole US abroad and SOFA situation. I hope to take a vacation one day and review all of this. The only thing that hasn't been my "kick" to make the change is that they've handled all of our car problems with the utmost professionalism.

I've been satisfied with the banking. For the most part they've responded well, although I wish I could do more digitally instead of calling them (which is always a hassle). I could do more online if I were to have a US based phone number for verification. This can be alleviated through a Google number, but again...being busy...

I originally did invest with them too. I liked one of their mutual funds and found it very easy to get accounts for my family created. They weren't always very competent, nor helpful, but since they've sold that business to Schwab (my understanding is that USAA is still its own company, but they sold their investment wing to Schwab) I've been more satisfied (although I really don't like the Schwab internet interface..too clunky).

Best,

Bubba

[mjedlin66]

I've been satisfied with the banking. For the most part they've responded well, although I wish I could do more digitally instead of calling them (which is always a hassle). I could do more online if I were to have a US based phone number for verification. This can be alleviated through a Google number, but again...being busy...

I had the same pains doing US business while on SOFA. I got a US based phone number through Stripe, which is probably similar to using a google number. Even then, to access some websites (Now that you mention it, Farmers insurance was one such website) I had to use a VPN to get a US IP address. Definitely a hassle.

I switched to GEICO after I returned to the US. One thing I love about GEICO is that their app and online presence is just way more useful than Farmer's.

Final thought - even companies that offered a good online presence would not allow me to enter an AP address. I often had to call them to have my address corrected and that was annoying as hell.

[IRQVET]

I highly encourage anyone with USAA that is on the fence to log into your account, go to the search bar, and type “Community Forum.”

That is the interface that the CEO’s office created to discuss member concerns. Its an absolute bloodbath on there with many USAA members of 20-30-40-50 years voicing their concerns on how USAA is currently trending compared to what it has been. Like I said, you learn how many long term members are leaving in droves.

I know it was difficult for me, to walk away from a company I’ve done business with for almost 20 years, but like I stated previously enough was enough.

[Bubba]

I've been satisfied with the banking. For the most part they've responded well, although I wish I could do more digitally instead of calling them (which is always a hassle). I could do more online if I were to have a US based phone number for verification. This can be alleviated through a Google number, but again...being busy...

I had the same pains doing US business while on SOFA. I got a US based phone number through Stripe, which is probably similar to using a google number. Even then, to access some websites (Now that you mention it, Farmers insurance was one such website) I had to use a VPN to get a US IP address. Definitely a hassle.

I switched to GEICO after I returned to the US. One thing I love about GEICO is that their app and online presence is just way more useful than Farmer's.

Final thought - even companies that offered a good online presence would not allow me to enter an AP address. I often had to call them to have my address corrected and that was annoying as hell.

The calling part is what kills me. It's always late at night for me (time difference) and with small kids I just don't have the time what should be possible online. I know it's crazy, but it's just that.

[jimcasada]

I originally had a checking account with them back in the 1990's, but closed it when I kept having problems with delayed direct deposits, excessive fees, and such. I hadn't done any business since until a couple of years ago when I was looking for auto insurance and they beat everyone else's rate for where we live here in southern Maryland (via Progressive). It's funny how they still have me in their system as a good active member, although I hadn't done any business at all with them in over 20 years. They also gave me a reasonably good quote on home insurance, but were about $100k short on the coverage my mortgage company required, while checking it online. Maybe I could have got them to increase that if I called, but really I'm happy with our current insurance with MetLife.