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I am a USAA member for auto and homeowners, and I have a bank account there (easy to make payments and receive claims). I’ve been a member 46 years.
About 5 years or so ago I noticed USAA advertising on TV, and that has intensified. Clearly broadening their customer base, which to me implies adding to the risk pool (their old model was military officers and their families, I am family having never served myself). And that implies, to me, that either rates would increase or claims experience would get worse. Until those ads started, USAA had been excellent with a handful of not-my-fault accidents and a couple of homeowners claims.
I had to get different insurance when we moved to FL because USAA didn’t offer wind (hurricane) and we would be forced into the shady provider of last resort. Instead I got a broker and they set up a very reasonable homeowners policy with good hurricane coverage and we included flood even though we were on relatively high ground. Because we moved the homeowners, the auto policy rates went up (no “bundle”). So we had to move that, too.
In December of last year we moved to TN, so I again set up USAA auto and homeowners policies. At the beginning of March we had a tree fall on top of my new truck (2022 purchased at the end of Dec) and roof. Two claims, two deductibles. Communication has all been via app, except when I got exasperated and called them. The response has been slow and poor, and for the first time as a USAA member I had to really work to get close to fair value for my truck (I’m still a bit shy but decided to accept and move on). I’ve been paid for the house claim less that deductible, but still haven’t had the lien released nor been paid for the truck. Three weeks plus - in the past a few days was all it took. The total loss was over $90k with over $10k on me (deductibles and valuation of the truck).
I expect a big rate increase as a result of this. And I will likely change companies because of that and the poor (probably industry average) claims service. My sense is that USAA has become what I feared, an average insurance company with premium rates - a poor value.
A couple of points:
Insurance has changed, certainly at USAA. As they’ve moved online and away from human contact, the service has become “standardized” and there is little opportunity for exceptions. Using a good broker is likely the last refuge, but I don’t expect that to last long as the insurance companies cut them out to save cost.
Everything is more expensive. The truck that was totaled had a sticker of $75k! And there were more expensive ones (same model, different options) available. That’s BMW money (at least in my mind). The gutter replacement for my house is a couple of hundred more than the estimating sheets - because they’re not keeping up with cost increases in the real world. All of this drives claim costs up, and rates.
If I had the money I’d get a bond and self insure. But I’m not in that league and can’t afford much more financial risk than I’m taking, so I’ll keep insuring. But it feels like this will be an uphill climb for several years.
I’m not mad at USAA, I understand their business choices. But I’m disappointed that the member experience has deteriorated, and I’ve told them I no longer see them as positively differentiated from the competition as a result. It’s just life, I guess.
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