USAA

Reviewed September 2009

Best auto insurance for military families

Helpful customer service
No-hassle claims
Low prices
Exceptional financial strength

Open only to military families

Our Analysis

If you're in the military, reviews say you've got the best auto insurance option anywhere: The United Services Automobile Association (USAA) tops just about every auto insurance ratings chart there is. It's financially strong, earning the highest possible scores at all four ratings services (Moody's, Standard & Poor's, A.M. Best and TheStreet.com). Customers say USAA reps are extremely helpful, and most report no problems with claims, although a few claimants say they've gotten a runaround from USAA. Reviews praise USAA's low prices, but it's also a favorite among wealthy military and former military clients. However, only current or former military personnel are eligible, as are the children of policyholders.

J.D. Power and Associates provides the most thorough analysis of USAA, ranking it against two dozen other insurers based on 17 criteria (including price and overall claims experience) from thousands of owner surveys. Consumer Reports does similar rankings, but its report is only available in a back issue of the magazine. The New York State Insurance Department ranks USAA against 39 other auto insurers based on customer complaints filed there. TheStreet.com Ratings lists USAA among the top auto insurers based on its financial strength. Epinions.com has lots of consumer reviews for USAA, positive and negative.

Our Sources

1. J.D. Power & Associates

USAA earns the highest possible ratings in nearly every category in J.D. Power and Associates' latest insurance survey of almost 23,000 policyholders. However, the review notes that USAA is only open to military families.

Review: Insurance Ratings, Editors of J.D. Power and Associates

2. ConsumerReports.orgDetails/Subscribe

USAA is among the 27 car insurance companies ranked in Consumer Reports' most recent survey. Editors surveyed 21,228 people who filed claims with their auto insurers between 2001 and 2004. Each company is rated on "problems with claim" and "delayed payments," as well as overall. Note that this article is only available in back issues; you can't read it on Consumer- Reports.org's website.

Review: Ratings: Car Insurance, Editors of Consumer Reports, March 2006

3. New York State Insurance Department

USAA is one of six auto insurers that have topped this chart for two years in a row. The review ranks 40 auto insurance companies according to their "complaint ratios" -- the number of complaints that New York regulators have upheld against them, relative to company size.

Review: 2008 Annual Ranking of Automobile Insurance Complaints, Editors of New York State Insurance Department

4. TheStreet.com Ratings

USAA is one of the 10 financially strongest auto insurance companies in America, according to TheStreet.com Ratings (formerly Weiss Ratings). ConsumerReports.org says TheStreet.com's financial ratings are more stringent than Standard & Poor's, Moody's or A.M. Best's.

Review: Strongest and Weakest Auto Insurers, Editors of TheStreet.com Ratings

5. Insurance Journal

USAA is the favorite property/casualty insurer of the wealthy, according to this report on a survey by the Luxury Institute market research firm. More than 2,100 households with at least $200,000 in gross yearly income and a minimum net worth of $750,000 were surveyed.

Review: High Net Worth Consumers Rank USAA, Chubb and American Family Top Three P/C Insurers, Editors of Insurance Journal, May 19, 2006

6. Epinions.com

USAA is the most consistently top-rated auto insurer at Epinions.com, earning an average of 4.5 stars (out of five) from more than 180 consumers. However, a few say they've had bad claims experiences.

Review: USAA Group -- Auto, Contributors to Epinions.com

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