With 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsse.
Ashley Kilroy Insurance WriterWith 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsse.
Written By Ashley Kilroy Insurance WriterWith 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsse.
Ashley Kilroy Insurance WriterWith 15 years of immersion in the world of personal finance, Ashley Kilroy simplifies financial concepts for individuals striving toward financial security. Her expertise has been showcased in reputable publications including Rolling Stone, SmartAsse.
Insurance Writer Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
| Lead Editor, Insurance
Updated: Jul 12, 2024, 9:37am
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We selected USAA as the best for military and veterans because its auto insurance is sold exclusively to the military community. USAA understands the insurance needs of military members and their immediate families and offers superb prices for most driver types.
Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.
Average annual cost for good drivers Average annual cost for drivers with a speeding ticket Complaint LevelWhy You Can Trust Forbes Advisor
We analyzed car insurance costs, coverage options, complaint data and collision repair claims service. We use data-driven methodologies to evaluate insurance companies so all companies are measured equally. Our editorial content is not influenced by advertisers. You can read more about our editorial guidelines and the methodology for the ratings below.
USAA earned a spot on our list of the best car insurance companies. It’s a terrific choice if you’re a current or former military member or an immediate family member, mostly due to its pricing. Some advantages of USAA are:
USAA’s biggest drawback is that if you’re not part of the military community you’re not eligible to buy a policy. Other drawbacks for USAA include:
USAA’s average rate for a good driver is $1,364 per year, according to our analysis. That’s 33% cheaper than the average cost of car insurance nationwide ($2,026 per year). USAA has the cheapest rates for many driver profiles that we evaluated.
USAA rates are cheaper than the national average for all ages we looked at. Its car insurance for an 18-year-old driver is 37% cheaper than the national average, while its rates for 75-year-olds motorists are 29% cheaper.
$2,121 lower $1,269 lower See More See LessCar insurance for a 16-year-old driver on a USAA policy costs about $100 a year more than the national average of $2,359 a year. USAA is the sixth most expensive company for adding a teen driver out of the nine companies we evaluated.
*USAA is available only to the military, veterans and their families. See More See LessUSAA’s rates are cheaper than the national average for common driver profiles. USAA’s costs for drivers with accidents are about $1,000 less than the average. It’s $1,470 less for drivers with poor credit.
Good driver Driver with a speeding ticket Driver who caused an accident with injury Driver with a DUI Driver with poor credit See More See LessUSAA has the cheapest average car insurance rates for good drivers among the insurers we evaluated. Its average price for good drivers is $660 a year lower than the national average of $2,026 per year.
*USAA is available only to the military, veterans and their families. See More See LessUSAA offers very low prices for drivers with a speeding ticket. Its rates are the cheapest of the companies we analyzed and are 34% cheaper than the national average of $2,533 per year.
*USAA is available only to the military, veterans and their families. See More See LessUSAA has the lowest average rate for motorists who caused an accident with an injury, compared to other top insurers we analyzed. Its rates are $1,000 a year cheaper than the national average of $3,009 a year.
*USAA is available only to the military, veterans and their families. See More See LessUSAA auto insurance costs for drivers with a DUI are low compared to competitors. The national average car insurance cost for drivers with a DUI is $3,363 a year, based on our analysis of large insurers. USAA’s rates are about $760 a year cheaper than the average.
If you have a DUI on your record, comparing car insurance quotes is wise because of the wide variation in costs from one company to the next.
*USAA is available only to the military, veterans and their families. See More See LessUSAA’s s rates for drivers with poor credit are 38% below the national average of $3,889 a year among the companies we analyzed. To find the best car insurance for drivers with bad credit, try shopping around. Some companies such as Geico and Nationwide generally have cheaper rates than USAA.
Insurance companies say that drivers with poor credit are more likely to file claims. This correlation leads to higher rates. California, Hawaii, Massachusetts and Michigan prohibit insurers from using credit when pricing auto insurance. USAA’s rates for drivers with poor credit are 78% higher than their rates for those with good credit.
10% cheaper Below fair See More See LessUSAA is available in all 50 states and Washington, D.C.
Car insurance rates by state vary widely for several reasons. These include the likelihood of theft and weather-related claims and differences in the required minimum amount of car insurance you must have to drive legally and, among other factors.
For example, USAA’s average rate in Idaho is $648 a year, but the average cost in Louisiana is $2,801 a year.
Here are USAA’s average rates in most states where it’s available.
See More See LessUSAA’s complaint level is slightly below the industry average but higher than many large insurers. Its top auto insurance complaints are related to claim delays, unsatisfactory settlement claim offers, adjuster handling of claims, claim denials and rates.
USAA’s car insurance complaint level has gone down over the last three years and is now just below the industry average.
In a survey of collision repair professionals by CRASH Network, USAA earned only a D+ grade. That low grade indicates that USAA could improve its claims procedures for customers with collision damage.
Auto body professionals’ opinions are insightful because they see how insurers compare in the use of lower-quality repair parts, whether insurers encourage the use of repair procedures recommended by car makers, and whether insurers have claims processes that lead to quick and acceptable claims for customers.
USAA’s rating from repair specialists for its claim handling processes has steadily declined over the past four years, resulting in a poor grade of a D+ in 2024.
Source: CRASH Network See More See LessUSAA provides the foundational types of car insurance that states require—such as liability insurance—and stands out for its fair amount of coverage options.
USAA does not offer these types of additional coverage options:
USAA offers a wide variety of car insurance discounts that may help you save on your policy’s cost. Here’s a look at some of the discounts USAA has.
USAA’s digital experience is only average. USAA received a score of 3.7 stars (out of 5 stars) based on our evaluation of its mobile app and website functionality.
On its website, you can get quotes online, file a claim and pay your bill. There is also a helpful search function and a chat feature, but the chat lets you choose from only five topics.
Through the USAA mobile app, you can:
USAA gives drivers multiple ways to make a payment and file a claim, but only one way to cancel an auto policy.
You can file and track a claim through USAA’s app or website. You can also call USAA at 800-531-8669 to submit a claim.
USAA stands for United Services Automobile Association and has served military members and their families since 1922. It began when 25 Army officers decided to insure each other’s vehicles. Today, USAA serves millions of members with its diversified group of financial services companies.
You can join USAA only if you are a current or former military member or the spouse of a military member. Children of military members may join USAA as well.
USAA has an A++ (Superior) financial strength rating with AM Best, which is the highest rating you can receive.
A high financial strength rating is a good indicator that a company will be able to pay future claims.
Beyond auto insurance USAA provides a wide variety of other insurance products. For those constantly dropping or losing their phones, USAA sells cell phone protection insurance. Since warranties usually don’t cover theft or loss, a protection plan can help replace your phone.
For those who love their pet like they love their family members, USAA sells pet insurance from Embrace to help with veterinary care costs. And, if you’re hosting an event, USAA offers special event insurance that can cover event cancellation due to deployment, severe weather, illness and other reasons.
Other policies USAA offers include:
To identify the best car insurance companies we evaluated each company based on its average rates for a variety of drivers, the coverage options offered, complaints against the company and collision repair grades from auto body professionals.
Auto insurance rates (50% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.
Unless otherwise noted, rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:
Car insurance coverage options (25% of score): Any auto insurance company can provide the basics of liability insurance, collision and comprehensive coverage and other standard offerings. But it’s also important to have access to additional coverage types that can provide greater protection or cost savings. In this category we gave points to companies that offer accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance and SR-22s.
Complaints (20% of score): We used complaint data from the National Association of Insurance Commissioners. Each state’s department of insurance is in charge of logging and monitoring complaints against companies operating in their states. Most auto insurance complaints center on claims, including unsatisfactory settlements, delays, and denials. The industry complaint average is 1.00, so companies with a ratio below 1.00 have lower levels of complaints.
Collision repair (5% of score): We incorporated grades of insurance companies from collision repair professionals. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card used grades from more than 1,100 collision repair professionals to gauge auto insurers on the quality of their collision claims service.
Yes, with an average national cost for good drivers of $1,364 per year, USAA is cheaper than other auto insurance companies. USAA made our list of best car insurance companies partly because it has the lowest rates for most driver profiles we evaluated, such as drivers with a speeding ticket or accident on their record. USAA is terrific to shop with if you want low car insurance prices, but these low rates aren’t available to everyone. USAA only offers policies to members of the military community.
Yes, USAA continues to sell only to present and past military service members and their families. If you are in the Reserves, active duty, a veteran or have a spouse, parent or grandparent who is a USAA member, you should be able to buy and enjoy the benefits of a USAA car insurance policy. You cannot buy an auto policy with USAA without being part of the military community.
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