United Services Automobile Association (USAA)
Our United Services Automobile Association (USAA) review finds that the company serves over six million members of the U.S. military and their families. USAA offers property/casualty insurance, life insurance, banking, credit cards, discount brokerage, financial planning, and investment management. Read our USAA Company Overview below to learn more.
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UPDATED: Jun 8, 2021
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2006 Assets: $113.5 Billion2006 Premiums: $9.163 BillionStandard & Poor’s rating: AAA (extremely strong)Moody’s rating: Aaa (Exceptional)
United Services Automobile Association Company (USAA) Overview:
Founded in 1922, USAA only insures members of the U.S. Military and their descendants. 2006 Fortune 500: 189th in Revenue; 87th in Net Worth; 76th in Assets.
This insurance company serves about 6 million member customers, primarily military personnel, military retirees, and their families. You must have a history of military service in order to qualify for USAA insurance. Its products and services include property/casualty policies, life insurance, banking, credit cards, discount brokerage, financial planning, and investment management. Insurance and financial products are sold mainly by mail, telephone, and the Internet.
Personal insurance lines account for most of the policy writings (private passenger automobile, dwelling fire insurance, homeowners, boat-owners, comprehensive personal liability, household goods and personal effects, personal articles floater, and personal umbrella policies).
In addition to covering automobiles operated in the United States and its territories and possessions, the company covers vehicles operated in Canada, Europe, Korea, and certain islands in the Pacific and Caribbean. A 2000 agreement with The Hartford Financial Services Group offers commercial policies to USAA members that own small businesses.
Under this program, USAA performs sales operations and marketing services while The Hartford performs underwriting, policy servicing, and claims administration. Over 95 percent of 2005 premiums written were from private passenger auto liability (38.1), auto physical damage (32.8), and homeowners (24.8).
The insurer also sells items such as computers, furniture, jewelry, and home and auto safety devices by mail order and offers long-distance telephone service, travel services, and Internet access to its members.
USAA was founded in 1922 by a group of U.S. Army officers to provide auto insurance coverage for members of the group, but the customer group that the organization serves has expanded to other military people and their family members as well as to employees of selected federal agencies (such as some foreign service and investigative agencies) and the range of products and services has greatly broadened.
As a result of its unique client group and direct marketing sales methods, USAA claims to have a low-cost structure and high retention rate that enable it to provide cost-effective products and services. Although sales are made nationwide, about 40 percent of the premium volume is derived from just 4 states – Texas (11.7), California (11.6), Florida (9.9), and Virginia (6.7).
Principle Sales Methods:
Dedicated agents in USAA offices.
Life Annuity Business: