How Much Does an Average USAA Auto Insurance Policy Cost?

Last Updated on November 14, 2023

The United Services Automobile Association, more commonly known as USAA, is well-known for providing insurance and additional financial services for those who qualify for membership. As of 2016, USAA had nearly 12 million members and is regarded as an excellent insurance company. This provider’s connection to the military is one of its key features to be aware of.

If you qualify for a USAA auto insurance membership, you may wonder how much the average policy costs. Below, we’ll be taking a look at the answer to that very question. We’ll also determine who can get insurance from USAA and what factors affect your auto insurance price with this provider. Is USAA the right insurer for you? Keep reading to find out.

Key Takeaways:

1. USAA’s Military Focus: USAA provides insurance and financial services primarily to active and retired military members, their immediate family, and certain candidates in military commissioning programs.
2. Factors Influencing Premiums: USAA auto insurance premiums are influenced by the driver’s age, driving history, vehicle model and make, location, and usage, but not by the car’s color or parking location.
3. Affordability and Accessibility: USAA is known for offering some of the most affordable auto insurance rates in the U.S., with average annual rates varying based on age, marital status, mileage, and credit score.
4. Average Rates: The average annual auto insurance rate with USAA is $885.

A Company Focusing on Solutions for Military Members

To get a membership with USAA, you will need to be either a retired veteran, an active duty military member, or the child of a member of the United States military. All USAA services and products can be used by members of the U.S. Air Force, National Guard and Reserves, Army, Navy, Coast Guard, and Marines. Retired veterans and former members with an honorable discharge are also qualified.

Former spouses of military members who had a USAA insurance policy before being widowed can keep their memberships as long as they have not remarried. Children and stepchildren qualify, as do midshipmen and cadets at U.S. service academies. Those on ROTC scholarship, in advanced ROTC, or officer candidates within 24 months of a commission can also use USAA insurance.

How Premiums Are Calculated as a USAA Auto Insurance Member

Based on the USAA website‘s information, many factors go into what your premiums on auto insurance will be. Going through all of them would be nearly impossible, but a selection of them are listed below:

• Age of the Driver – One of the things that can affect a premium’s price is the driver’s age. Those who are under 25 can expect a higher premium than those who are past that age. However, the company also offers a driver training credit for younger drivers who have completed a course.
• Driving History – Another thing that goes into the premium prices at USAA is your driving history. Individuals who have no tickets or accidents are rewarded for that by having better rates than those with a checkered driving history. If you stay accident-free for five years before getting in an accident, your premium won’t increase with a single accident.
• Membership Loyalty – Individuals using several different USAA products can save on their premiums for auto insurance. The more someone works with USAA, the more they can save on various products and services.
• Vehicle Model and Make – The premium you pay for your auto insurance at USAA can depend on the extras included with your car. A vehicle with lots of safety features typically comes with lower premiums. There’s also a discount for vehicles that are less than three years old.
• Location of the Vehicle – Rates can be higher if you’re in an urban area that experiences traffic congestion. Sometimes, a move down the street can make a difference. However, a member can take a driver improvement course for credits on their premium in some locations.
• Vehicle Usage – Whether your car is for personal or business use, the time you spend on the road can affect your premium. An annual mileage discount is available from USAA based on how many miles you drive in an average year.

Items That Don’t Affect Your Insurance Premium

Most of these things will affect premiums with any insurance company, not just USAA. However, there are also factors that this company doesn’t take into account that some other insurance providers do. These include:

• Color of Your Car – Having a red car, a blue car, or a black car does not affect your USAA insurance premiums. Choose the color of the car that you enjoy most without worry.
• Parking Location – You can park your car in a garage at night, leave it on the street, or in your driveway. The location won’t affect your premiums.
• Financing – USAA doesn’t consider whether your car is financed or not. However, the lienholder might require a specific level of coverage that is more expensive.

The Average Price of a USAA Auto Insurance Policy

Everyone will have a different set of characteristics that could make their policy more or less expensive than the average. However, USAA is one of the most affordable auto insurance providers in the United States. U.S. News notes that USAA has the cheapest insurance compared to other companies like GEICO, Travelers, American Family, Nationwide, and State Farm.

While we can’t give you an exact rate of what you’ll pay for premiums, overall, the average annual rate with USAA is $885. Single individuals who are 25 can expect rates of around $1,000 to $1,100, while someone ten years older and married will see rates drop to an average of around $820. An individual of around 60 might have premiums as low as $768 a year.

On the other hand, you can look at the rates based on annual mileage. Someone who drives 6,000 miles a year is looking at an average rate of about $830, while someone who drives 12,000 miles is looking at a rate of around $885. Premium prices also rely on credit score, with USAA offering average rates of $870 for good scores, $1,040 for fair scores, and $1,655 for low credit scores.

The Decision to Choose USAA Auto Insurance

USAA offers some of the best and most affordable auto insurance on the market. If you qualify for coverage, insuring your vehicle with USAA is a great decision. USAA has excellent reviews and low rates that make becoming a member extremely worth it. Contact USAA for more information today.