What Discounts Does USAA Offer for Auto Insurance?
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USAA is an insurer that provides auto and home insurance to people who have either served in the armed forces or are affiliated through their family members or spouse. USAA is known for providing extremely low insurance rates to its customers, which makes them a popular choice among those who are eligible. In addition to their low prices, customers with certain qualifications can get even more discounts. In this article, we will discuss the discounts that USAA offers for their customers and what you should know before signing up.
How Do I Qualify for USAA Insurance?
Unfortunately, not everyone can qualify for USAA insurance and financial services. The program was initially designed to cover people who served in active duty military positions. However, there are many ways you can qualify even if you aren’t personally in the military. USAA membership can be passed down through families. For example, if one of your parents was in the military, you will be eligible for membership. Once you become a member, your children will be qualified as well. You can also qualify for USAA insurance if you are married to someone who already has it. Note that this only applies if you have USAA insurance. If you only have a checking or savings account with their bank, your family members will not qualify for USAA coverage.
What USAA Discounts Are Available to Me?
The discounts that USAA offers for auto insurance include:
- Safe driver discount: This gets you a low rate if you have had a clean driving record for the past five or more years. This will also qualify you for USAA’s accident forgiveness.
- Driver training discount: If you take a driver’s training course before turning 21, you can receive a discount on your auto insurance. This is as opposed to or in addition to learning to drive from a family member or friend.
- Defensive driving discount: If you take one of USAA’s approved courses on defensive driving, you can receive the USAA defensive driving discount.
- Mileage discount: If you drive less than a certain number of miles, you can receive a discount on your car insurance. This is a significant discount for those who live in big cities and drive infrequently. Note that this discount is only available for those over the age of 29.
- New vehicle discount: If your vehicle is less than three years old, you will qualify for a discount.
- Automatic payment discount: USAA will offer you a small discount for scheduling electronic payments instead of paying manually. This is essentially a reward for minimizing your chances of missing a payment.
- Family discount: If one or more of your family members also uses USAA, you can qualify for a discount.
- Driving research discount: If you sign up for this program, you can get a five percent discount on your auto insurance. You will be given a device to plug into your car, and it will gather data to send to USAA. You will also be sent email surveys about driving to take every so often. This helps USAA learn more about the driver’s habits and offer better service and protection to their customers.
- Military installation discount: This is one of the most significant discounts that USAA offers. If you park your car at a military base, you can save up to 15 percent on your auto insurance. This provides an incentive for military members to park their vehicles safely on base instead of other places.
- Good student discount: If you are still in school and have a GPA of 3.0 or higher, you qualify for the USAA good student discount. You must be a full-time student to receive this. You can also qualify if you are in the upper 20 percent of your class academically, or if you make the honor roll.
- Bundling discount: When you go through USAA for multiple types of insurance, such as home insurance or life insurance in addition to your car insurance, you can qualify to receive a discount.
- Multiple car discount: If you insure multiple vehicles with USAA, you can qualify for a discount on your overall premium.
- SafePilot: SafePilot is a new program from USAA that tracks your driving habits through a mobile phone app. If you are a good driver, you will be rewarded with lower auto insurance rates.
Why Choose USAA for Auto Insurance?
Because USAA has some restrictions on membership, they can offer insurance at much lower prices than you see at other companies. The strict qualification requirements, however, seem to be the only downside when it comes to USAA.
USAA offers phenomenal customer service and scores very highly for customer satisfaction. At US News and World Report, USAA ranked #1 out of all insurance companies in terms of customer friendliness. Over 70% of USAA customers also reported being completely satisfied with USAA’s claims process.
If you are looking for additional coverage types and add-ons, USAA has a wide range for you to choose from. USAA’s roadside assistance program consistently ranks among the top in the industry. For those wishing to bundle other insurance products with their auto insurance policy, USAA sells home insurance, life insurance, renters insurance, and more all at very low prices.
Final Word on USAA Discounts
Although USAA has a good selection of discounts, many other companies actually offer more to choose from. USAA’s base rates, however, are so low that it makes up the difference. Many businesses will offer discounts on their services to USAA members, so if you qualify, you can save even more money on other expenses. In particular, it’s great for people who might otherwise have high car insurance rates. While things like a poor driving record will still increase your premiums, they will be lower with USAA than with other banks. Many people who qualify for USAA don’t realize it, so if you have anyone in your family who has served in the military, it’s worth asking around to see if you have eligibility.
When signing up for USAA, make sure to ask your agent about the discounts you might be qualified for. Even small discounts can save you a lot of money in the long term when it comes to car insurance. It’s important to note that there are restrictions on some discounts, often based on your location. If you are eligible, USAA is an excellent option for auto insurance that can save you huge amounts of money.