USAA auto insurance

Overview

USAA — the United Services Automobile Association — insures, banks and invests for the U.S. military community. It ranked #5 among U.S. private passenger auto insurers by 2025 direct premiums written, with $22.96 billion and a 6.18% market share, according to NAIC market share data, even though only military members, veterans and their families can buy its policies.

Its auto insurance is written by the association itself, a reciprocal insurance exchange managed by USAA Reciprocal Attorney-in-Fact, Inc., and by affiliates including USAA Casualty Insurance Company, USAA General Indemnity Company, Garrison Property and Casualty Insurance Company, USAA County Mutual Insurance Company and USAA Falcon Property & Casualty Insurance Company. There are no shareholders. USAA serves about 14 million members, employs more than 38,000 people and is headquartered at 9800 Fredericksburg Road in San Antonio, Texas.

USAA is a direct writer: you buy and manage policies online, in the USAA Mobile App or by phone, and there are no local agents. Juan C. Andrade, a USAA board member since 2020 and former CEO of the reinsurer Everest Group, became president and CEO on April 2, 2025, succeeding Wayne Peacock.

Who can join. USAA lists active-duty military, National Guard and Reserve members, veterans who have honorably served, contracted ROTC cadets and midshipmen, officer and warrant officer candidates, service academy appointees, and the spouses and children of USAA members as eligible for auto insurance. Separated personnel need a discharge of Honorable or General Under Honorable Conditions. See car insurance for military members and veterans for other options.

History

On June 20, 1922, a group of Army officers met at the Gunter Hotel in San Antonio and formed what became USAA, because auto insurers of the day treated military officers as high-risk customers; they decided to insure each other. They chose Maj. William H. Garrison as the first president, and on June 23, 1922, Maj. Walter Moore bought the first policy, for a 1922 Elcar, at $114.47 a year.

Eligibility widened step by step: Navy and Marine Corps officers in 1923; service academy cadets, Foreign Service officers and widows in the 1930s; Air Force officers after 1947; enlisted personnel in 1995; and, in 2009, everyone who is serving or has honorably served, plus their families. The day after Pearl Harbor, USAA automatically renewed policies for members deployed overseas.

USAA opened its first European office in Frankfurt in 1952, added homeowners insurance in 1960 and life insurance in 1963, and started USAA Federal Savings Bank in 1983. It launched a roadside and travel plan in 1991, usaa.com in 1999, remote check deposit in 2006 and its mobile app in 2009. Its operating companies also include Noblr, Inc., a usage-based insurance company, and USAA EU operations for members stationed in Europe and the U.K.

Auto insurance coverage

USAA's standard coverages are liability, collision, comprehensive, uninsured and underinsured motorist, personal injury protection where required, and medical payments. Optional coverages include:

• Rental reimbursement, with transportation expenses, for an extra premium.
• Roadside assistance, through USAA Towing and Labor coverage.
• Car replacement assistance, which pays 20% more than the car's actual cash value if it is totaled or stolen and can work alongside gap insurance.
• Rideshare gap protection for the period an Uber or Lyft driver is waiting for a ride request.
• Overseas insurance for members who move abroad on permanent change of station orders.

Discounts and programs

USAA offers two app-based usage-based programs:

• USAA SafePilot gives an initial participation discount when you enroll and up to 30% off at renewal for safe driving, based on the driving of every rated driver on the policy.
• USAA SafePilot Miles is a mileage-based option with a monthly rate adjusted for miles driven: up to 20% savings for lower mileage plus an earned driving discount of up to 20%.

USAA says the two programs save members an average of $200 per six-month policy. Its terms add that for policies written by USAA affiliates other than its four main insurers and enrolled on or after October 2026, the safe-driving adjustment can also raise the renewal premium.

Other discounts on USAA's site:

• Bundling with homeowners or renters insurance, up to 10%
• Clean driving record (more than five years), defensive driving and driver's education
• Good student, multi-vehicle and new vehicle (under three years old)
• Anti-theft systems such as LoJack or OnStar
• Vehicle storage, up to 60%, useful during deployments
• Up to 15% off comprehensive coverage for cars garaged on a military base
• The MyUSAA Legacy Discount, up to 10% for members whose parents had USAA auto insurance

Claims

File and track claims in the USAA Mobile App, online or through the main number, 800-531-USAA (800-531-8722), which handles auto and property claims around the clock; roadside assistance is at 800-531-8555. USAA cites crash detection technology and instant vehicle damage assessment among its claims tools. Claims mail goes to USAA Claims Service, P.O. Box 33490, San Antonio, TX 78265. Members stationed abroad have country-specific claims numbers on USAA's contact page.

Ratings and reputation

Financial strength. On June 25, 2026, AM Best affirmed USAA's A++ (Superior) financial strength rating and "aaa" (Exceptional) long-term issuer credit rating with a stable outlook — the top of its scales. AM Best cited a balance sheet it rates "strongest," improved results from rate increases and underwriting actions, lower 2025 catastrophe losses and expense ratios well below the industry average.

Results and member returns. In its 2025 annual report, released April 23, 2026, USAA said it returned a record $3.8 billion to members in 2025, paid nearly $1.7 billion in claims from the January 2025 California wildfires, and provided nearly $450 million in relief to members affected by government shutdowns. It said auto rates are stabilizing, with notable reductions in states such as Florida, and that about half of its policyholders should see an auto premium decrease in 2026.

Customer satisfaction. USAA is not rank-eligible in J.D. Power studies because membership is restricted, but its scores are published. In the J.D. Power 2026 U.S. Auto Insurance Study, USAA outscored every ranked insurer in all 11 regions, from 707 in the Southwest to 763 in New England. In the J.D. Power 2025 U.S. Auto Claims Satisfaction Study it scored 741, second only to Erie Insurance (743) and well above the 700 average.

Who it suits

For people who qualify, USAA pairs the strongest possible financial ratings with the highest customer satisfaction scores J.D. Power publishes and discounts tailored to military life, such as storage and on-base garaging. The trade-offs are eligibility and channel — civilians without a qualifying family connection cannot buy it, and everything runs through the app, website and phone.

• Strengths: A++ AM Best rating affirmed June 2026; top published J.D. Power scores in every region in 2026; military-specific discounts and overseas coverage; record $3.8 billion returned to members in 2025.
• Weaknesses: Only military members, veterans and eligible family members can join; no local agents; SafePilot can raise premiums on some policies written by newer USAA affiliates from October 2026.

How to contact USAA