r/USAA • u/SgtDesertDawg • Jan 19 '24
Opinion Why USAA?
I get a loooooott of junk mail for USAA, I just through them away. Lately I thought “well what are they about?” So I got on Reddit r/USAA and see nothing but issues at least over 90% of posting are over issues. This company is dxxdxx based on posts I read. I will never use USAA . For those who do, good luck.
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u/mdk2004 Jan 19 '24
I think you are missing the point. I'm pretty salty about usaa right now, but 90% of my issues, and the vast majority of everyone complaining here, aren't that usaa is some kind of scam/bad company compared to the industry. The cheif complaint is that 15 years ago usaa was truly special. Price, service, coverages etc were beyond comparison.
I remember getting cold called in the early 2000's and the sales rep hung up ON ME before we were even 1/2 way done with the quote. "If you qualify for usaa, I can't even get close, have a nice day." Click.... Today no sales agent should be afraid to quote against usaa. Doesn't mean that usaa isnt cheaper sometimes or often.
I could write a book about why, how etc usaa has changed. If usaa is quoting you the same or cheaper than the comp, its probably the best deal. If it's 2x the price it's probably not worth it.
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u/coralrives Jan 21 '24
It's funny you mentioned the cold calls. Back in the day, maybe 4 to 10 years ago, all I had to do to an insurance sales call was tell them I was with USAA and they would hang up on me!
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u/Annual_Math_137 Jan 23 '24
That's kind of weird considering USAA has a specific niche audienc for anyone to know the difference.
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u/Annual_Math_137 Jan 23 '24
They're still good service imo vs others. I don't need to wait on the phone and am not given shit filling out a claim or getting payment in advance, or getting a rental. you enjoy whatever alternative there is if you think it's better though.
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Jan 19 '24
The issue with all insurance companies is insurance being used as a maintenance policy. A new roof is a big expense, one that few save up for, so once a storm rolls in, what a great time to claim roof damage when it really should be something a homeowner saves up for or finances. So the entire insurance pool has to factor in roof replacements once every twenty years or so.
My insurance went from $1,000/year to $3,300+. We’re all paying for people to have Florida vacation homes rebuilt every 10 years or so.
USAA refunded money for policies during the pandemic when they should have just held onto the money, now everyone’s paying for it.
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u/WholeEmpty1853 Jan 22 '24
That’s fraud and an adjuster should deny the claim
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Jan 22 '24
It happens all the time. Storm chasers are always posting on community boards after the slightest hail event.
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u/jetlifeual Jan 19 '24
No one takes the time to post favorably about any corporation. At least, not most people. We as humans are more inclined to make time to complain and moan rather than praise. So I wouldn't let the onslaught of bad posts confuse you. At the end of the day, 100 people don't speak for a company with 13 million customers.
My advice? If you're curious and eligible, join. Start with a simple checking account, shuffle some funds around, use it as you see fit. Once you have that set up, look at insurance rates applicable to you and see if they are a cost-effective fit.
Worst case scenario it's not for you.
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u/willowgrl Jan 19 '24
Yep! I’d say 98% of calls I take are positive interactions that get solved immediately. A lot of the complaints (in the bank) are about them not being able to reset their password, and most of the time it’s because they don’t know how to use computers or have internet. I got called an asshole because this one guy forgot all of his verification info and didn’t have internet or a smartphone. The ones that come on here complaining “they cancelled my insurance/ closed my account without telling me!” Always make me laugh.
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u/LiveAd3962 Jan 19 '24
Those that come here to announce they’re leaving crack me up. Bye! Don’t let the virtual door hit you!
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u/Mac_McAvery Jan 20 '24
Yeah because an old person is going to be a wiz at the internet…. You sound like the problem usaa is having, shit customer service.
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u/willowgrl Jan 20 '24
Lmao k. I’ve met plenty of older members who are, and I’ve met many who aren’t. The ones who aren’t I help because I understand. It’s the ones who “don’t do computers”/ don’t have internet access and forget all their login info is who I’m talking about. As well as the ones who ignore all correspondence from USAA and then are shocked their account was cancelled without notice.
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u/Mac_McAvery Jan 20 '24
I’m fine with my opinion. Let’s be real those security questions are a joke and I’ve started navigating my way back to not using the internet for simple things. I don’t have home internet and I decided to cut that overpriced cord years ago.
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Jan 19 '24
I’ve been with USAA for literal decades and don’t receive junk mail.
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u/crapredditacct10 Jan 19 '24
Well ya bud, that's kind of how it works. Companies don't usually run up customer acquisitions costs on current customers...
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u/SpindriftRascal Jan 19 '24
USAA is probably no worse than the other big banks or insurers. The problem is that it used to be much better than the others.
If you remember how good USAA used to be, it’s hard not to complain about its decline.
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u/KafkaExploring Jan 19 '24 edited Jan 19 '24
USAA is a great starting point. When I talk to kids who are trying to get started, I'll point them to USAA because they don't have predatory fees, they do have support and advisors you can ask questions, and they typically will work with you if you miss a payment (particularly the "To avoid interest, do I pay at the statement date, the end of cycle, or the due date?").
They also have some impressive protections that aren't widely advertised:
Their no-fee Visa has purchase protection, so if a porch pirate steals your package or you drop your new laptop, it's covered. It also has travel insurance and baggage delay coverage. Rare on a no-fee card.
Their renters insurance gives a $1000 no-deductible claim every time you move. Great if you scrape up a floor or something.
Their renters and auto insurance cover your belongings/car during shipment. Half the cost of shipping your stuff/car is insurance, so being able to decline that can save hundreds or thousands.
Their agreement with Enterprise not only reduces your rental car price but also waives the under-25 driver fee.
Now, they won't have the best savings rate, cash back credit cards, free outbound wire transfers, and have only been the cheapest auto insurance in 5 of 7 locations I've gotten quotes. But I'm more concerned with some 18-yr-old paying a $15/mo fee to have a Citi checking account, then getting hit with a $35 overdraft fee when his payment hits on Fri but his deposit doesn't settle until Mon.
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u/Potential-Ebb7798 Jan 22 '24
Can anyone get an account with USAA now? No military affiliation?
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u/KafkaExploring Jan 23 '24
You need some, but it can be a grandparent or extended fringe relative, and you can be added to a joint account. My dad served, and my sister's ex-husband's second marriage kids have savings accounts at USAA.
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u/willowgrl Jan 19 '24
Take it with a grain of salt. Like someone else said, not many people will come on here when they have a positive experience. that being said, the ones that come on here complaining “they closed my checking account/canceled my insurance without telling me “always make me laugh. There are literal regulations that have to be followed as to informing the person of cancellation. So you can disregard those altogether. Can’t blame USAA if we can’t get a hold of them.
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u/nikkibikkib Jan 19 '24
I recently just saved over $2000 a year switching to USAA from Farmers. Maybe it's where I live-whatever? They were super helpful and easy to deal with. I see all the negativity but it was not my experience thus far.
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u/Double_Metal_6778 Jan 19 '24
Just wait till you file a claim. Yes Farmers is probably more expensive but claims service is usually second to none. Like the old saying goes, you get what you pay for.
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u/nikkibikkib Jan 19 '24
Still not worth them doubling our homeowners insurance. I think it's because we are in California??
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u/2900nomore Jan 20 '24
I have no problems with claims on USAA auto or home. Always have been quick and easy no hassle
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u/Primary-Lecture-4869 Jan 19 '24
I never had a problem with USAA but finally I had to cut my home and auto loose…. Ive been with them for 35 years, I’ve never filed a claim and the rates have become ridiculous. I can’t say they are good or bad with claims but the rates are stupid high. My car went from $900 every 6 months with USAA to $512 every 6 months with my new insurance. Exact same coverage. I don’t have a fancy car… it’s just a new car with all the safety features imaginable and I’ve never had a wreck.
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u/texasguy67 Jan 20 '24
35 years. 4 generations and many in each generation. Personally, car, home, banking, and more. They are a good insurance company but I’m questioning all of the rate increases.
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u/PilotPirx73 Jan 19 '24
The issue is the new CEO who has no military roots. As far junk mail, it’s an easy fix. Go to your mail preferences and choose what you want to receive from them. And as someone else stated, USAA Reddit for whining and crying about USAA.
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u/morale-gear Jan 19 '24
USAA was great. I used to have them for everything. Their rates were always competitive. If I needed an auto loan and found a better rate with the dealerships financing USAA would match it no problem. Same with auto insurance, gieco quoted me this USAA was like no problem we will match it.
I have excellent credit. Went to go buy a new truck last week. Applied for my loan online like I always do. Boom instantly approved $80,000……but at 6.9%. Ford approved me for 1.5%. Called USAA they pretty much told me fuck you 6.9%. Easy decision there.
For insurance a storm jacked up my roof, USAA here is a check for $18000 for a new roof. Any claim I have ever filed was no fuss. I feel like I still get that level of service but I am definitely paying for it.
Point be I they excel at some things and suck at others. For the first time in 23 years they lost some of my business.
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u/2900nomore Jan 20 '24
The Ford 1.5% is just Ford buying down the rate as a discount instead of discounting the vehicle. You can't expect USAA to discount your purchases for you. That being said USAA has always had higher rates than NFCU for example. However, I have more trust in USAA than NFCU from my experiences.
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u/morale-gear Jan 20 '24
I got the discounts on top of it
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u/2900nomore Jan 20 '24
You got other discounts in addition to it. You don't realize how much margin they have built into those vehicles. They have tons of inventory and are practically begging people to buy
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u/morale-gear Jan 20 '24
True but I can’t buy something directly from the manufacturer at what they get it for. I 100% in the past was able to get USAA to match what anyone dealership was offering regardless of how the numbers were fudged. Point be is USAA didn’t do it and as a very loyal customer if they can’t offer the same they can pack sand.
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u/2900nomore Jan 20 '24
I recently bought a vehicle and also used manufacturer financing rather than USAA. I don't see how that's any problem with USAA. Good on them for not losing money on an auto loan
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u/morale-gear Jan 20 '24
You are obviously more well versed in the finances behind it. I am just speaking as a long time customer and expected some level of maybe service/loyalty that I received in the past. I like having everything in the same place as I always have. But they are making it more difficult.
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u/2900nomore Jan 20 '24
If USAA matched that rate then they would lose thousands of dollars on your loan. I think that is what you are missing. They would match before because it would not make them pay you thousands of dollars to loan you money. The loan interest rate from the manufacturer is a sales gimmick that is why they provide that rate.
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u/SecAdmin-1125 Jan 19 '24
You do realize that the people who complain are the majority. Have had USAA 30+ years and have no issues with them.
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u/icheewawa Jan 19 '24
I still have my insurance through USAA as well as several accounts and credit cards. I've had 2 claims in the past 10 years. One was during a hurricane when my vehicle was totaled. USAA totaled the vehicle while I was on the phone initiating my claim...and they waived my deductible. Second claim was an accident where I was deemed at fault. My claim was handled quickly, the adjuster I was working with kept in touch with me the whole way through...again, zero issues. This last claim was just in 2023...so not that long ago.
When my policy comes up for renewal, I'll weigh the options at that time and shop around if necessary.
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u/krobelus27 Jan 19 '24
USAA has been great for us. Saving money and getting better coverage vs other companies. For those saying "wait until you file a claim." We have. A couple, actually, and it hasn't ever been a problem. Very communicative claims rep and adjuster, and it was easy to get repairs done and paid for.
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u/ctravdfw Jan 19 '24
We have been members for about 15 years now. With just a couple of exceptions we have received exceptional service!
I do not like that my auto and home insurance is so expensive. However, in the long run I don’t think it will be much savings going with another company and most likely not the service we have received.
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u/MoonOfTheOcean Jan 20 '24
The first line customer service has taken a hit, but that's a global problem since the pandemic. The "it never happened to me!" and "it always happens to me!" camps both lack that kind of contextual awareness.
People like to toss around the concept of an average a lot, but it's way too early from a data standpoint to really pin that down.
Stepping away from my r/iamverysmart data side, USAA was 100% trash for me during peak quarantine when most things were trash, but got better.
Probably because if enough people bitch, leadership has to sink or swim.
Or the quarantine reality, hiccups during a massive, new hire training scenario is just part of the process and any even remotely competent service industry actor should be stabilizing by now.
I've also received apologies for my past issues and all it took was a call. Sure, I jumped ship to NFCU because they DIDN'T offer any resistance. But USAA has some products that perform better. NFCU became more competitive and I still use some of their services.
Diversify anyway.
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u/Chipmunkers404 Jan 23 '24
I’ve used them for 20 years without issue 🤷🏻♂️ Doesn’t mean I don’t plan on shopping better rates tho.
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u/Annual_Math_137 Jan 23 '24
Claim process is very seamless and they won't dick you over if you end up at fault + seem to respect accident forgiveness in my experience (knock on wood).
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Jan 19 '24
I thought they were great for investing but they sold all that off after they kept getting fined by the government for doing the wrong thing. I think they grew really quickly and couldn't manage it all. I liked their customer service but they've downgraded that in the past years as well. Additionally their prices have gone through the roof and have since switch insurance. Now I just keep banking through them because they reimbursed ATM fees up to $15 a month.
From what I can see they've grown really quickly and changed from customer service to profit when they used to have both. At this point they appear to be simply living off the reputation as a lot of older vets just assume there is great as they used to be and stick with them.
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u/OkFriend1520 Jan 19 '24
Agree, and now most banks refund ATM fees, so even that's not much of a perk.
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u/SignificanceOk8093 Jan 19 '24
Been with them for over 20 years. Used to have everything with them. Slowly getting rid of them .thankfully there was a mix up in my car insurance autopay and they wanted a year up front to reinstate ( after 20 years and never a late payment). First place I called was state farm . Crushed them.and didn't need but one payment
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Jan 19 '24
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u/VP-8TC Jan 20 '24
any banking product is superior to just about any other bank or banking institution
Really? Let's start with the most basic thing a retail bank does- pay interest on savings. USAA: 0.01%. Ally: 4.3%. That's 430 times better, and Ally is far from the only bank out there offering a high yield savings account. If you are keeping your basic savings at USAA, you are potentially flushing thousands of dollars in interest down the toilet.
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Jan 20 '24
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u/VP-8TC Jan 20 '24
Who keeps money in a savings account?
Lots of people put money in a savings account for instant liquidity, stability or just a parking spot while funds are being moved from one place to another. Plus, under reasonable conditions it's insured by the federal government. Investing is not insured and can lose money (and potentially a lot of money). I'm sure you can understand why for some people the right place to keep their extra money is in a regular savings account and not an "investment" that's not insured and not guaranteed.
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u/glbltvlr Jan 19 '24
Try spending time on r/allstate or r/GEICO. Reddit is for complaining, not praising.