USAA Car Insurance: Benefits and Savings Tips

If you or your family member is in the military, you may have heard about USAA car insurance. Many people say it offers low prices, good service, and special benefits for military members and their families.

In this blog, we will explain USAA car insurance in very simple language so every reader can understand:

Who can get USAA car insurance
Types of coverage it offers
Special services and add-ons
Discounts and ways to save money
Example premium calculations
Pros and cons
Important things to remember before buying

This is an informative guide, written in easy English, so you can decide whether USAA car insurance is right for you or your family.

What Is USAA Car Insurance?

USAA is a financial company that mainly serves:

Active-duty military members
Veterans
National Guard and Reserve members
Pre-commissioned officers (like ROTC or service academy cadets)
Eligible family members (spouses, children of members, sometimes widows/widowers)

So, USAA car insurance is not for everyone. It is mostly for military families.

USAA offers car insurance policies that protect you from:

Damage to your own car
Damage you cause to others
Injuries in an accident
Extra costs like towing, rental cars, etc.

Who Can Get USAA Car Insurance?

You usually can qualify if:

You are serving in the Army, Navy, Air Force, Marine Corps, Coast Guard, Space Force
You are a veteran who was honorably separated
You are a National Guard or Reserve member
You are a cadet or midshipman at a service academy, ROTC, or in officer training
You are a spouse or child of a USAA member

If your mother or father is a USAA member, you may also be able to get a policy.

If you are not connected to the military, you usually cannot get USAA car insurance.

Types of Coverage Offered by USAA Car Insurance

USAA offers all the common types of car insurance coverage and some extra options. Here are the main ones:

Liability Coverage

This covers damage you cause to other people.

Bodily Injury Liability – pays for medical bills if you injure someone in an accident
Property Damage Liability – pays for damage to another person’s car or property

Example:
You crash into someone’s car and you are at fault. Their repair cost is $5,000 and their medical expense is $3,000. If your liability limit is $50,000, your insurance can pay for these costs (up to the limit), so you don’t have to pay from your own pocket.

Collision Coverage

This pays for damage to your own car if you hit another vehicle or object, like:

Another car
Fence
Tree
Wall

Example:
You hit a pole in a parking lot. Repair cost for your car is $2,500.
If you have a $500 deductible for collision:

Insurance pays: $2,500 − $500 = $2,000
You pay: $500

Comprehensive Coverage

This covers non-accident damage, such as:

Theft
Vandalism
Fire
Flood
Hail or storm damage
Hitting an animal (like a deer)

Example:
A hailstorm damages your car, and repairs cost $1,800.
Your comprehensive deductible is $300.

Insurance pays: $1,800 − $300 = $1,500
You pay: $300

Personal Injury Protection (PIP) or Medical Payments

Depending on the state, USAA offers:

PIP (Personal Injury Protection) – covers medical expenses, lost wages, etc.
Medical Payments (MedPay) – covers medical bills after an accident

This helps you and your passengers, even if you are at fault.

Uninsured / Underinsured Motorist Coverage

This protects you when:

The other driver has no insurance (uninsured)
The other driver has too little insurance (underinsured)

It can pay for your injuries and damages when the other person cannot pay enough.

Roadside Assistance

USAA offers optional roadside assistance, which can include:

Towing
Jump-start for a dead battery
Help if you lock keys in the car
Changing a flat tire
Fuel delivery if you run out of gas

This can be a small extra cost added to your policy, but it gives peace of mind.

Rental Reimbursement

If your car is in the workshop after an accident covered by your policy, USAA can:

Pay for a rental car up to a daily limit (for example, $30–$40 per day)

This helps you continue your daily life while your car is being repaired.

Accident Forgiveness (In Some Cases)

In some states and situations, USAA may offer accident forgiveness:

Your first at-fault accident might not cause your premium to go up, if you qualify.

This usually applies if you have a good driving record for a certain number of years.

Gap Insurance (Loan/Lease Coverage)

If your car is financed or leased, USAA may offer gap coverage:

It helps pay the difference between what you owe on your loan/lease and the actual cash value of your car after a total loss.

Example:

You owe $20,000 on your car loan.
Your car is totaled and valued at $16,000 by the insurer.
Without gap: Insurance pays $16,000, but you still owe $4,000 to the bank.
With gap: The gap coverage can pay the extra $4,000.

Glass Coverage

USAA may offer special windshield and glass coverage:

Repairs small chips or cracks
Sometimes with low or no deductible (varies by state)

This can be cheaper than using full comprehensive coverage.

Special Services for Military Members

USAA focuses on military life, so it offers some special benefits:

Deployment and Storage Discounts

If you are deployed and store your car in a safe place (like a garage or base storage), USAA may:

Give a big discount on your premium while the car is not in use
This is helpful if you are overseas and your car stays parked at home or on base

Military Installation Discount

If you park your car on a military base, USAA may offers a discount because:

Bases are often considered safer
Less risk of theft and damage

Flexible Payment Options

USAA often allows:

Online payments
Mobile app payments
Automatic payments from your bank account

This is helpful for service members who move frequently.

USAA Car Insurance Discounts

USAA offers many ways to save money. Some common discounts include:

Safe driver discount – for a clean driving record
Good student discount – for students with good grades
Driver training discount – for taking an approved driving course
Multi-vehicle discount – when you insure more than one car
Multi-policy discount – when you bundle car insurance with home, renters, or other policies
Low-mileage or stored vehicle discount – if your car is not driven often
Family discount – sometimes available when family members have policies

These discounts can reduce your premium significantly.

Example: How Much Might USAA Car Insurance Cost?

The real cost depends on:

Your age
Driving record
Location
Type of car
Coverage limits and deductibles
Discounts you qualify for

Let’s look at a simple example to understand how the costs can work.

Example Profile

Driver age: 30
Clean driving record
Drives 12,000 miles per year
Mid-sized sedan worth $18,000
Full coverage: liability, collision, comprehensive
Deductibles: $500

Suppose the estimated yearly premium is $1,200 (this is just a sample number to explain the math).

Monthly cost: $1,200 ÷ 12 = $100 per month

Now, add some discounts:

Safe driver discount: 10%
Multi-vehicle discount: 5%
Good student (if applicable) or other small discount: 5%

Total discount = 10% + 5% + 5% = 20%

Apply 20% discount on $1,200:

Discount amount = 20% of $1,200 = 0.20 × 1,200 = $240
New yearly premium = $1,200 − $240 = $960
New monthly cost = $960 ÷ 12 = $80 per month

So, with discounts, this driver could save $20 per month, or $240 per year in this example.

USAA Safe Driving Program (Telematics)

USAA also has a safe driving program (often app-based) where:

You install an app on your phone
It tracks your driving behavior, such as braking, speed, phone use, and time of day
If you drive safely, you may get a discount on your premium

Example:
If you get a 15% discount for safe driving, and your yearly premium is $1,000:

Discount amount = 15% of $1,000 = $150
New yearly premium = $1,000 − $150 = $850

This kind of program rewards careful drivers.

Pros of USAA Car Insurance

Here are some advantages often mentioned by customers:

Generally competitive rates for many driver types (especially military families).
Strong customer service focus and support for military life.
Wide range of coverage options, from basic liability to full coverage with extras.
Many discounts (safe driver, military, multi-policy, etc.) to reduce costs.
Good online and mobile tools to manage policies, file claims, and pay bills.
Helpful special offers for deployed members and cars stored on base.

These factors make USAA attractive to many eligible people.

Cons and Limitations of USAA Car Insurance

There are also some drawbacks:

Limited eligibility – If you are not in the military or not from a military family, you usually cannot join.
Rates can still increase – Like other companies, premiums may rise after accidents, tickets, or general price changes.
Not always the cheapest – In some locations or situations, another insurer may offer a lower price.
Claim experience can vary – Some customers report very smooth claims, while others may have delays or disagreements (this is true for almost all insurers).

So, while USAA is strong in many areas, it is still good to compare with other insurance companies.

Tips to Save More on USAA Car Insurance

Here are some simple ways to reduce your premium:

Bundle policies
- Get car and home or renters insurance from the same company to get a multi-policy discount.
Increase your deductibles
- Higher deductibles (like $1,000 instead of $500) can lower your yearly premium.
- Only do this if you can afford to pay more out of pocket after an accident.
Keep a clean driving record
- Avoid speeding, DUIs, and at-fault accidents.
- Safe driving keeps your costs lower and qualifies you for safe driver discounts.
Use safe driver app/programs
- Enroll in the telematics safe driving program, if available in your state, and drive carefully.
Ask about military-related discounts
- If you are deployed, storing your car, or parking on a base, ask for special discounts.
Review your coverage regularly
- If your car is old and not worth much, you might reduce or drop certain coverages like collision or comprehensive (depending on your risk comfort).

Is USAA Car Insurance Right for You?

USAA car insurance can be a great choice if:

You are in the military, a veteran, or part of a military family
You want strong coverage options and many discount opportunities
You prefer an insurer that understands military life and offers flexible services for deployment and frequent moving

However, before you decide:

Compare quotes with at least 2–3 other companies
Check how much you pay per month and per year
Look at the coverage limits, not just the price

Sometimes, another insurer might give a lower price, but with less coverage or fewer benefits, so always read the details.

Also Read: Car Insurance for College Students: A Money-Saving Guide

Final Thoughts

USAA car insurance is designed mainly for military members and their families. It offers:

Standard coverages like liability, collision, and comprehensive
Extra benefits such as roadside assistance, rental reimbursement, gap insurance, glass coverage, and accident forgiveness (where available)
Special discounts for safe drivers, students, multi-vehicle policies, and military-specific situations like deployment and on-base parking

With proper discounts and coverage choices, many people can get good value from a USAA policy.

Before buying, think about:

Your budget
Your risk level
How much protection you want for yourself and your car

If you are eligible and take advantage of the offers and services, USAA car insurance can be a strong option to protect you on the road while supporting your military family life.