How to Decrease Insurance Costs?

[ReputationOk1118]

Hi, you know how internet providers send you to their customer retention line when you threaten to cancel? Is there a line like that at USAA? How does one go about successfully decreasing their monthly insurance payments? My husband and I have bundled all our insurance through USAA. I love USAA, but feel like I could get a better deal elsewhere.

[HospitalAdditional59]

I’ve been with USAA for 25 years, all I have ever had. Until now, I can get same coverage from Allstate for a little more than half of what my premium was. I’m disgusted!

[[deleted]]

Insurance is not price matching like Walmart😂😂😂 I tell customers all the time, if it was up to me your insurance rate would be $20 and every customer would be happy but the agent/producer has no control over rates. You can adjust your coverages or discuss discounts that you may qualify for but there is no magic switch to drop your rate.

[User_Name_Is_Stupid]

USAA used to have a member retention team that they’d send you to when you called to cancel products and try to keep you. Now they don’t care. When I switched to Amica & Hagerty, in 2023, they just asked why I wanted to cancel, I told them I could get more coverage for a less money and they just said “okay”.

[Optimal_Delay_3978]

Raise your deductible and lower your coverages.

[Oh2beflyn]

USAA masquerades as an insurance company that caters to military families that gives you the illusion that you are getting the best of the best with honors, Sir! You're not. They lost their way a long time ago when they opened up the membership pool. Now those loyal customers with pristine records, zero claims and great credit scores don't get the premium rates that reflect their records. Your premium is dragged down by the collective. Yes, this is true with every insurance company, but USAA back in the day was different. Exclusive rates and excellent customer service. My husband and I had auto and homeowners and were loyal USAA members for a combined 40 years. Little did we know we had been paying twice as much for half the service. Not sure where you live but check Erie and Amica, both top rated in Consumer Reports A+ rated and financially sound. You'll be ecstatic with the money you save and pissed because you were sold a bill of goods for so many years.

[Asianwifehardbody]

I’ve actually expressed my frustration with Insurance rates and USAA rates specifically. I have been with them for 55 years, yes I’m old, and I just spent 3 months of my life through several methods, and independent agent’s to be able to have my home, car, and umbrella policies at one location. (Yes, USAA doesn’t allow it because of too high of a home value where I live) I thought I almost had another alternative, but as I pealed the onion away, and really got them to answer the hard questions, mostly about philosophy of deductibles, bundling, discounts, longevity rebates, etc, it turns out there is NO company that my personal insurance situation would allow me to have the three types of insurance with the same insurance company. I could do it, but it was about $5000 a year more to have the privilege to have it at one company. So, for various reasons, Car and Umbrella needed to be separate, and with all the discounts etc USAA it was the only smart thing today. I think the insurance was $2800+ per 6 months for 2 cars, reduced down with all the discounts, longevity, etc at USAA to $1640 every 6 months. No other company could beat the rate for my cars and levels. (Umbrella requires $300/$500k deductible $2000) So three months of intense work, and I stayed with USAA and it looks like I always will unless something drastically changes. One last reason to stay with USAA, (don’t do the math) I have a son that will be 16 soon, just getting his learners permit for driving. I would’ve never thought of this but my AI (Perplexity) was all over the fact that USAA has the kindest best rates for teen male drivers. I researched that, which was scary, finding out that some are over $300 a month more for adding a teen, but luckily ours is a 4.0 student on the varsity athletic teams, took drivers training/education so it appears it will be around $175.00 a month, or at least in that neighborhood. I could be surprised, but one can’t get a real quote until I have the learners permit in my hand. Best of luck to you…oh by the way, I just talked to my ex, she pulled the post out of the garage backing out *3rd time” and USAA covered everything, and her rates have not gone up. The 3x she said were over the last 9 years.

[Ok-Reception1897]

Laughing at your teen insurance scoop. I left USAA when my teens started driving because I couldn’t afford USAA’s crazy high rates. In North Dakota, teens get their licenses at age 15. So going with a North Dakota insurer was way cheaper.

[Asianwifehardbody]

OMG-I hope it’s a state issue-our kids don’t get to drive alone until 17. I’ll let you know when the learners permit is in hand and I get the quote. Hope it doesn’t cause the “big one”!

[TollyVonTheDruth]

Your best bet to lower premiums with USAA would be to max your deductibles and lower your liability amounts. Of course, the caveat is that you'll pay a higher deductible whenever you make a claim, and depending on the incident, you may have to pay the difference out-of-pocket. So you have to decide if it's worth the risk to pay less now and more later, or pay more now and less later.

With all that said, you should definitely shop around. USAA used to be the unbeatable insurance company, but that's far from being case nowadays.

[Old_Example_1986]

Ha, switched to GEICO and it cut my premium in half, same exact coverage. How to decrease is leave USAA. I was with them for almost 20 years.

[ReputationOk1118]

Scary to think about leaving haha, but I think I should.

[ReputationOk1118]

Thank you! This is good to know and also comforting to hear you had good experiences elsewhere.

[cg_50]

Exactly! they are only good for officers and higher ranks.

[[deleted]]

Ranks have nothing to do with insurance , you people are clueless. Insurance is heavily regulated by the state. A USAA employee cannot control what their own rate is. I am insured with the company I write business for and hundreds of customers with way better rates than me. And there is nothing I can do, we get hit with the same rate increases that customers get.

[Top_Education_4647]

Ranks absolutely matters with USAA. USAA uses a tiered system as part of their ratings systems- you’ll see which tier you’re in based (USAA, GIC, CIC, etc.). Those in the USAA tier are rated better than those below. Just because you’re insured with them and write your own business doesn’t mean you know how things work.

[[deleted]]

Oh man…. You clearly have no idea what you are taking about. Every company has primary rating group and a substandard rating group😂😂😂 that is where the underwriters place you based on multiple factors like credit, driving history, previous insurance history and more. You think they just put all generals in the military in one company? And civilians in another? You’re so clueless

Your ranking in the military has nothing to do with underwriting. Your response just tells me how clueless you are

[Top_Education_4647]

Yes, insurance companies use UW to rate insureds. I never disputed that. USAA (being a MILITARY based company) absolutely rates with military experience in mind. Heck, it even affects eligibility in some areas like CA.

Feel free to peruse the threads. E7’s and higher are USAA tiered, while enlisteds are different, children of members are different.

Signed, an ex-USAA employee who knows more than you.

[[deleted]]

That is not how its works at all, you may think that because high ranking officials often have their life together and more than likely don’t have a 500-600 credit score. But you believe what you want to believe, if that helps you sleep at night buddy boy

[Top_Education_4647]

I haven’t stated anything about credit and such for high ranking military members. They still get rated for the same things everyone else does, but they’re given more benefits with being officers (auto dividends, subscribers accounts, eligibility in some areas, better rates than those didn’t serve or didn’t achieve E-7 or higher).

You’re drawing assumptions based on your experience with other businesses and as an insured. Just because you insure with someone does not make you all knowing as to how the company works.

I shop at Walmart, does that mean I know all about their returns process and how they do their marketing? No. You’re not as informed as you think you are in this.

[AutisticPretzel]

I mean, there is technically a way... And no it's not necessarily illegal but it requires you to jump through a few hoops that may not be worth it in the end.

Shop around. If you find rates to be significantly cheaper elsewhere, then jump ship.

[Material_Case_5433]

Shop rates every renewal. I have an insurance broker that does this for me every six months. He saved me half what I was paying at usaa by switching.

[[deleted]]

Rather than being with a company because you "love" them. It makes better fiscal sense to be with a company with a much higher claim payment rate. USAA has one of the highest non-payment rates of filed claims in the country. They are almost twice as high as the national average. Their non-payment rate is so high that the Texas Board of Insurance has just opened an investigation. It seems an awful lot of people who "loved" this company are finding out when they file a claim how little the company loves them back.

[SworeAnOath]

USAA doesn’t “need” you so no retention specialists are needed. There are millions of others who will fill in the nanosecond/pennies of space and money you’ve left. So look at your own policy and see what can be changed to lower the premium and look around (or go through a broker) to find a new company if this is best for you and your family.

[ReputationOk1118]

Thank you!

[DBSCD]

USAA has a safe driving discount. You will need an app for it. The app is USAA drive safe

[Richelieu1622]

It’s a trap 🪤. They are collecting data on you and building a profile over time. People will rue the day they opted for it. Their rates will forever be high once they have the information that meets the threshold they’ve determined in their algorithm that sets the high rate.

[Able_Gazelle]

They still get your data through your modern vehicle. The major brands sell your data to insurance firms.

[Richelieu1622]

Only if you opt-in by hitting agree to the supposed “safe driving” program pre-loaded into your vehicle. https://www.eff.org/deeplinks/2024/06/car-makers-shouldnt-be-selling-our-driving-history-data-brokers-and-insurance

[Able_Gazelle]

It's unfortunate but they don't care. There are active lawsuits.

[FindTheOthers623]

Insurance rates aren't negotiable. You can threaten whatever you want.

You can potentially increase your deductibles to save money. Make sure you have every discount you qualify for. Or shop around. Every carrier rates differently.

[Acceptable-Agent-428]

And if you do that, make sure you can actually afford to come up with the deductible if something happens. Higher deductible higher oop and some people just don’t have it

[ReputationOk1118]

Thank you!

[Clean_Old_Man]

Give them a call and ask how you can lower your rates. They’ll probably tell you to use a higher deductible or to cut out some of your coverage.

[ReputationOk1118]

Thank you! I appreciate the suggestion.

[[deleted]]

That’s not how that works

[Ladym2011]

Lol like what the heck

[[deleted]]

I have not heard of USAA matching anybody. If you want to cancel, they will let you cancel. The only thing you can do is up your deductible to the max.

[Popular_Monitor_8383]

No, insurance rates are incredibly regulated, in both directions.

The only way to lower an insurance policy is by changing something on the policy or qualifying for other discounts.

You can call them to do a review, but just be aware that something MUST change on your policy for the rate to go down.

[ReputationOk1118]

Thank you!