My USAA auto insurance rates have gone up 24% since last year??

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Aug 22, 2017
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#1
I have been a member of USAA since 1991. I have not made any type of claim in over 7 years and when I did it was on a renters policy. My auto rates on our two cars have gone up almost 24% since last year. We have not had any tickets, or bought new cars or done anything that would trigger something like this. They only issue we had was a claim for windshield replacement due to a rock on the freeway. But its illegal to raise rates in my state on a no fault windshield replacement with no other damage. I was wondering if others have had crazy increases like this for no reason this year, or has my insurance company just decided to stick it too me?
 
Sep 19, 2015
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#3
What did your agent say? Have you hit a demographic where there are increases (senior) or live in an area where there has been a lot of weather related damage? Why not check the rates with other companies to see what the rates are.
 
Likes: Neil Maley
Feb 21, 2018
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#6
I've had USAA for 40 years and can't think of a time when we've had a rate increase that high.

Do you have multiple policies with them or is auto the only one? That can affect the rate structure offered.
 
Likes: Nancy

Neil Maley

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Dec 27, 2014
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#7
Have you tried to get a quote through another insurance company to use as a comparison? Have you called your agent?

That company has a community board and people are complaining about the increases. A comment there was that they raised rates due to excessive damages in different area of the country. The responses from USAA was sorry but they have to answer to their shareholders.

It sounds like it’s time to start shopping around with another company and if you find a better price, change companies.
 
Likes: jsn55

Dwayne Coward

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Director
Apr 13, 2016
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#8
That company has a community board and people are complaining about the increases. A comment there was that they raised rates due to excessive damages in different area of the country. The responses from USAA was sorry but they have to answer to their shareholders.
The members are the shareholders. :) With USAA we are basically insuring each other.
 
Jun 27, 2017
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#10
My husband has been with USAA for over 50 years and we have noticed a significant downturn in service and a significant upturn in rates for both our homeowners and auto insurance. My brother-in-law is an adjuster with USAA and said one reason for the big increase in auto insurance is due to the advanced electronics in newer vehicles - sensors, cameras, computers - etc. that get damaged and must be fixed. Re: our homeowner's insurance. Replacement figure ($250K on a $165K home) is calculated by a software program, not an appraiser or builder. Dwayne is right. We are shareholders and we insuring each other, regardless of our driving record or where our home is situated (zero claims in with both).
 

Dwayne Coward

Administrator
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Apr 13, 2016
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#11
I understand that. But if they start losing members going to other insurance companies rates may go up even more.
Yes, but keep in mind that those many of those are in higher risk categories, which may not be a bad thing for the rate of those of us that don't have those risk factors. Insurance is about sharing risk, but there are some risks factors that drive rates too high for all members. For example, USAA pulled out of the Florida homeowners insurance market several years ago.

About every two years I do a comparative of rates on my insurance, normally the only company that comes close in rates is Geico (who I fired back in the 90s for the rate increases). At least I get distribution back from USAA, rather than it going to someone like Warren Buffett! :)

To the OP: Best thing is to call USAA to discuss what is driving the rate increase, but as other said, also do some comparison shopping to see what other companies are offering.
 
Likes: Neil Maley
#12
I have USAA as well, and have noticed that their rates are creeping up. A quick internet search yields community forums on USAA full of similar complaints. Their own website FAQ admits as much. I am not ready to shop around yet, but my sister and brother in law just left USAA after almost 20 years to bundle home and auto insurance elsewhere, getting more coverage at a lower premium.
 
Likes: Neil Maley
#13
My husband has been insured by USAA since 1970 with a brief suspension of 7 years while we insured a vacation (rental which USAA will not do). We now use USAA for our primary residence and one car. 7 months ago we had a 17% increase on our auto insurance. We just received our 6-month renewal last week with a 10% increase. Whenever I call to find out why, it's always "your state gave us permission to raise rates". Never anything else that explains these increases. We have no tickets or accidents. We have safe driving records, only drive about 4,000 miles per year since we live in a city with public transportation options and we are retired. My thoughts for why the constant...and way above inflation increases are: 1) Could it be our ages, 67 and 75? 2) Global warming leads to more property damage that must be covered? 3) They cannot get into our credit reports since we froze them after the Equifax breach. BTW, I asked them about the credit score question, but they deny using scores to price premiums. We are in the 800's. It's very frustrating since we like the service they give us, but the time may be close for shopping around. Sigh.
 
Likes: SierraRose49
Jun 30, 2017
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#14
My husband has been insured by USAA since 1970 with a brief suspension of 7 years while we insured a vacation (rental which USAA will not do). We now use USAA for our primary residence and one car. 7 months ago we had a 17% increase on our auto insurance. We just received our 6-month renewal last week with a 10% increase. Whenever I call to find out why, it's always "your state gave us permission to raise rates". Never anything else that explains these increases. We have no tickets or accidents. We have safe driving records, only drive about 4,000 miles per year since we live in a city with public transportation options and we are retired. My thoughts for why the constant...and way above inflation increases are: 1) Could it be our ages, 67 and 75? 2) Global warming leads to more property damage that must be covered? 3) They cannot get into our credit reports since we froze them after the Equifax breach. BTW, I asked them about the credit score question, but they deny using scores to price premiums. We are in the 800's. It's very frustrating since we like the service they give us, but the time may be close for shopping around. Sigh.
Your age may be a factor depending on the state where you live. Our USAA rates went up when we both reached 70.
USAA gives superior customer service. Shopping on price may give you lower premiums but no customer service. When you call USAA you reach a real person in the US.
 
Likes: Nancy

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
14,599
13,724
113
New York
www.promalvacations.com
#15
So start contacting other companies and get quotes to see if their prices are lower. Money is money - our insurance goes up a little every year but not 17%. Unfortunately I don't even have the luxury of shopping around for homeowners because I live in a flood zone and am with the last insurer that insures this area. If we leave, we go to a state fund that is much higher than what I am currently paying.
 
Aug 22, 2017
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#16
Spoke with USAA rep today and they didn't give any plausible answers as to why the massive increase. My guess is that price optimization plays a part in this. I've never called and complained much about prices. That will certainly change for this moment forward with any policy I have with any company. I will make it a point to complain and get quotes every year regardless. But now I have to gets some quotes and hopefully find a better deal and move on. Its a shame but USAA has just got to greedy for me.
 
Likes: Neil Maley
Jun 30, 2017
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Maui Hawaii
#17
Spoke with USAA rep today and they didn't give any plausible answers as to why the massive increase. My guess is that price optimization plays a part in this. I've never called and complained much about prices. That will certainly change for this moment forward with any policy I have with any company. I will make it a point to complain and get quotes every year regardless. But now I have to gets some quotes and hopefully find a better deal and move on. Its a shame but USAA has just got to greedy for me.
Consult a local insurance broker who can advise you on rates for your locale and compare different companies.
 
Aug 29, 2015
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#18
All the companies are raising rates to make up the short fall from all the weather and other incidents. I’ve priced USAA and they are currently higher than I’m paying with State Farm and Shelter for my situation. It may be time to shop around.
 
Likes: Neil Maley