GEICO vs. USAA auto insurance

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gwe67
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GEICO vs. USAA auto insurance

Post by gwe67 »

So I switched auto insurance from GEICO to USAA to save 13%. When I called GEICO to cancel, they offered me a 43% discount to stay. I had GEICO insurance for eight years and never made a claim (but saw my bill get increased 15 times). Therefore I have no opinion of their customer service in a claim situation. I was frustrated enough that I declined their new offer. Was this a mistake?
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Dude2
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Re: GEICO vs. USAA auto insurance

Post by Dude2 »

Funny. I was a USAA customer for 30 years, and I switched to GEICO a few months ago for about a 15% savings as they advertise. My mother also switched USAA to GEICO.

There are some very loyal USAA customers on this board, and I know that I will get beaten up if I don't use the right tone here. There were a few reasons that I dumped USAA which I will list below, but you be the judge as to if they have merit.
-- tired of the business model that rewards some of the customer base, i.e. there are grunt members and there are privileged members. Historically USAA was a company founded by officers for officers. As a member you had a piece of the pie, and each year you got a check as a privileged member. On the other hand, there are enlisted folks and dependents of officers and who knows what other groups of "regulars" that can join now. They don't get a cut. I was just tired of that mindset.
-- issue with them abandoning Florida
-- customer service issues. Tired of the phone system where I have to tell my same information to several people before they get me to the right person, especially after they dropped FL and had to transfer you to an alternative underwriter. You could waste 20 minutes on them collecting information only to be told they don't handle that type of policy in your area.
-- ad hoc information from other members that described unethical business behavior. Don't get me wrong. This was unethical behavior in favor of the insured. Probably one of the reasons they abandoned FL was that they paid out way too much and way too generously when the massive year of hurricanes hit. I heard stories of adjusters coming to people's houses and saying "Oh, I see a crack on that wall, well you probably need to replace the whole wall, let me write that down..." (crack there for years) Friends received massive checks. Yes, I was jealous, plain and simple. I want a company to act according to an algorithm that is fair and applies the same standards in all situations, not a random method of favoritism or a kind of a good-buddy network system which is how it all seemed to me.
Kennedy
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Re: GEICO vs. USAA auto insurance

Post by Kennedy »

It seems odd to me that GEICO could manufacture a discount just to keep your business. Did the agent ask you certain questions to ascertain if you qualified for certain affiliation discounts, such as professional organizations or your status as a Berkshire stockholder?

We have GEICO auto insurance and pay a ridiculously low premium... The quote we received from USAA was greater than 100% more than our GEICO premium.
dbr
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Re: GEICO vs. USAA auto insurance

Post by dbr »

gwe67 wrote:So I switched auto insurance from GEICO to USAA to save 13%. When I called GEICO to cancel, they offered me a 43% discount to stay. I had GEICO insurance for eight years and never made a claim (but saw my bill get increased 15 times). Therefore I have no opinion of their customer service in a claim situation. I was frustrated enough that I declined their new offer. Was this a mistake?
I won't engage in a GEICO vs USAA debate as I don't have sufficient information one way or the other, but what kind of a company charged you that 43% gap over what you should have been paying for eight years, and increased your rate 15 times (in eight years?)?
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gunn_show
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Re: GEICO vs. USAA auto insurance

Post by gunn_show »

Kennedy wrote:It seems odd to me that GEICO could manufacture a discount just to keep your business. Did the agent ask you certain questions to ascertain if you qualified for certain affiliation discounts, such as professional organizations or your status as a Berkshire stockholder?

We have GEICO auto insurance and pay a ridiculously low premium... The quote we received from USAA was greater than 100% more than our GEICO premium.
I second the opinion of odd maneuver by Geico, and I worked there in the past (although in sales not in retention/service) and had never heard of such a move. Quite interesting.

end of the day... they are both seriously high A+ rated companies, two of the absolute best in the business without question ... you cannot go wrong with either, so if you got a good deal with USAA, feel good at night and move on...
"The best life hack of all is to just put the work in and never give up." Bas Rutten
john94549
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Re: GEICO vs. USAA auto insurance

Post by john94549 »

Poster Dude2's observations are well-taken. As a USAA member for over 43 years (commissioned in the early 70s), I can attest to the somewhat subtle yet substantial differences. For example, the bonus dividend and Subscriber Savings Account dividends, available to the "officer members". Ours will be over $2000 over the next twelve months. As explained by a USAA CSR, these are basically dividends on retained capital generated by operating profits. Officer members share, others do not.

That said, USAA's business model, to this day, remains unique. It focused on folks who, by definition, spent an average of half their military service deployed, away from cars, with the keys in the hands of the "safer driver", i.e., the wife (mind you, this was in the days of yore). If you underwrite a driver who spends only 50% of his time behind the wheel, you're going to have lower loss ratios. And if he's an officer, maybe he's a better, and more responsible, driver. At least that was the theory.
Last edited by john94549 on Tue Dec 09, 2014 9:32 pm, edited 4 times in total.
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gwe67
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Re: GEICO vs. USAA auto insurance

Post by gwe67 »

Kennedy wrote:It seems odd to me that GEICO could manufacture a discount just to keep your business. Did the agent ask you certain questions to ascertain if you qualified for certain affiliation discounts, such as professional organizations or your status as a Berkshire stockholder?

We have GEICO auto insurance and pay a ridiculously low premium... The quote we received from USAA was greater than 100% more than our GEICO premium.

They only asked if we had taken a defensive driving class in the last three years and I said no. They said the new quote would be based on increasing the coverage limits by $1 (that is $300,001 and $500,001 coverage, etc.) Suddenly $1 more coverage costs less?

I guess they were just charging whatever I was willing to pay. I figure if I accepted their renewal they would just hit me with a large increase in 6 months to make up for it.
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Kaufmanrider
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Re: GEICO vs. USAA auto insurance

Post by Kaufmanrider »

I had an Allstate agent tell me a few years back that in today's auto insurance market a person needs to shop around once a year to find the best price.

In the past, insurance companies rewarded loyalty with good rates, not anymore. It's a consumers market.
kommisarrex
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Re: GEICO vs. USAA auto insurance

Post by kommisarrex »

Chalk me up as another who switched to GEICO car insurance this year after years with USAA. Their rate was about 60% of the USAA rate. Didn't want to move, but felt like I would be stupid not to.

We still use USAA for banking, a credit card, and renter's insurance. Used to use them for investing, but after discovering Vanguard, I reluctantly moved there. Again, I felt it would be stupid not to.

USAA has been phenomonal for a couple of fraud incidents overseas including one time when a Filipino ATM didn't disperse any cash at all, but still charged a withdrawl (I think it was the equivalent of $100). USAA credited the account without any issues. I can't see us ever moving away from the banking products. Maybe if they stopped reimbursing ATM fees.

However...

I am uncomfortable with the amount of advertising USAA now does on national television. That can't be cheap and does not feel very strategic in how they are targeting new members. I feel as they have pushed for increased membership, some of the customer service stuff has been less spectacular than in years past.

As for GEICO, we have not filed a claim yet, so I really have no idea if the cheaper insurance costs come with any downsides. I'm unclear on whether car insurance is a true commodity or not. My gut says customer service and ease of processing claims has value.
takeshi
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Re: GEICO vs. USAA auto insurance

Post by takeshi »

gwe67 wrote:Therefore I have no opinion of their customer service in a claim situation.
Can't speak to GEICO but I've had several auto claims with USAA and they have been excellent with all of them.
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Re: GEICO vs. USAA auto insurance

Post by Alan S. »

If you are concerned with USAA's advertising budget, I would bet it is only a fraction of what Geico and Progressive spend, even if you measured it by policy holder's surplus.
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LowER
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Re: GEICO vs. USAA auto insurance

Post by LowER »

Another 30 year USAA insurer, banker, i nvester here and am getting out of USAA, for many reasons. The straw on the camel's back reason is lowballing a no-fault totaled used car bought just weeks before and months of run around asking ME to justify why the car was worth more - like brand new tires and the condition of the car and local market conditions. Didn't the appraiser notice any of this? Total waste of my time; the multiple phone calls with a different person each time, and all of whom had no idea about the circumstances, was maddening.

I have no trust in USAA, after 30 years of near-zero claims.
OpenRoad
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Re: GEICO vs. USAA auto insurance

Post by OpenRoad »

Kaufmanrider wrote:I had an Allstate agent tell me a few years back that in today's auto insurance market a person needs to shop around once a year to find the best price.

In the past, insurance companies rewarded loyalty with good rates, not anymore. It's a consumers market.
I do this yearly, right after I finish my taxes. I pull out the insurance papers and call around for quotes and switch if anything looks better. It's annoying but it seems like all the big companies I've been with slowly raise rates over time.
boglegirl
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Re: GEICO vs. USAA auto insurance

Post by boglegirl »

OpenRoad wrote:
Kaufmanrider wrote:...
I do this yearly, right after I finish my taxes. I pull out the insurance papers and call around for quotes and switch if anything looks better. It's annoying but it seems like all the big companies I've been with slowly raise rates over time.
I do this approximately once a year, too. And this thread made me do it today. GEICO comes in almost 15% higher than USAA for our family so I'll be sticking with USAA. I think it totally depends on the cars you own, the state you live in, the drivers you insure...for some reason, ever since our kids started driving, nobody can beat USAA for our family.
SpecialK22
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Re: GEICO vs. USAA auto insurance

Post by SpecialK22 »

john94549 wrote:Poster Dude2's observations are well-taken. As a USAA member for over 43 years (commissioned in the early 70s), I can attest to the somewhat subtle yet substantial differences. For example, the bonus dividend and Subscriber Savings Account dividends, available to the "officer members". Ours will be over $2000 over the next twelve months. As explained by a USAA CSR, these are basically dividends on retained capital generated by operating profits. Officer members share, others do not.
The bonus dividend is definitely a huge plus; however, I don't think it is only limited to commissioned officer members. I'm an enlisted member and have always had access to this (started with USAA as an E2 or E3). While the exact amount varies from year to year, right now I consider it to be good for about a 10% discount on the premium when shopping around. Just got an email today actually about the dividend payout, and it is a little bit above my earmarked percentage. For me personally, even without the dividend USAA has been very competitive. Throw in a dividend payout that generally grows year to year and it makes it increasingly difficult to justify switching. Wow, $2000 a year after 43 years! At that amount USAA must be paying you to insure with them :sharebeer

edit: It appears that I didn't actually become eligible for the Subscriber's Account until I became an NCO. Maybe that is what you meant by "officer members"-- Os, NCOs, and WOs are eligible. I hear the term "officer" and I just think commissioned officer.
Last edited by SpecialK22 on Fri Dec 12, 2014 8:07 am, edited 2 times in total.
nashirak
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Re: GEICO vs. USAA auto insurance

Post by nashirak »

I switched from usaa to geico as well. I had a couple bad claim experiences with them (both non-fault, just bad customer service). Geico was able to give me better rates with higher coverage limits (win win). I actually work for geico now and can say I am very happy with the switch (both personally and professionally).

The only argument I could make for usaa is they have access to a range of all-inclusive solutions (insurance/banking/investing) if you need or are interested in that sort of thing. My sister needs that simplicity so she is still with usaa.
Kaufmanrider
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Re: GEICO vs. USAA auto insurance

Post by Kaufmanrider »

boglegirl wrote:
OpenRoad wrote:
Kaufmanrider wrote:...
I do this yearly, right after I finish my taxes. I pull out the insurance papers and call around for quotes and switch if anything looks better. It's annoying but it seems like all the big companies I've been with slowly raise rates over time.
I do this approximately once a year, too. And this thread made me do it today. GEICO comes in almost 15% higher than USAA for our family so I'll be sticking with USAA. I think it totally depends on the cars you own, the state you live in, the drivers you insure...for some reason, ever since our kids started driving, nobody can beat USAA for our family.
How true. I have stayed with GEICO because with my kids on the policy they have been the cheapest. I am currently doing my annual check with various insurers. My new GEICO renewal rates should come out later this month so I might be switching first of the year.
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Flobes
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Re: GEICO vs. USAA auto insurance

Post by Flobes »

Geico offers an 8% discount on auto insurance if you own a single share if Berkshire Hathawy stock, including BRKb.

The BRK discount is not listed online. You have to call customer service. They 'll tell you they don't see it. Tell them you have a friend that got it, and ask to go on hold while they find it. Bingo! Then you have to send proof. Email a copy of the purchase transaction with all the numbers blacked out. Done, while you're still on the phone.

I learned this on the Boglehead Forum! I switched to GEICO last spring; discount was applied in renewal without further action. (Bonus: my single share of stock is up $22!)
beltonr
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Re: GEICO vs. USAA auto insurance

Post by beltonr »

I'm another 40+ year USAA member - banking, term life insurance, homeowner's insurance, auto insurance. In general no complaints and very prompt, courteous service. Of course they always want to "encourage" you to increase your coverage! I have no experience with GEICO. I am closing on a house in Florida in January - USAA won't insure but they transferred me to their broker. I got a policy with a company rated at the top of Florida insurers and I can use USAA to beat up on them if I ever need to. My only irritation has been what I considered low settlements on totaled cars - never had an issue with repair settlements. By doing a little research and pushing back, I have always been able to get payouts for totaled cars raised by $500 - $1000. On the other hand, there are some things USAA uniquely understands about military and former military members. In 2007 my son was deploying to Iraq from Ft. Carson, CO after just arriving there for his initial assignment. Two weeks before deploying he was rear-ended and the car was questionable whether it could be repaired or not. There were no injuries. Even though he had his own policy I called USAA and told them his situation - if the car was not totaled but repaired, there would be no one available to pick it up in Colorado, other than me flying out there and arranging for storage or driving it half-way across the country. They would of course not tell me anything as I was not the policy-holder. I understood that and didn't expect them to tell me anything, just wanted them to have all the information. The next day my son called me to tell me the car had been totaled, the money was deposited in his USAA bank account and he was able to buy a new car when he returned from Iraq.
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Re: GEICO vs. USAA auto insurance

Post by cornbread85 »

Flobes wrote:Geico offers an 8% discount on auto insurance if you own a single share if Berkshire Hathawy stock, including BRKb.

The BRK discount is not listed online. You have to call customer service. They 'll tell you they don't see it. Tell them you have a friend that got it, and ask to go on hold while they find it. Bingo! Then you have to send proof. Email a copy of the purchase transaction with all the numbers blacked out. Done, while you're still on the phone.

I learned this on the Boglehead Forum! I switched to GEICO last spring; discount was applied in renewal without further action. (Bonus: my single share of stock is up $22!)
Thank you for this bit of advice. I currently insure through GEICO but was unaware of the discount. I promptly called them, had the discount added and then bought a share of BRK/B. Saved $50 a year.
claudia
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Re: GEICO vs. USAA auto insurance

Post by claudia »

I notice this trend.....people switch to other insurance company with a big discount....then with time....the second insurance company will gradually increase their rate.......people end up paying about the same. Then people start looking again. I am not sure if this a good way to do to keep switching the insurance company every few years to save money?? Anyone has anything thoughts on this?
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Sagenick48
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Re: GEICO vs. USAA auto insurance

Post by Sagenick48 »

I have been a commissioned officer member of USAA for over 30 years now, I have no complaints but it has been years since I last checked rates. All I can say is that my son, who never served, my ex, who never served, and my current spouse, who never served, have not found lower rates. I have never had a service problemm and when I started building a new house, I got builders risk insurance without a hassle.

By the way, my sister in law works for a company that services USAA members. She says that retired colonels (captains) are the worst to deal with.

So if you have had bad service, look in the mirror.
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BoxOfUpticks
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Re: GEICO vs. USAA auto insurance

Post by BoxOfUpticks »

After more than a decade with GEICO, i had a really bad experience on a claim due to a rogue adjuster. Even his supervisor, who refused to help, said nothing could be done until the adjuster did his job. I'll never use geico again.

USAA was ridiculously expensive for me: auto was 2x my current coverage with a national company, homeowners was 2.5x, and i couldn't even get an umbrella quote until i already had both auto & ho in place. The HO alone was 15% MORE than ALL my current coverage.
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Kaufmanrider
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Re: GEICO vs. USAA auto insurance

Post by Kaufmanrider »

claudia wrote:I notice this trend.....people switch to other insurance company with a big discount....then with time....the second insurance company will gradually increase their rate.......people end up paying about the same. Then people start looking again. I am not sure if this a good way to do to keep switching the insurance company every few years to save money?? Anyone has anything thoughts on this?
Nothing negative I can see. Insurance loyalty discounts are a thing of the past. Now they give you vanishing deductibles/accident forgiveness in stead of cash discounts.

I am doing my shopping around, USAA had better rates then my current GEICO (I have had them for the past 5 years). On a whim I went to Hartford via AARP as I just joined as I turned 50. Great rates, lower then USAA and
good for a year. My wife and myself on our car and I have a 19 year old daughter and 21 year old son (both in college with cars).
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Uncle Pennybags
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Re: GEICO vs. USAA auto insurance

Post by Uncle Pennybags »

I found all insurance companies operate the same way. When one first buys a policy it is considerably cheaper than the one one had. Then every year the rates go up for some spurious reason. If one checks for rates with another company the rates are about what one had the first year with the original company. It is SOP in the industry.
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Re: GEICO vs. USAA auto insurance

Post by mickeyd »

I have been a USAA member for 40+ years and receive annual credits/debits to my subscribers account that are applied to reduce my net auto/HO insurance premiums by hundreds of dollars each year. No reason to make a change.
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Kaufmanrider
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Re: GEICO vs. USAA auto insurance

Post by Kaufmanrider »

mickeyd wrote:I have been a USAA member for 40+ years and receive annual credits/debits to my subscribers account that are applied to reduce my net auto/HO insurance premiums by hundreds of dollars each year. No reason to make a change.
Good for you on your long term membership and brand loyalty.

However, I can't see myself paying $200-400 more per year for auto insurance for the chance of getting a hundred or so of it back, which isn't guaranteed and the dollar amount differs per member.

I'll take the lower rate now and pocket the difference. :D
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Uncle Pennybags
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Re: GEICO vs. USAA auto insurance

Post by Uncle Pennybags »

SpecialK22 wrote:edit: It appears that I didn't actually become eligible for the Subscriber's Account until I became an NCO. Maybe that is what you meant by "officer members"-- Os, NCOs, and WOs are eligible. I hear the term "officer" and I just think commissioned officer.
I just received a dividend check today, what a coincidence. This is the first one I received, I have had auto for two years and homeowners for one. I was an E-4 specialist, drafted a long time ago. They assumed corporeal , an NCO rank. I have no idea what this means but I could use the $98 after what happned to my portfolio this week. :(
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gwe67
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Re: GEICO vs. USAA auto insurance

Post by gwe67 »

Now that we have USAA, does anyone know offhand if coverage includes rental cars?
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dbr
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Re: GEICO vs. USAA auto insurance

Post by dbr »

gwe67 wrote:Now that we have USAA, does anyone know offhand if coverage includes rental cars?
When you ask them be sure to specifically address coverage for car out of use charges. Also some insurance will cover that but not actually reimburse you because the rental company will not supply documentation for the charge.
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Re: GEICO vs. USAA auto insurance

Post by XTesla »

After having USAA for the last 9 years for my 3 Auto, Homeowners and Jewel insurance, I have decided to part my ways. Apple for apples, I will be paying $200 less monthly, including now having rental reimbursement. I have fought this fight with USAA for the last 4 years, and the reason has been that Texas rates are going up, although I live in a fairly small town. I am 30 years old, and haven't had any claims with them, so i found it very absurd that they claim to offer the cheapest insurance for our military.
boglegirl
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Re: GEICO vs. USAA auto insurance

Post by boglegirl »

XTesla wrote:After having USAA for the last 9 years for my 3 Auto, Homeowners and Jewel insurance, I have decided to part my ways. Apple for apples, I will be paying $200 less monthly, including now having rental reimbursement. I have fought this fight with USAA for the last 4 years, and the reason has been that Texas rates are going up, although I live in a fairly small town. I am 30 years old, and haven't had any claims with them, so i found it very absurd that they claim to offer the cheapest insurance for our military.
Everyone should review and shop their policies at least once a year. I'm glad you found a way to save so much! For us, USAA has almost always come in cheaper over my 28 year membership. And the service has almost always been stellar.
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Uncle Pennybags
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Re: GEICO vs. USAA auto insurance

Post by Uncle Pennybags »

I found that insurers offer a low rate that goes up every year for about three years. I used to switch every two years until I got USAA. I haven't found any cheaper and my old insurers still spam me with offers.
lkt102
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Re: GEICO vs. USAA auto insurance

Post by lkt102 »

Source: https://communities.usaa.com/t5/Auto-an ... td-p/99183

The real members buy their insurance directly from USAA and they receive the benefit of the net profits from not only their insurance company but from the rest of ours. We get ours from one of the operating companies USAA CIC, USAA GIC or USAA Garrison PCI.


I believe that the Tier system is something like this:

Tier 1 - Officers and NCOs E07 and higher (Only USAA customers that have a Subscribers Savings Account)

Tier 2 - Adult children of Tier 1 and NCO's up to E-06.

Tier 3 - Adult grandchildren of Tier 1 and lower risk enlisted

Tier 4 - Active duty enlisted and other high risk retired or discharged enlisted. Highest premiums !!!

If you don't qualify for Tier 1 or 2 its probably better to look elsewhere for your insurance needs.
Soon2BXProgrammer
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Re: GEICO vs. USAA auto insurance

Post by Soon2BXProgrammer »

lkt102 wrote:Source: https://communities.usaa.com/t5/Auto-an ... td-p/99183

The real members buy their insurance directly from USAA and they receive the benefit of the net profits from not only their insurance company but from the rest of ours. We get ours from one of the operating companies USAA CIC, USAA GIC or USAA Garrison PCI.


I believe that the Tier system is something like this:

Tier 1 - Officers and NCOs E07 and higher (Only USAA customers that have a Subscribers Savings Account)

Tier 2 - Adult children of Tier 1 and NCO's up to E-06.

Tier 3 - Adult grandchildren of Tier 1 and lower risk enlisted

Tier 4 - Active duty enlisted and other high risk retired or discharged enlisted. Highest premiums !!!

If you don't qualify for Tier 1 or 2 its probably better to look elsewhere for your insurance needs.
all i know is i was an E-4 and i was getting a rebate check... i got out... bought a house, turned 25, got married, and at some point i was switched to a subscribers savings account.

So i think their tiers are more complex. but its hard to say what the rules really are.
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Uncle Pennybags
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Re: GEICO vs. USAA auto insurance

Post by Uncle Pennybags »

lkt102 wrote:Tier 2 - Adult children of Tier 1 and NCO's up to E-06.
Interesting. What do they consider an "NCO"? In the Army an E-4, that's a pay grade, can be a specialist or corporal. Corporal is considered a Non Commissioned Officer wile a specialist is not. It's like a warrant officer as opposed to a commissioned officer.

The interesting thing is the only way to get a corporal rank is to be demoted from sergeant. Any'hoo it appears I"m a "Tier-2", thank you for your contribution to the "NCO" benefit fund.
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enki
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Re: GEICO vs. USAA auto insurance

Post by enki »

lkt102 wrote:Source: https://communities.usaa.com/t5/Auto-an ... td-p/99183

The real members buy their insurance directly from USAA and they receive the benefit of the net profits from not only their insurance company but from the rest of ours. We get ours from one of the operating companies USAA CIC, USAA GIC or USAA Garrison PCI.


I believe that the Tier system is something like this:

Tier 1 - Officers and NCOs E07 and higher (Only USAA customers that have a Subscribers Savings Account)

Tier 2 - Adult children of Tier 1 and NCO's up to E-06.

Tier 3 - Adult grandchildren of Tier 1 and lower risk enlisted

Tier 4 - Active duty enlisted and other high risk retired or discharged enlisted. Highest premiums !!!

If you don't qualify for Tier 1 or 2 its probably better to look elsewhere for your insurance needs.
Pretty close, but I don't believe #2 + #3 are completely accurate. I spoke with someone at USAA who went into fairly good detail about the tiers and I think had a good understanding of them based on the information provided. As I mentioned earlier, I am a CIC (Tier 2) legacy member from my father. I asked and was told that my daughter, if she eventually gets USAA (only 4 right now), would qualify for CIC as well based on the criteria. He didn't just say it off the top of his head, he actually looked something up on his computer. He wasn't sure, or couldn't say, what the determining factor was, and he also said that these things could change over the next 10+ years, but he said that right now, if she got her own policy, she would be CIC. He did also say that in *most* cases, grandchildren of officers would be Tier 2. Maybe the grandchildren of NCOs don't get this?
lkt102
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Re: GEICO vs. USAA auto insurance

Post by lkt102 »

enki wrote:
lkt102 wrote:Source: https://communities.usaa.com/t5/Auto-an ... td-p/99183

The real members buy their insurance directly from USAA and they receive the benefit of the net profits from not only their insurance company but from the rest of ours. We get ours from one of the operating companies USAA CIC, USAA GIC or USAA Garrison PCI.


I believe that the Tier system is something like this:

Tier 1 - Officers and NCOs E07 and higher (Only USAA customers that have a Subscribers Savings Account)

Tier 2 - Adult children of Tier 1 and NCO's up to E-06.

Tier 3 - Adult grandchildren of Tier 1 and lower risk enlisted

Tier 4 - Active duty enlisted and other high risk retired or discharged enlisted. Highest premiums !!!

If you don't qualify for Tier 1 or 2 its probably better to look elsewhere for your insurance needs.
Pretty close, but I don't believe #2 + #3 are completely accurate. I spoke with someone at USAA who went into fairly good detail about the tiers and I think had a good understanding of them based on the information provided. As I mentioned earlier, I am a CIC (Tier 2) legacy member from my father. I asked and was told that my daughter, if she eventually gets USAA (only 4 right now), would qualify for CIC as well based on the criteria. He didn't just say it off the top of his head, he actually looked something up on his computer. He wasn't sure, or couldn't say, what the determining factor was, and he also said that these things could change over the next 10+ years, but he said that right now, if she got her own policy, she would be CIC. He did also say that in *most* cases, grandchildren of officers would be Tier 2. Maybe the grandchildren of NCOs don't get this?
Thank you for the clarification and additional information. I was a tier 3 member before recently switching to GEICO but my eligibility is through my step-father. His father was an officer and he was enlisted so the criteria above seemed to fit how my tier was assigned. I did chuckle at the response you were given for why USAA doesn't want to make their tier system more open and transparent. They could and should provide the basic guidelines and disclose that only tier 1 members are actually members of USAA and the rest of the "members" are part of their affiliated insurance companies.
enki
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Re: GEICO vs. USAA auto insurance

Post by enki »

lkt102 wrote: Thank you for the clarification and additional information. I was a tier 3 member before recently switching to GEICO but my eligibility is through my step-father. His father was an officer and he was enlisted so the criteria above seemed to fit how my tier was assigned. I did chuckle at the response you were given for why USAA doesn't want to make their tier system more open and transparent. They could and should provide the basic guidelines and disclose that only tier 1 members are actually members of USAA and the rest of the "members" are part of their affiliated insurance companies.
Your situation is interesting and I wonder if something got messed up with your status. I am confident that the step relationship has no impact, but the fact that your step-father was enlisted might have negated the legacy officer benefits you would have normally inherited. Your step-grandfather was an officer, so they were clearly Tier 1. That would have made your step-father Tier 2 automatically (assuming his driving record supported it). However, when he became enlisted himself, his internal status would have been updated by USAA. Now I don't believe (just an assumption on my part) that they would penalize someone and drop them down a tier if they didn't meet, individually, the requirements based on their service records. In other words, if he would normally just qualify for Tier 3 as enlisted, they almost certainly wouldn't drop him from Tier 2 if he still qualified for that as officer legacy. And maybe his rank would have qualified him for Tier 2 anyway. In any case, his status might not have been affected, but YOUR status might have been once he became enlisted. Because now instead of being third generation officer legacy, you might have been classified as second generation enlisted legacy. USAA membership does pass legacy benefits down even for enlisted personnel, but I do believe Tier 3 is also the "legacy tier" for people who are descendants of non-legacy Tier 2 (I'm 98% certain the guy I spoke to said this now that I think about it). This is just an assumption on my part, but you may want to call USAA and see if you can challenge the tier placement and explain you should be Tier 2 because of your grandfather. Might make a difference compared to Geico prices.

I've been a member of USAA for 20+ years, and I've always had good service and reasonable prices, so I don't want to disparage the company too much. In fact, I stayed with them even though Geico was a bit lower just because of the excellent service I received with past claims. But I don't like the games they play with the tiering. I understand the reason behind them, and I don't have an issue with them in principle. What I specifically dislike is the way they hide them and their marketing campaigns that makes it seem like USAA = USAA when it is not. They are not upfront about them at all publicly, and you need to dig for what little information they will give you privately. I imagine most people have no idea that they aren't being treated the same as every other member. I certainly didn't until a few years ago and after I did research on the matter.
lkt102
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Re: GEICO vs. USAA auto insurance

Post by lkt102 »

enki wrote:
lkt102 wrote: Thank you for the clarification and additional information. I was a tier 3 member before recently switching to GEICO but my eligibility is through my step-father. His father was an officer and he was enlisted so the criteria above seemed to fit how my tier was assigned. I did chuckle at the response you were given for why USAA doesn't want to make their tier system more open and transparent. They could and should provide the basic guidelines and disclose that only tier 1 members are actually members of USAA and the rest of the "members" are part of their affiliated insurance companies.
Your situation is interesting and I wonder if something got messed up with your status. I am confident that the step relationship has no impact, but the fact that your step-father was enlisted might have negated the legacy officer benefits you would have normally inherited. Your step-grandfather was an officer, so they were clearly Tier 1. That would have made your step-father Tier 2 automatically (assuming his driving record supported it). However, when he became enlisted himself, his internal status would have been updated by USAA. Now I don't believe (just an assumption on my part) that they would penalize someone and drop them down a tier if they didn't meet, individually, the requirements based on their service records. In other words, if he would normally just qualify for Tier 3 as enlisted, they almost certainly wouldn't drop him from Tier 2 if he still qualified for that as officer legacy. And maybe his rank would have qualified him for Tier 2 anyway. In any case, his status might not have been affected, but YOUR status might have been once he became enlisted. Because now instead of being third generation officer legacy, you might have been classified as second generation enlisted legacy. USAA membership does pass legacy benefits down even for enlisted personnel, but I do believe Tier 3 is also the "legacy tier" for people who are descendants of non-legacy Tier 2 (I'm 98% certain the guy I spoke to said this now that I think about it). This is just an assumption on my part, but you may want to call USAA and see if you can challenge the tier placement and explain you should be Tier 2 because of your grandfather. Might make a difference compared to Geico prices.

I've been a member of USAA for 20+ years, and I've always had good service and reasonable prices, so I don't want to disparage the company too much. In fact, I stayed with them even though Geico was a bit lower just because of the excellent service I received with past claims. But I don't like the games they play with the tiering. I understand the reason behind them, and I don't have an issue with them in principle. What I specifically dislike is the way they hide them and their marketing campaigns that makes it seem like USAA = USAA when it is not. They are not upfront about them at all publicly, and you need to dig for what little information they will give you privately. I imagine most people have no idea that they aren't being treated the same as every other member. I certainly didn't until a few years ago and after I did research on the matter.
Called this morning and wasted 20 minutes talking to a rep and was told that as an associate member they can place me with whatever insurance company they want. I did confirm that my step-father is tier 2 (CIC) but apparently that doesn't matter for my placement.
enki
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Re: GEICO vs. USAA auto insurance

Post by enki »

lkt102 wrote: Called this morning and wasted 20 minutes talking to a rep and was told that as an associate member they can place me with whatever insurance company they want. I did confirm that my step-father is tier 2 (CIC) but apparently that doesn't matter for my placement.
Sorry, that sucks. Assuming they are correct, that throws a lot of the tier speculation out the window. It also confirms that their "legacy" marketing ads are mostly fluff. Since profits flow up to Tier 1 members, while liabilities are kept isolated within the tiers, the more Tier 2-4 people the better the Tier 1 member's savings and refunds.
headedwest
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Re: GEICO vs. USAA auto insurance

Post by headedwest »

I had Geico for 10 years, after switching to them for the discount. They paid most of a claim my first year with them, but didn't pay the Medical Cost portion of it. They said my health insurance had to pay for it since the accident happened New Jersey. (I'm not kidding.) About two months ago, before purchasing a new car, I checked to see what the new premium would be, using the new car's VIN number, and the quote I got online was $70 less (for 6 months' coverage) than what Geico actually charged me when I insured the new car. I complained and sent them a screen shot of the quote. They said they were unable to recreate the quote, so I shopped around, and my new insurance agent found me more coverage at Kemper for the amount originally quoted by Geico.
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mickeyd
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Re: GEICO vs. USAA auto insurance

Post by mickeyd »

Subscribers Savings Account
)

This term has not been used for this kind of USAA account for a number of years. It is currently called Subscribers Account.
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lkt102
Posts: 46
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Re: GEICO vs. USAA auto insurance

Post by lkt102 »

enki wrote:
lkt102 wrote: Called this morning and wasted 20 minutes talking to a rep and was told that as an associate member they can place me with whatever insurance company they want. I did confirm that my step-father is tier 2 (CIC) but apparently that doesn't matter for my placement.
Sorry, that sucks. Assuming they are correct, that throws a lot of the tier speculation out the window. It also confirms that their "legacy" marketing ads are mostly fluff. Since profits flow up to Tier 1 members, while liabilities are kept isolated within the tiers, the more Tier 2-4 people the better the Tier 1 member's savings and refunds.
Followed up with USAA and received the following response:

Since we are eligibility based we had decide many years ago to separate into multiple companies of placement for insurance rating. Garrison Property and Casualty Insurance Company (GAR) is a wholly owned subsidiary of the USAA Casualty Insurance Company. Garrison is the company of placement that you qualify for.

The USAA Property and Casualty Group consists of the following:

United Services Automobile Association (USAA) applies to: officers, pre commission officers
USAA Casualty Insurance Company (CIC) applies to: enlisted, ex-dependents of USAA eligible members
USAA General Indemnity Company (GIC) applies to: enlisted w/out a sponsor
Garrison Property and Casualty Insurance Company (GAR) applies to: Adult children or ex-spouse of CIC/GIC/GAR sponsor
USAA County Mutual Insurance Company
USAA Texas Lloyd's Company
USAA Limited (Europe)


With each of these company structures comes a wealth of different policy experiences and rating history. Traditionally but not always USAA rating carries the most preferred rate.
baliktad
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Re: GEICO vs. USAA auto insurance

Post by baliktad »

Choosing insurance providers is about more than just the annual rate.

USAA member (banking, home/auto insurance) for 15 years. Got rear-ended last month after a decade of accident-free driving. We pulled off, exchanged ID/insurance info, took pictures. Only minor visible damage on my car; other driver (enlisted army, living on base) was very apologetic, respectful, admitted fault, produced GEICO insurance card.

Filed my claim with USAA who immediately waived my deductible and authorized repairs at the body shop of my choice while they worked things out with GEICO. Two weeks later they said GEICO was denying the claim as there was no proof the driver was driving the vehicle at the time of the accident - despite me having pictures of both cars at the scene plus his ID and insurance card. GEICO claims they cannot reach the other driver (their insured) and thus, they cannot confirm it is their insured's fault.

USAA is still paying for my repairs as I am their insured. The way USAA has treated me has made me a customer for life. The shady tactics on the part of GEICO to evade their responsibilities have guaranteed that I will never consider them for any kind of insurance.

(I have also offered to provide to USAA the post-accident video I took including both cars at the scene, the driver's face, and verbal admission of fault. I hope this is enough to convince GEICO that their insured is at fault and allow USAA to properly recover damages.)
slickwillbo
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Re: GEICO vs. USAA auto insurance

Post by slickwillbo »

I want to chime in and agree with what baliktad said.

I was 28 when I was in my first accident, with a spotless record before (and after) that. Another driver pulled out in front of me while making a left turn, totaling both cars and leaving me with minor injuries. The other driver was cited for - and pleaded guilty to - failure to yield. I figured the insurance process on my end would be easy. I was wrong.

Both drivers had GEICO, and they originally said they'd pay everything off the other driver's policy. Then they said I was 10% at fault. Finally, they concluded I was 20% at fault. They denied the existence of a witness - even though her name was clearly written on the police report. Essentially, the other driver's adjuster assigned 20% fault to me, even though they never read the police report and the other driver pleaded guilty to causing the accident. My adjuster was worthless, saying 'there's nothing we can do'. This went on for months, when eventually I capitulated and ate 20% of my $1,000 deductible. In exchange, GEICO lost my and my wife's premiums, which were about $1,200 a year. Great business sense there by GEICO. I ended up hiring a lawyer for the personal injury. If they weren't such jerks, I probably would've accepted their initial offer and let that be that.

We switched to USAA afterwards, and my wife was hit last year by someone who ran a red light. USAA's service was night-and-day different from GEICO. They had a rental car ready by the time we made it to Enterprise, and we didn't have to pay for it up front (unlike GEICO). They kept us updated on the status of the repair (which ended up being more expensive than estimated), and changed some things about the repair to our satisfaction. USAA ended up being 10-15% more than my GEICO premium, but USAA has us on lockdown for now. I will never go back to GEICO. In my experience, they pay for those cheap premiums by being complete tools when it comes to claim time. Even if it's not your fault.
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blaugranamd
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Re: GEICO vs. USAA auto insurance

Post by blaugranamd »

baliktad wrote:Choosing insurance providers is about more than just the annual rate.

USAA member (banking, home/auto insurance) for 15 years. Got rear-ended last month after a decade of accident-free driving. We pulled off, exchanged ID/insurance info, took pictures. Only minor visible damage on my car; other driver (enlisted army, living on base) was very apologetic, respectful, admitted fault, produced GEICO insurance card.

Filed my claim with USAA who immediately waived my deductible and authorized repairs at the body shop of my choice while they worked things out with GEICO. Two weeks later they said GEICO was denying the claim as there was no proof the driver was driving the vehicle at the time of the accident - despite me having pictures of both cars at the scene plus his ID and insurance card. GEICO claims they cannot reach the other driver (their insured) and thus, they cannot confirm it is their insured's fault.

USAA is still paying for my repairs as I am their insured. The way USAA has treated me has made me a customer for life. The shady tactics on the part of GEICO to evade their responsibilities have guaranteed that I will never consider them for any kind of insurance.

(I have also offered to provide to USAA the post-accident video I took including both cars at the scene, the driver's face, and verbal admission of fault. I hope this is enough to convince GEICO that their insured is at fault and allow USAA to properly recover damages.)
Did you file a police report of the accident?
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investfell
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Re: GEICO vs. USAA auto insurance

Post by investfell »

We switched from USAA to Geico a couple years ago because it was way cheaper. We immediately switched back to USAA after experiencing the way Geico handles claims. Geico called me only once on the day of the accident, and never again. I had to call them every single time for an update or to push things along, no matter what stage the claim was in. It was obvious no one was taking ownership of my claim and it seemed like it wasn't even being tracked, which is unacceptable nowadays. They even asked me once if I had called the other insurance company. Eventually I did call the other insurance company myself just to get an update. I then had to track down the other driver on Twitter and get him to call his insurance company. Totally frustrating how Geico basically did nothing, and passed all the work on to me. Switched back to USAA for the better customer service. I will pay anything for better customer service for this kind of thing.
furwut
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Re: GEICO vs. USAA auto insurance

Post by furwut »

baliktad wrote: Filed my claim with USAA who immediately waived my deductible and authorized repairs at the body shop of my choice while they worked things out with GEICO. Two weeks later they said GEICO was denying the claim as there was no proof the driver was driving the vehicle at the time of the accident - despite me having pictures of both cars at the scene plus his ID and insurance card. GEICO claims they cannot reach the other driver (their insured) and thus, they cannot confirm it is their insured's fault.
Dealing with an auto claim is a pain but I think, at this point, your ire should be with the other driver not the other insurer. An insurer has a legal obligation to look out for the best interests and defend their insured. The other driver has an obligation to promptly report the claim to their insurance company but apparently failed to do so. When your insurance company contacted the other insurer they, no doubt, tried to reach their insured to get their side of the story. You can't expect an insurance company to pay out based on, at this point, your say-so.

I guarantee you that, if the roles were reversed, that USAA would not pay out on a claim against you until they had contacted and interviewed you.

2 weeks is nothing in the processing of an auto claim.
Hope is goes well in the future!
rakornacki1
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Re: GEICO vs. USAA auto insurance

Post by rakornacki1 »

USAA's Subscriber Savings Account and Senior Subscriber Savings Account may be the best loyalty bonuses that I know. Further, I have never had any problems with claims nor adjustments with USAA. They are a 'most admired' organization.
Good luck & great profits!
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