Why is USAA Insurance So Expensive?

USAA car insurance might be expensive due to recent changes in your policy, or due to market changes in the past year.
Written by Kianna Walpole
Edited by R.E. Fulton
car insurance
could be expensive due to your personal profile, driving record, or increased repair and medical costs as a result of inflation. To stay on top of rising auto insurance rates, it’s important to always compare pricing from different providers and keep aware of industry changes.

Why did my USAA insurance go up for no reason?

The average USAA car insurance rate is $1,235 per year, which is about $437 less than the national average among all providers. However, if you’ve recently seen a rate increase, it could be due to the following factors. 

1. Higher claim amounts means higher rates

After the COVID-19 pandemic, car insurance companies began to implement rate increases due to a higher number of insurance claims. As a result, insurance premiums rose by an average of 26% since 2021, and are expected to keep growing in 2024.

2. Inflation and auto tech have driven up repair costs

It’s not just claims that have increased the average rate recently. Standard inflation and supply chain shortages may also contribute to your recent USAA auto insurance to help cover the cost of future claims and repairs. 

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Car parts are in high demand and they cost more, and body shops can’t find enough mechanics to hire, driving up the cost of labor. All of these factors increase expenses in the case of an accident or vehicle theft, which can cause insurance premiums to rise.

3. Even without violations or claims, rates will naturally change

Maybe discounts you previously qualified for expired, or you changed from a minimum coverage policy to a
full coverage option
. Rates change frequently for a number of reasons outside of your driving record, and these are only a few of the factors that could cause your premium to
increase at renewal

What you can do about it:

1. Consider switching to a new insurance provider

While car insurance premiums are on the rise across most auto insurance companies, it’s not impossible to still find savings. 
Comparing car insurance costs from some of the
best car insurance companies
can help you spot potential deals and opportunities to lower your car insurance policy. 
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Generally, every company has a set rate you can qualify for, and with an insurance broker like
, you can find the best quotes for your driver needs.
From there, you can compare car insurance quotes from several providers to find the most cost-friendly option for your chosen coverage.
And when it’s getting close to renewal, Jerry will automatically re-shop quotes so you’re always aware of any cost changes and new savings. 

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VP of Insurance Operations
70% of people haven't re-shopped their car insurance policy, and that means they may be leaving money on the table. If you aren't pleased with your current rate, shop around.
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2. Look at car insurance discount options

  • SafePilot: USAA’s SafePilot telematics program offers a chance to save if you track your driving and avoid unsafe habits like speeding and harsh braking. 
  • Defensive driving course: Drivers who enroll in a defensive driving course can save up to 20% on their rates with USAA.
  • Safe driver discount
    : If you maintain a
    clean driving record
    for more than 5 years, you can earn 10% off your USAA car insurance. You’ll also qualify for
    free accident forgiveness
  • Multi-vehicle: Policyholders who insure more than one vehicle on the same policy are able to lower their rates with a multi-vehicle discount.
  • Multi-policy
    : Similar to multi-vehicle, multi-policy discounts occur when you buy and bundle multiple insurance products from USAA. This includes homeowners insurance, car insurance, and renters insurance and can save you up to 10% on property insurance.
  • Anti-theft device: USAA offers discounts to anyone with an anti-theft device installed on their covered vehicle. 
  • Good student: Young drivers who are 16-25 years old, enrolled full-time in high school or college, and keep at least a B average can save on their auto insurance policy. 
  • Family discounts: Drivers who were previously listed as a driver on a family member’s USAA policy qualify for up to 10% off with a family discount.
  • Military installation discount: Military members can save on
    comprehensive insurance
    if their vehicle is garaged on an active military base.

3. Raise your car insurance deductible

Although it may sound counterintuitive, raising your car insurance deductible can actually lower your premiums. 
However, make sure to choose a deductible you can afford. If you suddenly need to file a claim and cannot pay the deductible, you’ll be stuck with huge out-of-pocket costs.

Other factors that can make your rates go up

Your car insurance premiums are calculated based on several factors. Here are some of the top reasons why your USAA insurance might’ve increased recently:
  • Recent tickets/violations: High-risk drivers who have any moving violations like a recent speeding ticket, at-fault accident, or a DUI on their history will see their insurance rates rise. 
  • Age: No matter if you’re young or old, age is another determining factor of your rates. Drivers who are under 25 or over the age of 75 tend to see higher than average costs for car insurance.
  • Credit score: Not all states allow credit score to be used when calculating premiums; however, in states that do, USAA considers your credit history to determine your final quote—and a poor credit score could mean higher rates.
  • Expensive car: Buying a new car instead of a used vehicle leads to raised premiums due to the enhanced risk of theft and vandalism.
  • Lapses: A
    lapse in car insurance
    can also affect your rates negatively—those who let their insurance lapse for 30 days saw an increase of 8% in their premiums. Longer lapses saw an average increase of 30%.
  • High-risk ZIP code: Areas with higher population tend to see increased insurance costs due to the high risk for theft, vandalism, and accidents. 
  • Added new driver: If you’ve added a new driver to your policy, their driving history, age, and other determinants can also impact your USAA rates. 


Does USAA charge a cancellation fee?

No, USAA does not charge a cancellation fee. Customers who opt out of their USAA car insurance coverage mid-policy will not be penalized and may receive a refund for any unused premiums.

Which insurance company has the highest customer satisfaction?

Based on a recent nationwide survey done by Jerry, National General received the highest customer satisfaction rating among some of the best insurance providers in the US. 

Is USAA overpriced?

The average cost of a full coverage policy at USAA is $1,235 per year, which makes it roughly 26% lower than the national average of $1,672. 

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