Why is my USAA insurance so cheap compared to other insurance companies for minimum coverage?
I'm 21 and live in Tennessee. I was told to shop around for car insurance, so I did. After getting some quotes, USAA's rate was about half of the price offered by any other insurance company. Why is USAA so cheap?
“USAA is the biggest insurer of military members in the US, and this volume can translate into more competitive prices for customers. According to statistics, the company is in the top five in terms of affordable car insurance rates, averaging about $860 per year.
The real issue for you is state-minimum liability coverage. In Tennessee, this is 25/50/15, meaning it covers:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $15,000 in property damage liability per accident
That’s far too low to protect you in many accidents. You should consider upping your coverage to 100/300/100 at the bare minimum to protect yourself from financial liability.
And even if USAA is cheap now, don’t forget to double-check quotes with Jerry once or twice a year. This free insurance-shopping app can provide you with competitive quotes in under a minute!”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Read advice from car experts at Jerry
Browse by topics
What others are asking
Will my premiums skyrocket if I increase my liability insurance coverage?
I currently have more coverage than the liability insurance requirement in my state, but I want more peace of mind by increasing my coverage limits. Will this cause my rates to skyrocket?
Apr 22, 2021
Will the Honda dealers offer car insurance?
"Do dealers have car insurance companies that they contract with? I'm planning on going to the dealership to purchase a new vehicle and I'm wondering if I can purchase insurance there as well."
Jul 28, 2021
What APR should I expect on a car loan with an 800 credit rating?
"I recently crossed the 800 threshold on my credit score. What APR should I expect on a car loan?"
Jul 27, 2021