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?

Apr 22, 2021
Answer provided by
Eric Schad
Answered at Apr 22, 2021
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!”
Car InsuranceCheap Auto InsuranceState Insurance Minimums

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