If you are a military veteran living in West Easton you may not be aware of USAA, especially if you were enlisted and not an officer, who left military service before 1996. It wasn’t until November of 2009 that USAA expanded its eligibility to all veterans of the armed services who were honorably discharged. That was the year when this former enlisted sailor, who left the Navy in 1982, could take advantage of the USAA benefits of lower insurance rates and interest rates on credit cards. Even certain family members of honorably discharged veterans can now join USAA.

USAA was founded in 1922 by a group of U.S. Army officers to self-insure each other when they were unable to secure auto insurance due to the perception that they were a high-risk group. USAA has since expanded to offer banking and insurance services to past and present members of the Armed Forces and their immediate families.

USAA’s mission statement indicates its focus to serve its niche market, which consists of members of the U.S. military and their immediate families. To that end, the Association has always marketed directly to members of the U.S. military. USAA membership is offered to officers and enlisted personnel, including those on active duty, those in the National Guard and Reserve, Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS) and all those who have served in the aforementioned categories and who have retired or have been discharged honorably. Children of USAA members are also eligible to purchase USAA’s P&C insurance products, and former members of USAA are allowed to resume membership at any time (without an age limit).

Eligibility can be determined using its website; however, the site does not contain a comprehensive statement of eligibility. Recently, USAA has been sharpening its focus on members of the military. So, people working for certain non-military agencies that were accommodated in the past may find that they are no longer eligible.

Auto and property insurance and some banking services require that the customer meet membership eligibility criteria. USAA investment products as well as deposit-only banking services are available to non-members.

USAA Has Lower Rates

When I was in the process of closing on my home in West Easton, my bank offered me Home Owners Insurance at almost $700/yr. My banker tried his best to convince me it was a great deal and sent me comparisons of other insurance providers. Since no home buyer is obligated to use the lender’s insurance company I decided to call USAA. Since they previously saved me $200/yr on a better auto insurance policy, I figured I would give them a call about insuring my home.

It was a smart move. A better policy with a higher replacement value only cost me $400/yr. Like my previous auto insurer (State Farm), my mortgage company rep wanted to know who was offering such a low rate. When I mentioned USAA, he confided that he figured it was them. It happened to be his insurer, as he was a veteran, and gave them high praise. He told me it was a wise move and apologized for following the bank’s policy of trying to sell me on their own insurer. It’s something he has to do as part of his job.

I should point out that while at least one of my neighbors had their damage from Hurricane Sandy undervalued, I had an adjuster come to my home, climb on the roof and inspect my house from top to bottom. He found things that even I hadn’t noticed (my roof crawling days are over). I received every penny of his submitted costs (higher than my estimate) and even got $500 toward the food that spoiled when we lost power for 4 days. Something most people don’t have covered in their homeowners insurance.

I also have two credit cards through USAA. A Visa and a Mastercard. Mine have a fixed rate of 13.6%, with no interest if I pay off the balance within 30 days, and no increase if I don’t pay on time. Compare that to bank credit cards charging 21% – 24%. I’m not a frequent credit card user, though. I only make a small purchase of no more than $20/mo with them in order to keep my credit score high.

There are many more benefits of joining USAA. Life insurance, financial planning, brokerage services, banking services, and much more.

If you are an honorably discharged veteran, visit USAA. Get some quotes and compare them to your current policy costs. If you are a spouse or child of a veteran you should also check for your eligibility. Membership is free.