Nona Phelps Coastal Shield Insurance - USAA


USAA Insurance Rate Increase: A Service Member’s Perspective

Published November 17, 2023
Last Updated 1 month ago

As a service member, and a United Services Automobile Association insurance policyholder for over a decade, my husband was deeply disappointed to learn that the company would be raising rates for many of its customers including himself. USAA has been a trusted partner for our family, providing us with peace of mind and reliable coverage for years, but the recent rate increases have had our family reevaluate the need to be loyal to the company and have found coverage elsewhere.

I understand that insurance companies must adjust their rates periodically to reflect changes in risk and costs. However, I am concerned about the timing and magnitude of this increase. The announcement comes at a time when many service members are already facing financial challenges due to inflation, rising housing costs, and the ongoing pandemic. In 2023 alone USAA raised their rates an astronomical 14.7%, one of the highest in the market, pushing clients out of being able to afford coverage on the homes and vehicles alike.

Moreover, the increase seems disproportionate, particularly for service members and family, who have a clean driving record and a history of responsible insurance use. I have always considered USAA to be a company that understands and values the unique needs of the military community. This rate hike makes me question that commitment. I am not alone in my concerns. Many service members have expressed their frustration on social media and online forums. We are united in our belief that USAA’s decision to raise rates is unfair and insensitive to the financial realities of service members and their families. I urge USAA to reconsider its decision. The company should provide more transparency to its customers about the factors that led to this increase and work to find ways to mitigate the impact on policyholders. In the meantime, I have re-shopped other insurance options to ensure that I am getting the best possible value for my money, and have already found the same level of coverage at a more affordable price. I encourage other service members, who are USAA policyholders to do the same, and should not hesitate to shop around and compare rates. 

In addition to the financial concerns, as a service member, my husband does feel a strong sense of loyalty to USAA and the military community as a whole. This rate hike has shaken our confidence in USAA and made me question whether the company truly values its service members. I hope that USAA will take our concerns seriously and work to regain our trust. The company has a long and distinguished history of serving the military community, and I urge it to continue to live up to its reputation for providing affordable and reliable insurance coverage to service members and their families. I believe that USAA should be more transparent and accountable to its customers, especially those who have served their country. I hope that this rate hike will serve as a wake-up call for USAA and prompt the company to make some much-needed changes. 

Nóna Phelps

Nóna Phelps

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