USAA is so cheap because the company is the largest insurer of the military community, and that volume allows USAA to offer more competitive rates. USAA has more than 6% of the total private-passenger insurance market, despite only offering coverage to service members. A minimum coverage policy from USAA costs an average of $67 per month, and USAA premiums can be made even cheaper by taking advantage of discounts such as paid-in-full discount and annual mileage discount. Plus, USAA rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.
Average Rates for USAA vs. Top Competitors
Company | Minimum Coverage | Full Coverage |
$67 per month | $234 per month | |
$86 per month | $293 per month | |
$86 per month | $337 per month |
Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.
USAA is especially cheap for young drivers in particular. That's because USAA has special savings opportunities for drivers in this category, such as discounts for students who maintain at least a B average.
Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though USAA is among the cheapest car insurance companies, the only way to confirm you've found the lowest price is to compare quotes from multiple companies.
To learn more, check out WalletHub's review of USAA and see USAA's full profile.
This answer was first published on 06/13/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
