USAA Group Serves Armed Forces Niche Market

USAA Group Founded by Army Officers Armed

The United Services Automobile Association (USAA) was founded in 1922 as the U.S. Army Automobile Association by a group of 25 Army officers frustrated that other insurers considered them too high risk. Headquartered in San Antonio, Texas, it has become a leader in direct marketing in the auto insurance industry and specializes in helping current and past members of the U.S. Armed Forces and their families receive affordable automobile insurance in addition to other insurance, banking and investment products. USAA Group has written almost 8 million direct premiums for passenger automobiles in 2012, representing a 4.63% share of the auto insurance market.

USAA – An Inter-Insurance Exchange

USAA Group Serves Armed Forces Niche MarketOperating as an inter-insurance exchange rather than a corporation, USAA markets its auto insurance coverage via the Internet and phone through its own employees rather than independent insurance agents. In addition to offering competitive rates which can save policy holders several hundred dollars annually, USAA offers several features which make it very attractive to military officers and their families. Rated by Forrester Research as one of the highest in customer advocacy, USAA offers guaranteed policy renewal, USAA Roadside Assistance, repair service at more than 2,000 USAA-approved locations nationwide, easy online management of each policy and a USAA Auto Circle program that facilitates one-stop shopping for finding, insuring and financing a new vehicle.

USAA Auto Insurance Discounts

Premium discounts are offered by USAA for good driving records with no violations or accidents within the past five years, for taking Defensive Driving courses or teen driver training courses in addition to good grades savings. A special 15% military installation discount applies to comprehensive coverage when vehicles are garaged on a military base in most of the 50 U.S. states. USAA also offers its members vehicle discounts on cars less than three years old, an annual mileage discount, multiple vehicle discounts when insuring two or more automobiles, and a discount up to 90% for stored vehicles. Purchasing multiple policies from USAA and family discounts for children of current members also can represent policy savings of up to 10%.

USAA Accolades

USAA is the only automobile insurance provider ranked among the top ten in market share that restricts its policies to members currently serving in any branch of the U.S. Armed Forces and their immediate families. It has a workforce of almost 24,000 employees serving at its headquarters in Texas in addition to satellite offices in Phoenix,AZ, Highland Falls, NY, Colorado Springs, CO, Norfolk, VA and Tampa, FL. It has received consistently excellent ratings from Standard & Poor’s, Moody’s and A.M. Best, in addition to being named as one of the best employers for military veterans and reservists.