Usaa Membership Is Only For Active Or Former Military This Is Not True
This is a very common misreading. Even though USAA is marketing itself as serving the U.S. military, they have actually broadened the eligibility requirements to include regular civilians who are immediate family members of service members.
Normally, USAA membership is open to active, retired, and also separated veterans with a discharge type of Honorable from the U.S. military and their eligible family members.
Usaa Review: Some People Hate Usaa Heres Why
- byrefactorMay 01, 2019Share on:
USAA has had better days and with all the changes they’ve made and their growth, they may have become too big to hold true to their promises. This doesn’t mean they don’t offer a lot, but there’s a chance you could benefit more from looking elsewhere and spreading your needs amongst other banks, insurance companies, and investors.
Active/former Military Does Not Equal Usaa Member
Serving in the U.S. military does not make you an automatic USAA member. You actually have to sign up to become a USAA member.
So, if you have a parent or spouse who served or currently serves in the U.S. military, then you should encourage them to sign up!
As mentioned aboveonce they sign up, they are a only Level 1 USAA Member until they get auto or property insurance. At that point, theyll be a full-fledged Level 2 USAA Member.
Don’t Miss: Does Verizon Offer Veteran Discounts
Can You Join Usaa If You Are Not In The Military
Although USAAs mission is to provide high-quality financial and insurance services to military personnel, membership is not restricted to servicemembers. In fact, many civilians can benefit from USAA membership as well. The key determining factor as to whether or not an individual is eligible for USAA membership is their relationship to another USAA member.
Tip: If you are a spouse, unmarried former spouse, or child of a USAA member, you are likely eligible for your own USAA membership.
USAA membership works a bit like a hierarchical branching function. For example, a good friend of mine and her husband are USAA members despite the fact that neither has ever served in the U.S. military. However, my friends father is an Army veteran and became a USAA member 20+ years ago. Since she is the daughter of a USAA member, my friend became eligible for membership and joined. Later, when she got married, her husband became eligible for USAA due to his wifes existing membership. In the future, their children will also become eligible for USAA membership.
Aside from becoming a member, it is also possible to lose eligibility for USAA membership. For example, if an eligible servicemember separates with a less-than-honorable discharge or if a former spouse remarries they lose eligibility. However, if either of these individuals obtained membership before this status change they can retain membership.
Usaa Home Insurance Discounts
- Multi-policy discounts: If you bundle your home insurance with auto insurance from USAA, you can save up to 10% on your premiums
- Claims-free discount: Policyholders who dont file any claims for five years can receive up to a 10% discount
- Protective device discount: USAA partners with ADT and offers discounts to homeowners who install their home security systems
Don’t Miss: Sears Memorial Day Military Discount
Usaa Vs Geico Auto Insurance For Military Members
Both USAA and Geico are great options for former or current members of the military and their dependents, but ultimately USAA has a slight advantage â especially if you are serving in active duty. Geico also scores significantly lower for customer satisfaction when compared to USAA.
In the J.D. Power ratings, Geico scored 4/5 and 3/5 for claims handling and customer satisfaction, respectively.
If you or a family member is an active or former military member, we recommend you get quotes from both USAA and Geico. While USAA tends to be cheaper, there are some states where Geico’s discount makes it the cheapest option.
How To Become A Usaa Member Even If You Arent In The Military
**This post contains affiliate links, see disclosure about affiliate links here. Thank you for your support.**
USAA is a fantasticfinancial institution with so many upsides, such as outstanding customer service and an unparalleled online platform.
I highly recommend you check them out for investments, insurance, or banking in general.
Unfortunately, USAA doesnt do a stellar job of clarifying membership eligibility requirements. So I have taken the time to outline them here and provide my insight as a USAA member.
So lets begin by discussing a common myth about USAA membership:
Read Also: Does Aspergers Disqualify From Military
Im A Usaa Member And Neither My Wife Nor I Served In The Military
Short and sweet:
1. My wifes dad was in the military.2. He became a USAA member AND got auto insurance3. At this point, my wife became eligible for membership4. My wife became a USAA member AND got auto insurance5. After we got married, I became eligible for membership6. Now that we have kids, they are eligible!
Cost Of Usaa Home Insurance
Your premium will depend on the amount of coverage you choose, your deductible, where you live, the value and age of your home, and even your credit score . According to the latest Bankrate data, the average premium from USAA for a $250,000 dwelling is $992 annually, which is relatively inexpensive compared to the national average of $1,312 annually.
Also Check: Sears Military Discount Code
Usaa Home And Personal Loans
Loans are not the easiest thing to get through USAA. And if you get approved, their rates are typically higher than most banks. This is the case for home, car, and personal loans. Even if you have a good credit score, youre looking at some pretty high-interest rates. Personally, they told me I couldnt get a VA loan through them because my civilian job wasnt related to what I did while I was in the military.
How To Sign Up For Usaa Accounts And Services
Visit the USAA official site to sign up. You will be required to determine your eligibility with an online questionnaire. Once your eligibility is established, you will be prompted to set up your account with your login, password, and other details.
Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News
Also Check: Does Petco Offer Military Discount
Can I Join Usaa If My Father Was A Veteran
Three conditions need to be met in order for you to be eligible to join USAA if your father was a veteran.
If your father is deceased, but never established his membership, then you cannot join.
However, if your father joined USAA and had an insurance account with them, then you are eligible to join whether hes deceased or alive.
The parent has to get an account with USAA in order for the child to have full membership. If they just join USAA and dont get any accounts, then the child is limited in their membership. In this case, the child will only be eligible for certain benefits, and those dont include insurance or banking accounts.
How To Become A Usaa Member Without Joining The Military
There are 2 ways of becoming a USAA member
1) Be active on military duty at some point
2) Be the child or immediate family relative of a USAA member. This is only best for 1.25 generations with family.
Once the grandchild has passed the age where he/she is old enough to have their own insurance without being covered by the families policy, they are out on their own except they go back to option 1.
Also Check: Military Discounts At Sears
What Are The Areas Where I Think Usaa Falls Short
Brokerage and investment management services
Note: As of May 26, 2020, USAA investment management will be transitioned over to Schwab. Click here to learn how to move your USAA investments to Schwab. By mid-2020, mutual fund management will be transitioned over to Victory Capital. These two changes should make this section obsolete.
My biggest beef with USAA is with their brokerage services . They have a reasonable suite of mutual fund offerings, but their fees arent best-in-breed.
Lets compare the USAA S& P 500 index fund to the Vanguard S& P 500 index fund . Well invest $10,000 in each fund on the inception date of USSPX, June 28, 1996 and see how theyve done through November 14, 2013.
Thats a $801.79 difference, which might not seem bad, particularly over 17 years. However, lets assume that you need $1.5 million in assets to retire at age 50. You would have 60% of your investments in stocks, and if you were using a S& P 500 index fund as your stock investment, that difference would amount to $19,939.14. You might have to work another year to make up the difference.
Just in case I didnt mention it before, fees matter, because theyre cumulative and we eventually deal with large numbers as we come close to achieving financial independence.
Also, their asset managers have incentives to get money into USAA funds. So, youre going to be paying them AUM fees to get put into underperforming funds. Thats a double whammy.
Banking account limitations
Can You Access Usaas Services If Youre Not Eligible For Membership
USAA has expanded its eligibility requirements throughout time to include immediate family members of military personnel. If youre thinking of becoming a member, try to figure out whether you have a relationship with a current or former member of the military and what that relationship entails. If youre not eligible for membership, you cant access most of USAAs products and services, but you can still qualify for a few. Without being a USAA member, you could qualify for USAAs life insurance policies and investment services. Thats because USAA offers full and partial membership.
You May Like: Can You Join Military At 30
Who Qualifies For Usaa Auto Insurance
Virtually all active and retired members of the U.S. military will qualify for USAA membership. You may also qualify if youre in training to become a commissioned officer like through ROTC. In addition, the immediate family members of active and retired service personnel may qualify. Here are the specific eligibility requirements, according to USAA.com:
- Active-duty, retired, and honorably separated officers and enlisted personnel of the U.S. military
- Officer candidates in commissioning programs, including Academy, ROTC, and OCS/OTS
- Adult children whose eligible parents have or had a USAA auto or property insurance product
- Widows and widowers of USAA members who have or had a USAA auto or property insurance policy
Usaa Gives Back To The Community
In addition to serving clients, USAA takes its corporate responsibility seriously. In 2020 alone, the company contributed $87 million to various nonprofit organizations. This included the Military Family Relief Initiative, which provided $30 million to 24 nonprofits, with the funds earmarked for pandemic-related relief. That also included making a three-year, $50 million commitment dedicated to advancing racial equality.
Not only does the company pride itself on its corporate responsibility, but its employees seem to follow a similar mindset. 2020 also saw employees donate $10.1 million to nonprofits and log more than 185,000 volunteer hours.
You May Like: Does Verizon Fios Offer Military Discount
How Do You Become A Usaa Member
A USAA membership is free. Once you have an account, you are eligible for USAA’s insurance and other benefits. To become a member, you can visit USAAs website to begin the process.
The steps are to first determine your USAA eligibility. You will need the following information to verify eligibility:
- Personal information including your date of birth, contact information, and Social Security number
- Details about you or your family member’s military service
- A passport or permanent resident card if you are a non-US citizen
You cannot become a USAA member if your military family member is not a member of USAA. The only way to become a part of USAA is if your military-affiliated family member is first a member of USAA and is able to pass USAA eligibility on to you.
How Does Usaa Verify Eligibility
We would love to tell you that all you have to do is call or write USAA, Im in the military, or, I was in the military, and USAA would say, Were good.
But, understandably, the company requires proof. Theyll ask you to provide a copy of military documents proving that youre in the military and a copy of your government-issued I.D. Or you can offer proof that a family member was in the military or that you used to be in the military.
For instance, you could provide the long version of the D.D. Form 214, which shows that you were released or discharged from active duty.
Recommended Reading: Is Autism A Disqualification For The Military
Usaa Rental Car Reimbursement
USAA also offers rental car reimbursement, which helps pay for the cost of a rental car while your personal vehicle is being repaired for a covered claim. If you add rental reimbursement to your policy, your insurance company will pay a fixed amount per day toward the cost of your rental, up to a maximum per-claim limit.
For example, if you choose $25 per day/$600 per loss as your rental reimbursement limits, USAA will pay up to $25 per day, but no more than $600 per claim for your rental. Rental reimbursement coverage costs between $2 and $15 per month, on average, but youll need to call customer service to get a personalized quote and add this coverage to your policy.
The insurance offered by the rental company often duplicates coverage drivers already have through health, life, and auto insurance. You may also have rental insurance from your credit card company, which is nullified if you purchase the rental companys coverage.
USAA roadside assistance is worth it for drivers who are looking for basic coverage at a low price. USAA customers can purchase roadside assistance as a policy add-on for $12 to $20 per year in order to get coverage for things like towing, gas delivery, and flat-tire changes.
USAA roadside assistance members can request service online or call 800-531-8555.read full answer
Usaa Is Not Always The Best Option
While I am a big fan of USAA and I highly recommend them, they are not always the best option around. Here are some other things to keep in mind:
Few Local Branches. This is good and bad. USAA keeps its costs down by handling transactions from centralized locations. This results in lower overhead costs which enables them to provide better deals to their members . However, this can be a hassle if you are used to banking in person.
You will need to do your banking over the internet, by telephone, or via the postal service. I havent had any issues with this, but its something to keep in mind. A good way around this is to also open an account with a local bank, so you have another option if you need access to a physical banking location . I have an account with Chase Bank, which offers a free military checking account and many excellent financial products.
Insurance Rates Vary By Location. When I was stationed in the UK, I purchased auto insurance through USAA. They were still the best option when I returned to the US, at least until I bought a motorcycle. After shopping around, I saved several hundred dollars by switching to another major insurance company. After I sold my bike, I found better auto rates with USAA. Other people find that USAA may not offer the best homeowners or renters insurance where they live . As with everything else, it pays to shop around.
Recommended Reading: Sears Military Discount On Appliances
What Is Usaas Approach For Covid Vaccines
COVID vaccines are critical to help safeguard our teammates and loved ones, and ensure were best positioned to fulfill our mission for members. USAA has launched a COVID Safe Workplace tool for employees to indicate their COVID-19 vaccination status and upload documentation, if applicable. While getting the vaccine remains voluntary, all employees are required to submit their information in the tool. This information will be maintained and protected in a secure database and used by USAA to promote and facilitate workplace safety and readiness during the pandemic.
Benefits Of Joining Usaa
There are some serious benefits to joining USAA Id like to share them with you to get you excited.
- Discounts: There are member-only discounts for all sorts of things like travel , online shopping, TurboTax, home security systems, etc.
- Rewards: You can get rewarded with cash to use towards shopping/travel/donations through the Member Advantages Loyalty Program. What I love about this program is that you earn the rewards by completing various financial challenges!
- Financial Advice: Ask your financial questions in the USAA forum members get access to. You can also get your Financial Readiness Score, have your home value monitored for you, get a property risk assessment, and all kinds of other things.
- Access to Services and Products Just for Members: You get access to insurance plans, checking/savings accounts, investment products, and even a Real Estate Rewards Network that non-members do not.
- Part Ownership, with Potential Cash-Back: Since USAA is a reciprocal company, each member owns a tiny part of the company. This means that the USAA board gets to decide how to use the amount of income the company earns each year either to support current goals/mission of the company, or to distribute it out to its members.
Pssst: if you end up having 40 or more years of membership with USAA? Then you could be eligible for whats known as a Senior Bonus distribution amount.
You May Like: Can Someone With Aspergers Join The Military