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USAA Auto Insurance
Old 08-23-2017, 11:13 AM   #1
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USAA Auto Insurance

Has anyone gotten a “Removal of Guaranteed Renewal Endorsement” form letter from USAA. If so, can you explain it? I had 2 accident claims in 2014 and wonder if I'm going to be affected at renewal time :

1. Other driver 'removed' by PD after stating her car was at fault bc after she put her foot on the gas at a stop light, it went forward. She had trouble standing up. Don't think she was injured

2. 1 week later (23 hrs after getting car back ) truck backed over me up to windshield when entire line of traffic was in wrong spot .... he apologized .... gs took youtube video of him apologizing profusely .... CSAA covered me 100% in under a week
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Old 08-23-2017, 11:23 AM   #2
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Gayl, looks like a lot of other USAA insureds got the same notification. Here is a link where it is being discussed on the USAA Member Community website: https://communities.usaa.com/t5/Auto...ce/td-p/130839
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Old 08-23-2017, 03:07 PM   #3
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Gayl, looks like a lot of other USAA insureds got the same notification. Here is a link where it is being discussed on the USAA Member Community website: https://communities.usaa.com/t5/Auto...ce/td-p/130839
The answers provided by the "USAA Social Service" reps are condescending and insulting. The overall "explanation" of whatever their policy change has been is virtually devoid of information. A "challenging" environment caused by an increase in auto claims, the need for "more flexibility" to assure USAA remains financially strong," etc. They should say what the new policy is, who will get letters (i.e. lose their guarantee of re-issued auto policies--based on geography? Based on claims? Based on risk profile due to age/credit rating, etc? ), and give specifics on why they have changed their longstanding rules.
I suppose I should log on over at USAA and vent. . .
I've used their insurance products for many years. Things are changing at USAA.
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Old 08-23-2017, 03:12 PM   #4
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I've used their insurance products for many years. Things are changing at USAA.
+1

I've not received a notice, at least not yet, but it does appear the USAA I've known and done business with for the past 47 years is making some changes.
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Old 08-23-2017, 03:25 PM   #5
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Gayl, looks like a lot of other USAA insureds got the same notification. Here is a link where it is being discussed on the USAA Member Community website: https://communities.usaa.com/t5/Auto...ce/td-p/130839
Wow, is this the same USAA that I have been doing business with for almost 20 years I already had a whiff of rotten customer service back in the spring, but the non-answers in that "discussion" are epic...
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Old 08-23-2017, 03:43 PM   #6
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My cause for concern is the number of interconnected policies I've accrued:

1. Auto
2. Home
3. Musical instrument (VPP)
4. Umbrella
5. Wanted to switch over earthquake but now staying with GeoVera

I don't want to break them up, want to keep it at the same $181 month on autopay
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Old 08-23-2017, 03:59 PM   #7
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I didn't get a separate notice, but I just looked at the renewal form I got a couple of weeks ago and sure enough there is a special page added to it saying the guaranteed renewal "is no longer available in your location."

Something must be different because I've also noticed larger than usual premium increases in the last year or so.

Maybe it's just because I'm a newbie. I've only been a USAA member for 49 years.
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Old 08-23-2017, 05:32 PM   #8
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USAA has placed greater emphasis on size than on superior service and products.
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Old 08-24-2017, 05:57 AM   #9
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they did give me a rate increase this time. said it was Florida wide.
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Old 08-24-2017, 07:59 AM   #10
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I used to be a champion of USAA for a very long time, but I got sick and tired of the constant premium increases and customer service issues. I switched to Amica several years ago and haven't been happier.
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Old 08-24-2017, 09:05 AM   #11
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I used to be a champion of USAA for a very long time, but I got sick and tired of the constant premium increases and customer service issues. I switched to Amica several years ago and haven't been happier.
I've also not been happy with the ever increasing auto premiums at USAA so I just got a quote from Amica. Yikes! It was almost double what I'm paying USAA.
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Old 08-24-2017, 09:31 AM   #12
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I switched to Amica several years ago and haven't been happier.
Then I guess you should switch back.?

It would help if USAA would explain why they are getting rid of the renewal guarantee and why rates are rising. Could be:
1) Our members are having more crashes. We loosened up our membership rules, and it turns out these people don't drive as well.
2) More crashes, but for other reasons.
3) No increase in crashes, but each crash costs more. Every insurer is having this experience.

Funny also how their online reps claimed that several years ago the increase in membership swamped USAAs internal resources and they we forced to outsource some services. But they are all caught up now. So, why did they sell my mortgage to another company?
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Old 08-24-2017, 09:37 AM   #13
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I've also not been happy with the ever increasing auto premiums at USAA so I just got a quote from Amica. Yikes! It was almost double what I'm paying USAA.
I ran into the same problem with Amica (a hefty increase) - then Switched to Geico for a few years. Subsequently, my wife hit a non-moving school bus. Rates went through the roof. Four months later we switched to Liberty Mutual.

No accidents or claims in almost two years and we still incurred a 20% increase in premiums upon renewal.

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Old 08-24-2017, 09:57 AM   #14
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3) No increase in crashes, but each crash costs more. Every insurer is having this experience.
I would vote for this one. A lot more. Today's cars are more like computer networks on wheels than simple transportation. Also, I had some very minor body work done a few years ago and the cost just amazed me.
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Old 08-24-2017, 10:00 AM   #15
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It may just be that I'm old as dirt, but it seems to me more people are driving distracted such as texting, reading, shaving, adding makeup, etc. Rather than guarantee a policy renewal I would prefer USAA winnow those accident prone driver's to lower my premiums.

I also find it difficult to compare other auto policies given my USAA's subscriber savings program, especially after 50 years with USAA.

The good news......autopilot should eventually make the problem moot
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Old 08-24-2017, 10:02 AM   #16
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Has anyone gotten a “Removal of Guaranteed Renewal Endorsement” form letter from USAA. If so, can you explain it? I had 2 accident claims in 2014 and wonder if I'm going to be affected at renewal time
So just rummaging through those linked forums, it looks like it just means they can cancel your policy at any time, and for any reason.

TBH, as a USAA member myself, I didn't know that they couldn't already do that. Seems fair to me; if either party doesn't agree with the policy, they ought to be able to end it, hopefully with adequate notice if it's USAA.

I'd have to have a bad claims experience before I cancelled my USAA policy. I always get a kick out of how relieved or giddy body shops gets when you tell them you have USAA. Another time, I was (unfairly) sued by another party in an accident, I sent the compliant to USAA, and they promptly hired a lawyer for me and presumably paid whatever bills the lawyer charged.

Several years ago, I had always heard of "adjusters" but didn't know what they were until I had to temporarily switch to a different insurer (cause my wife had too many accidents). I was used to USAA where they said, "oh so sorry you had x accident, just go take it to a repair shop and we'll have it fixed". If USAA has adjusters too that visit to see damage personally, I know I've never seen one.

Not auto, but on my USAA homeowners policy, I once had hail damage 19 years after I had purchased my 20-year-old shingles. They replaced the roof and just charge me the deductible, and didn't seem at all concerned with how old the shingles were.
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Old 08-24-2017, 10:33 AM   #17
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[QUOTE=slazenger;1927541]So just rummaging through those linked forums, it looks like it just means they can cancel your policy at any time, and for any reason. TBH, as a USAA member myself, I didn't know that they couldn't already do that. Seems fair to me; if either party doesn't agree with the policy, they ought to be able to end it, hopefully with adequate notice if it's USAA."

I agree with Slazenger, I had no idea they couldn't cancel me even after 50 years with them.

FWIW- My two claims over the last 30 years were for hail damage and for the most recent USAA sent an adjuster to my house and sent me a check the next day. I took my vehicle to a local repair shop with a good reputation, and they found additional damage and sent the supplemental to USAA. When I picked up the car and offered to cover the additional costs if USAA declines, they said USAA is the best and there would be no problem. All in all, zero hassle, and I really appreciate excellent service.
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Old 08-24-2017, 12:58 PM   #18
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I've been a USAA customer for a quarter century. Never had a claim. At one point, they cancelled my home insurance, but a phone call put it right again. Currently they have our condo, car, and personal property insurance. It's been good for them - we've never made a claim.
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Old 08-24-2017, 03:55 PM   #19
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I've also not been happy with the ever increasing auto premiums at USAA so I just got a quote from Amica. Yikes! It was almost double what I'm paying USAA.
I have heard other folks mention this too, so it might be a case of where the insured lived. In my case, the one year auto premium w/ Amica was the same cost as a 6 month premium w/ USAA. The homeowner's was about the same, however. As far as the SSA that USAA has, I have found that Amica's dividends were about the same...AND I get them every year, as opposed to the SSA that for the most part sits in an untouchable account.

As far as how much USAA is paying out, I believe Nords shared some staggering numbers a while back (can't remember if it was here or on his blog). I do recall that for every $1 in premiums they took in, they were paying out MORE than $1 in claims, and that's not a good business model. I also recall that the #1 auto claim were accidents where an "overlapping front end collision" occurred, and the brakes were NOT APPLIED (as in...NOT PAYING ATTENTION). Add that to the fact that many loses are very expensive; technology in cars is making it cheaper to total them in many cases when a few years ago, that wasn't the case.

I don't think other insurers are immune to this, so I can see that ALL of our rates will continue to rise and claims will get more and more expensive and not-so-great contract terms for the consumer will become the norm.
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Old 08-24-2017, 04:45 PM   #20
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Strange, when we moved into our smaller house 3 years ago, we quoted several companies (USAA, Liberty Mutual, Amica, one other) and Amica was the lowest (same coverages). Last year, we have a roof hail damage claim and Amica handles it and the roof is replaced. We have not seen any increase in premium due to that $13,000 claim.

It's a mixed bag out there and every insurance company is playing the same games it seems.

On a side note, and being a combat Veteran, I have never been able to get a quote from USAA where they were the most competitive. Go figure!
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