USAA Insurance

[REWahoo]

Some of you posting here have insurance through USAA. If so, you know that as a reciprocal insurer they establish a Subscriber Savings Account (SSA) for each policyholder and allocate a portion of their capital reserves into each account, based on a formula which includes the amount you paid in premiums. You also know they usually, but not always, pay each insured a SSA distribution each year based on their loss history and capital requirements. I think the distribution has been running around 3-6% per year and was 4% last year.

I learned today that once you’ve been with them 40 years they pay a “Senior Bonus” equal to 10% of your SSA each year. I’ve been insured with them for 37 years (yes, I’m well seasoned), and this could amount to roughly $1,000 per year in ‘found’ money for us starting in 2010. By the way, these distributions are not taxable since they are technically classified as refund of premiums.

It might also be something for those of you currently insured by USAA who are shopping around for lower insurance rates to consider.

[samclem]

REW,
-- Thanks for the tip! It'll be awhile before I reach 40 years with them, but this is good info to know. They've always provided good service. Frankly, haven't shopped insurance proces for a long time, so I don't know if they are cheapest. The SSA check is always a nice surprise.

[linkerbink]

Didn't know about the bonus, though I've been enjoying the check that I get every year. I've been with them 35 years, so I still have a few more to go...guess I'm not quite as well seasoned!

[lets-retire]

Recently when buying insurance I was going to cancel my old USAA homeowners policy and just let my stuff sit in storage uninsured for a month. Instead of letting me the person I was talking with advised that if I did they would not reissue the insurance, due to Katrina. I'm glad they weren't the money grubbing evil company that many accuse their insurance companies of being.

[modlair]

USAA is the veteran's benefit only veterans know about. It is hugely valuable in many different ways. I am a total shill for them (no, never worked for them) and it's been 37 yrs now.

Didn't know about the bonus. Excellent news.

The one thing of significant value I get from them is . . . I never have to spend time and energy researching alternatives. I completely trust them and I'm not going anywhere. That's 37 years of management changes and I have not changed my attitude.

I can also echo the gentleman's experience above. I got a mortgage once through PHH -- and that was with USAA as a middleman -- partnered with PHH. I had some problems with them for reasons I have forgotten, but they were sufficient for me to call USAA to complain.

That was like setting off a bomb in PHH headquarters because I got phone calls from three levels of their management trying to ensure my problem was taken care of to my satisfaction. The last guy I talked to was a VP and he told me USAA won't partner with anyone that won't agree to have their telephone people take a special training course on dealing with USAA customers. That includes outsourcing to Bangalore. USAA won't deal with anyone who won't give their members special treatment.

[devo]

You guys have never had this experience?!?

Telemarketer: I'm calling tonight to help you save money on your auto insurance.

Me: Great News!! (I'm always annoyingly sarcastic with these folks...and probably others, though I'm unaware)

Telemarketer: Who is your current carrier?

Me: USAA

Telemarketer: Thank you...have a nice night. Click.

Me: Ahh...Hello??




There may be cheaper companies out there, I haven't done enough research to know for sure, but they've never called my house. I've never had a less than good experience with them, so I haven't had to look elsewhere. I get access through my FIL. I consider it an amazing fringe benefit!

devo




Edit: Teacher correcting his own spelling :

[SecondCor521]

Quote:

Originally Posted by devo There may be cheaper companies out there....

I sincerely doubt it. As a penny pincher I regularly shop my insurance coverage around. I've called all the usual suspects probably at least half a dozen times over in different situations for auto, homeowner's, and umbrella. Never found anyone cheaper, and rarely find anyone even close. And that's before the USAA rebates!

I also have my first mortgage, HELOC, and checking with them as well.

2Cor521

[Nords]

Quote:

Originally Posted by REWahoo! I learned today that once you’ve been with them 40 years they pay a “Senior Bonus” equal to 10% of your SSA each year. I’ve been insured with them for 37 years (yes, I’m well seasoned), and this could amount to roughly $1,000 per year in ‘found’ money for us starting in 2010. By the way, these distributions are not taxable since they are technically classified as refund of premiums.

I interpreted that paragraph as a one-time good deal when you hit 40 years.

Quote:

"The Senior Bonus, which is paid to members with 40 years or more of membership, is a distribution of 10% of a member's SSA balance."

Hunh. Reading that again makes me think that they'd start paying us at a 10% SWR until the SSA's all gone. Don't these guys use FIRECalc?!?

Here's another paragraph for us over-analytical estate planners:

Quote:

"If a member terminates all P&C policies, the balance of the SSA is paid out approximately six months later."

To me that means our estate's executor would finish the paperwork in five months, file the final tax returns, pat themselves on the back for a job well done, and get USAA's SSA check in the mail the next day...

[REWahoo]

Quote:

Originally Posted by Nords Reading that again makes me think that they'd start paying us at a 10% SWR until the SSA's all gone.

That's the way I interpreted the message. I'll let you know in 4 years if I get a second 10% payout.

And when it's gone, it's gone...

[mickeyd]

Quote:

I learned today that once you’ve been with them 40 years they pay a “Senior Bonus” equal to 10% of your SSA each year

I learned about it in November when USAA sent me a "40 year" bumper sticker. When I was speaking to the USAA Rep he referred to the senior bonus (I had never heard of it either) and I was told that I could claim it after the first of the year and that they would advise me of the time that it is available.

Still waiting after over 40 years...I seem to recall that I became a member in 1966...yep 40 years!

[REWahoo]

Quote:

Originally Posted by mickeyd I was speakin to them they referred to the senior bonus (I had never heard of it either) and I was told that I could get it after the first of the year and that they would advise me of the time that it is available.

Is it your understanding that it is a one-time bonus, or will you get a 10% payout each year now that you've hit your 40th?

[deserat]

USAA for insurance costs is one of the best - for their other services, I have had a different experience - and have moved from them due to some customer service issues. They have changed in the last few years and started focusing a lot on their financial markets business - they are also much larger now and therefore at times the customer service has suffered in some areas.

Hopefully I will still be with them in 40 years - we'll see.

[REWahoo]

Quote:

Originally Posted by deserat USAA for insurance costs is one of the best - for their other services, I have had a different experience - and have moved from them due to some customer service issues. They have changed in the last few years and started focusing a lot on their financial markets business - they are also much larger now and therefore at times the customer service has suffered in some areas.

Unfortunately I've had a mixed bag of experiences as well, some excellent, some not so good. They've definitely taken a few steps back in customer service in their homeowner and auto areas. Banking and investment services are still top notch.

Unfortunately I'm currently tied up with them on an auto claim. I got so frustrated when they still didn't have a copy of the police report 2 1/2 weeks after I reported the accident, I went to personally pick one up to give them. Not a positive experience to this point.

[mickeyd]

Quote:

Is it your understanding that it is a one-time bonus, or will you get a 10% payout each year now that you've hit your 40th?

Ok, I just dug out my paper file.

The above guote from my USAA file:

Quote:

"This program allows members who have been with the assoiciation for over 40 years or more to receive 10 percent of their SSA balance each year"

You may chose from one of the following :

1. Receive a check.

2. Apply the credit to your auto and property insurance bill (the one that I selected)

3. Leave your SSA balance intact.

Now that I have looked at this "Important Notice" in my file, I notice that the date for this years distribution is January 31, 2007 so I guess that my P&C insurance account has already been credited with about $175.

Sweet deal, no?

[REWahoo]

Quote:

Originally Posted by mickeyd Sweet deal, no?

Yup.! Thanks for the info.

[Gumby]

USAA has served me well for 27 years. No complaints here.

[REWahoo]

Quote:

Originally Posted by Gumby USAA has served me well for 27 years.

Me too, Gumby. But I've been with them for 37 and the problems started about 10 years ago. Better watch out.

[Nords]

Quote:

Originally Posted by REWahoo! Me too, Gumby. But I've been with them for 37 and the problems started about 10 years ago. Better watch out.

USAA has noticed that after 50 years of membership those problems start to die out.

So to speak...