Is switching to USAA worth it once in the military?

Question

I will be joining the military in January and am wondering what would be an appropriate action with my finances. I know a lot of people in the military use USAA and have positive things to say, but wouldn't switching to a bank like Bank of America have similar benefits. Can some one please explain to me why switching to USAA is beneficial for a military family? Thank you kindly in advance.

Answer 1

Yes, USAA has cheaper insurance rates, and they also reimburse all ATM fees.  

Answer 2

my husband and i switched from bank of america military bank to USAA and we are so much happier. USAA is much more customer friendly. you dont wait a ridiculous amount of time to speak to a rep on the phone, and they are very personal. they made a note that i was pregnant when we spoke to them once, and every time we called after that they'd say "how is your pregnancy going?" they are very kind.

bank of america's military bank charges 30.00 for an overdraft fee, where with USAA you automatically get overdraft protection. BOA takes DAYS to process a single debit transaction and even to transfer funds from checking to savings and vice versa. literally, DAYS on end. we'd wait and wait and wait, and would eventually overdraft because we'd need our money when it was not available.

BOA has crappy customer service and we were very dissatisfied with them. one rep we spoke on the phone to told us that the reason why their transactions take so long to process is because they process regular BOA bank accounts first, THEN military.

i would to with USAA if i were you. they're fantastic.

Answer 3

bank of america is the devil of all banks..lol..we have used them  personally and my husband either has a card or had a card issued to him for the military through them....as a result he now gets updates on his credit report because there was some kind of breach in their system....so thats always great when your bank screws you...usaa is a credit union..credit unions have lower fees...and if you are in a state that has cash point atm machines you wont pay a dime for a transaction...usaa is great insurance too..we have had them for the last eleven years..we were going to drop them when we moved from nc to ga because our new rate was going to eat us up..my husband called and spoke to someone for well over two hours..got us every discount they offer and actually didnt beat the gecko...but was within fifty dollars and at that point switching would have been a huge hassle... and although it is true you cant join usaa unless you are in the military..if your parent was in the military you are allowed to get insurance through them...neil patrick harris has usaa insurance because his father was a dr in vietnam or it may have been a lawyer...just a bit of trivia..from usaa magazine that comes to my door...

Answer 4

I am a part of USAA, and I would have to say the car insurance and renters/home insurance is worth it.  What you should do is get your insurance information for your current company.  You can request a quote from USAA, plug in the same information, and you will see the savings.  I saved about $500 on car insurance!!  

Answer 5

I switched from a small state bank, to USAA last year, and I am glad I did it. Anywhere else, they can lock your account when they realize that you are using your dedit card anywhere else than usual. You'll be traveling a lot once in, and it's a hassle to deal with the bank locking your account for stupid reasons like that. USAA doesn't so that knowing you're in the military. Also, the online banking system is very easy and they reimburse you for ATM charges you know you will have to pay.  

Answer 6

"The only downfall with this- is that they have a whole different set of rules they go by. Traditional car insurances, your rate would go down and you'd get discounts like "good driver" or "25 and over". USAA doesn't do this, because you are already offered a discounted rate. Also, when i first signed up my insurance was super cheap- no accidents or any infractions on my record and my insurance has gone up severely. I called and asked why that was- and the explanation given to me was that they fracture in your paygrade into your insurance payments. They also take everyone in your geographical location and divide up the premium."

WOW just wow. I worked for them in thier auto and homeowners insurance division for several years. You were told false information or didn't completely understand it.

Yes there are good student, good driver, 25 yr, 30 yr, multi veh etc discounts. They have 3 companies that they write insurance under USAA, CIC and GIC. To be rated under USAA (best rates) you have to be an NCO or higher. CIC is for the E-4 and below and family members such as children on their own etc. GIC is for people with poor driving records or with bad payment histories - any pay grade can be rated here. Your insurance rates are based on several factors, some being longevity at current insuance agency, credit report scores, claims history, driving record, age, vehicle, territory (meaning your physical address vehicle is kept at), # of drivers within the family, annual mileage, etc.

Anyways, I am still quite fond of the company and have been a member for over 12 years. I would still work for them had we not moved. The majority of the ins agents have some affiliation with the military either by being a spouse, retired military or a child of a military member. They really do "understand" the military as the company was started by a couple of military officers that decided to insure each other, it all went on from there. They have a ton of different business affiliates to so if you become a member you can get discounts for things like an ADT alarm on your home, flowers from a national delivery service, Fedex form mailing packages, they have an online store for purchasing jewelry, etc.

Their rates on car insurance is hard to beat. I'd say 9 out of 10 times I beat the price of the members previous policy from elsewhere. (Geico included) They insure cars, motorcycles, motorhomes, boats, home, renters, PAF like jewelry, artworks, etc. They also have a Life Insurance company with great rates and there is no military war clause. They have investments, banking (savings, checking, loans both home and vehicle) and more.

One piece of advice though, you need to become a member while in the military because you can't do it once you've gotten out. If you become a member you extend eligibility to your children for the future. Renters insurance is cheap and in some cases can be only $200 a year and it covers you worldwide with personal liability coverage no matter if you are in 1 location and your stuff is in storage at another location. Peace of mind that can help you rest easier.

Sales pitch is over but as you can tell, I love them. USAA and Navy Federal are 2 companies that I've seen go above and beyond for the military and their families.  

Answer 7

Just a heads up- You won't be able to join USAA until you're actually in the military. They won't allow you to join while you're in basic. I've had USAA for a few years now, and everything about them is great. Their customer service is the best customer service i've ever dealt with. They have solved each and everyone of my issues in a timely manner. You will be able to use your ATM card ANYWHERE. I've used it in Iraq, Japan, Guam, Belgium I mean EVERYWHERE. Other banks don't allow this, and sometimes will lock your card if they think it is being used fraudulently. When you use the ATM you will be charged an ATM fee on the spot but will be reimbursed up to 20.00 in ATM fees each month. Every time you use your card as "credit" and not "debit" you earn points or cash credit (Depends which "rewards program" u choose to be in.)

I also use USAA for my Car Insurance. The only downfall with this- is that they have a whole different set of rules they go by. Traditional car insurances, your rate would go down and you'd get discounts like "good driver" or "25 and over". USAA doesn't do this, because you are already offered a discounted rate. Also, when i first signed up my insurance was super cheap- no accidents or any infractions on my record and my insurance has gone up severely. I called and asked why that was- and the explanation given to me was that they fracture in your paygrade into your insurance payments. They also take everyone in your geographical location and divide up the premium. I didn't quite understand it at first, but I guess it evens out in the long run because after paying almost 200.00 a month for car insurance- this month it went down to 51.00 a month. So it all evens out.

All in all i think it's a great choice.  

Answer 8

Yes! I think USAA is great. I am able to check my accounts (insurance, savings, checking, investments, etc.) online. I am able to transfer funds online to another USAA member (great for roommate situations w/ other servicemen or women i.e. Flight School for us). Their customer service has always been amazing...they understand a lot of the military lingo and situations you may be in.