USAA

[exNavyOffRec]

I feel like it might be important for everyone to understand how Insurance companies make money. These "losses" don't mean the insurance companies are actually losing money. It's a bit of corporate doublespeak as an excuse to charge you more money or drop risky areas to further increase already astronomical profits.

When insurance companies say they "lose money" they mean they "Paid out" more in claims then they "took in on revenues" through premiums but this does not account for income from investments (aka "the float") so it does not mean that they actually lost money.

As an example from the first link below, using State Farm over the course of 2 years, their net worth went from $126.1bn to $131.2bn. Yes, they lost some money on claims vs premiums, but they still gained $5bn net value over that time.

https://www.repairerdrivennews.com/...record-loss-of-billions-in-auto-underwriting/

https://www.gaapdynamics.com/insights/blog/2022/02/08/insurance-companies-investing-the-float-to-create-a-stream-of-revenue/#:~:text=Due to the timing between,as “investing the float.”

Yes, insurance companies have investments and some have other business that help the parent company grow. They will talk about loss rate, a loss rate of 1.01 means they paid out 1.01 dollars for every 1.00 they brought in, while if they say loss rate of .97 then it was only 97 cents for every dollar brought in.

I was in a brief before I left the insurance industry and at the time 76 cents of every dollar in premium went right out the door for claims which left 24 cents for all other expenses before they start losing money.

 

[SynixMan]

We live in the midwest and they've been solid for homeowners/auto. Back in 16-19 when we were in Florida it felt like it was 20% hikes every 6 months on two basic cars and we briefly left for *Geico from 2019-2021.

Definitely feels like they're squeezing the people on the coasts which I both understand and think is shitty. Not sure why I should be subsidizing people in FL.

 

[JTS11]

Same… never had issues, but have heard the negative buzz over the last few years. I don’t have a homeowners policy with them now, so can’t speak to rates, but my renters and auto seem fine, though I haven’t bothered to compare with alternatives. I bank with them, so having everything consolidated like that is nice. Any savings would have to be significant for me to go through the hassle of changing that up.

That's been my mentality for not cutting the cord on cable and going to something like YouTubeTV or something else...

 

[Scruff]

I had a very good experience with USAA when my truck, trailer and HHG were stolen while PCS'ing. They covered pretty much everything with no pushback. Customer service seemed pretty top notch and payout was quick.

Also, Pro Tip: Don't make a stop in Denver, even for a night.

 

[JTS11]

I had a very good experience with USAA when my truck, trailer and HHG were stolen while PCS'ing. They covered pretty much everything with no pushback. Customer service seemed pretty top notch and payout was quick.

Also, Pro Tip: Don't make a stop in Denver, even for a night.

I knew a dude who did a DITY move from the East Coast to SD as a noob, who had all his shit stolen on a layover (uniforms, log books, etc). It was a logistical nightmare for him.

I can't imagine the headache...