USAA: Insuring the home front while you're at the front

Unites Services Automobile Association (USAA) of San Antonio, Texas is the company of choice for military personnel who want to deal with a firm that offers good service, at affordable rates, and understands the unique circumstances of its customers. USAA was founded in 1922 by a group of US Army officers to provide self-insurance because commercial companies viewed them as a high-risk group. It has since expanded into a Fortune 500 company that offers membership to military officers, non-commissioned officers, enlisted personnel, officers of the foreign affairs agencies, and members of their families. In addition to car insurance, it offers a full range of insurance, banking, and investment services.
USAA was a pioneer in the United States in direct marketing and currently, most of its business is conducted via Internet or telephone by employees in the San Antonio home office or a few satellite offices around the country. Until the late 1960s most of its business was conducted by mail. Reflective of its original mission to serve the military, USAA also has offices in Frankfurt, Germany and London, England. Its 286 acre campus in San Antonio has one of the largest single-occupancy buildings in the United States, and is the center of its insurance, banking and investment services.
Long having a competitive edge over other insurance companies because it was able to offer lower rates, in the last decade or so, USAA has seen the gap between it and commercial competitors lessen. It is still unique in that its policies do not contain a war-exclusion clause. In addition, USAA policy holders receive excess profits annually in Subscriber Savings Accounts (SSA). Each year, a portion of the company's profits is designated as ‘unassigned" and then distributed to each member's SSA based upon the amount of premium the member paid that year as well as the balance already in the SSA. Members of more than 40 years also get an annual ‘senior bonus' amounting to ten percent of the SSA balance.
One of the top ten automobile insurance companies in the United States, USAA is unique in that it is the only one that restricts service to those who are members, and to members of their families. It is also the only Fortune 500 financial services company that focuses on serving the US military.
As an auto insurer, USAA consistently ranks in the top tier of insurance providers in the US. It was one of Business Week's top two "Customer Service Champs" for the past three years. Claims can be filed online or by phone 24 hours a day, seven days a week from anywhere in the world and repairs are guaranteed at over 2,300 locations in the United States. USAA offers payment flexibility to fit the military paycheck schedule and toll-free phone service from anywhere in the world for its members.
GEICO is the main competition to USAA for car insurance in the United States, but has yet to make significant inroads into the military community.