USAA question...

[OurMoney1]

Noone beats USAA.

You can budget shop. And I am sure you will find cheaper insurance. But when it comes time to file a claim good luck with your el cheapo, catchy commercials talking lizard insurance.

USAA is a service business that happens to do insurance. They never turn their back on their members....period.

 

[WSurf]

Nah, not true. Or at least not true in every case. I left them once several years ago and came back a year or two after that with no problem.

Yea, I stand corrected. That is only people that get it through dependence.

 

[Mamma]

Noone beats USAA.

You can budget shop. And I am sure you will find cheaper insurance. But when it comes time to file a claim good luck with your el cheapo, catchy commercials talking lizard insurance.

USAA is a service business that happens to do insurance. They never turn their back on their members....period.

Until you try to re-fi your home loan that you already have with them. Won't match lower rates.

 

[Benhuntn]

Been with USAA since 1972.

 

[pilotyip]

Been a member since 1967. I was a 23 yr old flight student assigned to VT-1. I was getting a dependant ID card for my new bride 45 years ago and the YN Chief processing my wife's ID card said to me. "Sir (I am an Ensign, so this is funny) it is not my place to give you advice, but here is tip that will I want to give you. Join the Navy Federal Credit Union today and start an allotment of $10 per month into your account. Every time you get a raise take 1/2 of the raise and use it to increase your allotment” I followed his advice and in spite of a rocky civilian flying career I have a sizable sum in my investments as I approach my retirement. Starting early is the key, when you look at the potential of doubling in the last years. He also told me to join USAA, for both of these tips I am most thankful.

 

[LearLove]

Yip - not going to argue with you on the starting early thing but my generation (children of you baby boomers) and generations to come will not see the return on investment that you guys have.

When you started saving in 1966 the DOW was around 700. Today it is at 11K. You've seen a 10+ fold gain. Myself born in 1974 started saving in 1998 (a year after I got out of college). In in 1998 the DOW was 9000. Today 13 years later it is only 11K.

Some quick math shows your generation has seen a 230/year point gain over 45 years - where my generation is seeing a 154/year point gain. That's a 30% diff. For my generation to make the same return you've seen in 45 years the DOW would have to be over 20K by the time I'm in my mid sixties. I just cannot see that happening in the service economy that the US is becoming or has become. Maybe if we could bring back 50% of the manufacturing we've lost but I doubt it. We need to unionize Asia.

 

[sixman]

USAA is a great company up until you need help. I've been a loyal member for 20+ years only to learn USAA chooses not to stay with you through the hard times in life. I felt like I lost a long time friend when
I realized they were nothing more than a business focused on the bottom line, and not at all concerned about a member's needs. A great company when you have 800 plus credit score and a reasonable net worth of $500k+, but they cannot drop you fast enough if you suffer one of life's major setbacks as I have. I've been driven to near bankruptcy taking care of my children. I am a responsible and hardworking man, but such traits matter not to USAA.

USAA isn't true to their reputation of being a member owned, service driven company. I am saddened by their treatment of me during this time of need. My children and family suffer too as a result of USAA's lack of service and compassion.

USAA deserves no loyalty as they will not return such a commitment (I found out the hard way). I see their commercials and am sickened by the hypocrisy embedded into their marketing.

 

[pilotyip]

USAA is a great company u............and am sickened by the hypocrisy embedded into their marketing.

That has not been my expereince over 45 years of membership. Now they did act like a parent once, when my son had a couple accidents in his teens years. They told me to get a message to him that they would canx his insurance if he had one more accident. Per chance you live in FL and got caught it that flood insurance mess?

 

[pilotyip]

Yip - not going to argue with you on the starting early thing but my generation (children of you baby boomers) and generations to come will not see the return on investment that you guys have.

When you started saving in 1966 the DOW was around 700. Today it is at 11K. You've seen a 10+ fold gain. Myself born in 1974 started saving in 1998 (a year after I got out of college). In in 1998 the DOW was 9000. Today 13 years later it is only 11K.

Some quick math shows your generation has seen a 230/year point gain over 45 years - where my generation is seeing a 154/year point gain. That's a 30% diff. For my generation to make the same return you've seen in 45 years the DOW would have to be over 20K by the time I'm in my mid sixties. I just cannot see that happening in the service economy that the US is becoming or has become. Maybe if we could bring back 50% of the manufacturing we've lost but I doubt it. We need to unionize Asia.

Being somewhat selective if I might say, yes the DOW was 700 in 1967, it was also 700 in 1983. The DOW was 9000 in 1998, but then it was 7000 in 2003 and 2009. So your point is, don't invest because you will never be as lucky as me? Because I kept buying when it was low I benefited from it rising. If you had purchased in Mar of 09 like I did, you would have seen a 1000 pt a year gain. That process is still going on, unless of course union activity and BO's NLRB lap dogs destroy companies ability to make money.

 

[Hobit]

I had a recent claim after we hit a deer.

The claims agent completeley ignored us throughout the process and never returned a call.

Luckily the repairs were completed properly with one small hickup. Neither the local claims rep. or the people on the other end of the phone down in TX were helpful or the least bit invested in the issue.

Maybe my experience is anecdotal but it is in-line with two other stories in my circle.

 

[pilotyip]

I had a recent claim after we hit a deer.

The claims agent completeley ignored us throughout the process and never returned a call.

Luckily the repairs were completed properly with one small hickup. Neither the local claims rep. or the people on the other end of the phone down in TX were helpful or the least bit invested in the issue.

Maybe my experience is anecdotal but it is in-line with two other stories in my circle.

Then you should change insurance companies, if what you say is correct it will impact USAA with the loss of customers. However as per above, I have had a number of claims in my 45 year history and have never experienced anything but superior service, I am not going to change.

 

[IBNAV8R]

Now that I'm seeing USAA ads on TV, I'm worried that the business model may be changing. I have a zero-tolerance policy on poor customer service. The day I get service like Hobit explains will be the day I'm on the phone to other carriers - and online to tell my peers.

 

[pilotyip]

Now that I'm seeing USAA ads on TV, I'm worried that the business model may be changing. I have a zero-tolerance policy on poor customer service. The day I get service like Hobit explains will be the day I'm on the phone to other carriers - and online to tell my peers.

Then if that happens, you should change insurance companies, It will impact USAA with the loss of customers. However as per above, I have had a number of claims in my 45-year history and have never experienced anything but superior service, I am not going to change. From comparing notes with other whom have had claims with other insurance companies, you may be changing insurance companies on a regular basis. BTW Sample of US service, I carry $1,000 deductible on my collision. I am rear-ended when I stop for an idiot making an illegal left-hand turn. I am smacked from the rear, over $7,000 damage to my car. USAA waved the deductible because it was not my fault. Got my car fixed for free.

 

[Andy]

USAA Mortgages

I've been a USAA member for more than 25 years. I love the company and will stay with them.

However, I would caution anyone about getting a 1st or 2 mortgage or HELOC through USAA. Their rates are great. But they will take every last penny from you if you default on the mortgage.
I don't have an issue with their hardnosed approach; it's why you get low mortgage rates. However, if your home is so far underwater that you have little choice but to walk away, USAA will hound you to your grave and beyond.

My wife and I are fortunate enough to have avoided the housing train wreck to date but plenty of good people have been caught up in it. My advice to anyone who chooses to get a mortgage is to NOT get it from USAA; go with a bank that will write off your mortgage if things go awry.

 

[ultrarunner]

....However, if your home is so far underwater that you have little choice but to walk away, USAA will hound you to your grave and beyond....

Why would you walk away? I mean, is it now accepted to simply "walk away" from any commodity that goes underwater, even though you can still pay for it?Should all those folks that purchased $30,000 dollar cars that are worth 15k in two years walk away? Is there a difference? Or is it simply the "perception" that a "house" is going to appreciate?

Sorry to drift...

On topic, does USAA actually do the underwriting, or do they simply shop it?

 

[Andy]

Why would you walk away? I mean, is it now accepted to simply "walk away" from any commodity that goes underwater, even though you can still pay for it?Should all those folks that purchased $30,000 dollar cars that are worth 15k in two years walk away? Is there a difference? Or is it simply the "perception" that a "house" is going to appreciate?

Sorry to drift...

On topic, does USAA actually do the underwriting, or do they simply shop it?

That's one school of thought on underwater mortgages. I don't necessarily disagree with your line of thought.
There's also the school of thought that you signed a contract that specifically spells out the actions that the bank can take if you default. I don't necessarily disagree with that line of thought either. Since Morgan Stanley did exactly that with 5 office buildings (strategic default), this isn't a groundbreaking strategy. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aLYZhnfoXOSk I love how the Morgan Stanley spokesman said it wasn't a default ... that's EXACTLY what it was - they defaulted on their loans.
I could get much deeper into this whole discussion with respect to mispricing risk during the boom years and how the entire world economy will be mired debt saturation for years to come but that stuff is pretty boring to most people.

As for USAA's loans, I don't know if they hold or sell them. I've always assumed that they hold them but I'd have to research it before making that statement.

 

[RoughAir]

USAA sells their mortgage loans (at least they did with me). I was with Bank of America with a lousy rate, refinanced with USAA (with a good rate), 1 month later my loan was sold to Bank of America. My payments still go to a USAA address and I guess they service my loan.

 

[Mamma]

That's interesting. USAA told me, when I wanted to refinance my mortgage, that they do not broker/sell their loans. They said that is why their rates are a little higher. I told them I could care less what they did with my loan but I wanted a competitive rate. They balked so I left. Now, I guess enough people left that they reconsidered and now sell the loans.

 

[OurMoney1]

USAA owns their mortgages however US Bank services them. Its a shared risk agreement. Its still USAA till you get into the finite details of the game of risk and then USAA chooses not to go it alone.

The Bank of America statement sounds wrong. I have never known USAA to do business with anyone outside of their umbrella and I have had 4 mortgages with them since 1974.

 

[T-1GUY]

USAA has never beat Penfed for any loan I have shopped. I gave them an opportunity to match the rate, but they refused.

The secret to success: Insurance=USAA, Financial loans=Penfed
:beer: