USAA question...

[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:

 

[GuinessGuy]

Their service is top notch.......and the rental thing......it must vary from state to state. I have a three bdrm townhouse in PA with oil heat and an underground tank and it cost me 60 a month.
I insure my primary residence, rental property, two cars and have a 529.......

 

[Slim]

I have USAA for homeowners and auto. My life insurance is with First Penn Pacific Life Insurance. When I retired from the ARNG, I asked a neighbor to help find a replacement for SGLI which would also cover my flying. He found it...$250,000 at $118 per quarter.

My parents had problems with USAA in 2003 when Hurricane Isabell(?) went through Virginia. I went over to help out and discovered an oak tree resting on their garage and lying over the sidewalk leading to the front door. Dad called USAA and was told his coverage for hurricane damage was terminated. They told him he was sent a letter cancelling the coverage at the same time all other members received the same letter.

My brother and I are also USAA members. He lives in a hurricane area (TX) and I don't (OH). We never received a similar letter and told USAA as much. Once they realized we wouldn't back down, they started cooperating.

I also use their credit cards but don't use them for auto loans. PFCU has been better for auto and HELOC loans.

 

[gern_blanston]

...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.

I would hound you to your grave too if you borrowed money from me and signed a contract and then refused to pay it back.
It's a crime, plain and simple. Why is that so hard for some people to understand?

 

[CatfishVT9]

I would hound you to your grave too if you borrowed money from me and signed a contract and then refused to pay it back.
It's a crime, plain and simple. Why is that so hard for some people to understand?

Agree 100%!!!!! If you can pay but walk away just because you are under water, then you are an orifice where excrement comes out.

......and ditto on the fog lights!

 

[jet2work]

I have had mixed results with USAA. I have been with them over 25 years, and in that time I have never had claim that was my fault. About 15 years ago, my relatively new car was hit by someone else (no fault state), and suffered what looked like minor damage. USAA decided to total the car and then gave me crappy comps. The comps they gave me were for different vehicles that were poorly equipped (one was a black car without factory A/C in Phoenix - no kidding). I went round and round with them for a month, and was treated like a thief by them the whole time. This was pre-internet days, and finally a dealer gave me a list of comps to show USAA. I ended up getting $5k more for my car than their previous final offer. Once the accident was attributed to the other driver USAA sent me my deductible back.

I had two home owners claim in 25 years. The first time I had a minor claim, and they treated my like a criminal, and gave me the run around for two weeks. Fortunately I told the independent adjuster they sent to look at the damage about the treatment I had recieved from USAA and he took care of me. The next year I got a letter in the mail threatening to drop me because of my claim history ( 1 claim in 15 years) The next homeowners claim they practically just sent me a big check???

So know I don't know what to think about them. They have been pretty inexpensive, in the past, and they always get high ratings. Many of my other buddies with USAA have had multiple claims with them, and never get hassled (maybe they just bend over and accept whatever USAA offers). I don't know why they used to give me such a hard time, and now they don't. I'm sure I have sent them close to $50K over the years that I have been with them, and all in all, they have returned about $20K.