I've been a member of USAA for nearly a decade. I never thought twice about shopping around my vehicle or home insurance because they offered really good coverage and were also the cheapest at the time. Great perk for serving my country, right? Cheap, quality insurance for veterans!
I'm in the process of purchasing a new home and asked for an insurance quote. USAA wanted to insure my house with a purchase price of $375K for a....wait for it....$702K replacement cost!!! Thinking this must be mistake in their automation system I decided to call and discuss this in person with an agent. Nope, the system was correct. After hashing out some more details about my property she was able to bring it down to $635K. She then proceeded to explain to me that it's not about how much you are buying your house for but how much it would cost to rebuild. Working in the real estate development world I am intimately familiar with costs to construct a new home and a fully burdened luxury home build of similar scope would cost around $250-300K.
After hanging up I began shopping for other options. I have friends who are agents with State Farm so I gave them a call. Replacement coverage amount? $330K. I asked them to run me a quote for my vehicle as well, just for curiosity sake. USAA 6 month vehicle quote - $952. State Farm 6 month vehicle quote - $416! I was paying more in car insurance for a $35K truck than I would've been for homeowners insurance on a $375K house.
Word of advice. Shop your rates. My blind allegiance to USAA has cost me thousands of dollars over the years.
Submitted May 20, 2019 at 09:54PM by equal2infinity http://bit.ly/2LYxfFk
