The most recent decision to open to everyone who ever served (in good standing + their families) increased the pool of potential customers from 21 million to well over 60 million people.
USAA gets thousands of calls every year from people asking about their eligibility status; the old rules were unnecessarily complicated, so this streamlines everything. It was a decision years in the making from a company that's extremely conservative in its business planning, so things couldn't have worked out better with the expansion. Even without the new members, 2009 was the company's most profitable year ever because they struck while the iron was hot... it sounds so evil, but money = stability. People cashed out of the market and retreated to a company they trust, and I'm not talking a few million-- this is billions of dollars within retirement/brokerage/cash accounts that people moved from just about every other big financial institution. I worked for USAA for three years, as both a front-line employee and in management, before joining the Navy. My old department completely obliterated every one of its targets before the end of the first quarter last year.
They can't possibly please everybody in every situation... We’re dealing with insurance, where somebody has to lose for everything to work. It wasn't fair when enlisted couldn't join. Then it wasn't fair when separated/retired military couldn't join because they didn't establish membership before getting out of the service. Now it's not fair because rates are going up and they might not kiss your ass every time you call (as an aside: if you’re calling for anything less than a mortgage app, new insurance/claims, or to complain, you’re doing something wrong. 98% of the business can be completed online or via the mobile site. I've never spoken to USAA over the phone as a customer.).
Policy rates would be going up whether they expanded or not... the average E-1 is generally more responsible than most turd college students who are still on mommy and daddy's payroll because they're directly affected by their actions. You can't really blame some possessions-less kids when other people are building $3mm beach-front homes and driving $80k cars in the center of hurricane alley. Insurance is shared risk, but it's also heavily dependent on individual situations: personal insurance history, location, value of item being insured. The average cost of homeowners/auto insurance really hasn't even kept pace with inflation... $3-5 for a gallon of gas/milk and $9000/semester for a state university?
If you’re looking for bargain basement, go somewhere else. They consistently win customer service awards, so either they’re doing something right or not enough people are complaining. They’re competitively priced, they pay claims, they give back to members and the respective communities, and they truly have our best interests in mind.
