Auto Insurance question (USAA)

I couldn’t figure find this anywhere on the web, so I was hoping someone had good inside knowledge, or can tell me if it’s just a misunderstanding.

I have USAA auto insurance, and I’m perfectly happy with it, and recommend it to others if they qualify. But I remember some guy once told me something, and I cant remember what exactly it was. Something like USAA actually has several auto insurance companies they will switch you around between depending on your history/stupidity, and they are not always as good as each other.

Something like a heirarchy of
USAA Auto Insurance
USAA Casualty Auto Insurance
USAA General indemnity Auto Insurance.

Is that true, or what’s the real deal.


Interesting question. I went and checked my proof of insurance card, and what it says under insurance company is “United Services Automobile Association”. I wonder if you could find out on their website.

Mine says USAA Casualty Insurance Company

Unlike life insurance, auto insurance has no substandard rates.
So let’s say a hypothetical auto insurance company (SDMB Auto insurance) will only take people with 1 ticket or less.
You apply to SDMBAI, but you have two tickets. We can either let your premium dollars walk, or we can start a substandard company (We will call it SDMB Insurance co.) So you get a policy from SDMBIC, and tell your friends that you are insured with SDMB.
Also some quirks in state laws, may make a company have a subsidiary for one or two states.
Both State Farm, and Farmers have substandard companies. I am sure most of the other majors do also.

So does mine.

I probably shouldn’t be posting a WAG in GQ, but…

I got hooked into USAA when I was married to an officer in the Navy. When we divorced, and I called them up to update our car insurance policies, I was moved to the Casualty Insurance Company. I was under the impression that it was because I was not directly affiliated with the military anymore - so I was “grandfathered in” to be able to keep my USAA insurance, but it was handled by a separate company.

I’ll try to find something to support that…Err, duh, how about the quote in post 4.