USAA Auto Insurance—United Services Automobile Association—began in the 1920's when a group of U.S. Army officers came together to insure each other's vehicles. Today, USAA is a Fortune 500 financial services company that serves military members, veterans and their families with their insurance, banking and other financial needs.

USAA's auto insurance has a great reputation for customer service and the financial stability of the company. In J.D. Power and Associates most recent study of the auto insurance industry, they noted USAA's car insurance “also achieves a high level of customer satisfaction.” BusinessWeek magazine ranked USAA three years in a row as one of its top “Customer Service Champs.” Most recently, USAA made the Ward Group's 2009 50 Top-Performing Insurance Companies—a distinction USAA has held since the list began in 1991.

USAA's Property and Casualty Insurance Group—the umbrella under which USAA's auto insurance falls—boasts the following ratings from the top three ratings agencies:

• A.M. Best Company: A++ (Superior, highest of 16 possible ratings)
• Moody's Investors Service: Aaa (Exceptional, highest of 21 possible ratings)
• Standard & Poor's : AAA (Extremely Strong, highest of 21 possible ratings)

USAA also has a reputation for low-cost auto insurance. USAA's website offers free auto insurance quotes, which car insurance consumers can use for comparison shopping. The website also notes the results of a nationwide survey of new customers, taken between 2007 and 2008, where four out of five new customers reported that their premiums for USAA auto insurnace were less than what they had paid with their previous insurance companies.

Of course, as with all types of auto insurance, insurance premiums can differ based on the driver's location, the make and model of car, the driver's record and other factors. But USAA offers motorists a number of savings and discounts on their automobile insurance, including discounts based on taking driver training, mileage driven each year, insuring multiple vehicles with usaa, and even $50 off the first premium for new customers who request a quote and buy their auto insurance online.

Another financial advantage USAA offers its customers is that the company is not a corporation but rather it runs as an inter-insurance exchange. This is similar to how credit unions are organized; that is, customers are actually members who are insuring each other and they, in theory, own a share of the company. Under the law in Texas, where USAA's headquarters are located, each member's liability is limited to what he or she pays in insurance premiums. As a result, profits are shared among members.  

The auto insurance industry is highly competitive, which is good for the consumer. Even in such a competitive industry, USAA auto insurance stands out as a great value. If you qualify to join USAA, you would do well to consider using them for your auto insurance needs.